Professional Liability Alert: California Appellate Courts In Conflict Regarding Statute of Limitations for Malicious Prosecution Suits Against Attorneys
April 28, 2014 —
David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLPIn conflict with an earlier decision by a different division within the same District, and with a prior decision of another District which followed the earlier case, Division Three of the Second Appellate District has concluded, contrary to established precedent, that the general two-year limitations period set forth in Code of Civil Procedure section 335.1 (“Section 335.1”) applies to malicious prosecution claims against attorneys, rather than the specific one-year statute of limitations for claims against attorneys codified in Code of Civil Procedure section 340.6 (“Section 340.6”).
In Roger Cleveland Golf Co., Inc. v. Krane & Smith, APC (filed April 15, 2014, Case No. B237424, consolidated with Case No. B239375), Roger Cleveland Golf Co., Inc. (“Cleveland Golf”), filed a malicious prosecution action against Krane & Smith (“the Attorneys”), who had unsuccessfully prosecuted the underlying breach of contract matter for their client against Cleveland Golf. In that action, on April 26, 2010, the trial court entered its order granting a motion for nonsuit and dismissing the complaint in favor of Cleveland Golf. On May 24, 2011, or approximately 13 months after the trial court had dismissed the underlying complaint, Cleveland Golf commenced a malicious prosecution action against the Attorneys. In the interim, the Attorneys initiated an appeal of the underlying judgment, which was eventually dismissed approximately seven months later. In response to the complaint, the Attorneys filed a special motion to strike, commonly referred to as an anti-SLAPP motion, which included the argument that the malicious prosecution claim was time-barred under the one-year limitations period of Section 340.6. The trial court granted the Attorneys’ motion based on the statute of limitations (and Cleveland Golf’s failure to demonstrate a probability of success on the merits) and dismissed the case. Cleveland Golf’s appeal followed.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com, Mr. Squillario may be contacted at ssquillario@hbblaw.com
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Eight Things You Need to Know About the AAA’s New Construction Arbitration Rules
August 19, 2015 —
Garret Murai – California Construction Law BlogI just finished a construction arbitration this past week, which also explains my sporadic posts as of late, sorry.
Coincidentally, on July 1, 2015, the American Arbitration Association (“AAA”) implemented their newly revised Construction Industry Arbitration and Mediation Procedures.
For those of you who follow our blog, you know I’m not a big fan of arbitration, which, from my experience, doesn’t deliver on its promise of better, faster, or cheaper, and ends up being pretty much the same thing as trial without the benefit of discovery, the rules of evidence, or appealability.
The AAA is trying to change all of that though and in a news release announced that its new “Rules” “directly address preferences of users for a more streamlined, cost-effective, and tightly managed arbitration process that avoids the high costs of litigation.” Which makes you wonder whether they had to survey their “users” to come to this realization. But I digress.
With the AAA’s new Rules come eight new changes, as follows:
1.Fast Track Procedures: Newly revised Rule F-1 now applies to two-party cases where no party’s claim or counterclaim exceeds $100,000. Under old Rule F-1 the monetary cap was $75,000.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Art Dao, Executive Director of the Alameda County Transportation Commission, Speaks at Wendel Rosen’s Infrastructure Forum
April 01, 2015 —
Garret Murai – California Construction Law BlogOn March 2, 2015, Art Dao, Executive Director of the Alameda County Transportation Commission, spoke to a packed house at the Wendel Rosen Construction Practice Group’s Infrastructure Forum on the Commission’s plans for nearly $8 billion in transportation improvement funding approved by voters this past year under Measure BB.
The Alameda County Transportation Commission
The Commission, which was formed in 2010 following the merger of the Alameda County Congestion Management Agency and the Alameda County Transportation Improvement Authority, serves as the congestion management agency for the County of Alameda and is responsible for planning, funding and delivering transportation programs and projects throughout the county.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Federal Court Opinion Has Huge Impact on the Construction Industry
July 06, 2020 —
Wally Zimolong - Supplemental ConditionsThe United States District Court for the Eastern District of Pennsylvania in Philadelphia recently issued an opinion that should get the attention of any contractor or subcontractor performing work on a federal funded construction project. In U.S. ex rel IBEW Local 98 v. The Fairfield Company, the federal court held that a contractor on a SEPTA project could be held liable under the False Claims Act for failing to pay its workers under the Davis Bacon Act. The court found that liability was appropriate under the FCA even through the contractor did not knowingly violate the Davis Bacon Act. The court awarded the plaintiff over $1,000,000 in damages and an additional over $1,000,000 in attorneys fees.
