When is a “Willful” Violation Willful (or Not) Under California’s Contractor Enforcement Statutes?
April 17, 2019 —
Garret Murai - California Construction Law BlogThe enforcement statutes applicable to the California Contractors’ State License Board aren’t exactly models in clarity. A few examples:
1. Business and Professions Code Section 7107: Abandonment without legal excuse of any construction project or operation engaged in or undertaken by the license as a contractor constitutes a cause for disciplinary action.
2. Business and Professions Code Section 7109: A willful departure in any material respect from accepted trade standards for good and workmanlike construction constitutes a cause for disciplinary action, unless the departure was in accordance with plans and specifications prepared by or under the direct supervision of an architect.
3. Business and Professions Code Section 7110: Willful or deliberate disregard and violation of the building laws of the state, or any political subdivision thereof, . . . or of the safety or labor laws or compensation insurance laws or Unemployment Insurance Code of the State, or of the Subletting and Subcontracting Fair Practice Act, or violation by any licensee of any provision of the Health and Safety Code or Water Code, relating to the digging, boring, or drilling of water wells, constitutes a cause for disciplinary action.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Evaluating Smart Home Technology: It’s About More Than the Bottom Line
May 03, 2021 —
James W. McPhillips & Rachel Newell - Gravel2Gavel Construction & Real Estate Law BlogOutfitting a commercial real estate space with smart technology can be a significant cost. While the long-term benefits and strategic improvements we’ve discussed previously can make that investment worthwhile, the evaluation period is critical to ensure an impactful ROI. Property developers, owners, and managers should undertake a rigorous evaluation process to ensure the technology procurement aligns with the project’s overall financial plan. And this is not just about getting the cost right. If the technology does not meet the needs of the space, then all the smart technology in the world will not prevent the project from being a sunk cost.
Do the Research so You Know …
The Technology. While the RFP is a key step of the procurement process, a more informal research phase should be undertaken first. Smart technology is a rapidly evolving field, and before reaching out to vendors, the business should ensure that it understands what is available—both in terms of the kinds of technology that can be implemented, and the various companies that offer solutions. Gathering this information early will yield results that align more closely with a particular building’s needs.
Reprinted courtesy of
James W. McPhillips, Pillsbury and
Rachel Newell, Pillsbury
Mr. McPhillips may be contacted at james.mcphillips@pillsburylaw.com
Ms. Newell may be contacted at rachel.newell@pillsburylaw.com
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EEOC Issues Anti-Harassment Guidance To Construction-Industry Employers
July 22, 2024 —
Christopher Kelleher & Andrew Scroggins - The Construction SeytSeyfarth Synopsis: The Equal Employment Opportunity Commission (“EEOC”) has issued guidance tailored to the construction industry regarding compliance with anti-harassment laws. This lines up with our prediction in early 2024 that the EEOC had put the construction industry squarely in its sights. The guidance is important for construction-industry leaders and employers to understand to prevent and remedy workplace harassment, and to avoid potential harassment liability.
On June 18, 2024, the EEOC issued its
Promising Practices for Preventing Harassment in the Construction Industry. This guidance provides key recommendations that construction-industry leaders and employers should consider implementing to prevent and address harassment in the workplace, and avoid being the target of the EEOC’s enforcement efforts. The guidance is intended to supplement the EEOC’s
Strategic Enforcement Plan (“SEP”) for fiscal years 2024-2028, which provides direction on the EEOC’s current objectives, principles, and enforcement efforts – among them, increasing diversity in the construction industry and remedying harassment. (We’ve written previously about the
proposed and
final SEP.)
Reprinted courtesy of
Christopher Kelleher, Seyfarth and
Andrew Scroggins, Seyfarth
Mr. Kelleher may be contacted at ckelleher@seyfarth.com
Mr. Scroggins may be contacted at ascroggins@seyfarth.com
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Key California Employment Law Cases: October 2018
December 11, 2018 —
Alejandro G. Ruiz & Eric C. Sohlgren - Payne & FearsThis month’s key employment law cases address the test for independent contractor status, the legality of an incentive compensation system, and personal liability for wage and hour violations.
Garcia v. Border Transp. Group, LLC, Cal. Ct. App. Oct. 22, 2018
Summary: Defendants must satisfy Dynamex ABC test to establish independent contractor status as defense to wage order claims, but Borello multifactor test applies to non-wage-order claims.
