Surety Bond Now a Valid Performance Guarantee for NC Developers (guest post)
June 09, 2016 —
Melissa Dewey Brumback – Construction Law in North CarolinaWelcome summer days! Today we have a guest post by Todd Bryant, president and founder of
Bryant Surety Bonds. He is a surety bonds expert with years of experience in helping contractors get bonded and start their business. While design professionals generally don’t have to deal with performance bonds directly, they are often at the front lines of advising owners as to various Requests for Proposals submitted by hopeful contractors. In that spirit, be sure to read how the new law changes security requirements. Take it away, Todd!
Last year wrapped up with some good news for North Carolina subdivision developers:
House Bill 721 confirmed that construction bonds are, in fact, a viable form of performance guarantee. Previous legislation was ambiguous on this point, but the new bill– which took effect last October– sought to clear up the confusion. Although the new rules have been in effect for eight months, there’s been scant coverage of the changes, and what they mean for developers.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Sales of Existing U.S. Homes Decrease on Fewer Investors
September 24, 2014 —
Jeanna Smialek – BloombergPurchases of previously owned U.S. homes unexpectedly declined in August for the first time in five months as investors retreated from the market.
Existing home sales dropped 1.8 percent to a 5.05 million annual pace, from a revised 5.14 million pace in July, the National Association of Realtors reported today in Washington. The median forecast of 72 economists in a Bloomberg survey called for 5.2 million. The share of properties sold to investors was the lowest in almost five years.
As wage gains are slow to materialize and credit conditions remain tight, it has been difficult for first-time homebuyers to enter the housing market to make up the decrease in investor activity. Employment growth and easier lending rules could help would-be buyers to feel more secure in taking the plunge into homeownership.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Wilke Fleury Attorneys Recognized in “The Best Lawyers in America” & “Best Lawyers: One’s to Watch” 2024 Editions
September 06, 2023 —
Wilke Fleury LLPCongratulations 2024 Best Lawyers & Ones to Watch wf | Wilke Fleury
David A. Frenznick,
Kathryne E. Baldwin
Daniel L. Egan,
Adriana C. Cervantes,
Jason G. Eldred
Wilke Fleury is extremely proud to have two attorneys recognized in The Best Lawyers in America and three attorneys recognized in the Best Lawyers: Ones to Watch in America! Best Lawyers has been regarded by lawyers and the public for more than 40 years as the most credible measure of legal integrity and distinction in the United States.
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Wilke Fleury LLP
Court Holds That Parent Corporation Lacks Standing to Sue Subsidiary’s Insurers for Declaratory Relief
May 12, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn D. Cummins Corp. v. U.S. Fidelity & Guaranty (no. A142985, filed 3/30/16), a California Court of Appeal upheld the dismissal of a declaratory relief action filed by the parent holding company of an insured corporation seeking coverage for asbestos claims.
Cummings Corp. installed asbestos containing products in California. It had been insured by USF&G between 1969 and 1992. Cummings Holding, LLC was the parent and majority shareholder of Cummings Corp., which had no assets. The holding company claimed to be “the sole entity responsible for managing the affairs of Cummins Corp., including making decisions as to litigation strategy, resolution and settlement,” and sued USF&G seeking a declaratory judgment that the insurer was obligated to defend and/or indemnify Cummins Corp., “in full, including, without limitation, payment of the cost of investigation, defense, settlement and judgment . . . , for past, present and future Asbestos Suits.” The insurer demurred on the ground that the holding company had insufficient interest in its insurance policies and, consequently, lacked standing to sue for declaratory relief.
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
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The OFCCP’s November 2019 Updated Technical Assistance Guide: What Every Federal Construction Contractor Should Know
March 23, 2020 —
Sarah K. Carpenter - Smith CurrieThe Department of Labor (“DOL”) Office of Federal Contract Compliance Programs (“OFCCP”) issued its 148-page Updated Construction Contractor Technical Assistance Guide (the “Guide”) on November 13, 2019. A complete copy of the Guide can be found
here, but the below provides a summary of what every Federal Construction Contractor should know regarding the OFCCP’s November 2019 update to its prior 2006 publication.
