Arizona Supreme Court Confirms a Prevailing Homeowner Can Recover Fees on Implied Warranty Claims
November 21, 2017 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogOriginally published by CDJ on August 30, 2017
On August 9th, in Sirrah Enterprises, L.L.C. v. Wunderlich, the Arizona Supreme Court settled the question about recovery of attorneys’ fees after prevailing on implied warranty claims against a residential contractor. The simple answer is, yes, a homeowner who prevails on the merits can recover the fees they spent to prove that shoddy construction breached the implied warranty of workmanship and habitability. Why? Because, as Justice Timmer articulated, “[t]he implied warranty is a contract term.” Although implied, the warranty is legally part of the written agreement in which “a residential builder warrants that its work is performed in a workmanlike manner and that the structure is habitable.”
In other words, a claim based on the implied warranty not only arises out of the contract, the claim is actually based on a contract term. Since, in A.R.S. § 12-341.01, Arizona law provides for prevailing parties to recover their fees on claims “arising out of contract” and because the implied warranty is now viewed by the courts as a contract term, homeowners can recover their fees after successfully proving breach of the implied warranty.
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Rick Erickson, Snell & WilmerMr Erickson may be contacted at
rerickson@swlaw.com
No Retrofit without Repurposing in Los Angeles
October 21, 2013 —
CDJ STAFFThe Los Angeles Times has continued its series on the seismic safety of buildings in downtown Los Angeles. According to the article, Los Angeles only requires seismic retrofits of buildings if their purpose is being changed. One investor, Izak Shomof, bought a residential hotel and kept it as one to avoid retrofitting the building. He converted an office building to upscale residences and so the building was strengthened.
His son, Eric Shomof, keeps an office in the unreinforced building. He said if more retrofitting were required, “you’d see a lot more vacant buildings down here,” describing the process as “not cheap.”
Depending on whether or when a building has changed its use, the concrete buildings of downtown Los Angeles may or may not be protected against failure in an earthquake.
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Everybody Is Going to End Up Paying for Texas' Climate Crisis
March 29, 2021 —
David R Baker & Mark Chediak - BloombergFallout from last month’s deadly deep freeze in Texas has quietly spread to people living hundreds of miles away. Minnesota utilities have warned that monthly heating bills could spike by $400, after the crisis jacked up natural gas prices across the country. Xcel Energy’s Colorado customers could face a $7.50 per month surcharge for the next two years.
This is a subtle demonstration of the way Americans already share the collective financial burden of climate change, even if we don’t realize it. The national bill for global warming is here, and it’s rising.
Perhaps it’s easier to see this dynamic playing out beyond February’s Texas cold snap. That disaster left dozens dead, stranded millions in dark homes, and sent a shockwave of higher gas prices across the nation. But since there remains scientific uncertainty over the role of global warming, let’s examine two other calamities for which the climate link is clearer: wildfires and tropical storms.
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David R Baker & Mark Chediak, Bloomberg
Orange County Team Obtains Unanimous Defense Verdict in Case Involving Failed Real Estate Transaction
March 25, 2024 —
Lewis Brisbois NewsroomOrange County, Calif. (March 4, 2024) - Orange County Partners Esther P. Holm and Alexandra Anast obtained a unanimous defense verdict in a real estate matter involving a failed real estate transaction. The property at issue, which was located in the West Hollywood Hills and had beautiful views, was undergoing extensive remodeling. There were several bids for its purchase. Ultimately, the plaintiff, a real estate investor, was awarded the purchase.
The plaintiff and the seller entered into a real estate purchase agreement, but the plaintiff failed to release the physical contingencies within the 17-day period prescribed by the contract. Instead, the plaintiff demanded a reduction in price, which the seller rejected. The plaintiff then filed a lis pendens on the property, clouding the title and making it impossible for the sellers to sell the property to anyone else. The buyer and seller subsequently engaged counsel. The plaintiff filed the lawsuit against the seller as well as the real estate company and its agents. Prior to trial, the plaintiff and the seller reached a settlement.
