Limiting Liability: Three Clauses to Consider in your Next Construction Contract
June 25, 2019 —
Tara Lynch - Gordon & Rees Construction Law BlogIn your next contract, consider including some (or all!) of the following clauses to limit your liability and maximize your profits.
Waiver of Consequential Damages
While a proven breach of contract will leave a design professional or contractor exposed to direct or compensatory damages, a waiver of consequential damages will help “stop the bleeding” and protect the design professional or contractor from paying every damage that might flow from the breach. Consequential damages include those damages which indirectly flow from the breach of contract, for example, lost rents, lost profits, lost use, lost opportunity, loss of employee productivity, and damages to reputation.
The American Institute of Architects (AIA) has included a mutual waiver of consequential damages in its sample A201 for over 20 years. The AIA provision includes a definition of consequential damages which are waived, including many of the examples cited above. However, the AIA waiver of consequential damages clause carves out an exception for liquidated damages to the owner. Prudent design professionals and contractors will strike this exception so as not to render the clause meaningless. A well-drafted waiver clause will be mutual, will define which damages are consequential versus direct, and will not contain exceptions.
Read the court decisionRead the full story...Reprinted courtesy of
Tara Lynch - Gordon & Rees Scully MansukhaniMs. Lynch may be contacted at
tlynch@grsm.com
U.S. Department of Defense Institutes New Cybersecurity Maturity Model Certification
July 13, 2020 —
Joseph N. Frost - Peckar & AbramsonContractors doing business with the Federal Government, particularly with the Department of Defense (“DoD”), commonly handle sensitive information that is not intended to be disseminated. Controlled Unclassified Information (“CUI”) is one such type and is more specifically defined as “information that requires safeguarding or dissemination controls pursuant to and consistent with laws, regulations and government-wide policies.”1 Because some DoD contracts require contractors to handle CUI, certain safeguards have been put in place to ensure its security. This article briefly touches on the current cybersecurity protocols, followed by a discussion of the new system being developed by the DoD, and what contractors most need to know about the new system.
The Defense Federal Acquisition Regulation Supplement (“DFARS”) has long required contractors to comply with certain cybersecurity standards, as published by the National Institute of Standards and Technology (“NIST”). Specifically, DFARS sought to implement the cybersecurity framework found in NIST Special Publication (“SP”) 800-171, entitled “Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations.” NIST SP 800-171 sets forth fourteen (14) families of recommended security requirements for protecting the confidentiality of CUI in nonfederal systems and organizations, including, among others, access control, audit and accountability, incident response, personnel security, and system and information integrity. However, after a series of data breaches, the DoD reassessed the efficacy of the continued use of NIST SP 800-171 and ultimately decided to institute a new methodology to ensure the security of CUI.
Read the court decisionRead the full story...Reprinted courtesy of
Joseph N. Frost, Peckar & AbramsonMr. Frost may be contacted at
jfrost@pecklaw.com
Municipalities Owe a Duty to Pedestrians Regardless of Whether a Sidewalk Presents an “Open and Obvious” Hazardous Condition. (WA)
February 25, 2014 —
Natasha Khachatourians – Scheer & Zehnder LLP Liability NewsletterIssue: Does a municipality owe a duty to pedestrians to keep sidewalks reasonably safe for their intended use even if the condition of the sidewalk is an open and obvious hazard? YES
Facts: Plaintiff Nanci Millson liked to walk in Lynden, Washington. While plaintiff regularly walked through her neighborhood and knew that various areas of the sidewalk were cracked and lifted, she continued to walk through her neighborhood nonetheless. Plaintiff felt that the sidewalks closer to her neighborhood were in better condition and when she reached an area a block away from her home, she picked up speed even though she was in an area of sidewalk she previously had not walked before. Plaintiff became distracted, tripped on an elevated sidewalk and fell, suffering various injuries.
Plaintiff sued the City of Lynden (“City”) for negligently failing to maintain the sidewalk in a reasonably safe condition. The City argued that the tripping hazard was “open and obvious”, and the trial court granted the City summary judgment. The issue before the Court of Appeals was whether an “open and obvious” condition is a matter of law to be decided by the court.
Read the court decisionRead the full story...Reprinted courtesy of
Natasha Khachatourians, Scheer & Zehnder LLP Ms. Khachatourians may be contacted at
natashak@scheerlaw.com
Property Owner Found Liable for Injuries to Worker of Unlicensed Contractor, Again
September 17, 2018 —
Garret Murai - California Construction Law BlogIt’s not like we didn’t warn you.
