Res Judicata Not Apply to Bar Overlapping Damages in Separate Suits Against Contractor and Subcontractor
November 06, 2023 —
David Adelstein - Florida Construction Legal UpdatesCan the doctrine of res judicata bar an owner’s claim against the general contractor after the owner also sued and obtained a satisfied judgment against the subcontractor when there are identical, overlapping damages pursued in separate lawsuits. A recent case says, not really.
In Pickell v. Lennar Homes, LLC, 48 Fla.L.Weekly D2037a (Fla. 6th DCA 2023), a homeowner sued a homebuilder and the homebuilder’s mechanical subcontractor in separate lawsuits. The claims and damages asserted in the separate lawsuits were substantially identical. The homeowner obtained a judgment against the mechanical subcontractor which was satisfied (i.e., paid). The homebuilder tried to use this as a get-out-jail-free card and claimed the homeowner was barred from suing it under the doctrine of res judicata based on overlapping claims and damages.
“To successfully assert a defense of res judicata, a party must prove four “identities”: “(1) identity of the thing sued for; (2) identity of the cause of action; (3) identity of persons and parties to the action; and (4) identity of the quality of the persons for or against whom the claim is made.” Pickell, supra (citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Professional Liability Client Alert: Law Firms Should Consider Hiring Outside Counsel Before Suing Clients For Unpaid Fees
March 31, 2014 —
David W. Evans and Blythe Golay - Haight Brown & Bonesteel LLPLaw firms seeking to recover attorney’s fees as the prevailing party in fee dispute litigation with their former client should hire outside counsel in order to avoid waiving any entitlement to such fees. Evaluating any potential exposure for a professional negligence claim or cross-claim before filing suit should also be considered. In Soni v. Wellmike Enterprise Company, Ltd., et al., No. B242288 (filed March 26, 2014) the California Court of Appeal for the Second District held that a law firm, represented by its own employees and associates, was not entitled to recover attorney fees as the prevailing party, pursuant to the attorney’s fee provision in the retainer agreement. The Soni decision is the latest addition to the general prohibition enunciated by Trope v. Katz (1995) 11 Cal.4th 274 (“Trope”) and its progeny that law firms are precluded from recovering attorney’s fees for self-representation.
In Soni, the law firm obtained a $28,384 judgment for delinquent legal fees against a former client. The firm then filed a motion for attorney’s fees, seeking $120,912 as the fees it incurred as the prevailing party under the retainer agreement. The trial court denied the motion based on the general rule set forth in the Trope line of cases that fees are not recoverable where the firm is represented by attorneys employed by the firm, despite the presence in the applicable retainer agreement of a clause notifying the client that fees the law firm would seek if it prevailed would include those for its in-house personnel.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Blythe Golay, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com; Ms. Golay may be contacted at bgolay@hbblaw.com
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U.S. Homeownership Rate Falls to Lowest Since Early 1995
October 29, 2014 —
Prashant Gopal – BloombergThe homeownership rate in the U.S. fell to the lowest in more than 19 years as the market shifted toward renting and tight credit blocked some potential buyers.
The share of Americans who own their homes was 64.4 percent in the third quarter, down from 64.7 percent in the previous three months, the Census Bureau said in a report today. The rate was at the lowest level since the first quarter of 1995.
Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29 percent in September for the third straight month, compared with about 40 percent historically, according to the National Association of Realtors said.
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Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
Specified Or Designated Operations Endorsement – Limitation of Insurance Coverage
July 15, 2024 —
David Adelstein - Florida Construction Legal UpdatesYour commercial general liability (CGL) policy may contain a specified or designated operations endorsement. This does not operate as an exclusion but as a LIMITATION of coverage. The endorsement may provide that bodily injury or property damage ONLY applies to the operations or business described therein. Similarly, there may be a limitation of coverage for designated classifications or codes which has the same effect—limiting coverage to the classifications/codes listed therein. This is an important consideration, and you need to understand and watch out for such limitations of coverage. (These aren’t the only ones, but it’s important to appreciate that limitations of coverage operate to limit the coverage to which the CGL policy applies.)
The Eleventh Circuit Court of Appeal dealt with this exact issue under Alabama law (although the same analysis would apply in numerous jurisdictions). In this case, a landscaper (the insured) had a CGL policy with a specified operations endorsement that limited coverage to landscaping operations. The landscaper was hired to install an in-ground trampoline in addition to site and landscaping operations at a house. A person got hurt using the trampoline and the landscaper was sued. The CGL insurer denied coverage outright (and, thus, any duty to defend) because the complaint asserted that the injury occurred from the landscaper’s assembly and installation of the trampoline, which was not a landscaping operation. Furthermore, the Eleventh Circuit noted that the landscaper’s insurance application specified that the landscaper did not perform any recreational or playground equipment erection or construction, and the installation and assembly of a trampoline would constitute recreational or playground equipment.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Pinnacle Controls in Verano
February 21, 2013 —
CDJ STAFFThe California Court of Appeals has applied the California Supreme Court’s recent Pinnacle decision to a new case, Verano Condominium Association v. La Cima Development. As in Pinnacle, La Cima sought to compel arbitration of construction defect claims with a homeowners association. The trial court denied La Cima’s attempt to compel arbitration on the grounds that the arbitration agreement was made with the individual homeowners and not the homeowners association. Further, it was determined that the CC&Rs “were unenforceable due to unconscionability.”
