Thank Your Founding Fathers for Mechanic’s Liens
August 04, 2015 —
Craig Martin – Construction Contract AdvisorYep, our founding fathers, Thomas Jefferson and James Madison specifically, Craig Martin, Construction Attorney Lamson Dugan & Murray LLPwere responsible for proposing the first mechanic’s lien laws in the United States. Mechanic’s liens were not a new concept when the first law was passed in the United States; France, Spain and other countries already had them. But, in England, where landownership was limited to the upper classes, the concept of giving a tradesman an interest in the land for his labors was a truly foreign concept.
The Early Years—Pre Mechanic Lien
In the 1700s, there was no right to a mechanic’s lien. The possession of land was never deemed to be changed by its improvement and the laborer or material supplier was held to have acquired no right of lien in the property. The only remedy the laborer or material supplier had was to bring an action against the land owner. If the laborer or material supplier obtained a judgment, he would acquire the lien of a judgment creditor. A Treatise on the law of Mechanics’ Liens on Real and Person Property, 1893.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Social Engineering Scams Are On the Rise – Do I Have Insurance Coverage for That?
June 01, 2020 —
Jeffrey Dennis & Heather Whitehead - Newmeyer DillionCyber attackers all know that the majority of organizations are currently working from home due to the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic. And, as would be expected, social engineering scams are on the rise. Nonetheless, there may be limitations in your cyber liability insurance policy for these types of claims. It is advisable to take the initiative to review such insurance policies in detail for coverage considerations prior to the occurrence of any cyber incident. And, of course, protect your business from attacks by engaging in precautious cyber safety efforts.
What Is Social Engineering?
Social engineering refers to various means to manipulate individuals in the online environment so that they divulge sensitive, personal information, such as banking information, which may include account numbers and passwords. This can also take the form of receiving a request to transfer funds to what the victim believes is another employee, trusted financial information or other party with whom the person has a business relationship with. Unfortunately, however, those funds ultimately are received by the engineer of the cyber attack.
Reprinted courtesy of
Jeffrey M. Dennis, Newmeyer Dillion and
Heather Whitehead, Newmeyer Dillion
Mr. Dennis may be contacted at jeff.dennis@ndlf.com
Ms. Whitehead may be contacted at heather.whitehead@ndlf.com
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SB800 CONFIRMED AS EXCLUSIVE REMEDY FOR CONSTRUCTION DEFECT CLAIMS
January 24, 2018 —
Jeffrey Brower and Nathan Owens - Newmeyer & Dillion, LLPIn
McMillin Albany LLC v. Superior Court (Cal. Ct. App., Aug. 26, 2015) 2015 Daily Journal D.A.R. 9931 (“
McMillin”), the Fifth Appellate District Court of Appeal in California published a resounding win for builders, general contractors, and others entities seeking the protections of the Right to Repair Act, Civil Code sections 895, et seq. (“SB800”). The
McMillin Court firmly rejected the reasoning and outcome of both
Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 (“
Liberty Mutual”) and
Burch v. Superior Court (2014) 223 Cal.App.4th 1411 (“
Burch”), and held that:
the Legislature intended that all claims arising out of defects in residential construction, involving new residences sold on or after January 1, 2003 (§ 938), be subject to the standards and the requirements of the Act; the homeowner bringing such a claim must give notice to the builder and engage in the prelitigation procedures in accordance with the provisions of Chapter 4 of the Act prior to filing suit in court.
(
McMillin, Opinion, p. 15.) The
McMillin Court further held that even if the claimant’s counsel intentionally pleads around SB800 by asserting only tort causes of action, SB800 still applies to all defect claims and a stay of the action to require SB800 compliance is appropriate.
Newmeyer & Dillion has strongly supported builders’ efforts to enforce the Right to Repair Act since its inception. The firm filed an amicus brief in
McMillin on behalf of Leading Builders of America (“LBA”), an association of the leading residential homebuilders in the United States. For years, LBA members developed their warranty and dispute resolution procedures according to the Right to Repair Act and performed prelitigation repairs to the satisfaction of thousands of homeowners.
Liberty Mutual and
Burch undermined the Right to Repair Act by allowing plaintiffs’ attorneys to circumvent the prelitigation procedures to the detriment of homeowners and builders, resulting in confusion and increased litigation. The
McMillin decision breathes new life into the Right to Repair Act and sets the stage for future review by the California Supreme Court.