The DOL has identified the Guide as a “self-assessment tool” to assist contractors in meeting “their legal requirements and responsibilities for equal employment opportunity by preventing violations before they occur.” However, the Guide does not create or impose new requirements for Federal Construction Contractors. Instead, the Guide provides an overview of anti-discrimination and affirmative action requirements and obligations under existing laws and regulations, and suggests best practices and guidance. Specifically, the Guide provides:
- A concise summary of Federal Construction Contractors’ legal obligations under the three main laws enforced by the OFCCP: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974;
- A detailed explanation of requirements for written Affirmative Action Plans;
- A clear schedule of Standard Federal Equal Employment Opportunity Construction Contract Specifications;
- A reorganized recap of the sixteen affirmative action steps Federal Construction Contractors are required to implement in good-faith; and
- A user-friendly roadmap of what to expect during an OFCCP audit, including a discussion of record keeping requirements.
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Sarah K. Carpenter, Smith CurrieMs. Carpenter may be contacted at
skcarpenter@smithcurrie.com
No Signature? Potentially No Problem for Sureties Enforcing a Bond’s Forum Selection Clause
March 21, 2022 —
Brian C. Padove - ConsensusDocsOne of the foundational tenets of contract law is that a party may only be bound by terms they agree to, or in other words, if the party did not sign a contract, that party cannot be bound by the terms thereof. While this principle is generally unwavering, there are certain situations in which a non-signatory to a contract may still be bound by the terms of a contract.
In particular, this non-signatory issue may arise when a payment bond claimant makes a bond claim, subsequently files a lawsuit, but the bond contains a forum selection clause different than the venue of the lawsuit and the surety seeks to enforce the bond’s forum selection clause. For example, the claimant may have filed its lawsuit against the surety in federal court, even though the bond provides language specifically mandating that no lawsuit shall be commenced by any claimant other than in a state court where the project is located. Thus, the question then becomes, can the surety enforce the forum selection clause against the claimant when the claimant did not sign the bond and/or never agreed to the terms thereof? The short answer, it depends (yes, that is a very lawyer-like answer). Given recent case law over the past decade, however, the surety has a strong argument in favor of enforcement of the forum selection clause.
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Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP (ConsensusDocs)Mr. Padove may be contacted at
bpadove@watttieder.com
California Supreme Court Holds “Notice-Prejudice” Rule is “Fundamental Public Policy” of California, May Override Choice of Law Provisions in Policies
November 12, 2019 —
Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLPOn August 29, 2019, in Pitzer College v. Indian Harbor Insurance Company, 2019 Cal. LEXIS 6240, the California Supreme Court held that, in the insurance context, the common law “notice-prejudice” rule is a “fundamental public policy” of the State of California for purposes of choice of law analysis. Thus, even though the policy in Pitzer had a choice of law provision requiring application of New York law – which does not require an insurer to prove prejudice for late notice of claims under policies delivered outside of New York – that provision can be overridden by California’s public policy of requiring insurers to prove prejudice after late notice of a claim. The Supreme Court in Pitzer also held that the notice-prejudice rule “generally applies to consent provisions in the context of first party liability policy coverage,” but not to consent provisions in the third-party liability policy context.
The Pitzer case arose from a discovery of polluted soil at Pitzer College during a dormitory construction project. Facing pressure to finish the project by the start of the next school term, Pitzer officials took steps to remediate the polluted soil at a cost of $2 million. When Pitzer notified its insurer of the remediation, and made a claim for the attendant costs, the insurer “denied coverage based on Pitzer’s failure to give notice as soon as practicable and its failure to obtain [the insurer’s] consent before commencing the remediation process.” The Supreme Court observed that Pitzer did not inform its insurer of the remediation until “three months after it completed remediation and six months after it discovered the darkened soils.” In response to the denial of coverage, Pitzer sued the insurer in California state court, the insurer removed the action to federal court and the insurer moved for summary judgment “claiming that it had no obligation to indemnify Pitzer for remediation costs because Pitzer had violated the Policy’s notice and consent provisions.”
Reprinted courtesy of
Timothy Carroll, White and Williams and
Anthony Miscioscia, White and Williams
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
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Creating a Custom Home Feature in the Great Outdoors
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFWhen a resort designer and a spa director join together to create a custom home, what do you get? An outdoor tub that resides on a balcony overlooking the San Francisco Bay.
According to Custom Home, Scott Lee, president of SB Architects, and his wife had the “custom cast concrete tub…craned into place on the third-story deck while avoiding an established oak tree.” A radiant heat lamp makes the outdoor bathing area practical, while the curved backrest, remote controlled dimmable lights, and music make the experience luxurious.
“Tubs are more about relaxing then getting clean,” Lee told Custom Home. “Being out here among the branches with views of San Francisco, it really is like a resort.”
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