FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

William Lyon to Acquire RSI Communities

February 22, 2018 — Dave Suggs - CDJ STAFF
According to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas. RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target. President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.” Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.” Read the court decision
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Hawaii Supreme Court Finds Excess Can Sue Primary for Equitable Subrogation

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In responding to a certified question from the U.S. Distric Court, the Hawaii Supreme Court determined that an excess carrier can sue the primary carrier for failure to settle a claim in bad faith within primary limits. St. Paul Fire & Marine Ins. Co. v. Liberty Mut. Ins. Co., 2015 Haw. LEXIS 142 (Haw. June 29, 2015). St. Paul, the excess carrier, and Liberty Mutual, the primary carrier, issued polices to Pleasant Travel Service, Inc. The primary policy covered up to $1 million. Pleasant Travel was sued for damages resulting from an accidental death. St. Paul alleged that Liberty Mutual rejected multiple pretrial settlement offers within the $1 million primary policy limit. A trial resulted in a verdict of $4.1 million against Pleasant Travel. The action settled for a confidential amount in excess of the Liberty Mutual policy limit. St. Paul paid the amount in excess. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Sureties and Bond Producers May Be Liable For a Contractor’s False Claims Action Violation

October 26, 2017 — Michael C. Zisa & Susan Elliot – Peckar & Abramson, P.C.
Two recent decisions from the United States District Court for the District of Columbia and the United States Court of Federal Claims highlight that sureties and bond producers are not immune to the potentially severe consequences of the False Claims Act (“FCA”) and related federal fraud statutes. In each case, the Court determined that sureties and bond producers can face potential liability under these fraud statutes for direct and indirect submission of false claims to the federal government Reprinted courtesy of Michael C. Zisa, Peckar & Abramson, P.C. and Susan Elliott, Peckar & Abramson, P.C. Mr. Zisa may be contacted at mzisa@pecklaw.com Ms. Elliott may be contacted at selliott@pecklaw.com Read the court decision
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Legislatures Shouldn’t Try to Do the Courts’ Job

March 01, 2012 — CDJ STAFF

David Thamann, writing in Property Casualty 360, argues that current actions by legislatures on insurance coverage amount to “legislative interference or overreach.” He notes that under current Colorado law, “a court shall presume that the work of a construction professional that results in property damage — including damage to the work itself or other work — is an accident unless the property damage is intended and expected by the insured.” He argues that here legislators are stepping into the role of the courts. “Insureds and insurers are not always going to be pleased with a court ruling, but that is the system we have.”

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A Look at Business and Professions Code Section 7031

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai, on his California Construction Law Blog, stated that California’s Business and Professions Code Section 7031 has often been described as draconian, harsh, and unjust—but still enforceable. The section does two things: first, it “prohibits unlicensed or improperly licensed contractors from suing to recover compensation for construction work requiring a license,” and second, it “permits property owners to sue such contractors for disgorgement of all compensation paid for such work.” According to Murai, the “strict enforcement of Section 7031” is thought to ensure “that contractors meet the minimum qualifications necessary for licensure.” Murai analyzed the case E. J. Franks Construction, Inc. v Sahota, which “carved out a limited exception to Section 7031 for contractors who form business entities and transfer their existing contractor’s license to such entities.” Read the court decision
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Be Careful When Walking Off of a Construction Project

November 24, 2019 — Christopher G. Hill - Construction Law Musings
I am truly grateful that my buddy Craig Martin (@craigmartin_jd) continues his great posts over at The Construction Contractor Advisor blog. He is always a good cure for writer’s block and once again this week he gave me some inspiration. In his most recent post, Craig discusses a recent Indiana case relating to the ever present issue of termination by a subcontractor for non-payment. In the Indiana case, the court looked at the payment terms and determined that the subcontractor was justified in walking from the project when it was not paid after 60 days per the contract. This result was the correct, if surprising. Why do I say surprising? Because I am always reluctant to recommend that a subcontractor walk from a job for non payment if it is possible to continue. This is not so much for legal reasons (not paying a sub is a clear breach of contract by a general contractor) but practical ones. The practical effect of walking from the job is that the subcontractor is put on the defensive. Instead of arguing later that it performed but was not paid, that subcontractor is put in the position of arguing that the general contractor cannot collect its completion related and other damages because it breached first. This is a more intuitively difficult argument and one that is not as strong as the first. Of course, all of this is contingent on the language in your contract (is there a “pay if paid” or language like that in the Indiana case?). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Caterpillar Said to Be Focus of Senate Overseas Tax Probe

March 26, 2014 — Richard Rubin and Jesse Drucker - Bloomberg
A U.S. Senate investigative panel is examining Caterpillar Inc. (CAT) and whether the company improperly avoided U.S. taxes by moving profits outside the country, said three people familiar with the inquiry. The Senate’s Permanent Subcommittee on Investigations will hold a hearing in early April, said two of the people. They spoke on condition of anonymity before an official announcement. Rachel Potts, a spokeswoman for Caterpillar, declined to comment. Two staff members for the subcommittee declined to comment. In 2009, Daniel Schlicksup, an employee who had worked on tax strategy, alleged in a lawsuit in federal court that Caterpillar used a “Swiss structure” to shift profits to offshore companies and avoid more than $2 billion in U.S. taxes. He also alleged that Caterpillar used a “Bermuda structure” involving shell companies to return profits to the U.S. without paying required taxes. Mr. Rubin may be contacted at rrubin12@bloomberg.net; Mr. Drucker may be contacted at jdrucker4@bloomberg.net Read the court decision
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Reprinted courtesy of Richard Rubin and Jesse Drucker, Bloomberg

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Terminator’s Trench Rehab Drives L.A. Land Prices Crazy

June 26, 2014 — John Gittelsohn and Alan Ohnsman – Bloomberg
Ben Stapleton frames the shot with his hands like a movie director, sharing his vision of a junkyard he’s trying to sell for $3.5 million. He sees artist workspaces, retail shops and apartments with Los Angeles skyline views, steps from a riverfront oasis. Right now the river of his dreams is the concrete flood channel where an 18-wheeler chased Arnold Schwarzenegger on a Harley in “Terminator 2: Judgment Day,” one of the movies that used the 200-foot-wide (60-meter) ditch to depict industrial bleakness. A U.S. Army Corps of Engineers plan to return the Los Angeles River to a more natural state would cost $1 billion and has speculators circling even before the funding’s in place. “The private money is already moving,” said Stapleton, a vice president at commercial real-estate brokerage Jones Lang LaSalle Inc. (JLL) “They’re looking for opportunities. It’s the private money that’s going to make the vision happen.” Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Ohnsman may be contacted at aohnsman@bloomberg.net Read the court decision
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Reprinted courtesy of John Gittelsohn and Alan Ohnsman, Bloomberg

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