The
McMillin Court focused on the express language of the Right to Repair Act to arrive at its conclusion that Civil Code sections 896, 897, 943 and 944 demonstrate a clear Legislative intent to occupy the field of construction defect litigation – a belief held by nearly all in the construction industry and the California Superior Courts before
Liberty Mutual. The
McMillin Court found further support for SB800’s comprehensive nature in the Legislative history, which consistently described the Act as “groundbreaking reform” and a “major change” in construction defect litigation, designed to “significantly reduce the cost of construction defect litigation and make housing more affordable.” (
McMillin, Opinion, pp. 18-19.) The
McMillin Court found it inescapable that the Right to Repair Act exclusively governs construction defect litigation involving homes sold on or after January 1, 2003.
The
McMillin, decision will have a significant impact on construction litigation moving forward in two respects. First,
McMillin, is the only appellate decision to date to address whether a builder has the right to enforce SB800 when the claimant’s counsel deliberately attempts to plead around SB800 by asserting only tort claims. Second, the decision provides trial courts with the authority and precedent to ensure compliance with the Right to Repair Act. Trial courts may also find it necessary to revisit prior rulings against builders that relied on
Liberty Mutual.
Newmeyer & Dillion will continue to advocate in support of builders and general contractors by working vigorously to gain further support for the
McMillin, decision and setting the stage for review by the California Supreme Court.
Jeffrey R. Brower is an associate at the Newport Beach office of Newmeyer & Dillion, LLP. His practice focuses on business and construction litigation. Jeffrey can be reached at jeffrey.brower@ndlf.com.
Nathan Owens is the managing partner of the Las Vegas office for Newmeyer & Dillion, LLP. He represents businesses and individuals operating in a wide array of economic sectors including real estate, construction, insurance and health care in all stages of litigation in state and federal court. Nathan can be reached at nathan.owens@ndlf.com.
About Newmeyer & Dillion
For more than 30 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 business, employment, real estate, construction and insurance law, 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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Don’t Just Document- Document Right!
February 06, 2019 —
Christopher G. Hill - Construction Law MusingsI have stated to clients on many occasions that paper is a lawyer’s best friend. Because of a recent case from the Virginia Supreme Court, I should modify that to the correct paper is a lawyer’s best friend. In Commonwealth v. AMEC Civil, LLC, AMEC sued the Virginia Department of Transportation (“VDOT”) seeking more than $21 million in damages. The Mecklenburg County Circuit Court granted AMEC almost all of its damages and found that AMEC’s notice of intent to make a claim was proper under the Virginia Code even if it was not in the proper form.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
99-Year-Old Transmission Tower Seen as Possible Cause of Devastating Calif. Wildfire
December 11, 2018 —
Contra Costa Times - Engineering News-RecordDec. 08 --PULGA -- With winds gusting around 50 mph in the morning hours of Nov. 8 , portions of a PG&E steel lattice transmission tower -- exposed to the elements high on a ridgetop and originally built when Woodrow Wilson was president -- failed.
As high-voltage lines got loose and whipped around, striking the metal tower, molten aluminum and metal sprayed across tinder dry vegetation, igniting the brush. Arriving firefighters could only watch as the blaze underneath the power lines quickly spread to wild timber and brush.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Water Alone is Not Property Damage under a CGL policy in Connecticut
July 22, 2024 —
Bill Wilson - Construction Law ZoneThe Connecticut Appellate Court recently provided guidance on what does not constitute property damage under a typical contractor’s Commercial General Liability (CGL) insurance policy in Westchester Modular Homes of Fairfield County, Inc. v. Arbella Protection Ins. Co., 224 Conn App. 526 (2024). In this case, the contractor defended construction defect claims brought by an owner and then sued its insurer to recover $500,000 in defense costs for failing to provide a defense under the contractor’s policy. In Connecticut, an insurer is obligated to provide a defense based on what is alleged in a complaint and if it has actual knowledge of any facts establishing a reasonable possibility of coverage. The contractor provided extrinsic evidence for two defects claimed by the owner: (1) windows were installed improperly such that water was collecting and will continue to collect in the window soffit areas and eventually rot the wall, and (2) the vapor barrier was not installed in the second-floor ceiling which will result in water condensation and water damage to the roof structure if not remedied.
