Time to Update Your Virginia Mechanic’s Lien Forms (July 1, 2019)
May 01, 2019 —
Christopher G. Hill - Construction Law MusingsIn a few of my recent posts here at Construction Law Musings, I’ve discussed a few bills that were considered and/or passed in the General Assembly this year. One of the bills is one close to my heart and a subject much discussed here, namely mechanic’s liens.
HB2409 passed both houses of the General Assembly and has been signed by the Governor. This bill reconciled the language found in Virginia Code Sec. 43-4 with the various forms for general contractor, subcontractor and sub-subcontractor/supplier forms found in later sections of the code. As you will see if you download the .pdf of the bill as signed, this involved some tweaks to 43-4 and some updates to the mechanic’s lien forms that are in the code. The recent Desai case from the Virginia Supreme Court made it clear that such action was necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrissghill@constructionlawva.com
Dealing with Abandoned Property After Foreclosure
April 10, 2019 —
Bremer Whyte Brown & O'Meara LLPCalifornia landlords must follow very specific steps before disposing of property that is clearly abandoned, left on real estate which has been the subject of court proceedings such as eviction or foreclosure, or otherwise left behind. Following the statutory procedures relating to abandoned property protects landlords from potential liability for an improper “conversion.”
Former tenants/owners and others “reasonably believed” to be owners of the apparently abandoned personal property must be given proper written notice of the right to reclaim the abandoned property. The tenant is presumed to be the owner of any “records” remaining on the property. The California Code of Civil Procedure provides a template for such notice. The notice to be provided to former tenants/owners must be in “substantially” the same form provided in the California Code of Civil Procedure and must contain the following information:
- A description of the abandoned property in a manner reasonably adequate to permit the owner of the property to identify it;
- The location where the tenant can claim the property;
- The time frame that the tenant has to claim the property. The date specified in the notice shall be a date not less than fifteen (15) days after the notice is personally delivered or, if mailed, not less than eighteen (18) days after the notice is deposited in the mail;
- A statement that reasonable storage costs will be charged to the tenant/owner and the tenant/owner must pay those costs before claiming the property; and
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Bremer Whyte Brown & O'Meara LLP
Legal Risks of Green Building
March 22, 2021 —
Mark D. Shifton - Construction ExecutiveAll construction projects involve elements of legal risk. Insurance and indemnity claims, delay claims and professional negligence claims are simply accepted risks when involved in construction. Green building projects are no exception to this rule, and often involve unique issues that are not present in typical construction projects.
Green building projects commonly employ new or untested construction materials, require construction methods that lack significant track records, and ultimate building performance often fails to meet design expectations. As such, green building projects may give rise to entirely new types of legal risk that should be considered and allocated early in the process.
In the past 15 years, the number of buildings for which green certifications have been sought has grown exponentially, and the growth rate of green building and sustainable construction has far outpaced the growth rate of the construction industry as a whole. As green building projects become increasingly common (and often increasingly required by the federal, as well as state and local governments), the unique legal risks presented by green building projects take on an increase importance.
Reprinted courtesy of
Mark D. Shifton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Shifton may be contacted at
mshifton@gllawgroup.com
Safeguarding the U.S. Construction Industry from Unfair Competition Abroad
November 07, 2022 —
Ric Macchiaroli - Gravel2Gavel Construction & Real Estate Law BlogIn April 2015, the U.S. International Trade Commission (ITC) issued an exclusion order prohibiting the importation of certain foreign-made crawler cranes into the United States for a period of at least 10 years. That order was the result of a 20-month investigation by the ITC, initiated by a Wisconsin-based crane manufacturer based on allegations of patent infringement and trade secret misappropriation by a China-based company. Defined by powerful injunctive remedies, unique rules, and a lightning-fast docket, the ITC can help protect American industry from unfair acts in the importation of articles into the United States. This post explores the traits that make the ITC an attractive venue for potential complainants.
ITC Site Plan
The ITC is a specialized trade court located in Washington, D.C., that has broad authority to investigate and remedy unfair trade practices. One of the ITC’s primary functions is to conduct unfair import investigations, also known as “section 337” investigations, after the authorizing statute. A section 337 investigation can be instituted based on any number of unfair acts, including, but not limited to, patent infringement (utility and design), registered and common law trademark infringement, copyright infringement (including violations of the Digital Millennium Copyright Act), trade dress infringement, and trade secret misappropriation. Business torts such as passing off, false advertising, and tortious interference with business relations have also formed the bases of investigations.
