U.S. Supreme Court Weighs in on Construction Case
January 13, 2014 —
Beverley BevenFlorez-CDJ STAFFThe U.S. Supreme Court weighed in on a construction case (Atlantic Marine Construction Co. v United States District Court for the Western District of Texas)—an occurrence newsworthy of itself, according to The California Construction Law Blog. Large general contractors may benefit by the court’s decision regarding “the enforceability of forum selection clauses.”
According to the blog, the U. S. Supreme Court set three standards, “which, together, strongly support the enforceability of forum selection clauses: (1) The party defying a forum selection clause bears the burden of proof…. (2) The inconvenience to the party defying a forum selection clause bears no weight…. [and] (3) The law of the selected forum applies when determining whether to transfer a case.”
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Traub Lieberman Partners Lisa Rolle, Erin O’Dea, and Nicole Verzillo Win Motion for Summary Judgment in Favor of Property Owner
September 30, 2024 —
Lisa M. Rolle, Erin O’Dea, Nicole Verzillo - Traub LiebermanTraub Lieberman Partners Lisa Rolle, Erin O’Dea, and Nicole Verzillo won motion for summary judgment in a premises liability matter brought before the Supreme Court of the State of New York, Westchester County. The Plaintiff allegedly tripped and fell in a pothole on the common driveway of five abutting properties and sustained an injury. The firm represented one of the multiple property owners. Traub Lieberman moved for summary judgment, asserting that the claims against the firm’s client should be dismissed as they did not own, operate, control or make special use of the driveway where the incident occurred. The firm also asserted that the alleged condition of the driveway that allegedly caused Plaintiff’s accident was a non-actionable, trivial defect. The firm also moved to dismiss the cross-claims asserted against them, contending that there was no evidence of negligence on behalf of the firm’s client. As such, the court found that the defect was a non-actionable, trivial defect. The firm secured dismissal of Plaintiff’s claims against the firm’s clients and against all moving and non-moving Defendants.
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Lisa M. Rolle, Traub Lieberman,
Erin O’Dea, Traub Lieberman and
Nicole Verzillo, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Ms. O'Dea may be contacted at eodea@tlsslaw.com
Ms. Verzillo may be contacted at nverzillo@tlsslaw.com
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How to Determine the Deadline for Recording a California Mechanics Lien
September 17, 2015 —
William L. Porter, Esq. – Porter Law Group BulletinThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California private works construction project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. As noted below, in order to pursue this remedy, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414).
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William L. Porter, The Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Party Cannot Skirt Out of the Very Fraud It Perpetrates
January 09, 2023 —
David Adelstein - Florida Construction Legal UpdatesAn interesting case came out of Florida’s Fourth District Court of Appeal that touches upon two important points.
First, the
independent tort doctrine does not apply when there is not a contract between the parties.
Second, an officer cannot escape fraud simply by claiming his or her actions were done as an officer of the company when he or she actively participated in the fraud.
Both of these points are best explained by initially going into the facts of this case. As you will see, the Court’s rationale relates to the premise that a party should not be able to skirt out of the very fraud it perpetrates.
Factual Background
Costa Investors, LLC v. Liberty Grande, LLC, 48 Fla.L.Weekly D7b (Fla. 4th DCA 2022) involved the ultimate development and construction of four adjacent properties into the Costa Hollywood Hotel. The properties were purchased by a company called Liberty Grande. Its president / manager was also the president of Liberty Grande’s wholly owned subsidiary called Costa Hollywood Property. Liberty Grande transferred the properties to Costa Hollywood Property and the deed was signed by the president / manager.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Insurer's Late Notice Defense Fails on Summary Judgment
December 13, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment to dismiss the claim because the insurer did not provide notice "as soon as practicable" was denied. Vintage Hospitality Group LLC v. Nat'l Trust Ins. Co., 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021).
Vintage owned hotels, one of which was struck by a severe hailstorm on July 21, 2018. Vintage was not aware of roof damage until two months after the storm, and did not make the connection between the hailstorm and roof damage until February 2020, when it reported the damage to National. The claim was denied because it was not reported "as soon as practicable" as required by the policy.
Vintage sued and National moved for summary judgment.
Vintage did not notice the leaks until September 2018. The focus was on fixing the leaks, and connection to the hailstorm did not register. The leaks persisted over the next year and a half. A construction company was called in to evaluate the leaking roof. The construction company advised that the roof had experienced previous hail damage which was causing the leaks. At this point, Vintage connected the damage to the hailstorm. A claim was promptly submitted to National, which denied the claim.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
How to Drop a New Building on Top of an Old One
December 05, 2022 —
Kriston Capps - BloombergFaçadectomy. That’s the tongue-in-cheek term for a widely unloved architectural compromise that developers sometimes strike: saving the historic veneer of an existing building while demolishing and replacing its internal structure. Façade preservation is especially popular in Washington, DC, where a federal cap on the height of buildings and the strength of the preservationist cause locally makes the case for adapting existing structures, even at great expense.
Façadism is rarer where cheaper tear-downs are possible, but over the last 40 years, this trend hit its stride on the East Coast. Prominent examples include the Spanish Embassy in DC and the Penn Mutual tower in Philadelphia.