The insurer relied on typical provisions included in most CGL policies. The insurer has no duty to defend the insured against any suit seeking damages for property damage to which the insurance does not apply. The term “property damage” is defined as “physical injury to tangible property, including all resulting loss of use of that property.” Under well-established Connecticut law, the phrase “physical injury” unambiguously connotes damage to tangible property, causing an alteration in appearance, shape, color, or some other material dimension. It is also well-established that claims for property damage caused by defective work are covered under a CGL policy but claims for repair of the defective work itself are not. The insurer denied any duty to defend because no coverage was triggered under the liability policy. Both parties moved for summary judgment.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Happenings in and around the 2015 West Coast Casualty Seminar
May 07, 2015 —
Beverley BevenFlorez-CDJ STAFFWest Coast Casualty Construction Defect Seminar returns to the Disneyland Hotel next week (May 14th and 15th), and the Construction Defect Journal has compiled a list of concerts, sporting events, and museum exhibitions taking place in and around Anaheim. Whether you like to spend your personal time checking out a new band, or watching your favorite Angel slide into home, or perusing the local art museum, there is something to spark your interest.
CONCERT VENUES
THE HOUSE OF BLUES IN ANAHEIM
Located in Downtown Disney, The House of Blues in Anaheim is a short walk from the convention hall.
Live Band Karaoke
Wednesday, May 13th Starting at 10pm
No Cover
For More Information...
Rockin’ The Blues with Griff Hamlin
Thursday, May 14th at 10pm
For More Information...
Tyrone Wells
Saturday, May 16th at 7pm
For More Information and to Purchase Tickets...
THE GROVE OF ANAHEIM
Near Angel Stadium, the Grove of Anaheim is just a few miles away from the seminar location.
Ministry
Monday, May 11th Doors Open at 7pm / Show Begins at 8pm
For More Information and to Purchase Tickets...
Kamelot plus Special Guest Dragonforce
Friday, May 15th Doors Open at 7pm / Show Begins at 8pm
For More Information and to Purchase Tickets...
CHAIN REACTION
Attendees can escape to this all-ages club that’s just a ten minute drive from the Disneyland Hotel.
Ice Nine Kills
Wednesday, May 13th at 7pm
For More Information and to Purchase Tickets...
Warped Tour Battle of the Bands
Thursday, May 14th at 7pm
For More Information and to Purchase Tickets...
Manifest Presents
Saturday, May 16th at 7pm
For More Information and to Purchase Tickets...
SPORTING EVENTS
ANGEL’S STADIUM – BASEBALL
Take care of your popcorn-and-peanuts-and-cracker-jacks fix while cheering for the Angel’s—conveniently just a few miles from the Disneyland Hotel.
Angels v. Colorado Rockies
Tuesday, May 12th at 7:05pm
Wednesday, May 13th at 7:05pm
For More Information and to Purchase Tickets...
MUSEUM EXHIBITIONS
MUZEO
This local museum and cultural center is a short drive from the convention hall.
Cougars and Grizzlies: Sharing their Path
April 18, 2015-September 13th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm
For More Information and to Purchase Tickets...
BOWERS MUSEUM (Santa Ana)
Voted “The Best Museum in Orange County” by OC Register Readers for 16 consecutive years, this arts and cultural center is worth the fifteen minute drive.
Qi Baishi: China’s Modern Master
April 11th, 2015-July 11th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Where Ends Meet: A Retrospective of Works by Nancy Ravenhall Johnson
March 13th, 2015-August 16th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Exhibition: Adams, Curtis, and Weston: Photographers of the American West
May 16th, 2015-November 29th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Lecture: Adams, Curtis, and Weston: Photographers of the American West
Saturday, May 16th from 1:30pm to 2:30pm
For More Information and to Purchase Tickets...
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Sales of Existing Homes in U.S. Fall to Lowest Since 2012
March 26, 2014 —
Shobhana Chandra – BloombergPurchases (ETSLTOTL) of previously owned homes in the U.S. declined in February to the lowest level since July 2012, a sign the industry may be slow to recover.
Contract closings on existing properties fell 0.4 percent to a 4.6 million annual rate, matching the median projection in a Bloomberg survey, figures from the National Association of Realtors showed today in Washington. Prices rose 9.1 percent from a year earlier, the group said.
The slowdown in sales since the middle of last year reflects a pickup in borrowing costs, declining affordability and, more recently, bad weather. Faster job growth that generates bigger income gains are needed to spur demand and allow housing to contribute more to the economy.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
