Lien Claimant’s Right to Execute against Bond Upheld in Court of Appeals
February 10, 2012 —
Douglas Reiser, Builders Council BlogStonewood v. Infinity Homes is a simple construction dispute over a matter of about $9,000.00. But sometimes these tiny little disputes turn into expensive legal battles over mere procedural quivering. In Stonewood, a small subcontractor won a big victory yesterday when the Divison 1 Court of Appeals upheld its judgment against a lien release bond posted by an owner.
Infinity Homes contracted with Stonewood Design to lay tile in one of its customer’s homes. Stonewood did the work, but Infinity withheld roughly $9,000.00 of the contract sums for what it alleged were trade damages left on the tile. The two parties were unable to come to an agreement over payment and Stonewood proceeded with a lien under RCW 60.04. It then filed an action to enforce the lien against the homeowner, Infinity and its bonding company.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Thank You for 14 Consecutive Years of Legal Elite Elections
December 29, 2020 —
Christopher G. Hill - Construction Law MusingsThanks to the Virginia legal community that has continued to elect me to the Virginia Business Legal Elite in the Construction Law Category for 14 years running. The 14 consecutive years of election to the Legal Elite in the Construction Category spans my time as a solo construction attorney. The fact that you all have continued to elect “100%” of the lawyers at The Law Office of Christopher G. Hill, PC for the last 10 years is most gratifying and only confirms that my decision to “go solo” over 10 years ago was a good one. To be included in this list of top construction attorneys is both humbling and gratifying. For the complete list of the Virginia construction lawyers that were elected along with me, see the 2020 Virginia Business Legal Elite in Construction Law.
Reprinted courtesy of
The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com
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Insurer Doomed in Delaware by the Sutton Rule
September 12, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the defendants. As applied in Delaware, the Sutton Rule explains that landlords and tenants are co-insureds under the landlord’s fire insurance policy unless a tenant’s lease clearly expresses an intent to the contrary. If the Sutton Rule applies, the landlord’s insurer cannot pursue the tenant for the landlord’s damages by way of subrogation. Here, the Supreme Court affirmed the trial court’s decision that the Sutton Rule applied because the lease did not clearly express an intent to hold the tenants liable for the landlord’s damages.
In Thangavel, the plaintiff, Donegal Mutual Insurance Company (Insurer), provided property insurance to Seaford Apartment Ventures, LLC (Landlord) for a residential property in Delaware. Sathiyaselvam Thangavel and Sasikala Muthusamy (Tenants) leased an apartment (the Premises) from Landlord and signed a lease. Insurer alleged that Tenants hit a sprinkler head while flying a drone inside the Premises which caused water to spray from the damaged sprinkler head, resulting in property damage to the Premises. Landlord filed an insurance claim with Insurer, who paid Landlord $77,704.06 to repair the damage. Insurer then sought to recover the repair costs from Tenants via subrogation.
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Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
Colorado Legislature Considering Making it Easier to Prevail on CCPA Claims
April 03, 2023 —
Rachael Bandeira - Colorado Construction Litigation BlogHouse Bill 23-1192 (“HB 23-1192”) is one of the proposed bills making its way through the Colorado legislative session this year. It purports to create additional protections in the Colorado Consumer Protection Act (“CCPA”), but instead threatens to put construction professionals at an increased risk during litigation. Under the scope of the proposed bill, many construction contracts, as drafted, could automatically add up to $250,000 to any claim by lowering the standard for what constitutes an “unfair or deceptive trade practice.” Further, it would remove elements of a CCPA claim currently required by law to prove that an unfair or deceptive trade practice “constitutes a significant impact to the public.” This bill still has a way to go before becoming law, but given its progress thus far, we believe it is highly probable that it will be enacted unless there is substantial pushback. For the reasons discussed below, we urge all construction professionals to take necessary action to obstruct this bill, and particularly Section 1 of the bill, from becoming enacted.
The most concerning proposed amendments to the CCPA, through Section 1 of the bill, do the following:
- Remove the knowingly or recklessly mental state from the general unfair or deceptive trade practice provision concerning an unfair, unconscionable, deceptive, knowingly false, or fraudulent act or practice;
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Rachael Bandeira, Higgins, Hopkins, McLain & Roswell, LLCMs. Bandeira may be contacted at
bandeira@hhmrlaw.com
Congratulations Bryan Stofferahn, August Hotchkin, and Eileen Gaisford on Their Promotion to Partner!
