The Dangers of an Unlicensed Contractor from Every Angle
January 11, 2021 —
William L. Porter - Porter Law GroupThe State of California requires that contractors in the building trades be licensed. Individuals and business entities obtain their contractors licenses by demonstrating to the California Contractors State License Board that they have the requisite knowledge, skill, and experience to be licensed. The CSLB issues licenses to those meeting requirements. As a construction attorney of longstanding tenure, I have witnessed the impact of unlicensed building contractors from every point of view. If you are considering hiring an unlicensed contractor, acting as an unlicensed contractor or even working for an unlicensed contractor as an employee, please consider the following perils:
To the Owner Considering Hiring an Unlicensed Contractor:
On the positive side for owners considering hiring an unlicensed contractor, the general rule in California is that an owner can escape the obligation to pay an unlicensed contractor for work performed and materials supplied because unlicensed contractors are prohibited from bringing legal actions against owners for payment. The law even goes so far as to allow the Owner to bring a legal action against the unlicensed Contractor for reimbursement of anything the owner paid to the unlicensed contractor. This is done through a “disgorgement” action (see, Business and Professions Code 7031. See also, the following article: Disgorgement Article). Despite this, there are a great many negative potential consequences to be considered by any owner who might consider hiring an unlicensed contractor. Among them are the following:
- If you are considering not paying your unlicensed contractor because Business and Professions Code 7031 allows it, please consider that unlicensed contractors, who have clearly demonstrated a disinclination to follow legal obligations in the first place, may resort to “less than socially acceptable” means of exacting retribution against those who do not pay them or who demand the return of money paid through a disgorgement action I am sorry to say this. Let us leave it at that.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Catching Killer Clauses in Contract Negotiations
January 29, 2024 —
James T. Dixon - Construction ExecutiveRisk-management personnel who are in the business of reviewing and negotiating construction contracts have some simple tools at their disposal to make sure their edits are addressing all of the killer risk-shifting clauses in those contracts. One of those is the index to that document. But not all authors of construction contract documents are kind enough to include an exhaustive index in their form agreements.
One of the most popular sets of general conditions, the A201 General Conditions published by the American Institute of Architects, includes one that is fairly comprehensive. It identifies the six terms that include a reference to indemnification, for example. On the other end of the spectrum are the innumerable custom forms created by public and private project owners, and these rarely have an index.
Even more powerful than an index is the search or find functions that are available in word processing applications and now in Adobe, the publisher of documents in portable document format, more commonly known as PDF. But with PDF documents, one must be careful to make sure the document under review is in fact searchable. Because every letter counts, it is important to have full confidence in the integrity of the search.
Reprinted courtesy of
James T. Dixon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Wendel Rosen’s Construction Practice Group Receives “Tier 1” Ranking by U.S. News and World Reports
November 10, 2016 —
Garret Murai – California Construction Law BlogWendel Rosen’s Construction Practice Group has received a “Tier 1” ranking by U.S. News and World Reports in its 2017 Best Law Firms rankings and the firm as a whole has been named one of the “Best Law Firms.” This is the fourth consecutive year that Wendel Rosen’s Construction Practice Group has achieved a “Tier 1” ranking.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Three Kahana Feld Attorneys Selected to 2024 NY Metro Super Lawyers Lists
October 28, 2024 —
Linda Carter - Kahana FeldKahana Feld is pleased to announce that
Tim Capowski was selected to the 2024 NY Metro Super Lawyers list, and
Christopher Theobalt and
Sofya Uvaydov were selected to the 2024 NY Metro Rising Stars list. All three attorneys were recognized in the Appellate practice area.
Tim Capowski is a partner at Kahana Feld and chair of the firm’s
National Appellate Litigation & Consulting Group. He has spent the better part of three decades at the forefront of the insurance defense bar. Tim has litigated hundreds of appeals and thousands of motions in state and federal and appellate courts throughout New York and around the country. He handles a variety of complex litigation including catastrophic property and casualty claims, construction defect, professional liability, labor and employment law, mass torts, insurance coverage, and more.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Five Haight Attorneys Selected for Best Lawyers in America© 2021
September 07, 2020 —
Haight Brown & Bonesteel LLPFive Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers in America© 2021. Congratulations to William Baumgaertner, Bruce Cleeland, Peter Dubrawski, Michael Leahy and Denis Moriarty.
