Save a Legal Fee: Prevent Costly Lawsuits With Claim Limitation Clauses
April 25, 2012 —
Douglas Reiser, Builders Council BlogEver had that lingering problem with a contracting partner that went away for awhile and then came back to bite you ? years later? In Washington, construction contract claims can be raised for up to six years after substantial completion. Six years!? Why would I want to wait that long to find out if I have a problem? You don’t have to.
Over the past few years, I have discussed the notion of “contractual claim periods” on The Builders Counsel. For today’s Save a Legal Fee column, I cannot think of a better topic. These provisions are specifically intended to save you from unnecessary legal fees that might arise if a problem goes unnoticed for too long.
Contractual claim periods are simply a way to reduce the amount of time that a contracting party has to raise a claim against its contracting partner. For example, a subcontractor might require that a general contractor raise any claim that it might have ? for defective or incomplete work, injury, damages, etc ? within a particular amount of time or forever lose the ability to raise the claim in a legal proceeding.
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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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U.S. Firm Helps Thais to Pump Water From Cave to Save Boys
August 14, 2018 —
Dan Murtaugh - BloombergLike much of the world, Patrick Decker has been engrossed in the saga of 12 boys and their soccer coach who became trapped in a flooded cave in Thailand. Unlike most, Decker is in a position to do something about it.
As chief executive officer of Xylem Inc., one of the world’s top water technology firms, Decker spent much of last week reaching out to Thai officials and mobilizing his company of 17,000 employees to help. Decker said he sent four engineers to the cave site, and they assisted rescuers by boosting pumping power 40 percent. Thai Navy SEALs and international cave diving experts extracted eight boys over Sunday and Monday.
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Dan Murtaugh, Bloomberg
Superior Court Of Pennsylvania Holds Curb Construction Falls Within The Scope Of CASPA
September 17, 2014 —
Jerrold Anders & Michael Jervis – White and Williams LLPIn Prieto Corp. v. Gambone Construction Co., the Superior Court of Pennsylvania recently considered three issues arising out of a construction dispute, including whether construction of a curb falls within the scope of the Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516. CASPA is a Pennsylvania statute which is intended to protect contractors and subcontractors from abuses in the building industry and which establishes certain rules and deadlines for payments between owners, contractors, and subcontractors. Failure to abide by the act’s payment requirements subjects an owner or contractor to liability for interest, penalties and attorneys fees. In this case, Prieto was a subcontractor hired by Gambone to construct concrete or Belgian block curbs at Gambone’s property developments. Prieto sued Gambone under CASPA for failure to pay its invoices for four projects. After the trial court entered judgment for Prieto, Gambone appealed, arguing that CASPA did not encompass the work at issue, i.e. the construction of curbs, because curbs did not constitute an improvement to real property.
Reprinted courtesy of
Jerrold Anders, White and Williams LLP and
Michael Jervis, White and Williams LLP
Mr. Anders may be contacted at andersj@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Insurer Not Bound by Decision in Underlying Case Where No Collateral Estoppel
February 25, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Eleventh Circuit determined that the trial court did not err by refusing to give preclusive effect to findings made in the underlying state-court action because there was no collateral estoppel. Nationwide Mut. Ins. Co. v. Sharif, 2014 U.S. App. LEXIS 2114 (11th Cir. Feb. 4, 2014).
Bashir's owned a grocery and was insured by Nationwide. The decedent was accidentally killed by a pistol stored under the cash register. The decedent's personal representative sued Bashir in state court. Nationwide declined to defend because it maintained that the employment exclusion applied to bar coverage.
The personal representative argued two alternative claims, the first assuming the decedent was not an employee of Bashir's and the second assuming that he was. The state court granted a motion to dismiss the second claim that the decedent was an employee. In a subsequent trial, judgment was awarded against Bashir and another defendant in the amount of $950,000.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Parking Reform Takes Off on the West Coast
January 23, 2023 —
Allan Van Vliet - Gravel2Gavel Construction & Real Estate Law BlogStarting January 1, 2023, real estate developers in Oregon and California will no longer be required to build off-street parking facilities for certain projects located near public transit. Both states enacted new rules during the course of 2022 which are effective as of the beginning of 2023, and which seek to reduce the costs of building at least some new projects in major population centers.
In California, A.B. 2097 was signed by Governor Gavin Newsom in September, and prohibits city governments throughout the state (including in charter cities) from enforcing any local land use provisions which would require the developer to build parking spaces as part of their project if the project is located within one half-mile of a major public transit stop. The law applies to both residential and commercial projects. Cities can continue mandating parking for individual projects if they find that doing so is important to support the development of affordable housing—this exception was added to allay concerns that the bill would undermine “density bonus” programs which have become an important tool for the promotion of new affordable housing development around the state.
