Court Bars Licensed Contractor From Seeking Compensation for Work Performed by Unlicensed Sub
June 06, 2022 —
Garret Murai - California Construction Law BlogIt all started with a tree.
A eucalyptus tree to be exact.
What followed is one of the more important cases to be decided under Business and Professions Code section 7031 in recent years. Yes, that Section 7031. The statute variously described by the state’s courts as “harsh[ ],” draconian” and “unjust,” but, importantly, nevertheless valid.
Under Section 7031, an unlicensed contractor is barred from seeking compensation for work requiring a contractor’s license. This has been called the “shield.” However, in addition to the “shield,” project owners can also employ Section 7031’s “sword,” and seek disgorgement of all monies paid to an unlicensed contractor. Section 7031’s “shield” and “sword” applies even if the project owner knew that the contractor was unlicensed. They also apply even if the unlicensed contractor’s work was flawless. And they also apply even if a contractor was unlicensed during a portion of its work. This is because, as courts have stated, Section 7031 is a consumer protection statute intended to protect the public from unlicensed contractors and applies irrespective of the equities.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Another Municipality Takes Action to Address the Lack of Condominiums Being Built in its Jurisdiction
March 12, 2015 —
Heather M. Anderson – Higgins, Hopkins, McLain & Roswell, LLCWhether you are in the market to downsize or are looking to be a first time home buyer, you have likely noticed that your housing options in Colorado have become extremely limited over the course of the last several years. If you are a contractor and have worked on multi-family projects in the recent past, you know why the housing options are limited in the State of Colorado. In the past two years, there have been studies commissioned and articles published in local periodicals investigating the extreme slowdown seen in the construction of owner-occupied multi-family housing, namely condominiums and townhomes. Those of us involved in and with the construction industry are intimately familiar with the lengthy, complicated, and incredibly expensive construction defect litigation that has plagued multi-family construction in the State of Colorado and brought it to a virtual halt.
And now, local municipalities and elected officials are starting to take notice. Most recently, the City of Lone Tree passed Ordinance No. 15-01, to become effective on April 1, 2015. According to the City of Lone Tree, Ordinance No. 15-01 is “aimed at encouraging the development of owner-occupied, multi-family residential projects through the adoption of regulations designed to balance the risk and exposure to builders and developers of such projects, while still protecting homeowners from legitimate construction defect claims.”
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Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLCMs. Anderson may be contacted at
Anderson@hhmrlaw.com
Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.
January 31, 2018 —
Sean Minahan – Construction Contract AdvisorAccording to a quick Google search the term
“holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client.
Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently, leaving our client holding the bag.
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Sean Minaham, Lamson, Dugan and Murrary, LLPMr. Minahan may be contacted at
sminahan@ldmlaw.com
Disaster-Relief Bill Stalls in Senate
April 22, 2019 —
Tom Ichniowski - Engineering News-RecordA partisan squabble over funds to help Puerto Rico continue its long recovery and rebuilding from two hurricanes in 2017 has tied up a wide-ranging spending package on Capitol Hill. At stake in the fight are hundreds of millions of dollars for reconstruction and related work around the U.S.
Mr. Ichniowski may be contacted at kormanr@enr.com
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Tom Ichniowski, ENR
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Where Breach of Contract and Tortious Interference Collide
January 11, 2022 —
Christopher G. Hill - Construction Law MusingsClaims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy.
In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts:
In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Alexus Williams Receives Missouri Lawyers Media 2021 Women’s Justice Pro Bono Award
November 29, 2021 —
Alexus Williams - Lewis BrisboisSt. Louis, Mo. (October 19, 2021) - St. Louis Associate Alexus Williams has received the Missouri Lawyers Media 2021 Women’s Justice Pro Bono Award, which honors women attorneys who have contributed significant effort and time to pro bono work.
In connection with this honor, Ms. Williams was interviewed by Missouri Lawyers Media for its 2021 Women’s Justice Awards (WJA) supplement. In the article featuring Ms. Williams, the publication explained that she has “developed a reputation for helping others” and “has continually found ways to level disparities to make the system work for everyone.” For example, as a member of the Bar Association of Metropolitan St. Louis Executive Committee’s Young Lawyers Division, Ms. Williams co-chaired a committee on racial equity during the civil unrest of 2020.
Ms. Williams told Missouri Lawyers Media, “When I was looking at grad programs, law school was one that seemed like it kind of aligned with what I was passionate about, which was helping people, counseling people, being able to be of assistance in different kinds of situations.” She further noted, “Everyone has to play their part but also everyone needs the opportunity to play their part.”
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Alexus Williams, Lewis BrisboisMs. Williams may be contacted at
Alexus.Williams@lewisbrisbois.com
Vermont Supreme Court Finds COVID-19 May Damage Property
November 07, 2022 —
Michael S. Levine & Lorelie S. Masters - Hunton Insurance Recovery BlogAs reported on this
blog, policyholders have long been of the view that the presence of substances like COVID-19 and its causative virus SARS-CoV-2, which render property dangerous or unfit for normal business operations, should be sufficient to trigger coverage under commercial all-risk insurance, as has been the case for more than 60 years.
However, many courts, federal courts in particular, despite decades of pro-policyholder precedent, have embraced the view that “viruses harm people, not [property].” Thirty-one months after the start of the pandemic, the first state high court has gone in a different direction, according greater weight to pro-policyholder precedent.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Lorelie S. Masters, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
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Home Prices in 20 U.S. Cities Rose in June at a Slower Pace
August 27, 2014 —
Lorraine Woellert – BloombergHome prices in 20 U.S. cities rose at a slower pace in the year ended in June as declining affordability and weak wage gains kept appreciation in check.
The S&P/Case-Shiller index of property values increased 8.1 percent from June 2013, the smallest 12-month gain since January 2013, the group reported today in New York.
Price gains are slowing as more houses are coming up for sale and investors retreat to the sidelines. That, combined with an improving job market, could put homeownership within reach of more Americans grappling with disappointing wage growth and strict lending rules.
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Lorraine Woellert, BloombergMs. Woellert may be contacted at
lwoellert@bloomberg.net