In Jones v. Sorenson, Case No. C084870 (August 2, 2018), homeowner Danita Sorenson discovered to her chagrin that she had unwittingly become the employer of Mary Jones, who had been hired by Odette Miranda doing business as Designs by Leo to trim some trees, and was liable for Jones’ injuries when Jones fell off a ladder provided by Miranda. “How can this be?” you might ask. The reason, as it turns out, is simple.
Miranda was required to hold a Class D-49 Tree Service Contractor’s license in order to contract with Sorenson to trim her trees, and because Miranda did not hold that license (or, for that matter, any contractor’s license), Sorenson automatically was deemed the employer of Jones under Labor Code Section 2750.5 and, therefore, liable for her injuries.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Congratulations to Arezoo Jamshidi & Michael Parme Selected to the 2022 San Diego Super Lawyers Rising Stars List
April 04, 2022 —
Arezoo Jamshidi & Michael C. Parme - Haight Brown & Bonesteel LLPCongratulations to Arezoo Jamshidi and Michael Parme who were selected for the 2022 San Diego Super Lawyers Rising Stars list. The 2022 San Diego Rising Stars list is an honor reserved for lawyers who exhibit excellence in practice. Only 2.5% of attorneys in San Diego receive this distinction.
Reprinted courtesy of
Arezoo Jamshidi, Haight Brown & Bonesteel, LLP and
Michael C. Parme, Haight Brown & Bonesteel, LLP
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Green Buildings Could Lead to Liabilities
March 28, 2012 —
CDJ STAFFAttempts to build “green,” reducing energy costs and increasing the use of sustainable building materials, may lead to more lawsuits, according to a report issued by the British Columbia Construction Association. The report warned those who were going to build green look into the implications. The report looked at the result of green building practices and requirements adopted in the United States.
The report warns that “the use of novel, less harmful building material or new construction techniques may give rise to liability due to: contractor inexperience with installation; lack of long-term evaluation of green materials; lack of understanding of how new building materials may impact existing traditional building systems; or warranties provided unintentionally about the durability or effectiveness of unproven materials or techniques.”
Manley McLachlan, president of the BCAA noted that they are aware of “legal action around the performance of the buildings,” noting that while fast-growing trees help toward LEED certification, their wood is more prone to mold. He also felt that low-VOC paints needed more testing to prove their durability as exterior finishes.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
If You Purchase a House at an HOA Lien Foreclosure, Are You Entitled to Excess Sale Proceeds?
February 03, 2020 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogThat pesky excess sale proceeds statute, A.R.S. § 33-727, is making waves again. We previously blogged about this statute here. In the prior post, we explained that excess sale proceeds (i.e., a foreclosure sale price greater than the lien being foreclosed) must be used to pay other lien creditors, in full, before the owner receives anything. Recently, the Arizona Court of Appeals held that creditors also take excess sale proceeds before the person who purchased the property at foreclosure. The case, Vista Santa Fe Homeowners Association v. Millan, No. 1 CA-CV 18-0609 (Ct. App. Oct. 15, 2019), is discussed below.
The Facts
In Vista Santa Fe, an individual bought a home secured by a first and second deed and trust. The homeowner defaulted on assessments owed to the Vista Santa Fe Homeowners Association (the “HOA”), and the HOA commenced an action to foreclose the resulting assessment lien. At the time, the HOA was owed approximately $14,000.
Patterson Commercial Land Acquisition & Development, LLC (“Patterson”) purchased the property at the HOA’s sheriff’s sale for $42,000. After satisfying the HOA’s lien, the sheriff deposited the excess sale proceeds, in the amount of approximately $28,000, with the clerk of the court.
Both Patterson and the second deed of trust holder, Bank of New York Mellon (“Bank”), submitted claims for the excess sale proceeds.[1] The trial court awarded the money to the Bank, and Patterson appealed.
Read the court decisionRead the full story...Reprinted courtesy of
Ben Reeves, Snell & Wilmer
Home Sales Going to Investors in Daytona Beach Area
December 11, 2013 —
CDJ STAFFHouses are selling quickly in the Daytona Beach, Florida area, but many of the buyers are investors who are buying up homes in hopes of selling them several years later. Maryke Guild, a real estate agent said that “in three, four years’ time, when the market has been resaturated, those guys are going to sell at a profit, there’s no doubt.” But while the housing market is good news for investors, it’s actually bad news for homebuilders.
“Flips are not what’s going to sustain the market,” said John Adams the general manager of the Adams, Cameron & Co., a Daytona-area real estate firm. Contractors are building new homes in the Daytona area, but the number of homes built in Volusia County in 2013 is a little more than a fifth of what was built in 2005. In adjacent Flagler County, homebuilding is at less than a tenth of what it was in 2004.
Read the court decisionRead the full story...Reprinted courtesy of