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DIRECTORY AND CAPABILITIES

2017 Susan G. Komen Race for the Cure

March 01, 2017 — Haight Brown & Bonesteel LLP
As a part of our 80 acts of Kindness commitment, Haight has registered a team to walk/run in the Susan G. Komen Race for the Cure Event taking place Saturday, March 11, 2017 at Dodger Stadium from 7:00 a.m. - 11:30 a.m. We have a great group of partners, associates, and staff joining the Haight team to walk or run in support of the Susan G. Komen Foundation. For over 30 years, the Foundation’s efforts have funded life-saving breast cancer research and provided support to the thousands of women and men battling the disease. For 80 years, Haight Brown & Bonesteel has been one of California’s leading full service law firms. To commemorate our 80 years in business, we are giving back to the community. Throughout 2017, we will demonstrate our commitment to those in need through 80 different acts of kindness. Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

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Superior Court Of Pennsylvania Holds That CASPA Does Not Allow For Individual Claims Against A Property Owner’s Principals Or Shareholders

January 07, 2015 — William J. Taylor and Michael Jervis – White and Williams LLP
In Scungio Borst Assocs. v. 410 Shurs Lane Developers, LLC, the Superior Court of Pennsylvania held that an individual principal/shareholder of a property owner could not be held personally liable as an “agent of the owner” for unpaid invoices, penalties, and attorneys fees under the Pennsylvania Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516, even though the property owner itself had failed to make payments allegedly due under a construction contract. CASPA is a Pennsylvania statute which is designed to protect contractors and subcontractors from nonpayment and which, to that end, establishes rules and deadlines for payment under construction contracts between property owners, contractors, and subcontractors. An owner or contractor who does not adhere to the Act’s payment requirements is subject to the imposition of interest, penalties, and attorneys’ fees. In this recent case, the property owner, a limited liability company, had retained the plaintiff contractor to perform construction services on a condominium project. Upon completion of the work, the contractor was not paid approximately $1.5 million that it was owed under the contract. The contractor filed suit under CASPA to obtain the payment it was owed plus interest, penalties and fees, and named both the property owner and its individual principal as defendants. The trial court granted summary judgment to the individual principal on all claims asserted against him, and the contractor appealed, arguing that CASPA allows for claims against both a property owner and its principal when the principal is an “agent of the owner acting with the owner’s authority.” Reprinted courtesy of Michael Jervis, White and Williams LLP and William J. Taylor, White and Williams LLP Mr. Jervis may be contacted at jervism@whiteandwilliams.com; Mr. Taylor may be contacted at taylorw@whiteandwilliams.com Read the court decision
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Yellowstone Park Aims for Quick Reopening After Floods

July 03, 2022 — The Associated Press (Matthew Brown & Amy Beth Hanson) - Bloomberg
Gardiner, Mont. (AP) -- Most of Yellowstone National Park should reopen within the next two weeks — much faster than originally expected after record floods pounded the region last week and knocked out major roads, federal officials said. Yellowstone Superintendent Cam Sholly said the world-renowned park will be able to accommodate fewer visitors for the time being, and it will take more time to restore road connections with some southern Montana communities. Park officials said Sunday they'll use $50 million in federal highway money to speed up road and bridge repairs. There’s still no timetable for repairs to routes between the park and areas of Montana where the recovery is expected to stretch for months. Yellowstone will partially reopen at 8 a.m. Wednesday, more than a week after more than 10,000 visitors were forced out of the park when the Yellowstone and other rivers went over their banks after being swelled by melting snow and several inches of rainfall. Read the court decision
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Read Carefully. The Insurance Coverage You Thought You Were Getting May Not Be The Coverage You Got

November 27, 2013 — Bret Cogdill — Higgins, Hopkins, McLain & Roswell, LLC
A recent U.S. District Court case in Colorado highlighted the importance for an insured to read and understand the terms of its insurance policy. The case 2-BT, LLC v. Preferred Contractors Insurance Company Risk Retention Group, LLC, Civil Action No. 12CV02167PAB, was a controversy between an insured’s expectations for coverage, and the terms and exclusions of the insurance policy. 2-BT is a heating, ventilation, and air-conditioning (“HVAC”) contractor, which utilizes soldering devices and heat sources among other tools for its trade. 2-BT needed liability insurance to cover its work, and found a provider, Preferred Contractors Insurance Company Risk Retention Group, LLC (“PCIC”). 2-BT read PCIC’s online materials, which stated “PCIC’s personalized underwriting process allows us to tailor coverage to properly outfit the contractor with excellent coverage and rates.” 2-BT filled out a policy application, which included a description of the type of HVAC work it performs, initialed several sections, and signed it. One of the initialed paragraphs on the application, “Policy Exclusions,” stated that damages arising from “fungi/bacteria,” “open flame,” and “use of heating devices,” was not covered. PCIC issued a policy to 2-BT, which included a section titled, “Additional Exclusions” that excluded coverage for mold and damage related to heating elements among others. Read the court decision
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Reprinted courtesy of Bret Cogdill
Bret Cogdill can be contacted at cogdill@hhmrlaw.com

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History of Defects Leads to Punitive Damages for Bankrupt Developer

March 01, 2012 — CDJ STAFF

The South Carolina Court of Appeals has ruled that evidence of construction defects at a developer’s other projects were admissible in a construction defect lawsuit. They issued their ruling on Magnolia North Property Owners’ Association v. Heritage Communities, Inc. on February 15, 2012.