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 94,000 industry leading lawyers are eligible to vote (from around the world), and Best Lawyers has received over 11 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. Lawyers are not required or allowed to pay a fee to be listed; therefore inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”
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Haight Brown & Bonesteel LLP
The Economic Loss Rule: From Where Does the Duty Arise?
January 24, 2022 —
Taylor Hite - Colorado Construction LitigationWhen entering a contract under Colorado law or attempting to enforce your rights when the other party breaches a contract, it is important to know and understand what rights you have and what claims you can bring or defenses you may have. One important consideration is Colorado’s version of the economic loss rule. The Colorado Supreme Court has issued several opinions clarifying the scope of the economic loss rule since it adopted the rule in 2000. The purpose of the economic loss rule is to maintain the boundary between contract law and tort law.
In Colorado, the economic loss rule provides that a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for the breach without an independent duty of care under tort law. In most instances the economic loss rule will not bar intentional tort claims. The question becomes: from where does the duty arise? Is there an independent duty in tort law? Did the duty arise solely from the contract?
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Taylor Hite, Higgins, Hopkins, McLain & Roswell, LLCMs. Hite may be contacted at
Hite@hhmrlaw.com
Wyncrest Commons: Commonly Used Progress Payments in Construction Contracts Do Not Render Them Installment Contracts
December 11, 2023 —
Benjamin J. Hochberg - Peckar & Abramson, P.C.In BIL-JIM Construction Company, Inc. v. Wyncrest Commons, LP, 2023 WL 7276637 (Unpublished, decided November 3, 2023), the New Jersey Appellate Division was asked to consider two issues regarding the interpretation and application of a construction contract that utilized the standard form American Institute of Architects owner/contractor agreement (AIA Document A101-2007) (the “AIA Contract”). Specifically, it was asked to consider: 1) whether a modified AIA Contract was an “installment contract,” whereby each progress payment was subject to its own statute of limitations; and 2) whether and when work had been approved in the context of New Jersey’s Municipal Land Use Law. While the decision is presently unpublished, it provides guidance as to how form contracts utilizing the same or similar terms will be treated by New Jersey’s courts and is a reminder that the potential for future claims must be considered during contract negotiations.
Discussion
The primary issue in Wyncrest was whether an AIA Contract was an “installment contract,” and the remaining issues turned on the resolution of this question. Wyncrest, the owner for the project at issue, did not dispute that its contractor, BIL-JIM Construction Company, Inc., had not been fully paid for work that it had performed in connection with a construction project located in Ocean County, New Jersey. Instead, Wyncrest argued that because its AIA Contract with BIL-JIM required that invoices be presented and paid monthly, it constituted an “installment contract.” As such, older payments would be treated as individual transactions and were time barred by the applicable statute of limitations. The trial court agreed with Wyncrest’s characterization of the AIA Contract as an “installment contract,” and found that BIL-JIM’s invoices were each subject to their own statute of limitations. However, the trial court disagreed with Wyncrest’s argument that BIL-JIM’s claim for retainage—which was submitted at the end of its work at the project—was time barred.
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Benjamin J. Hochberg, Peckar & Abramson, P.C.Mr. Hochberg may be contacted at
bhochberg@pecklaw.com
DIR Public Works Registration System Down, Public Works Contractors Not to be Penalized
July 15, 2024 —
Garret Murai - California Construction Law BlogIn a bit of a major freak-out this past Friday, June 28, 2024, public works contractors with Department of Industrial Relations (“DIR”) registrations expiring on June 30, 2024 were unable to renew their public works registrations. Those who had submitted checks were not receiving responses, DIR was not accepting online payments, and there was no telephone number or address to contact the DIR about the issue.
This, of course, could have been a big deal since Labor Code section 1725.5 prohibits contractors and subcontractors from bidding on, being listed in a bid, or being awarded a public works contract unless registered with the DIR.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com