Important Information Regarding Colorado Mechanic’s Lien Rights.
November 07, 2012 —
David McLain, Colorado Construction LitigationWith payment problems in the construction economy having accelerated over the past few years, there has been a substantial increase in mechanic’s lien activity and associated litigation. The typical mechanic’s lien claimant is a material supplier, a trade subcontractor, or even a general contractor that has not been paid by the developer/owner of the construction project. The reason for filing a mechanic’s lien claim is that it offers the prospect in many cases to make the unpaid construction professional a priority creditor, with a lien on the real estate that is superior to the construction lender.
One of the primary rules governing a mechanic’s lien claim is that the creditor’s formal written “Notice of Intent to File a Mechanic’s Lien” (hereafter “Lien Notice”) must be (1) served on the owner of the property for which the work was done or the materials used, and (2) served at the same time on the general contractor who has handled the construction project. After the creditor has made service of the lien claim by USPS certified mail (using the green return receipt card for proof of service) or separate personal delivery of the notice to the property owner and general contractor, ten full days must pass (not including the date of mailing of the notices) before the lien notice is filed in the public records.
After ten days have expired following the date of mailing using certified mail, or personal delivery of the notice to the property owner and the general contractor, the lien notice can be filed to make the lien valid.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC.Mr. McLain can be contacted at
mclain@hhmrlaw.com
Court Calls Lease-Leaseback Project What it is: A Design-Bid-Build Project
August 19, 2015 —
Garret Murai – California Construction Law BlogFirst there was “Prince.”
Then there was “The Artist Formerly Known as Prince.”
Then there was “The Artist Formerly Known as Prince (Because he Changed His Name to a Symbol), But Then Realized That No One Could Pronounce the Symbol (and What Good is a Symbol if Everyone Has to Wave Their Hands Wildly at You to Get Your Attention or Scream ‘Hey You!’), and So Changed His Name Back to Prince Again.”
Whatever name (or symbol) he was going by, everyone knew him as the guy who told us to party like it was 1999 (when 1999 still seemed like the distant future), who sang about a girl with a “pocket full of horses” (which totally flew past my junior high school brain at the time), and gave us such great metaphors as “if the elevator tries to bring you down, go crazy, punch a higher floor!”
Like Prince or his symbol, sometimes it doesn’t matter what label you put on something when everyone knows what that something is. In law, we call it looking at the “substance” rather than its “form.” And, in the next case, Davis v. Fresno Unified School District, the California Court of Appeals for the Fifth District made quick work of a purported “lease-leaseback” project – a project delivery method available to school districts whereby a school district leases property it owns to a developer for a minimum of $1, who in turns builds a school facility on the site and leases the facility and the site back to the school district, who in turn takes ownership of the facility and site at the end of the lease – and called it for what it was: a run-of-the-mill “design-bid-build” project.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Final Thoughts on New Pay If Paid Legislation in VA
August 15, 2022 —
Christopher G. Hill - Construction Law MusingsThis past General Assembly session, and after a governor’s amendment and with the convening of a study group, a new statute banning so-called “pay-if-paid” clauses from enforcement was passed. Some of the key features of the legislation are as follows:
It does not take effect until January 1, 2023, and,
For those construction contracts in which there is at least one general contractor and one subcontractor:
- It requires payment within 60 days of receipt of an invoice following the satisfactory performance of the work or within 7 days of receipt of payment by the Owner
- It allows for retainage
- It allows the higher-tier contractor to withhold money for improper performance
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Can Businesses Resolve Construction Disputes Outside of Court?
August 19, 2024 —
Scott L. Baker - Los Angeles Litigation BlogTime is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court.
Can California construction businesses
manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps.
1. Go Back to the Contract
Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
$6 Million in Punitive Damages for Chinese Drywall
November 27, 2013 —
CDJ STAFFJeffrey and Elisa Robin earlier were awarded $1.1 million in compensatory damages in their lawsuit against Knauf Plasterboard, the Chinese company which manufactured allegedly tainted drywall used in the Robin’s Coconut Grove, Florida home. Now a jury has awarded the couple an additional $6 million punitive damages.
The Robins’ lawyer, Victor Diaz, said it was “the best accomplishment of my legal career.”
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What Types of “Damages Claims” Survive a Trustee’s Sale?
February 28, 2018 —
Ben Reeves – Real Estate Litigation blog / Snell & WilmerIntroduction
Arizona’s trustee’s sale statutory scheme provides for the waiver of all defenses and objections to a trustee’s sale that: (i) are not raised prior to the sale, and (ii) do not result in an injunction against the sale going forward.
See A.R.S. § 33-811(C). In other words, if you have an objection to a trustee’s sale, you must seek and obtain an injunction prior to the sale or your objection will be waived.
Arizona’s Court of Appeals previously held that notwithstanding this statutory waiver, “common law” defenses to repayment of the debt survive a non-judicial foreclosure even in the absence of an injunction prior to the sale.
See Morgan AZ Financial, L.L.C. v. Gotses, 235 Ariz. 21, 326 P.3d 288 (Ct. App. 2014). Our analysis of the
Morgan decision can be found
here.
In
Zubia v. Shapiro, 243 Ariz. 412, 408 P.3d 1248 (2018), the Arizona Supreme Court revisited the issue of what claims survive a trustee’s sale, and clarified that if a person fails to enjoin a trustee’s sale prior to its occurrence, then that person waives any and all damages claims dependent upon a trustee’s sale. That person does not, however, waive damages claims that are independent of the sale. Thus, determining what types of claims are “dependent” versus “independent” of a trustee’s sale is of critical importance to lenders and borrowers alike.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Utah’s Highest Court Holds That Plaintiffs Must Properly Commence an Action to Rely on the Relation-Back Doctrine to Overcome the Statute of Repose
August 20, 2018 —
Shannon M. Warren - The Subrogation StrategistEarlier this summer, in Gables & Villas at River Oaks Homeowners Ass’n v. Castlewood Builders LLC, 2018 UT 28, the Supreme Court of Utah addressed the question of whether the plaintiff’s construction defects claims against the general contractor for a construction project were timely-filed, or barred by the statute of repose. In Utah, the statute of repose requires that an action be “commenced within six years of the date of completion.” The plaintiff alleged that its 2014 amended complaint naming the general contractor as a defendant was timely-commenced because, before the date on which Utah’s statute of repose ran, a defendant filed a motion to amend its third-party complaint to name the general contractor as a defendant, and the defendant subsequently assigned its claims to the plaintiff. The plaintiff argued that the filing of its 2014 amended complaint related back[1] to the date of its original complaint. The Supreme Court disagreed, holding that an action is “commenced” by filing a complaint and that a motion for leave to amend does not count as “commencing” an action.
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Shannon M. Warren, White and Williams LLPMs. Warren may be contacted at
warrens@whiteandwilliams.com
U.S. Codes for Deck Attachment
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFTed Cushman in Big Builder explained how “decks often collapse when the ledger attachment to the main house fails.” Now, codes require “positive attachment…a solid connection with closely spaced lag screws (or better yet, bolts)." Cushman demonstrated this pictorially in a detail. He also stated to make sure to fasten securely, remove siding, and install flashing.
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