Seattle Washington Building Expert Directory

Court Clarifies Sequence in California’s SB800

December 20, 2012 — CDJ STAFF
As California’s Right-To-Repair law, SB800, nears its ninth birthday, it has remained “largely untested in the legal system” as noted by Megan MacNee of Wood, Smith, Henning & Berman LLP on the site RealEstateRama. She writes that some homeowners have requested documents prior to filing a claim, which she describes as an attempt to “game the system,” and “analogous to requiring a party to litigation to comply with discovery before a complaint is filed.” The court determined that homeowners may not request documents from the builder until they have actually filed a claim. The court noted that SB800 lacks any clear indication that homeowners may request documents before filing a claim (and also does not indicate that a builder would have to provide documents in these circumstances). The court concluded that the section that sets up the prelitigation procedures occurs before they section on documents discovery. “Because the document request is part of the prelitigation procedure, and the prelitigation procedure does not begin until the homeowner has served notice of a claim, it follows that there can be no prelitigation obligation to produce documents under section 912, subdivision (a) unless the homeowner has commenced the prelitigation procedure by serving notice of a claim.” Read the court decision
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1st District Joins 2nd District Court of Appeals and Holds that One-Year SOL Applies to Disgorgement Claims

June 14, 2021 — Garret Murai - California Construction Law Blog
We’re beginning to see a trend. This past year, the 2nd District Court of Appeals, in Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, 53 Cal.App.5th 1201 (2020), held for the first time that a one (1) year statute of limitations period beginning upon substantial completion of a project applies to disgorgement claims under Business and Professions Code section 7031. In San Francisco CDC LLC v. Webcor Construction L.P., the 1st District Court of Appeals became the second Court of Appeals in the state to hold that a one (1) year statute of limitations beginning upon completion or cessation of work on a project applies to disgorgement claims under Business and Professions Code section 7031. The San Francisco CDC LLC Case The Defect Action In September 2005, San Francisco CDC LLC entered into a $144 million construction contract with Webcor Construction, Inc. doing business as Webcor Builders to build the InterContinental Hotel in San Francisco, California. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Will They Blow It Up?

March 28, 2012 — CDJ STAFF

The issues concerning the Harmon Towers building in Las Vegas continue to make their way through the courts. As we noted in a previous piece, Cook County building officials stated that the building could be a hazard if Las Vegas were struck by an earthquake. The question of whether the building will continue to stand is just one of the issues in front of a judge.

MGM Resorts International argued at a March 13 hearing for permission to implode the Harmon hotel building. They claim that more than 1,700 defects have been discovered in the building and that the building is a public safety hazard. Arguing against demolition, Perini Building Company, the general contractor for the hotel, and its subcontractors are claiming that imploding the building would destroy evidence and prejudice juries in the ongoing construction defect claims. They claim that MGM Resorts wishes to abandon the building due to the economic slowdown. Perini Corp, the contractor for the project, claims that the building can be fixed. Perini claims that MGM’s position in the construction trial would be improved if the building is demolished.

After Judge Elizabeth Gonzalez heard the four days of testimony on the Harmon Towers building and whether it should be demolished, she scheduled more testimony, with two days in April and an entire week in July. Judge Gonzalez will be deciding whether the building will be torn down, imploded, or left in place.

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“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention

March 22, 2018 — Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law Blog
It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract. When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800 et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.) Reprinted courtesy of Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and Joy Siu, Sheppard, Mullin, Richter & Hampton LLP Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
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What You Need to Know to Protect the Project Against Defect Claims

October 28, 2024 — Scott L. Baker - Los Angeles Litigation Blog
If a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage? Here are three things to know before beginning a project to effectively protect it and manage construction defect claims. 1. Documentation is key California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans. However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you:

Stay updated and aware of the project’s progress
Proactively catch and handle issues that could result in disputes
Create a record of evidence that can help manage defect claims

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Reprinted courtesy of Scott L. Baker, Baker & Associates
Mr. Baker may be contacted at slb@bakerslaw.com

Unfortunate Event Test Leads to Three Occurrences

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Second Circuit affirmed the finding of three occurrences in a highway accident after applying the unfortunate event test. Nat'l Liability & Fire Ins. Co. v. Itzkowitz, 2015 U.S. App. LEXIS 16387 (2nd Cir. Sept. 15, 2015). A dump box attached to a dump truck struck and damaged an overpass. The dump box then separated from the truck and landed in the right lane of the highway. Some thirty seconds to five minutes later, the Itzkowitz vehicle struck the detached dump box. Then, at some point between a few seconds and twenty minutes later, the Hershkowitz (second) vehicle struck the dump box. The insurer for the dump truck owner, National, argued there was one accident, or at most two separate accidents, under the policy. The district court found there were three occurrences and National appealed. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Issues of Fact Prevent Insurer's Summary Judgment Motion in Collapse Case

January 17, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's effort to dismiss the insured's collapse case by motion for summary judgment failed. Bitters v. Nationwide Gen. Ins. Co., 2021 U.S. Dist. LEXIS 228523 (E.D. Pa. Nov. 30, 2021). The insured alleged that there was a "sudden and accidental direct physical loss" to his home caused by collapse due to hidden insect damage to the foundation. The insured came home to find the floor of a bedroom dropped down to the cement slab below. He filed a claim with Nationwide, but coverage was denied. Suit was filed and Nationwide moved for summary judgment. The policy provided coverage for a sudden and accidental collapse caused by hidden insect damage. A building or part of a building was not considered in the state of collapse if it was standing, even if it was in danger of falling low or caving in. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Hamptons Home Up for Foreclosure That May Set Record

May 13, 2014 — Prashant Gopal – Bloomberg
A home in New York’s Hamptons on Further Lane, where comedian Jerry Seinfeld and hedge-fund manager Steven A. Cohen own estates, is up for auction in what will be one of the area’s biggest foreclosure sales. More than $10.5 million is owed on the 1.8-acre (0.7-hectare) property at 80 Further Lane in East Hampton, according to Daniel Murphy, the Riverhead, New York-based attorney who is scheduled to conduct the sale on June 10. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

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