DIR Public Works Registration System Down, Public Works Contractors Not to be Penalized
July 15, 2024 —
Garret Murai - California Construction Law BlogIn a bit of a major freak-out this past Friday, June 28, 2024, public works contractors with Department of Industrial Relations (“DIR”) registrations expiring on June 30, 2024 were unable to renew their public works registrations. Those who had submitted checks were not receiving responses, DIR was not accepting online payments, and there was no telephone number or address to contact the DIR about the issue.
This, of course, could have been a big deal since Labor Code section 1725.5 prohibits contractors and subcontractors from bidding on, being listed in a bid, or being awarded a public works contract unless registered with the DIR.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Ceiling Collapse Attributed to Construction Defect
May 19, 2011 —
CDJ STAFFWSMV, Nashville reports that the ceiling collapse in a Franklin, Tennessee Kohl’s was attributed to a construction defect by fire officials. The officials noted that the ceiling was renovated at the time. No injuries were reported.
The report notes that “inspectors were supposed to look at the renovations next week, but fire officials said that will have to be delayed until another time.”
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Real Estate & Construction News Round-Up (11/16/22) – Backlog Shifts, Green Battery Storage, and Russia-Ukraine Updates
December 05, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores backlog shifts in the nonresidential construction sector, updates from the ongoing war between Russia and Ukraine, lithium-ion battery storage issues in New York City, and more.
- According to Associated Builders and Contractors, construction backlog fell back below the reading observed in February 2020, largely due to a decline in the commercial and institutional sector. (Sebastian Obando, Construction Dive)
- Amid celebration after retaking Kherson from retreating Russian troops, the Kremlin targeted critical infrastructure before withdrawing. (Michael Kern, Oil Price)
- Real estate value in the metaverse is rising, given that virtual land can be built upon to create unique branding experiences that lend to advertising, marketing, socializing, and entertainment. (Evan Bourke & Sarah Hedley Hymers, Euronews)
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On Rehearing, Fifth Circuit Finds Contractual-Liability Exclusion Does Not Apply
November 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiOn rehearing, the Fifth Circuit determined that the contractual-liability exclusion did not apply to bar coverage for damage caused by the insured contractor to the home it constructed. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20727 (5th Cir. Oct. 29, 2014).The court withdrew its prior opinion, summarized here.
Arrow Development, Inc. contracted with the Crownovers to construct a home. The contract had a warranty-to-repair clause, which, in paragraph 23.1, provided that Arrow would "promptly correct work . . . failing to confirm to the requirements of the Contract Documents." After the Crownovers moved in, cracks began to appear in the walls and foundation of the home. Additional problems with the heating, ventilation, and air conditioning ("HVAC") caused leaking in the exterior lines and air ducts inside the home. To compensate for defects in the HVAC system, the system's mechanical units ran almost continuously in order to heat or cool the home. Because they were overburdened, the mechanical units had to be replaced. The Crownovers paid several hundred thousand dollars to fix the problems with the foundation and HVAC system.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Wisconsin Court of Appeals Holds Economic Loss Doctrine Applies to Damage to Other Property If It Was a Foreseeable Result of Disappointed Contractual Expectations
January 15, 2019 —
Gus Sara - The Subrogation StrategistIn Kmart Corp. v. Herzog Roofing, Inc., 2018 Wisc. App. Lexis 842, the Court of Appeals of Wisconsin considered whether the economic loss doctrine barred the plaintiff’s negligence claims against the defendant roofer for damages resulting from the collapse of a roof. The Court of Appeals held that, while some of the plaintiff’s property damages were unrelated to the scope of the contract, the economic loss doctrine still applied to those damages because they were a foreseeable result of the defendant’s breach of the contract. This case establishes that in Wisconsin, the economic loss doctrine bars tort claims for damage to property unrelated to the contract if those damages were a reasonably foreseeable risk of disappointed expectations of the contract.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Application of Efficient Proximate Cause Doctrine Supports Coverage
January 06, 2012 —
Tred R. Eyerly - Insurance Law HawaiiRelying on the efficient proximate cause doctrine, the court determined coverage potentially existed for damage caused by water. Union Sav. Bank v. Allstate Indem. Co., 2011 U.S. Dist. LEXIS 134398 (S.D. Ind. Nov. 21, 2011).
The Tods purchased property that was mortgaged by Union Savings. The Tods obtained a Landlords Policy for the property from Allstate. When the Tods were in default on their loan, Union Savings notified them that foreclosure proceedings would commence. Union Savings sent an appraiser to the property who discovered water in the basement. Water and electricity to the building were off. Union Savings notified Allstate and later filed a formal claim under the mortgagee clause in the Landlords Policy. This clause stated, "A covered loss will be payable to the mortgagees named on the policy declaration. . . ."
Allstate denied coverage, citing exclusions for water damage.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Newmeyer & Dillion Named a Best Law Firm in 2019 in Multiple Practice Areas by U.S. News-Best Lawyers
November 21, 2018 —
Newmeyer & DillionNEWPORT BEACH, Calif. – NOVEMBER 1, 2018 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that U.S. News-Best Lawyers® has recognized the firm in its 2019 "Best Law Firms" rankings, with six of its practice areas earning the highest ranking possible - Tier 1 in the Orange County Metro area. The practices recognized include Commercial Litigation, Construction Law, Insurance Law, Litigation - Construction, Litigation - Real Estate and Real Estate Law.
Firms included in the 2019 "Best Law Firms" list have been recognized by their clients and peers for their professional excellence. Firms achieving a Tier 1 ranking have consistently demonstrated a unique combination of quality law practice and breadth of legal expertise.
"We are honored that our clients and peers continue to recognize the firm's exceptional attorneys and the firm's commitment to delivering personalized service and achieving the best results possible to those we represent," said Managing Partner Jeff Dennis.
To be eligible for the "Best Law Firms" ranking, a firm must have at least one attorney recognized in the current edition of The Best Lawyers in America for a specific practice area. Best Lawyers recognizes the top 4 percent of practicing attorneys in the U.S., selected through exhaustive peer-review surveys in which leading lawyers confidentially evaluate their professional peers.
About Newmeyer & Dillion
For almost 35 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of corporate, privacy & data security, employment, real estate, construction, insurance law and trial work, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.
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Back to Basics: What is a Changes Clause?
July 18, 2018 —
J. Cole Phillips – Smith CurrieThe Changes Clause is one of the most important, perhaps the most important, provision in any construction contract. Project designs are rarely perfect. A Changes Clause provides a mechanism for dealing with such imperfections as well as allowing project owners the flexibility to update a project’s design as the project progresses. A good Changes Clause specifies when an owner can change the original scope of the contract, how the parties should resolve the value of the changed scope and when payment should be made to the contractor or a credit given to the owner. A good Changes Clause will also provide a mechanism for the contractor to notify the owner when it believes a change order is due and specify the time within which such notice must be given. For the contractor, failure to pay attention to the requirements of the Changes Clause can lead to forfeiture of the right to seek an adjustment to the contract value or contract completion date. For an Owner, failure to pay attention to and enforce the requirements of the Changes Clause can result in unnecessary payments to the Contractor.
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J. Cole Phillips, Smith CurrieMr. Phillips may be contacted at
jcphillips@smithcurrie.com