Magnolia North is a condominium complex in South Carolina. The initial builder, Heritage Communities, had not completed construction when they filed for bankruptcy protection under Chapter 11. The remaining four buildings were completed by another contractor. The Property Owners’ Association subsequently sued Heritage Communities, Inc. (HCI) alleging defects. The POA also sued Heritage Magnolia North, and the general contractor, BuildStar.



The trial court ruled that all three entities were in fact one. On appeal, the defendants claimed that the trial court improperly amalgamated the defendants. The appeals court noted, however, that “all these corporations share officers, directors, office space, and a phone number with HCI.” Until Heritage Communities turned over control of the POA to the actual homeowners, all of the POA’s officers were officers of HCI. The appeals court concluded that “the trial court’s ruling that Appellants’ entities were amalgamated is supported by the law and the evidence.”



Heritage also claimed that the trial court should not have allowed the plaintiffs to produce evidence of construction defects at other Heritage properties. Heritage argued that the evidence was a violation of the South Carolina Rules of Evidence. The court cited a South Carolina Supreme Court case which made an exception for “facts showing the other acts were substantially similar to the event at issue.” The court noted that the defects introduced by the plaintiffs were “virtually identical across all developments.” This included identical use of the same products from project to project. Further, these were used to demonstrate that “HCI was aware of water issues in the other projects as early as 1998, before construction on Magnolia North had begun.”



The trial case ended with a directed verdict. Heritage charged that the jury should have determined whether the alleged defects existed. The appeals court noted that there was “overwhelming evidence” that Heritage failed “to meet the industry standard of care.” Heritage did not dispute the existence of the damages during the trial, they “merely contested the extent.”



Further, Heritage claimed in its appeal that the case should have been rejected due to the three-year statute of limitations. They note that the first meeting of the POA was on March 8, 2000, yet the suit was not filed until May 28, 2003, just over three years. The court noted that here the statute of limitation must be tolled, as Heritage controlled the POA until September 9, 2002. The owner-controlled POA filed suit “approximately eight months after assuming control.”



The court also applied equitable estoppel to the statute of limitations. During the time in which Heritage controlled the board, Heritage “assured the unit owners the construction defects would be repaired, and, as a result, the owners were justified in relying on those assurances.” Since “a reasonable owner could have believed that it would be counter-productive to file suit,” the court found that also prevented Heritage from invoking the statute of limitations. In the end, the appeals court concluded that the even apart from equitable tolling and equitable estoppel, the statute of limitations could not have started until the unit owners took control of the board in September, 2002.



Heritage also contested the jury’s awarding of damages, asserting that “the POA failed to establish its damages as to any of its claims.” Noting that damages are determined “with reasonable certainty or accuracy,” and that “proof with mathematical certainty of the amount of loss or damage is not required,” the appeals court found a “sufficiently reasonable basis of computation of damages to support the trial court’s submission of damages to the jury.” Heritage also claimed that the POA did not show that the damage existed at the time of the transfer of control. The court rejected this claim as well.



Finally, Heritage argued that punitive damages were improperly applied for two reasons: that “the award of punitive damages has no deterrent effect because Appellants went out of business prior to the commencement of the litigation” and that Heritages has “no ability to pay punitive damages.” The punitive damages were upheld, as the relevant earlier decision includes “defendant’s degree of culpability,” “defendants awareness or concealment,” “existence of similar past conduct,” and “likelihood of deterring the defendant or others from similar conduct.”



The appeals court rejected all of the claims made by Heritage, fully upholding the decision of the trial court.

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Liability Policy’s Arbitration Endorsement Applies to Third Party Beneficiaries, Including Additional Insureds

May 11, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Philadelphia Indemnity Ins. Co. v. SMG Holdings, Inc. (No. C082841; filed 12/31/19, ord. pub. 1/28/20), a California appeals court held that a binding arbitration clause in an insurance policy extends to a third party, such as an additional insured. In Philadelphia v. SMG, Philadelphia issued a general liability policy to a youth organization, Future Farmers of America (FFA), that had contracted to use the Fresno Convention Center for its annual convention. The contract required FFA to obtain liability insurance and to name the property manager, SMG, and the City of Fresno, as additional insureds. Philadelphia issued FFA a commercial lines CGL policy with an endorsement affording coverage to “managers, landlords, or lessors of premises” for “liability arising out of the ownership, maintenance or use of that part of the premises leased or rented” to the named insured. It also covered “any person or organization where required by a written contract executed prior to the occurrence” but only for liability arising from the named insured’s negligence. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Sacramento Army Corps District Projects Get $2.1 Billion in Supplemental Appropriation

September 04, 2018 — Greg Aragon - Engineering News-Record
The U.S. Army Corps of Engineers Sacramento District has received supplemental funding for five District projects, totaling an investment of more than $2.1 billion in flood risk management efforts. Read the court decision
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Reprinted courtesy of Greg Aragon, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Civility Is Key in Construction Defect Mediation

February 12, 2013 — CDJ STAFF
Eugene Heady of Smith Currie & Hancock reminds those involved in construction disputes to “lay down the swords.” Yes, it’s an adversarial situation, but “mediating parties must understand that courtesy, candor, and cooperation on the part of their respective lawyers will help contain the conflict and help resolve the dispute more quickly and efficiently.” Instead of doing battle with the opposition, Mr. Heady says that one should “approach mediation as an opportunity to solve a complex problem, rather than an opportunity for conquest over one’s enemy.” Read the court decision
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