California’s Right To Repair Act Is The Sole Remedy For Damages For Construction Defects In New Residential Construction
March 14, 2018 —
Mark Johnson – Real Estate Litigation Blog The California Supreme Court ruled in
McMillin Albany LLC et al. v. The Superior Court of Kern County, (1/18/2018) 4 cal. 5th 241, that California’s Right to Repair Act, California Civil Code sections 895 et seq. (“Act”) is the sole remedy for construction defect claims for economic loss and property damages regarding new residential construction. The Act establishes a pre-litigation dispute resolution process that must be followed before filing a construction defect action for new residential construction purchased after January 1, 2003. The Act provides a builder with the right to attempt to repair construction defects before litigation is filed.
The
McMillin ruling resolved a split among two court of appeal decisions regarding the scope of the Act:
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and
Burch v. Superior Court [(2014) 223 Cal.App.4th 1411. Those cases held that the Act is not the exclusive remedy for construction defect lawsuits that allege property damage arising from new residential construction. Therefore owners of new residential construction where construction defects had caused property damage were not required to proceed under the Act and instead could proceed with common law claims.
McMillilin removes that option.
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Mark Johnson, Snell & WilmerMr. Johnson may be contacted at
majohnson@swlaw.com
Contractors Admit Involvement in Kickbacks
December 09, 2011 —
CDJ STAFFTwo New Jersey contractors have pleaded guilty to charges that they made false representations for a government contract in a case related to kickbacks for construction work done in two school districts. New Jersey is recommending that the two men, Martin Starr and Stephen Gallagher, will each pay $50,000 in penalties, serve up to a year in jail, and be unable to accept public contracts for five years.
Last month, another individual in the case, Kenneth Disko, who had been the engineer for the school district, pleaded guilty on a similar charge. In addition to a $50,000 penalty, he will be serving three to five years in prison. A fourth conspirator, Robert Berman, the former business administrator for one of the school districts, has to pay a $13,000 fine and cooperate with the investigation. He is also barred from public employment in New Jersey and has been terminated from his position.
Starr admitted to preparing fictitious quotes which appeared to be from other contractors in order that his firm would seem to be the lowest bidder. Gallagher helped in preparing the fictitious bids and also provided cash kickbacks to Disko.
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Quick Note: Don’t Forget To Serve The Contractor Final Payment Affidavit
July 30, 2019 —
David Adelstein - Florida Construction Legal UpdatesIf you are a contractor in DIRECT CONTRACT with an owner, serve a contractor final payment affidavit on the owner, as a matter of course, and without any undue delay, particularly if you are owed money and have recorded a construction lien. In numerous circumstances, I like to serve the contractor final payment affidavit with the construction lien.
The contractor final payment affidavit is not a meaningless form. It is a statutory form (set forth in Florida Statute s. 713.06) required to be filled out by a lienor in direct privity of contract with an owner and served on the owner at least 5 days prior to the lienor foreclosing its construction lien. The contractor final payment affidavit serves as a condition precedent to foreclosing a construction lien. Failure to timely serve a contractor final payment affidavit should result in a dismissal of the lien foreclosure lawsuit, presumably by the owner moving for a motion for summary judgment. This should not occur.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Unions Win Prevailing Wage Challenge Brought By Charter Cities: Next Stop The Supreme Court?
April 06, 2016 —
Steven M. Cvitanovic & Sarah A. Marsey – Haight Brown & Bonesteel LLPIn City Of El Centro v. David Lanier (State Building And Construction Trades Council Of California, AFL-CIO), the 4th appellate district upheld by a 2-1 majority the constitutionality of Labor Code section 1782, which prohibits a charter city from receiving or using state funding or financial assistance for a public construction project if the city has a charter provision or ordinance that authorizes a contractor to not comply with the state prevailing wage laws.
As we wrote on this topic back in 2012 (See alert here), charter cities are governed by a municipal constitution and may make and enforce its own ordinances and regulations with respect to municipal affairs (i.e., the ‘home rule’ doctrine), as opposed to general law cities, which must comply with the state laws such as the Public Wage Rate Act (requiring municipalities to pay prevailing wages).
The California Supreme Court previously held in State Building and Construction Trade Council of California, AFL-CIO v. City of Vista that the ‘home rule’ rule permits charter cities not to pay prevailing wages to its contract workers on locally funded public works because such determination is a municipal affair and not a statewide concern.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Sarah A. Marsey, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Ms. Marsey may be contacted at smarsey@hbblaw.com
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World’s Biggest Crane Gets to Work at British Nuclear Plant
October 07, 2019 —
Jeremy Hodges - BloombergThe world’s largest crane is getting ready to hoist more than 700 of the heaviest pieces of the first new nuclear plant being built in Britain in decades.
