Owner Can’t Pursue Statutory Show Cause Complaint to Cancel Lien… Fair Outcome?
June 10, 2024 —
David Adelstein - Florida Construction Legal UpdatesIf there is a payment dispute with a construction
lienor — could be a contractor, a subcontractor, or supplier – it is possible, and more than likely, a construction lien may get recorded against real property. This scenario is not uncommon as the lien is the mechanism for the lienor to collateralize their claimed nonpayment. Now, in reality, it does not take much money to record a lien. A lienor should utilize a lawyer to prepare their liens, but maybe they prepare liens in-house. Regardless, the recording of the lien is a nominal cost and the clerk that dockets and records the lien does NOT analyze the merits of the lien. That is not what the clerk is there to do; nor do you really want them the delve into the factual merits.
Well, what if a lien is facially invalid, meaning that the lien, on its face, includes information that demonstrates it is NOT properly perfected. Or what if the lienor failed to properly preserve or perfect its lien rights before recording the lien. This happens! Naturally, an owner of the real property wants the lien removed from the property. The owner does not want the encumbrance.
The owner could transfer the lien to a lien transfer bond under Florida’s Lien Law, but that is easier said than done. And this does not discharge the lien; it just removes the lien from the property to the security of the bond.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Supreme Court Overrules Longstanding Decision Supporting Collection of Union Agency Fees
July 02, 2018 —
Amy R. Patton, Blake A. Dillion, & Eric C. Sohlgren - Payne & FearsIn a 5 to 4 opinion, the United States Supreme Court overruled a longstanding decision which required government employees who are represented by but do not belong to a union, to pay a fair share or agency fee to cover the union's costs for collective bargaining activities. In Janus v. American Federation of State, County, and Municipal Employees, Council 31, 585 U.S. ___ (2018), the Supreme Court found that requiring such fees from nonconsenting public sector employees violates the First Amendment: "[n]either an agency fee nor any other form of payment to a public-sector union may be deducted from an employee, nor may any other attempt be made to collect such a payment, unless the employee affirmatively consents to pay."
Reprinted courtesy of Payne & Fears attorneys
Amy R. Patton,
Blake A. Dillion and
Eric C. Sohlgren
Ms. Patton may be contacted at arp@paynefears.com
Mr. Dillion may be contacted at bad@paynefears.com
Mr. Sohlgren may be contacted at ecs@paynefears.com
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Mortgage Battle Flares as U.K. Homebuying Loses Allure
January 28, 2015 —
Neil Callanan and Richard Partington – BloombergU.K. banks, which spent six years repairing their balance sheets after the 2008 property crash, want to advance more credit to homebuyers. Borrowers aren’t as enthusiastic.
Cheap funding costs and low default rates have made homebuyers attractive to lenders in recent years, boosting returns for companies such as Nationwide Building Society and Lloyds Banking Group Plc. (LLOY) Now, with demand for property cooling, they’re having to fight harder for business. Interest rates on the most popular mortgages fell to record lows in December, according to the Bank of England.
Mr. Callanan may be contacted at ncallanan@bloomberg.net; Mr. Partington may be contacted at rpartington@bloomberg.net
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Neil Callanan and Richard Partington, Bloomberg
Arbitration Provisions Are Challenging To Circumvent
May 13, 2019 —
David Adelstein - Florida Construction Legal UpdatesArbitration provisions are enforceable and they are becoming more challenging to circumvent, especially if one of the parties to the arbitration agreement wants to arbitrate a dispute versus litigate a dispute. Remember this when agreeing to an arbitration provision as the forum for dispute resolution in your contract. There is not a one-size-fits-all model when it comes to arbitration provisions and how they are drafted. But, there is a very strong public policy in favor of honoring a contractual arbitration provision because this is what the parties agreed to as the forum to resolve their disputes.
By way of example, in Austin Commercial, L.P. v. L.M.C.C. Specialty Contractors, Inc., 44 Fla.L.Weekly D925a (Fla. 2d DCA 2019), a subcontractor and prime contactor entered into a consultant agreement that contained the following arbitration provision:
Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be subject to the dispute resolution procedures, if any, set out in the Prime Contract between [Prime Contractor] and the [Owner]. Should the Prime Contract contain no specific requirement for the resolution of disputes or should the [Owner] not be involved in the dispute, any such controversy or claim shall be resolved by arbitration pursuant to the Construction Industry Rules of the American Arbitration Association then prevailing, and judgment upon the award by the Arbitrator(s) shall be entered in any Court having jurisdiction thereof.
