“But I didn’t know what I was signing….”
May 30, 2018 —
Bobby Kethcart - Snell & Wilmer Real Estate Litigation BlogIn real estate cases—which frequently involve long purchase agreements, loan documents, personal guarantees, deeds of trust, etc.—we’ve likely all had a client or opposing party who trots out the line that they didn’t know what they were signing, or they didn’t read or understand what they were signing, so the document shouldn’t be enforced according to its terms.
Most of us instinctively believe the claim is a loser: You signed the document, you’re bound by it.
But is this actually right?
Well, we did some digging. Here is the Arizona law on the subject:
Nationwide Resources Corp. v. Massabni, 134 Ariz. 557, 658 P.2d 210 (App. 1982):
“A mistake of only one of the parties to a contract in the expression of his agreement or as to the subject matter does not affect its binding force and ordinarily affords no ground for its avoidance, or for relief, even in equity.”
“A manifestation of acceptance to the offeror or his agent forms a contract regardless of the intent of the acceptor.”
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Bobby Kethcart, Snell & WilmerMr. Kethcart may be contacted at
rkethcart@swlaw.com
BHA has a Nice Swing Benefits the Wounded Warrior Project
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates (BHA) would like to congratulate the winners of the BHA Has a Nice Swing golf game for charity at the 2015 West Coast Casualty Construction Defect Seminar. With the help of the participants, BHA was able to raise $1925 to benefit the Wounded Warrior Project. BHA would also like to congratulate the raffle winners. Prizes included a DJI Phantom 2 Vision+ Drone and Dodger baseball tickets.
The Wounded Warrior Project’s purpose is to raise awareness and enlist the public’s aid for the needs of injured service members; to help injured service members aid and assist each other; and to provide unique, direct programs and services to meet the needs of injured service members.
Learn more about the Wounded Warrior Project...
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Orange County Home Builder Dead at 93
April 25, 2012 —
CDJ STAFFRandall E. Presley was a homebuilder in Southern California for more than thirty years, acting as head of Presley Development Company from 1956 until selling the firm to Lyon Homes in 1987. The two companies merged in 1991 as the Presley Cos. Mr. Presley saw the need in the 1950s to provide people in Southern California with low- to medium-priced quality homes.
His firm built more than 160 communities and was among the ten largest homebuilding firms in the country, expanding beyond California. Mr. Presley was 93 when he succumbed to pneumonia. He is survived by a wife, three children, seven grandchildren, and 11 great-grandchildren.
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Four Common Construction Contracts
August 26, 2015 —
Garret Murai – California Construction Law BlogLike Baskin Robins, construction contracts come in a variety of different flavors although, thankfully, significantly fewer than 31. Here are four of the more common types of construction contracts between project owners and contractors:
Fixed Price
Fixed price construction contracts, also commonly referred to as “lump sum” or “stipulated sum” contracts, are the most common types of construction contracts. As its name suggests, under a fixed price contract a contractor agrees to construct a project for a “fixed” or agreed upon price.
1.
Benefits: Fixed price construction contracts provide price predictability for project owners because absent changes in the scope of work, unforeseen conditions, or other circumstances which might cause the “fixed” price of the contract to go up or down, the contractor is required to complete the work for the agreed upon price.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
HOA Has No Claim to Extend Statute of Limitations in Construction Defect Case
October 28, 2011 —
CDJ STAFFThe California Court of Appeals ruled on September 20, 2011 in the case of Arundel Homeowners Association v. Arundel Green Partners, a construction defect case involving a condominium conversion in San Francisco. Eight years after the Notice of Completion was filed, the homeowners association filed a lawsuit alleging a number of construction defects, including “defective cabinets, waterproofing membranes, wall-cladding, plumbing, electrical wiring, roofing (including slope, drainage and flashings), fire-rated ceilings, and chimney flues.” Three years of settlement negotiations followed.
Negotiations ended in the eleventh year with the homeowners association filing a lawsuit. Arundel Green argued that the suit should be thrown out as California’s ten-year statute of limitations had passed. The court granted judgment to Arundel Green.