April 19, 2021 —
Bremer Whyte Brown & O’MearaBryan Stofferahn has been with BWB&O’s Oakland office since 2016 and has been practicing law since 2002. Mr. Stofferahn focuses his practice on insurance defense matters and was lead counsel on the Millennium Tower construction defect case in San Francisco, which was the largest construction defect action in the country.
Outside of work, Bryan is passionate about traveling the world with his wife Claire and has finished in last place in two separate chili cook-offs (pre-COVID, of course).
August Hotchkin has been with BWB&O since 2013 and helped open the Reno office located in Northern Nevada in 2016. He is duly licensed in both Nevada and California, handling various legal matters, especially complex litigation, throughout Northern Nevada and Northern California.
Mr. Hotchkin has taken several cases to trial, including a successful defense verdict on a wrongful death matter. He has also argued countless dispositive motions as well as having cases heard at the Appellate level.
During his free time, Mr. Hotchkin enjoys golfing, snowboarding, and spending time with his family and friends, especially up at Lake Tahoe.
Eileen Gaisford has been with BWB&O’s Woodland Hill’s office for almost a decade and is licensed to practice law in California.
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Bremer Whyte Brown & O'Meara LLP
Expansion of Statutes of Limitations and Repose in K-12 and Municipal Construction Contracts
March 27, 2019 —
Henry Bangert - Colorado Construction LitigationThe purpose of this whitepaper is to bring attention to a trend in K-12 and municipal construction contracts, which expands the time periods for law suits against construction professionals.
Introduction and Background
Under Colorado statute, the period of time within which a legal action for construction defects may be brought against a construction professional in Colorado is two years from when the claimant (or its predecessor in interest) discovers or in the exercise of reasonable diligence should have discovered the physical manifestations of a defect (the “Statute of Limitations”), but in no case may an action be brought more than six years after substantial completion of the improvement, unless the claim arises in the fifth or sixth year after substantial completion, in which event the action may be brought within two years of such date, i.e., up to eight years after substantial completion (the “Statute of Repose”). See C.R.S. § 13-80-104. While the triggering events differ for the Statute of Limitations and Statue of Repose, the periods are intended to run concurrently to limit the period of time an action may be brought against construction professionals for construction defects to, at most, eight years after substantial completion. Importantly, these limitations periods may be expanded by agreement.
Prior to 1986, Colorado law provided for a 10-year Statute of Repose. However, in 1986, Colorado’s legislature shortened the Statute of Repose time limit to the current six (or up to eight) year period. In 1986, Colorado also redefined the date the claim arises from the date the defect was discovered or should have been discovered to the date the physical manifestation of a defect was discovered or should have been discovered. Therefore, after 1986, the two-year limitations period could begin to run when a claimant should have discovered the manifestation of a defect, even if the claimant did not recognize that a defect existed.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
More In-Depth Details on the Davis-Bacon Act Overhaul
November 06, 2023 —
Seth C. Wiseman & Angela M. Richie - Construction ExecutiveThe U.S. Department of Labor’s finalization of a
rule updating the Davis-Bacon Act, the federal law that governs how prevailing wages for federal construction projects can be determined, will have a significant impact on contractors and workers alike in the construction industry. The new rule, in effect, adopts the 30% rule, meaning that the prevailing wages must be equal to the wage paid to at least 30% of workers of a particular classification in a particular area. The new rule also implements a new anti-retaliation provision, specifically protecting construction workers who raise concerns about payment practices from adverse employment actions. The timing of this new rule is particularly significant for contractors, as it will likely raise the cost of labor for contractors at a time when the Infrastructure Investment and Jobs Act and the CHIPS Act are providing additional funding for federal projects across the country. Thus, it is important for all parties in the construction industry to understand the updated rule in order to evaluate the short-term impacts on their respective projects and long-term impact on their respective businesses.
Reprinted courtesy of
Seth C. Wiseman & Angela M. Richie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Wiseman may be contacted at swiseman@grsm.com
Ms. Richie may be contacted at arichie@grsm.com
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SEC Proposes Rule Requiring Public Firms to Report Climate Risks
April 11, 2022 —
Debra K. Rubin - Engineering News-RecordThe U.S. Securities and Exchange Commission issued a proposal March 21—both anticipated and feared—that would require publicly-traded companies to standardize disclosure for the first time of climate-related business risks such as those related to severe weather and decarbonization. Exchange-listed firms would also have to report greenhouse gas emissions, their own and in the supply chain, creating a major reporting mandate. The rules also apply to firms listed on overseas exchanges that operate in the U.S.
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Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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