Seattle Washington Building Expert Directory

Protecting and Perfecting Your Mechanics Lien when the Property Owner Files Bankruptcy

June 19, 2023 — William L. Porter - Porter Law Group
Introduction/Overview of the Mechanics Lien Law The California mechanics lien is a powerful tool for contractors, subcontractors and materials suppliers to secure payment of unpaid construction debts. A contractor, subcontractor or materials supplier is allowed to record a mechanics lien on real property, based on the value added to the property by the claimant during the construction process. The recorded mechanics lien provides the claimant with legal right to force the sale of the improved real property and thereby obtain the funds necessary to pay the delinquent debt. Under the usual procedure, the first step is the recording of mechanics lien with County Recorder’s office in the County where the property is located. A lawsuit to foreclose on the lien must then be filed in the County Superior Court of that County, within ninty (90) days after the mechanics lien is recorded. The goal of the lawsuit is to obtain a judgment for foreclosure on the mechanics lien by way of a forced sale of the property. The net proceeds of the sale will be used to pay the unpaid construction debt secured by the recorded mechanics lien, assuming that sale proceeds exceed the amount of senior liens and encumbrances. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Appellate Court reverses district court’s finding of alter ego in Sedgwick Properties Development Corporation v. Christopher Hinds (2019WL2865935)

August 13, 2019 — Frank Ingham - Colorado Construction Litigation
Division V of the Colorado Court of Appeals addressed, for the first time, corporate veil-piercing in the context of a single-member, single-purpose LLC that is managed under a contract by another company. On July 3, 2019, the Court of Appeals reversed the order of the Honorable Ross B. Buchannan, Denver District Court Judge (17CA2102), who held that Plaintiff/Appellee Christopher Hinds satisfied the elements required to pierce the corporate veil of Sedgwick Properties Development Corporation (“Sedgwick”). Background Defendant 1950 Logan, LLC (“1950 Logan”) was the developer of a building located at 1950 Logan Street, in Denver, called The Tower on the Park (“Project”), which contained 141 individually owned condominium units. The Project was completed in 2006. 1950 Logan was a single-purpose entity created for the construction of the Project, which is a common practice in the construction industry. After the units were sold in 2006, the LLC wrapped up operations. Read the court decision
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Reprinted courtesy of Frank Ingham, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Ingham may be contacted at ingham@hhmrlaw.com

EPA Threatens Cut in California's Federal Highway Funds

October 14, 2019 — Tom Ichniowski - Engineering News-Record
In a new salvo against the state of California, the U.S. Environmental Protection Agency has threatened to restrict uses for some federal highway aid to the state unless it moves to withdraw what EPA terms “backlogged and unapprovable" plans that outline steps the state would take to reduce pollution and meet Clean Air Act standards. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Skanska Will Work With Florida on Barge-Caused Damage to Pensacola Bay Bridge

October 19, 2020 — Jim Parsons - Engineering News-Record
Florida Dept. of Transportation investigators continue to assess damage to the Pensacola Bay Bridge, which sustained multiple impacts from two construction barges unmoored by Hurricane Sally’s storm-driven waves on Sept. 15. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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New Jersey Legislation Would Bar Anti-Concurrent Causation Clause in Homeowners' Policies

June 08, 2020 — Tred R. Eyerly - Insurance Law Hawaii
A bill prohibiting the use of anti-concurrent causation clauses in homeowners' insurance policies has been introduced before the New Jersey legislature. The bill is here. Under an anti-concurrent causation clause, the policy bars coverage if two perils (i.e., wind and water damage) contribute to a loss and one peril is excluded from coverage. For example, wind damage alone may be covered, while water damage is excluded. If both wind and water contribute to the loss, regardless of the degree to which each peril contributes, the anti-concurrent causation clause would bar coverage. New Jersey S 217 states,

An insurer authorized to transact the business of homeowners insurance in this state shall not exclude coverage in a homeowners insurance policy for loss or damage caused by a peril insured against under the terms of the policy on the grounds that the loss or damage occurred concurrently or in any sequence with a peril not insured against under the terms of the policy. Any such provision to exclude coverage shall be void and unenforceable.

