Update Regarding McMillin Albany LLC v. Super Ct.
April 28, 2016 —
Richard H. Glucksman and David A. Napper – Chapman Glucksman Dean Roeb & Barger In FocusThe construction industry continues to await the California Supreme Court's highly anticipated decision regarding McMillin Albany LLC v. Super Ct. 2015 F069370 (Cal.App.5 Dist.). The Supreme Court will attempt to resolve the conflict presented by the Fourth Appellate District Court's holding in Liberty Mut. Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and rejection of the same by the Fifth Appellate District Court in McMillin Albany. The issue is whether the Right to Repair Act (SB800) is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2013. CGDRB has been closely monitoring the progress of the case and understands that the real parties in interest have submitted their opening brief on the merits. The Court granted Petitioners a further and final extension to file the answer brief on the merits. The answer deadline is Monday April 25, 2016. Stay tuned.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
David A. Napper, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Mr. Napper may be contacted at dnapper@cgdrblaw.com
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Third Circuit Vacates Judgment for Insurer on Alleged Construction Defect Claim
December 31, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Third Circuit vacated and remanded to the district court the judgment in favor of the insurer on a construction defect claim. Odedeyi v. AmTrust Financial Services Inc., 2024 U.S. App. LEXIS 24729 (3d Cir. Oct. 1, 2024).
Mr. Odedeyi hired a contractor, who was insured by Security National, to perform work on his property. After the property was damaged during the renovations, Odedeyi filed suit against the contractor. Odedeyi was awarded a default judgment against the contractor.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractual Impartiality Requires an Appraiser to be Unbiased, Disinterested, and Unswayed by Personal Interest
June 01, 2020 —
Frank Ingham - Colorado Construction Litigation BlogOn June 24, 2019, the Colorado Supreme Court held that when a contract or insurance policy requires an “impartial” appraisal, the appraiser for a party cannot be an advocate for that party.[1] In this situation, the appraiser must be unbiased, disinterested, without prejudice, and unswayed by personal interest. Id.
Owners Insurance Company (“Owners”) issued a policy to the Dakota Station II Condominium Association, Inc. (“Association”) that represents a 49-building multifamily residential property in Jefferson County, Colorado. Concerning loss conditions, the policy includes an appraisal provision requiring that, in the event of property appraisal, “each party will select a competent and impartial appraiser.” The parties would then select an umpire or have one appointed by the court. Any agreement as to the values reached by two of the three would bind them all.
On May 24, 2012, the Association made a storm-damage roofing claim to Owners for $1.33 million. The parties could not agree on the amount of the loss and the Association invoked the policy’s appraisal process. The Association retained Scott Benglen as its contingent-fee cap appraiser. Mr. Benglen retained Laura Haber as a policy and damage expert, who appraised the roof loss at $2.55 million and the total replacement at $4.3 million.[2] Owners’ appraiser, Mark Burns, submitted the loss at $1.86 million with the replacement cost award of $2.3 million. The umpire, Honorable James Miller, adopted Owners’ estimates in four of the six categories, awarding just over $3 million to the Association. Id.
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Frank Ingham, Higgins, Hopkins, McLain & RoswellMr. Ingham may be contacted at
ingham@hhmrlaw.com
Lien Release Bonds – Remove Liens, But Not All Liability
February 20, 2023 —
Mia Hughes - ConsensusDocsLien Release Bonds – Remove Liens, But Not All Liability
Among owners and contractors, payment and performance bonds are commonly used together in an effort to mitigate future risk against derivative subcontractor claims. But what happens when despite the effort to mitigate risk, a derivative claimant nevertheless files a mechanics’ lien on the owner’s real property? Not all hope is lost. There is another classification of bond, a “lien release bond”—also commonly referred to as an indemnity bond or a mechanics’ lien bond—which provides protections for real property after a mechanics’ lien has already been filed. The purpose of a lien release bond is to remove claims against the relevant real property. Notably, a lien release bond does not necessarily eliminate all liability of an owner or a general contractor. In number of states, an owner or a general contractor can be held personally liable for derivative claims despite a valid lien release bond.
What is a Lien Release Bond?
A lien release bond is a specific type of surety bond that removes an existing mechanics’ lien from an owner’s real property. In an effort to protect real property, an owner, or a general contractor, can obtain a lien release bond that will substitute or take the place of a mechanics’ lien. In the event a lien claimant files suit on the mechanics’ lien and seeks to collect on their claim, any proceeds recovered will come from the lien release bond rather than proceeds from the sale or foreclosure of the real property. The threat of mechanics’ liens is always present on a construction project— it is estimated that over 60,000 mechanics liens were filed in 2021 alone. Lien release bonds are an added layer of protection for an owner’s real property against a pending mechanics’ lien.
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Mia Hughes, Jones Walker LLP (ConsensusDocs)Ms. Hughes may be contacted at
mhughes@joneswalker.com
Haight’s Stevie Baris Selected for Super Lawyers’ 2021 Northern California Rising Stars
July 19, 2021 —
Stevie B. Baris - Haight Brown & Bonesteel LLPCongratulations to Stevie Baris who was selected to the Super Lawyers 2021 Northern California Rising Stars list. Each year, no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.
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Stevie B. Baris, Haight Brown & Bonesteel LLPMr. Baris may be contacted at
sbaris@hbblaw.com
Is Arbitration Always the Answer?
April 20, 2016 —
Christopher G. Hill – Construction Law MusingsAfter a long (for me) hiatus due to Spring Break with my wonderful family followed by a crazy last two weeks for both personal and business reasons, I’m back and ready to muse again.
This week’s “musings” concern a topic that arises often in construction contracts and construction dispute resolution. The topic? Arbitration. Why does this come up often? Because in many form contracts such as the AIA documents, as well as in many construction contracts that are more specifically tailored, mandatory arbitration is at least a choice if not the only method of dispute resolution.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Why Clinton and Trump’s Infrastructure Plans Leave Us Wanting More
September 15, 2016 —
Garret Murai – California Construction Law BlogIt’s hard not to pick up your newspaper (or, more likely, your smart phone) and not get caught up reading about Donald Trump’s latest “did he really say that” statement or about the “less than personal” personal email account of Hillary Clinton.
But which candidate is better suited to bridge America’s nearly $1.5 trillion infrastructure gap? Clinton the veteran politician? Or Trump the veteran developer?
Despite being on opposite sides on nearly every issue from abortion, to taxes, to . . . well, maybe immigration . . . both Clinton and Trump agree that the U.S. needs to invest more in its aging infrastructure. But that’s a little like saying we should take better care of ourselves and exercise more. Of course we should. The question is how.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Is it the End of the Story for Redevelopment in California?
October 02, 2015 —
Garret Murai – California Construction Law BlogLong, long ago (in 2012 to be exact) in a land not so far away (also known as California), legislation which allowed local governments to establish redevelopment agencies tasked with eliminating blight through the development, reconstruction and rehabilitation of residential, commercial, industrial and retail districts were abolished.
Note: For a relatively concise history of redevelopment in California see the U.S. Department of Housing and Urban Development’s working paper
Redevelopment Agencies in California: History, Benefits, Excesses, and Closure (January 2014).
A quite war has been waged ever since. Cities, community development commissions, successor agencies to redevelopment agencies, nonprofit housing corporations and individual taxpayers have fought the legislation (AB 1X 26 (Blumenfield 2011)) which eliminated California’s 425 redevelopment agencies, principally, on constitutional grounds.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com