La Cima appealed, and the appeals court affirmed in part and reversed in part. After Pinnacle, La Cima sought a review. The Supreme Court of California directed the appeals court to vacate their earlier decision and reconsider, based on Pinnacle.
The Fourth Circuit Court has concluded that this conflicted with the ruling in Pinnacle. There, as in Verano, homeowners signed agreements that disputes with the developer would be settled through binding arbitration. The appeals court had found for the community association, but on review, the California Supreme Court reversed this decision.
The California Court of Appeals had two issue to consider in this review: whether the arbitration provisions applied to the homeowners association, and whether these provisions were unconscionable. The court concluded that “in light of Pinnacle it is clear the arbitration provisions set forth in the Verano CC&Rs constitute a valid agreement to arbitrate.” On the second question, the Verano CC&Rs were described by the court as “materially indistinguishable” from those in the earlier case. As the state Supreme Court found that those were not unconscionable, clearly neither were these.
The case was remanded for further proceedings and La Cima is entitled to recover the costs of the appeal.
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Colorado’s New Construction Defect Law Takes Effect in September: What You Need to Know
November 21, 2017 —
Jesse Witt - The Witt Law FirmOriginally published by CDJ on September 7, 2017
Colorado’s new construction defect law officially takes effect this month. Although HB 17-1279 was passed in May, the statutory text provides that it only applies “with respect to events and circumstances occurring on or after September 1, 2017.” With that date now upon us, practitioners should be mindful of the law’s new requirements.
The law applies to any lawsuit wherein a homeowner association files a construction defect action on behalf of two or more of its members. “Construction defect action” is defined broadly to include any claims against construction professionals relating to deficiencies in design or construction of real property. Before an association may commence such an action, its board must follow several steps.
First, the board must deliver notice of the potential construction defect action to all homeowners and the affected construction professionals at their last known addresses. This requirement does not apply to construction professionals identified after the notice has been mailed, or to construction professionals joined in a previously-approved lawsuit. The notice must include a description of the alleged construction defects with reasonable specificity, the relief sought, a good-faith estimate of the benefits and risks involved, and a list of mandatory disclosures concerning assessments, attorney fees, and the marketability of units affected by construction defects. The notice must also call a meeting of all homeowners. The notice should be sent to the construction professionals at least five days before the homeowners.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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Contractors May be Entitled to Both Prompt Payment Act Relief and Prejudgment Interest for a Cumulative 24%!
August 22, 2022 —
Margarita Kutsin - Ahlers Cressman & SleightThe Washington Prompt Payment Act, in Ch. 39.76 RCW and in RCW 39.04.250, ensures that contractors and subcontractors are promptly paid for their performance on public works contracts. Where a government entity or a prime contractor wrongfully withholds undisputed amounts due, that government entity or prime contractor must pay interest at a rate of 12% per annum.
Separately, prejudgment interest is awarded “based on the principle that a defendant ‘who retains money which he ought to pay to another should be charged interest upon it.’” Hansen v. Rothaus, 107 Wn.2d 468, 472, 730 P.2d 662 (1986) (quoting Prier v. Refrigeration Eng’g Co., 74 Wn.2d 25, 34, 442 P.2d 621 (1968)). The purpose is to “compensate the plaintiff for the use value of the money representing liquidated or determinable damages.” Id.
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Margarita Kutsin, Ahlers Cressman & SleightMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Western Specialty Contractors Branches in San Francisco and Cleveland Take Home Top Industry Honors
January 03, 2022 —
Western Specialty Contractors(St. Louis, MO, Dec. 21, 2021) Western Specialty Contractors Branches in San Francisco, CA and Cleveland, OH are ending the year's fourth quarter on a high note, with each receiving a top industry award.
In October, Western's San Francisco Branch was named a 2021 International Concrete Repair Institute (ICRI) Project of the Year Award Finalist (Historic Category) for renovation and repurposing of the SMUD Museum of Science and Curiosity in Sacramento, CA. Western's Cleveland Branch was honored in December with the Institute of Real Estate Management (IREM) Northern Ohio Chapter's Industry Partner of the Year Award.
About Western Specialty Contractors
Family-owned and operated for more than 100 years, Western Specialty Contractors is the nation's largest specialty contractor in masonry and concrete restoration, waterproofing and specialty roofing. Western offers a nationwide network of expertise that building owners, engineers, architects, and property managers can count on to develop cost-effective, corrective measures that can add years of useful life to a variety of structures including industrial, commercial, healthcare, historic, educational and government buildings, parking structures, and sports stadiums. Western is headquartered in St. Louis, MO with 30 branch offices nationwide and employs more than 1,200 salaried and hourly professionals who offer the best, time-tested techniques and innovative technology. For more information about Western Specialty Contractors, visit www.westernspecialtycontractors.com.
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