California Contractors: New CSLB Procedure Requires Non-California Corporations to Associate All Officers with Their Contractor’s License
April 19, 2021 —
Amy Pierce, Mark Oertel & John Lubitz - Lewis BrisboisAs of July 1, 2020, “[e]very person who is an officer, member, responsible manager, or director of a corporation or limited liability company seeking licensure under this chapter shall be listed on the application as a member of the personnel of record,” and they must match those officers listed on California Secretary of State’s (SOS) records. (Cal. Bus. & Prof. Code § 7065 (b)(1)). This is a deviation from the Contractors State License Board’s (CSLB) past practice of requiring foreign corporations to associate as personnel of record only their president, in contrast to requiring domestic corporations to associate their president, secretary, and treasurer.
Beware that the CSLB may discover that the licensee’s personnel of record are incomplete or incorrect when reviewing a license renewal application, because it will compare the SOS’s records to the license renewal application. A license renewal application requires the licensee to list its qualifier and personnel of record. If the SOS and CSLB records do not match, this could delay approval of the license renewal application until the missing personnel are added and fingerprinted.
Reprinted courtesy of
Amy Pierce, Lewis Brisbois,
Mark Oertel, Lewis Brisbois and
John Lubitz, Lewis Brisbois
Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com
Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com
Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com
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Musk’s Cousins Battle Utilities to Make Solar Rooftops Cheap
April 15, 2015 —
John Lippert and Christopher Martin – BloombergIn September 2013, Hawaiian Electric Co. told thousands of customers they couldn’t connect their new solar panels to its distribution grid. In some neighborhoods, HECO said, its system couldn’t absorb any more unused energy from home solar arrays. The moratorium, which lasted 13 months, made Hawaii a central battleground in the effort by utilities to control the rapid growth of independent solar companies across the U.S. And it was a big deal to people such as Robert Gould, a retired Northwest Airlines pilot living near Honolulu. He’d just paid $53,000 to have solar panels installed.
Gould and other customers protested loudly to state officials. They finally got help from Lyndon Rive, the CEO of SolarCity. The San Mateo, California, company is the biggest installer of rooftop solar panels in the U.S. and has 10,000 Hawaiian customers, Bloomberg Markets magazine reports in its May issue. Rive studied the situation and zeroed in on a key fact: HECO had never directly measured how much solar its grid could handle, relying on computer simulations instead. “Because the technology is brand-new, no one had ever done this in the field before,” says Colton Ching, HECO’s vice president for energy delivery.
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John Lippert, Bloomberg and
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Alleged Damage to Personal Property Does Not Revive Coverage for Construction Defects
November 23, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Illinois Appellate Court determined the general contractor was not covered for construction defects despite allegations of damage to personal property. Wesfield Ins. Co. v. West Van Buren, LLC, 59 N.E. 2d 877, (Ill. Ct. App. 2016).
The developer constructed a condominium development in Chicago. The installation of the roof was contracted to Total Roofing. Total Roofing agreed to insure and indemnify the developer against liability for Total Roofing's work. Total Roofing obtained a CGL policy with Westfield Insurance Company listing the developer as an additional insured.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Termination Issues Part 5: What if You are the One that Wants to Quit?
August 21, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaArchitects and Engineers are sometimes pleasantly surprised to find out that they, also, can terminate those crazy, hard to deal with Owners—at least, if the Owners fail to make payments as required.
You can also terminate for Owner delays to the work, or where you think the contractor should be fired but the Owner disagrees. Again, the standard 7 days written notice is required. (See B101 §9.4).
Do you have to walk off the job if they are not paying you? No—you could exercise the smaller remedy of suspending services (with 7 days written notice) until payments are caught up or the contract performance is corrected by the Owner. (See B101 §9.1). Suspension rather than outright termination is a softer approach when working with an owner you do not want to burn (too many) bridges with.