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Ric Macchiaroli, PillsburyMr. Macchiaroli may be contacted at
ric.macchiaroli@pillsburylaw.com
Issue and Claim Preclusion When Forced to Litigate Similar Issues in Different Forums: White River Village, LLP v. Fidelity and Deposit Company of Maryland
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Often in construction litigation the parties wish to move the case to arbitration. However, there are certain circumstances in which such change of litigation forums should be carefully analyzed. The case of White River Village, LLP v. Fidelity and Deposit Company of Maryland, serves as an example of one of those circumstances.
In March 2013, U.S. District Court Judge Blackburn ruled on a motion for summary judgment filed by Fidelity and Deposit Company of Maryland (“F&D”). The order grants the motion in part and denies it in part. White River Village, LLP (“White River”) was the owner of the project which hired S&S Joint Venture (“S&S”), the contractor, to build two similar developments, directly adjacent to each other. The contracts between Whiter River and S&S for the two projects were so substantially similar that the court referred to them as the S&S Contracts. F&D issued payment and performance bonds guarantying the obligations of S&S under the S&S Contracts.
After S&S defaulted on the construction contracts, F&D, as the surety, undertook to complete performance on the contracts. White River alleged that F&D was liable for construction defects and delays in completing the project, and failed to fulfill its obligations under the performance bonds after it overtook the construction of the projects.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Texas Supreme Court to Rehear Menchaca Bad Faith Case
January 10, 2018 —
Sean P. Mahoney – Complex Insurance Coverage ReporterOn December 15th, the Texas Supreme Court agreed to revisit its April 7, 2017 decision in
USAA Texas Lloyds Co. v. Menchaca, No. 14-0721, a “bad faith” case arising out of Hurricane Ike damage, in which the court held that a policyholder could potentially recover policy benefits for statutory bad faith under Texas law, even though a jury concluded that the insurer did not breach the terms of the policy, if the policyholder could show that she was nevertheless entitled to the benefit. The decision to rehear this matter comes at the urging of insurers and interested groups, including the Insurance Council of Texas and the U.S. Chamber of Commerce, who argued that the April 7, 2017 ruling substantially unsettled Texas insurance law.
Menchaca is a first-party property insurance coverage case. After Hurricane Ike struck in 2008, plaintiff Menchaca submitted a claim under her homeowners policy to USAA. A USAA adjuster later concluded that Menchaca’s property suffered only “minimal damage” that fell below the deductible. Menchaca sued claiming breach of contract and unfair claims settlement practices in violation of the Texas Insurance Code. As damages, she sought only the policy benefit, court costs, and attorneys’ fees.
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Sean P. Mahoney, White and Williams LLP Mr. Mahoney may be contacted at
mahoneys@whiteandwilliams.com
Another Colorado District Court Refuses to Apply HB 10-1394 Retroactively
October 28, 2011 —
In Martinez v. Mike Wells Construction Company, 09CV227, Teller County District Court Judge Edward S. Colt refused to apply C.R.S. § 13-20-808 retroactively to provide coverage for the underlying construction defect allegations. According to the recitation of facts in Judge Colt’s March 2011 order, Martinez contracted with Mike Wells Construction to serve as the general contractor for the construction of a home. At that time, Mike Wells Construction was insured through ProBuilders Specialty Insurance Company, RRG. Disputes arose between Martinez and Mike Wells Construction, resulting in Martinez ordering it off of the project in mid-November 2007 and terminating its right to work there by letter dated November 28, 2007.
Mike Wells, the owner of the corporation, subsequently died. Martinez sued Mike Wells Construction in July 2009 for breach of contract and various claims relating to alleged defecting workmanship. Martinez provided notice of the suit to the special administrator of the probate estate. No answer having been filed, the court entered a default judgment against Mike Wells Construction and Martinez sought to garnish Mike Wells Construction’s ProBuilders insurance policy.
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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com
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Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013).
Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation.
The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com