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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Ohio School Board and Contractor Meet to Discuss Alleged Defects

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Insurance News, The Greeneview School Board will be meeting with contractor Sfaffco Construction Inc. to discuss findings in a 122-page report produced by “Mays Consulting & Evaluation Services Inc. that outlines numerous alleged construction defects in the roofing system.” "It's really the first time we have everybody together to discuss the deficiencies," said Isaac Seevers, the Greeneview Local Schools superintendent told Insurance News. The school board estimates that the alleged problems will take up to $3.5 million to fix. Meanwhile, Staffco has hired their own consultant. "The report from Mays is one sided," Staffco President Jon Stafford said according to Insurance News. "We take issue with some of the findings in there." Read the court decision
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Revel Closing Shows Gambling Is No Sure Thing for Renewal

September 03, 2014 — Christopher Palmeri – Bloomberg
The Revel Casino Hotel was envisioned as a playground for Wall Streeters who hated flying to Las Vegas. Instead, it’s become a money pit for the banks and money managers who spearheaded the New Jersey project, and the losses will keep coming even after closing today. The Atlantic City resort, built at a cost of $2.4 billion, ceased operations after two bankruptcies and a 10-month search for a buyer. Barring a sale, the new owners may be Wells Fargo & Co. and JPMorgan Chase & Co., which provided $125 million in court-approved funding. Previous backers also included Capital Group Cos., the third-largest manager of U.S. mutual funds, and Morgan Stanley, the original investor. The resort fell prey to poor timing, bad design and a misreading of the local market. The Revel saga shows what can go wrong when bankers stray from what they know, according to Charles Geisst, a professor of finance at Manhattan College in New York and author of the book “Wall Street: A History.” Read the court decision
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Reprinted courtesy of Christopher Palmeri, Bloomberg
Mr. Palmeri may be contacted at cpalmeri1@bloomberg.net

New Evidence Code Requires Attorney to Obtain Written Acknowledgement that the Confidential Nature of Mediation has been Disclosed to the Client

January 02, 2019 — Steven J. Pearse, Esq. & David A. Napper, Esq. – Chapman Glucksman Dean Roeb & Barger
Senate Bill 954: MEDIATION CONFIDENTIALITY DISCLOSURES. California regards mediation as a beneficial process for parties to resolve disputes in an expeditious and economical fashion. To assure open and candid participation, there is a longstanding policy in California to maintain confidentiality during the mediation process. However, the mediation confidentiality statutes have prevented some clients from suing their·attorneys for alleged malpractice that occurred during the mediation process. (see Cassel v. Superior Court, (2011) 51 Cal.4th 113). Senate Bill ("SB") 954, was recently passed and thereafter approved by the Governor on September 11, 2018 to address this concern. SB 954, which will amend California Evidence Code section 1122 and add California Evidence Code section 1129, requires that an attorney representing a client participating in a mediation or a mediation consultation provide that client with a written disclosure and acknowledgement containing the mediation confidentiality restrictions as set forth in the California Evidence Code. This written disclosure and acknowledgement requirement does not apply to class or representative actions. Additionally, the failure of an attorney to follow the new requirement will not be a basis to set aside an agreement prepared in the course of, or pursuant to, a mediation. Any communication, document, or writing related to an attorney's compliance with the disclosure requirement will not be considered confidential and may be used in a disciplinary proceeding if the communication, document, or writing does not disclose anything said or done or any admission made in the course of the mediation. California Evidence Code section 1129 sets forth the exact language that must be used in the disclosure. It even informs the client that all communications between the client and the attorney made in preparation for a mediation, or during a mediation, are confidential and cannot be disclosed or used (except in extremely limited circumstances), even if the client later decides to sue the attorney for malpractice because of something that happens during the mediation. The new disclosure requirement will allow mediation to maintain the confidentiality that encourages open and candid communications during the process while ensuring that before clients agree to mediation that the clients are made aware of how that confidentiality can potentially impact them. SB 954, will take effect on January 1,2019. Reprinted courtesy of Stephen J. Pearce, Chapman Glucksman Dean Roeb & Barger and David A. Napper, Chapman Glucksman Dean Roeb & Barger Mr. Pearce may be contacted at dnapper@cgdrblaw.com Mr. Napper may be contacted at jpaster@HuntonAK.com Read the court decision
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