The homeowners then filed for a new trial and to amend its complaint, arguing that the statute of limitations should not apply due to the doctrine of equitable estoppel as Arundel Green’s actions had lead them to believe the issues could be solved without a lawsuit. “The HOA claimed that it was not until after the statute of limitations ran that the HOA realized Arundel Green would not keep its promises; and after this realization, the HOA promptly brought its lawsuit.” The trial court denied the homeowners association’s motions, which the homeowners association appealed.
In reviewing the case, the Appeals Court compared Arundel to an earlier California Supreme Court case, Lantzy. (The homeowners also cited Lantzy as the basis of their appeal.) In Lantzy, the California Supreme Court set up a four-part test as to whether estoppel could be applied. The court applied these tests and found, as was the case in Lantzy, that there were no grounds for estoppel.
In Arundel, the court noted that “there are simply no allegations that Arundel Green made any affirmative statement or promise that would lull the HOA into a reasonable belief that its claims would be resolved without filing a lawsuit.” The court also cited Lesko v. Superior Court which included a recommendation that the plaintiffs “send a stipulation?Ķextending time.” This did not happen and the court upheld the dismissal.
Read the court’s decision…
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Business Interruption Insurance Coverage Act of 2020: Yet Another Reason to Promptly Notify Insurers of COVID-19 Losses
May 25, 2020 —
James Hultz - Newmeyer DillionBusiness interruption coverage stemming from the COVID-19 pandemic is a matter of intense debate. The number of policyholder lawsuits continues to rise sharply and an increasing number of state legislatures are considering laws to specifically address such coverage.
Now, additional proposed legislation at the federal level could completely and definitively resolve the debate in favor of coverage for policyholders.
The Business Interruption Insurance Coverage Act of 2020
On April 14, Congress introduced the Business Interruption Insurance Coverage Act of 2020 (the “Act”) which, if passed, would require insurance companies to cover business interruption losses due to “viral pandemics, forced closures of businesses, mandatory evacuations, and public safety power shut-offs.” The bill further states:
Any exclusion in a contract for business interruption insurance that is in force on the date of the enactment of this Act shall be void to the extent that it excludes losses specified . . . .
The draft legislation also specifies that it preempts state approval of any contrary exclusion and renders such approval “void to the extent that it excludes losses specified.”
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James Hultz, Newmeyer DillionMr. Hultz may be contacted at
james.hultz@ndlf.com
Virginia Tech Has Its Own Construction Boom
May 10, 2013 —
CDJ STAFFThe last few years has been a tough time for the construction industry, unless you’re in the proximity to the campus of Virginia Tech. Since 1999, the school has seen more than $1 billion in construction projects. Charles Steger, the president of the university says that “we have no intention of slowing down.”
Steger views some of the construction as vital to the school’s mission, noting that at Davidson Hall, which contains chemistry laboratories, “the wiring and other facilities were almost a health hazard.” The building is undergoing a $31 million renovation.
In order to keep the campus walkable, parking lots are being replaced by parking garages. Four dormitory buildings will be demolished and replaced by new facilities. Funds for the development have come from a mix of student fees, donations, research revenues, bond issues, and taxpayer revenues.
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Account for the Imposition of Material Tariffs in your Construction Contract
March 28, 2018 —
David Adelstein – Florida Construction Legal UpdatesAfter Hurricane Irma, I wrote an article that contractors should revisit the
force majeure provisions in their construction contracts. Not later. But Now.
The force majeure provision is an important provision in a construction contract to account for certain uncertainties that you have NO control over.
Recently, another reason has given rise to contractors needing to revisit their force majeure provisions, as well as any provisions dealing with material escalations. Not later. But now. The
imposition of raw steel and aluminum tariffs (tax on imported goods) and the back-and-forth regarding a potential trade war leads to the kind of uncertainty that should be assessed as a risk.
A risk in both time and cost from material escalations.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com