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Lewis Brisbois
The Ghosts of Projects Past
December 17, 2015 —
Craig Martin – Construction Contractor AdvisorSean Minahan, one of my partners, and I were discussing a construction dispute the other day and we commented again and again about the significant organization required to get a construction project to completion. From the contracts, to the schedule, to the funding—everything has to be in lock step or there will be problems that could bring the project to a halt, or worse yet litigation.
The same is true of construction claims. To present a claim effectively, it has to be simple. But, to make it simple will require substantial documentation and organization of all aspects of a claim.
This point was driven home this week when I received Long International’s Construction Claims Analysis Checklist Long International. The Checklist is 11 pages long and identifies various aspects of a claim, from the simple to the complicated.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Responding to Ransomware Learning from Colonial Pipeline
June 07, 2021 —
J. Kyle Janecek - Newmeyer DillionRecently, ransomware has taken to the forefront in national news. The most prevalent ransomware attack, the one perpetrated against Colonial Pipeline by the now-defunct "Dark Side" hackers, has served to remind businesses about the risks of ransomware. What happened to Colonial Pipeline? What should businesses do to learn from Colonial Pipeline's response? What should a business avoid?
What happened to Colonial Pipeline?
Colonial Pipeline, a Georgia based operator of fuel pipelines, had its billing software compromised by Dark Side's ransomware attack.1 Following this, Colonial Pipeline took proactive measures to (1) shut down their systems; (2) evaluate the issue; and (3) safely brought systems back on line after ensuring that they were not compromised.
Following this, Colonial Pipeline did eventually pay the 4.4 million dollar ransom demand from Dark Side. What it got in return was a decryption key, as promised, which ended up being slower than Colonial Pipeline's own backups.2 The ultimate result of this event being an initial cost of $4.4 million, in addition to lost profits, additional security costs, reputational costs, and litigation costs as consumers had filed a class-action lawsuit to hold Colonial Pipeline accountable for their perceived lapse in security.3 Further, the fall-out from Colonial Pipeline had prompted additional cybersecurity efforts and changes by the Biden administration, including proposed regulations requiring pipeline companies to inform the Department of Homeland Security of cybersecurity incidents within 12 hours, in addition to keeping a cybersecurity coordinator on staff at all times, and reviews of current security measures.
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J. Kyle Janecek, Newmeyer DillionMr. Janecek may be contacted at
kyle.janecek@ndlf.com
What You Need to Know About “Ipso Facto” Clauses and Their Impact on Termination of a Contractor or Subcontractor in a Bankruptcy
September 12, 2022 —
Martha B. Chovanes & Laurie A. Stanziale - ConsensusDocsWhile contractor bankruptcies have long been an issue in the construction industry, in the aftermath of COVID-19 and the resultant labor, material and supply-chain delays, contractor bankruptcies are of even greater concern. Many construction contracts attempt to protect the upstream party from a bankruptcy filing of its contractor or subcontractor by providing for an automatic right to terminate a contract, referred to as “ipso facto” clauses. However, such clauses are generally unenforceable as bankruptcy laws, specifically Section 365(e) of Title 11 of the United States Code, protect the party filing for bankruptcy (the “Debtor”) from unilateral termination of the contract by the non-Debtor party.
What is an “Ipso Facto” clause? An ipso facto clause is a provision in an agreement which permits its termination by one party due to the bankruptcy, insolvency or financial condition of the other party.
Reprinted courtesy of
Martha B. Chovanes, Fox Rothschild LLP (ConsensusDocs) and
Laurie A. Stanziale, Fox Rothschild LLP (ConsensusDocs)
Ms. Chovanes may be contacted at mchovanes@foxrothschild.com
Ms. Stanziale may be contacted at lstanziale@foxrothschild.com
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Last Parcel of Rancho del Oro Masterplan Purchased by Cornerstone Communties
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to San Diego Source, “A partnership controlled by Ure Kretowicz's Cornerstone Communities has paid a reported $25 million for a 28-acre residential parcel located on the northwest corner of College Avenue and Old Grove Road in the Rancho del Oro masterplan in Oceanside,” California.
Cornerstone plans to create a “338-unit luxury apartment development,” with amenities including “resort-level clubhouse with an Olympic size swimming pool, spa, barbecue area, conferencing center” and more.
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