The prime contract between the owner and prime contractor did not require arbitration.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Common Law Indemnification - A Primer
April 12, 2021 —
Brian F. Mark - Hurwitz & Fine, P.C.“Common law indemnification is generally available ‘in favor of one who is held responsible solely by operation of law because of his relationship to the wrongdoer.’” McCarthy v. Turner Constr., Inc., 17 N.Y.3d 369, 375 (2011), quoting Mas v. Two Bridges Assocs., 75 N.Y.2d 680, 690 (1990).
What is Common Law Indemnification and Who Can Assert it?
Indemnification, in general terms, is the right of one party to shift a loss to another and may be based upon an express contract or an implied obligation. Bellevue S. Assoc. v. HRH Constr. Corp., 78 N.Y.2d 282 (1991). Based on a separate duty owed the indemnitee by the indemnitor, common law indemnification, or implied indemnification, permits one who was compelled to pay for the wrong of another to recover from the wrongdoer the damages paid to the injured party. D’Ambrosio v. City of New York, 55 N.Y.2d 454, 460 (1982); Curreri v. Heritage Prop. Inv. Trust, Inc., 48 A.D.3d 505, 507 (2d Dept. 2008).
The premise of common law indemnification is vicarious liability, defined as “liability that a supervisory party (such as an employer) bears for the actionable conduct of a subordinate or associate (such as an employee) based on the relationship between the two parties” Black’s Law Dictionary (11th ed. 2019). Common law indemnification “reflects an inherent fairness as to which party should be held liable for indemnity.” McCarthy, 17 N.Y.3d at 375. It is a restitution concept which permits shifting the loss because, to fail to do so, would result in the unjust enrichment of one party at the expense of the other. Mas, 75 N.Y.2d at 680, 690; Kingsbrook Jewish Medical Center v. Islam, 172 A.D.3d 1342, 1343 (2d Dept. 2019).
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Brian F. Mark, Hurwitz & Fine, P.C.Mr. Mark may be contacted at
bfm@hurwitzfine.com
Re-Entering the Workplace: California's Guideline for Employers
May 18, 2020 —
Daniel Schneider – Newmeyer DillionWhen the California stay at home orders ultimately expire and Californians start to slowly transition back into the workplace, it will be critical for employers to have protocols in place which can best ensure the safety of their employees and that can continue to protect the public-at-large from the on-going spread of COVID-19. Recognizing the importance of this endeavor, the Governor's office last week released the
COVID-19 Industry Guidance for Office Workspaces and
Cal/OSHA General Checklist in order to provide guidance to businesses wanting to support a safe, clean environment for their employees. While the guidance is quick to point out that it is not intended to revoke or repeal any additional rights an employee may have to be protected in the workplace, and that it is not to be considered exhaustive of the steps employers need to take in order to protect their employees, the guidance does provide a useful roadmap for businesses to consider when establishing a robust plan that will best serve to protect employees from the spread of COVID-19 in the workplace.
Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/.
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Daniel Schneider, Newmeyer DillionMr. Schneider may be contacted at
daniel.schneider@ndlf.com
Biden Administration Issues Buy America Guidance for Federal Infrastructure Funds
April 25, 2022 —
Garret Murai - California Construction Law BlogAs you know, late this past year Congress passed and President Biden signed the largest infrastructure bill since President Franklin D. Roosevelt’s “New Deal” in 1933. The infrastructure bill provides $1.2 trillion in spending on the nations’ infrastructure over the next five years.
On Monday, the Biden Administration issued Initial Implementation Guidance requiring that, beginning May 14, 2022, materials paid for with infrastructure bill funds be made in America. The Guidance, which implements the “Buy America” provisions of the infrastructure bill requires that:
1. All iron and steel used in a project be produced in the United States;
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Vermont Supreme Court Reverses, Finding No Coverage for Collapse
May 18, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Vermont Supreme Court reversed the trial court's decision for collapse coverage. Commercial Constr. Endeavors, Inc. v. Ohio Sec. Ins. Co., 2019 Vt. LEXIS 173 (Vt. Sup. Ct. Dec. 13,2019).
Commercial Construction Endeavors, Inc. (CCE) built a livestock barn. By late December 2014, the barn was partially complete, with the foundation laid, wood framing erected, and roof trusses installed. In late December, strong winds caused the structure to collapse. CCE started clearing debris and rebuilding the barn, incurring additional labor and material costs.
CCE reported the collapse to Ohio Security. The policy covered loss to "Covered Property." Ohio Security determined that the loss was covered for "Off-Premises Property Damage Including Care, Custody or Control." This endorsement provided coverage for damage to real property upon which CCE was performing operations where the damage resulted from those operations. Ohio Security paid CCE $24,750, the full amount available under the endorsement, less a $250 deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com