An Extremely Brief Primer on the FCA
A full discussion of the FCA is beyond the realm of this blog post and you could write a book on FCA cases. But in a nutshell, the FCA prohibits a contractor from knowingly submitting a claim for payment to the federal government (or an entity receiving funding from the federal government, like SEPTA) that is false. Importantly, knowingly does not equal actual knowledge of the falsity of the claim. Rather, “reckless disregard of the truth or falsity” of the submission is sufficient. As explained below, this standard played an important role in the court’s decision and should give contractors performing work on federally funded projects pause.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Columbus, Ohio’s Tallest Building to be Inspected for Construction Defects
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFFox 28 news reported that “[t]he state of Ohio is going to spend more than $166,000 to inspect…the 40-year-old Rhodes Tower” in Columbus.
"They're going to look at the exterior of the building - [at] sealants between the joints, the condition of the panels, the window systems, how they're draining, how they're operating, and how they're sealed," Ned Thiell, of Ohio Facilities Construction Commission, told ABC 6/FOX 28 news.
A study completed last year declared there were “’deficiencies’ on the building’s stone covering” and there were “panels with severe fracture defects” that “will need to be replaced with new stone panels.”
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Contractor Gets Benched After Failing to Pay Jury Fees
April 11, 2022 —
Garret Murai - California Construction Law BlogTrial by jury is a fundamental right under the U.S. and California Constitutions. However, to avail yourself of this right, you not only have to declare that in advance that you intend to try your case to a jury but post jury fees as well. In TriCoast Builders, Inc. v. Fonnegra, a contractor who failed to timely post jury fees, discovered on the day of trial that it waived the right to insist on a jury trial when the defendant pulled an “I gotcha” and waived his right to a jury trial.
The TriCoast Case
In May 2014, Nathaniel Fonnegra house was damaged by fire. The following month, Fonnegra entered into a construction contract with TriCoast Builders, Inc. to repair the property. Dissatisfied with the work, Fonnegra terminated the contract, and TriCoast in turn filed a complaint against Fonnegra for unpaid work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Homeowner Alleges Pool Construction Is Defective
November 13, 2013 —
CDJ STAFFA Texas man is suing the contractor who built his pool alleging that within months of construction, the pool began to crack and leak water. According to the lawsuit from Larry Merendino, when the concrete contractor, PC Construction, removed some concrete, they found PVC joints that were not glued properly and were leaking.
Mr. Merendino is suing the company and five other firms, claiming that the construction of his pool was negligent and that the companies operated by deceptive trade practices.
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Erasing Any Doubt: Arizona FED Actions Do Not Accrue Until Formal Demand for Possession is Tendered
July 13, 2017 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogClearing up any lingering confusion, in Carrington Mortgage Services, LLC v. Woods, 767 Ariz. Adv. Rep. 4 (June 22, 2017), the Arizona Court of Appeals confirmed that residential forcible entry and detainer actions in Arizona accrue for statute of limitations purposes when a party entitled to possession makes a formal demand for return of possession not when the party could have made a demand for return of possession.
In Carrington, the borrowers (the Woodses) remained in property that they had acquired in 2008 but then lost to foreclosure several years later. The original lender obtained title to the property at a trustee’s sale on February 16, 2010, but did not take any action to remove the Woodses at that time. Title to the property was then transferred through a series of transactions over the next six years. Ultimately, Carrington acquired the title and, in 2016, sent a formal “Notice to Vacate” the premises to the Woodses. After the Woodses failed to timely vacate pursuant to the demand, Carrington initiated an FED action to evict them from the property.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com