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
A Court-Side Seat: Permit Shields, Hurricane Harvey and the Decriminalization of “Incidental Taking”
May 31, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of some of the significant environmental (and administrative law decisions) released the past few weeks.
THE U.S. SUPREME COURT
On April 22, 2021, the Court decided two important administrative law cases: Carr, et al. v. Saul and AMG Capital Management v. Federal Trade Commission.
Carr, et al. v. Saul
In this case, the constitutionality of Social Security Administrative Law Judges (ALJs) hearing disability claims disputes was at issue. More precisely, were these ALJs selected in conformance with the Appointments Clause of the Constitution? A similar issue was litigated in the case of Lucia v. Securities and Exchange Commission. There, the Court held that many of the agency’s ALJs were not selected in conformance with the Appointment’s Clause. Here, the Court held that this issue could be decided by the courts without compelling the litigants to first exhaust their administrative remedies. Thousands of ALJs are employed by the federal government, and it may take some time to resolve this question for every agency.
AMG Capital Management v. Federal Trade Commission
In this case, the court held, unanimously, that the Commission does not presently have the authority to employ such equitable remedies as restitution or disgorgement.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Coverage Under Builder's Risk Policy Properly Excluded for Damage to Existing Structure Only
April 05, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Tenth Circuit affirmed the District Court's determination that there was no coverage under the builder's risk policy. Gerald H. Phipps, Inc. v. Travelers Prop. Cas. Co. of Am., 2016 U.S. App. LEXIS 2764 (10th Cir. Feb. 16, 2017).
GH Phipps Construction Company (GHP) was hired to renovate and expand the University of Denver's library. GHP was completing installation of a new roof on the library when water from melting snow leaked into the building. The water damaged existing drywall and insulation in the stairwells and elevator shafts that GHP planned to preserve and update. Before the snow melt mishap, GHP had completed some preliminary work in the damaged areas to designate locations for future installation of mechanical, plumbing and electrical systems. But GHP had not yet installed any new materials, updated any lighting fixtures, or patched and painted any existing drywall in the damaged areas.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Assert a Party’s Noncompliance of Conditions Precedent with Particularity
July 26, 2017 —
David Adelstein - Florida Construction Legal UpdatesConstruction contracts oftentimes and should contain conditions precedent to payment. Conditions precedent apply to both progress payments and final payment. The conditions precedent operate such that payment is NOT due until the conditions are satisfied. The satisfaction of the conditions precedent triggers the payor’s obligation to pay.
If a dispute arises due to the payee’s noncompliance with conditions precedent to payment, the noncompliance should be asserted with particularity in the answer and affirmative defenses. For example, if a subcontractor was required to provide lien waivers and releases as a condition precedent to payment, then this should be asserted with particularity as an affirmative defense. If the contractor’s receipt of payment from the owner was a condition precedent to payment to the subcontractor (pay-when-paid), then this should be asserted with particularity as an affirmative defense. Any noncompliance with a condition precedent should be identified as an affirmative defense.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Bad Faith Claim for Inadequate Investigation Does Not Survive Summary Judgment
May 20, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's claim for bad faith investigation regarding their hail damage claim did not survive the insurer's motion for summary judgment. Amarillo Hospitality Tenant, LLC v. Mass. Bay Ins. Co., 2015 U.S. Dist. LEXIS 56228 (N. D. Tex. April 29, 2015).
A hailstorm caused damage to the Courtyard Marriot. The day after the storm, the insured inspected the roof of the hotel and observed damage to a sign and some aluminum vent tubes. No damage to the roof itself was observed. Subsequently, leaks were found on the tenth floor of the hotel. A public adjuster concluded that the roof had sustained damage during the hailstorm.
The insured filed a claim with Massachusetts Bay Insurance Company. The insurer paid for the cost of repairing the damaged sign. To determine whether the damage to the roof was caused by the hailstorm, the insurer hired Donna Engineering, who conducted two inspections of the roof. Both inspections concluded that the hailstorm did not cause damage to the roof. Consequently, the claim was denied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com