In Oregon, following a 2020 executive order by Governor Kate Brown, the state Land Conservation and Development Commission (the body responsible for land use and planning regulation in Oregon) embarked on a two-year rulemaking process which culminated in July of 2022 with the approval of a set of “Climate Friendly and Equitable Communities Rules.” Like the California legislation, these rules (in part) limit the ability of Oregon’s most populous cities to enforce parking minimums for new development projects. Unlike the California law, the Oregon rules encourage cities simply to repeal their parking mandates entirely. Cities subject the new rules which choose not to repeal their parking mandates in full must, as an alternative, adopt new local policies to reduce the amount of land dedicated to parking in certain geographies or in connection with certain uses.
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Allan Van Vliet, PillsburyMr. Van Vliet may be contacted at
allan.vanvliet@pillsburylaw.com
Roof Mounted Solar Panels: Lower Your Risk of Fire
September 25, 2023 —
The Hartford Staff - The Hartford InsightsAs the federal government, individual states, businesses and consumers take steps to address climate change, the use of renewable energy – including roof-mounted solar panels – has steadily increased. Over the past decade, the use of solar energy solutions has grown by 33% annually. This is driven by tax-based incentives for clean energy, combined with installation costs that are down more than 50% from 10 years ago.1
As more companies execute climate-focused goals to limit greenhouse emissions, reduce their carbon-footprint and lower energy costs, the use of solar power for commercial buildings is likely to increase. Currently, it's estimated that only 3.5% of commercial buildings have rooftop solar panels, but 70% are potential targets for solar.2
We know the use of solar power can have positive impacts on the environment and generate long-term energy cost savings. However, there are several considerations and potential risks that commercial property owners and facilities managers should consider prior to investing in solar, says Tracey Greene, underwriting director for Middle and Large Commercial Real Estate at The Hartford.
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The Hartford Staff, The Hartford Insights
Unpredictable Opinion Regarding Construction Lien (Reinstatement??)
January 17, 2023 —
David Adelstein - Florida Construction Legal UpdatesHere comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you.
Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Tejon Ranch Co. Announces Settlement of Litigation Related to the Tejon Ranch Conservation and Land Use Agreement
December 05, 2022 —
Tejon Ranch Co.TEJON RANCH, Calif., Nov. 30, 2022 (GLOBE NEWSWIRE) -- Tejon Ranch Co. is pleased to announce the resolution of a legal dispute involving the Tejon Ranch Conservancy and the signatories to the 2008 Tejon Ranch Conservation and Land Use Agreement (Agreement), namely, Audubon California, Endangered Habitats League, Natural Resources Defense Council, Planning and Conservation League, and the Sierra Club. The dispute stemmed from the signatories' participation in the Antelope Valley Regional Conservation Strategy (AVRCIS), which was subsequently used by the Center for Biological Diversity (CBD) and the California Native Plant Society (CNPS) to oppose Tejon Ranch Co.'s Centennial development.
The 2008 Tejon Ranch Conservation and Land Use Agreement has been widely hailed as a historic conservation achievement in preserving one of California's great natural and working landscapes. Tejon Ranch Co.'s agreement to conserve 90 percent of its landholdings pursuant to the Agreement is a monumental contribution to conservation in California. Tejon Ranch Co. continues to be a leader in balancing the stewardship of the ranch as a natural treasure for California and achieving economic opportunities for its shareholders. The Company demonstrated that leadership with the actions it took to enforce the terms of the Agreement, which led to this legal dispute.
As part of a settlement agreement, the Conservancy and the signatories dismissed with prejudice the lawsuit they filed. They also acknowledge that the AVRCIS does not contain the "best available scientific data" regarding Tejon Ranch Co.'s landholdings, and further, that they will not use, or support the use of, the AVRCIS or any other similar endeavors, to challenge Tejon Ranch Co.'s development projects and/or any Ranch uses consistent with the Agreement.
In turn, Tejon Ranch Co. released from escrow 50% of the advance payments it withheld under the terms of the Agreement. The remaining funds will be released over a three-year period as matching funds to monies raised by the Conservancy as well as others who participate in Conservancy capital raising programs, after which the remaining funds with be released to the Conservancy to further its mission. These funds are the final fulfilment of Tejon Ranch Co.'s full funding obligations under the Agreement, totaling $11,760,000 over the past 14 years, again demonstrating Tejon Ranch Co.'s commitment to fulfilling the implementation of the 2008 Tejon Ranch Conservation and Land Use Agreement.
All parties are glad to put this dispute behind them and move forward in a cooperative manner to achieve the goals envisioned in the historic 2008 Agreement.
About Tejon Ranch Co.
Tejon Ranch Co. (NYSE: TRC) is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. More information about Tejon Ranch Co. can be found on the Company's website at www.tejonranch.com.
Forward Looking Statements
This press release contains forward-looking statements, including without limitation statements regarding commitments of the parties under the settlement agreement and the achievement of certain goals related to Tejon Ranch Co.'s landholdings. These forward-looking statements are not a guarantee of future results, performance, or achievements, are subject to assumptions and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance, or achievements to differ materially from those implied by such forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the ability and willingness of the parties to the Settlement Agreement to take the actions (or refrain from taking the actions) specified in the Settlement Agreement, and the risks described in the section entitled "Risk Factors" in our annual and quarterly reports filed with the SEC.
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