Facts: Plaintiff leased a taxicab license and taxicab from defendants. Plaintiff brought several employment claims against defendants, including claims for whistleblower wrongful termination, unpaid wages, minimum wages, meal and rest break penalties, wage statement penalties, civil penalties under the California Labor Code Private Attorney Generals Act (“PAGA”), waiting time penalties, and unfair competition. Defendants filed a motion for summary judgment on all claims on the ground that plaintiff was an independent contractor and not an employee. Relying on the factors described in Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal. 3d 341, 256 Cal. Rptr. 543 (1989), defendant presented evidence that plaintiff set his own hours, used the cab for personal business, kept collected fares, used a radio dispatch service, entered into sublease agreements, held other jobs, and advertised services in his own name.The trial court granted summary judgment in favor of defendants. While plaintiff’s appeal was pending, the California Supreme Court decided Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903, 232 Cal. Rptr. 3d 1 (2018), establishing a new test for independent contractor status under the definition of employment found in the California Industrial Welfare Commission Wage Orders.
Reprinted courtesy of
Alejandro G. Ruiz, Payne & Fears and
Eric C. Sohlgren, Payne & Fears
Mr. Ruiz may be contacted at agr@paynefears.com
Mr. Sohlgren may be contacted at ecs@paynefears.com
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Public Contract Code Section 1104 Does Not Apply to Claims of Implied Breach of Warranty of Correctness of Plans and Specifications
October 30, 2023 —
Garret Murai - California Construction Law BlogIt’s the classic tale of two cities. One city is occupied by architects and engineers. The other, by contractors. And while the cities typically co-exist relatively peacefully together, at times, they do not, such as when a defect arises that can either be a design or construction defect.
Sometimes, project owners are pulled into these fights as well. There is a common law rule that when contracting with a contractor the owner impliedly warrants to the contractor that the plans and specifications are sufficiently accurate and correct.
And, if you work on local public works projects, you may be familiar with Public Contract Code section 1104 which provides that, with the exception of design-build projects, local public entities cannot require a bidder to assume responsibility for the completeness and accuracy of architectural or engineering plans and specifications.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
UConn’s Law-School Library Construction Case Settled for Millions
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFA group of builders recently settled with the state of Connecticut for $12.1 million in a case “over flaws in the construction of UConn's law-school library” reported Hartford Business. The State of Connecticut v. Lombardo Bros. Mason Contractors, Inc., et al. had been scheduled to start trial in 2015. According to Hartford Business, “The settlement ends six years of litigation over defects in construction of the library, which was completed in 1996 and renamed in 2010 in honor of the late Gov. Meskill.”
An investigation into the construction of the library began after “[l]eaks, instability in the library’s granite façade, and other structural and safety problems became evident.”
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Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties
March 13, 2023 —
Garret Murai - California Construction Law BlogCalifornia has a number of
prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card.
In a case of first impression, the 1st District Court of Appeals, in
Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Kentucky Supreme Court Creates New “Goldilocks Zone” to Limit Opinions of Biomechanical Experts
July 24, 2023 —
Aimee E. Muller - Lewis BrisboisLexington, Ky. (June 26, 2023) – In a recent decision, the Kentucky Supreme Court placed stricter limitations on the opinions that biomechanical engineers may offer at trials in Kentucky courts. Specifically, the published opinion issued in Renot v. Securea, Supreme Ins. Co., 2023 Ky. LEXIS 163, recognizes a new space for the testimony of biomechanics experts – “The Goldilocks Zone.”
Where is the Goldilocks Zone?
The Goldilocks Zone is a perfect place in which the proffered testimony is neither too specific such that it wanders into the realm of medical causation, nor too general such that it fails to help a lay jury. Specifically, a biomechanical engineer’s expert testimony must be limited to the forces generated by the subject collision, the generally anticipated responses of a hypothetical person’s body to those forces, and the range of typical injuries resulting from such forces. Moreover, following Renot, a biomechanical engineer’s proffered opinions no longer may enter into the realm of diagnosing a specific medical condition associated with a traumatic injury. Instead, the question of whether a trauma actually caused or exacerbated a plaintiff’s injuries falls solely within the purview of a medical doctor.
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Aimee E. Muller, Lewis BrisboisMs. Muller may be contacted at
Aimee.Muller@lewisbrisbois.com