A new condo tower in Boston’s South End isn’t a typical façadectomy. The development at 100 Shawmut Avenue looks as if a glassy modern building had been plopped down on top of an old warehouse. According to Tom Schultz, associate for The Architectural Team, the Boston-area firm behind the project, the case for incorporating a six-story warehouse into a new residential project wasn’t merely aesthetic. The site and structure lent itself to building up.
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Kriston Capps, Bloomberg
Texas Court of Appeals Conditionally Grant Petition for Writ of Mandamus to Anderson
April 25, 2011 —
Beverley BevenFlorez CDJ STAFFThe Texas Court of Appeals conditionally grant mandamus relief to Anderson Construction Company and Ronnie Anderson (collectively “Anderson”)… from the trial court in a construction defect lawsuit filed by Brent L. Mainwaring and Tatayana Mainwaring. See Tex. Prop. Code Ann. 27.001-.007 (West 2000 & Supp. 2010). Relators contend the trial court abused its discretion by compelling discovery while the case was abated by operation of law.
The Court of Appeals opinion describes what led up to the proceedings: “The Mainwarings’ original petition identified certain defects in their Anderson-constructed home. Those defects concerned the roof trusses and framing, air conditioning, mortar and masonry, exterior doors and windows, and weep holes. With respect to the five areas of defects identified in their original petition, the Mainwarings gave Anderson the statutorily required notice on January 13, 2010. After implementing agreed extensions, Anderson made an offer of settlement for the defects the Mainwarings identified in their notice. Almost eight months later, the Mainwarings filed an amended petition adding defects they had not included in their original petition and notice. The additional defects the Mainwarings included in their amended petition had not been addressed by Anderson’s offer of settlement.”
Following these events, Anderson claimed the Mainwarings did not respond in writing to their settlement offer. “Anderson filed a verified plea in abatement on December 2, 2010. In the trial court, Anderson claimed that the Mainwarings failed to respond in writing to Anderson’s settlement offer, as required by Section 27.004(b) of the RCLA. See Tex. Prop. Code Ann. 27.004(b)(1). The Mainwarings moved to compel discovery responses from Anderson. The Mainwarings alleged that they rejected Anderson’s settlement offer, and that if their response was insufficient, they contend that Anderson’s offer was rejected by operation of law on the twenty-fifth day after the Mainwarings received it. See Tex. Prop. Code Ann. 27.004(i). The Mainwarings’ motion to compel was not supported by affidavit. See Tex. Prop. Code Ann. 27.004(d)(2). On January 13, 2011, Anderson filed a verified supplemental plea in abatement. Anderson alleged that the Mainwarings failed to provide written notice concerning the newly alleged defects and complained the Mainwarings were attempting to circumvent the inspection and resolution procedure of the RCLA. Over Anderson’s objection that the lawsuit had been abated, the trial court granted the Mainwarings’ motion to compel discovery.”
After listening to both sides, the Court of Appeals offered this reasoning for their opinion: “The parties do not dispute that Anderson inspected the property before the Mainwarings alleged the existence of additional defects in their amended pleading, nor do the Mainwarings claim that Anderson has been given an opportunity to inspect the additional defects the Mainwarings identified in their amended pleadings. We conclude the trial court did not have the discretion to deny or lift the abatement until the Mainwarings established their compliance with the statute. In other words, the Mainwarings are required to provide Anderson a reasonable opportunity to inspect the additional defects identified by their amended pleading, which will allow Anderson the opportunity to cure or settle with respect to the newly identified defects.”
The Court of Appeals spoke directly on the issue of mandamus relief: “The Mainwarings contend that mandamus relief is not available because the trial court’s ruling does not prevent Anderson from making settlement offers during the discovery process. ‘An appellate remedy is “adequate” when any benefits to mandamus review are outweighed by the detriments.’ In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 136 (Tex. 2004). The failure to abate a case is typically not subject to mandamus. See In re Allstate Cnty. Mut. Ins. Co., 85 S.W.3d 193, 196 (Tex. 2002) (citing Abor v. Black, 695 S.W.2d 564, 567 (Tex. 1985)). In this case, however, the case was abated by operation of law. By ignoring the statutory abatement, the trial court interfered with the statutory procedure for developing and resolving construction defect claims. See In re Kimball Hill Homes Tex., Inc., 969 S.W.2d 522, 525 (Tex. App. Houston [14th Dist.] 1998, orig. proceeding) (An appeal provides an inadequate remedy for the trial court’s failure to observe automatic abatement pursuant to the RCLA.). The benefits of mandamus review are not outweighed by the detriments of mandamus review in this case.“
In conclusion, “The trial court had no discretion to compel discovery while the case was abated, and Anderson, who has been compelled to respond to discovery during a period the case was under an automatic abatement, has no adequate remedy on appeal. Accordingly, we conditionally grant the petition for writ of mandamus. The writ will issue only if the trial court fails to vacate its order of February 3, 2011, and fails to refrain from proceeding with the case until a motion to reinstate is filed that establishes compliance with the notice and inspection requirements of the Residential Construction Liability Act.”
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Construction Delayed by Discovery of Bones
June 28, 2011 —
CDJ STAFFWork stopped on a $7 million construction project in Oak Harbor, Washington, after three sets of Native American remains were found. The Washington State Department of Archaeology and Historic Preservation had suggested that the project employ an archaeologist. City, state, and tribal officials are determining what will happen next. The Seattle Times reports that Jim Slowik, Oak Harbor’s mayor, has asked for a review of why no archaeologist was part of the project.
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