The machine, affectionately known as “Big Carl” after an executive at Belgian owner Sarens NV, is in place at Electricite de France SA’s 19.6 billion-pound ($24.1 billion) Hinkley Point C project in southwest England. It can carry as much as 5,000 tons, or the same weight as 1,600 cars, in a single lift and arrived on 280 truck loads from Belgium. It has taken about three months to build.
Nuclear power makes up about a fifth of Britain’s electricity. Most of those plants are near the end of their lives and will close in the next decade. Replacing them won’t be easy—as the scale of the project shows.
Earlier this year, EDF poured 9,000 cubic meters of cement, the biggest single biggest pour of concrete ever recorded in Britain. It was reinforced by 5,000 tons of steel built into a nest 4 meters high that’ll serve as the base of the first new reactor in the U.K. since 1995.
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Jeremy Hodges, Bloomberg
Carrier Has Duty to Defend Claim for Active Malfunction of Product
October 19, 2020 —
Tred R. Eyerly - Insurance Law HawaiiRejecting that the underlying claim was based solely on faulty workmanship, the Third Circuit held the insurer had a duty to defend allegations of a malfunctioning product. Nautilus Ins. Co. v. 200 Christina Street Partners LLC, 2020 U.S. App. LEXIS 22118 (3d Cir. July 16, 2020).
The insureds were sued by homeowners in two separate suits alleging defects in the construction of their homes. Nautilus defended under a reservation of rights. Nautilus filed suit in District Court and moved for judgment on the pleadings. The District Court denied the motion, finding Nautilus had a duty to defend because the underlying claims sufficiently alleged product--related tort clams that could fall within the scope of coverage under the relevant policies.
The Third Circuit affirmed. There was a distinction between a claim of faulty workmanship, for which the insurer did not have a duty to defend, and a claim of "active malfunction" of a product, for which an insurer did have such a duty. An active malfunction was sufficiently fortuitous as to constitute an "occurrence."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Ambiguity in Pennsylvania’s Statute of Repose Finally Cleared up by Superior Court
October 17, 2023 —
Mark L. Parisi - White and Williams LLPIn an unpublished opinion from the Pennsylvania Superior Court handed down on August 31, 2023, a long-standing disagreement about the wording of Pennsylvania's Statute of Repose was finally resolved. In Pennsylvania, “a civil action or proceeding brought against any person lawfully performing or furnishing the design, planning, supervision or observation of construction or construction of any improvement to real property must be commenced within 12 years after completion of construction of such improvement” to recover most forms of damages that are sought in these kinds of cases.
A statute of repose is different than a statute of limitations. A statute of repose is a hard line that does not shift. There is no discovery rule with a statute of repose. Most, if not all, states have statutes of repose for construction. The Pennsylvania statute of repose is among the longest in the country. It can be even longer – up to 14 years – if the injury (including property damage) or wrongful death “shall occur more than 10 and within 12 years after completion of construction.”
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Mark L. Parisi, White and Williams LLPMr. Parisi may be contacted at
parisim@whiteandwilliams.com
Ten Firm Members Recognized as Super Lawyers or Rising Stars
September 16, 2019 —
Jonathan Schirmer - Ahlers Cressman & Sleight PLLCWhile we avoid using this blog as a platform for self-promotion, long-time readers will know we make an exception to recognize the Super Lawyers of the firm, each of whom is humbled to receive this peer-rated award.
Super Lawyers recognizes attorneys who have distinguished themselves in their legal practice as recognized by their peers. Attorneys are selected through a patented selection process combining peer nominations and independent research. Results are based on legal excellence, industry involvement, and civic leadership. Only five percent of lawyers in Washington State are selected for the honor of Super Lawyers, and no more than 2.5 percent are selected for the honor of Super Lawyers Rising Stars.
John P. Ahlers, one of the firm’s founding partners, was again recognized as one of the Top 10 Lawyers out of all Washington lawyers.
Founding partner Paul R. Cressman Jr. was again recognized as one of the 100-Best Lawyers considering Lawyers State of Washington wide.
In addition, four other firm members are also recognized as Super Lawyers: Founding Partner Scott R. Sleight, Brett M. Hill, Bruce A. Cohen, and Lawrence S. Glosser. Partners Ryan W. Sternoff and Lindsay (Taft) Watkins, and associates Ceslie A. Blass and Scott D. MacDonald are all recognized as Super Lawyer Rising Stars, which recognizes attorneys either 40 years old or younger, or in practice 10 years or less.
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Ahlers Cressman & Sleight PLLC