Want to Stay Up on Your Mechanic’s Lien Deadlines? Write a Letter or Two
March 22, 2017 —
Christopher G. Hill – Construction Law Musings90 days. 150 days. 6 months. 30 days. Do these numbers sound familiar? If you read Construction Law Musings regularly, they should be. These are various deadlines relating to the recording and enforcement of mechanic’s liens in Virginia.
90 days from your last work performed (or from the last date of the last month of work in the correct circumstances) sets the outside limit on when a construction company can record a lien on a construction project. 150 days is the “look back” period for what work’s value can be included in that lien. 6 months is the statute of limitations for the filing of an enforcement suit. Finally, 30 days amount of time after your start of work within which you, as a construction professional, must notify a mechanic’s lien agent of your presence on a residential project. Of course, there are always nuances to these rules that need to be taken into account, preferably with the help of your friendly neighborhood construction attorney, before deciding how to proceed in this very picky and “form over function” area of construction law.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
“License and Registration, Please.” The Big Risk of Getting Busted for Working without a Proper Contractor’s License
July 25, 2021 —
Christopher A. Henry & Mia Hughes - ConsensusDocsThe need for contractors to maintain the proper contracting license may seem like a mundane, clerical detail, and generally is just that. If, however, the contractor ignores or mishandles paperwork and the proper license is not in hand, licensing may go from a mundane, clerical detail to a financial catastrophe. An unlicensed contractor may be barred from asserting claims or collecting payments for work already performed; the contractor may even be required to return payments for unlicensed work performed.
A recent case in Georgia, a state that had no state-wide general contractor’s license requirement in effect until 2008 illustrates the risk of unlicensed work.[1] In Saks Management and Associates, LLC v. Sung General Contracting, Inc.,[2] the court ruled that without a license the general contractor did not have the right to enforce a contract. The contractor’s claims for payment failed, and the mundane, clerical error led a major financial loss. This disastrous result for the Georgia contractor is far from an outlier, and is a real risk in many states.
Reprinted courtesy of
Christopher A. Henry, Jones Walker LLP and
Mia Hughes, Jones Walker LLP
Mr. Henry may be contacted at chenry@joneswalker.com
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Pollution Exclusion Prevents Coverage for Injury Caused by Insulation
March 30, 2016 —
Tred R. Eyerly – Insurance Law HawaiiIn a per curiam decision, the Fifth Circuit affirmed the district court's holding that the pollution exclusion barred coverage for bodily injury caused by the insured's insulation. Evanston Ins. Co. v. Lapolla Industries, Inc., 2015 U.S. App. LEXIS 22552 (5th Cir. Dec. 23, 2015).
The homeowners' contractors installed spray polyurethane foam (SPF) insulation as part of a renovation project in the home. Lapolla manufactured the SPF. Shortly after the insulation was installed, the homeowners smelled strong odors and suffered respiratory distress, causing them to leave the home. The homeowners sued the contractor and various subcontractors for negligence and breach of contract. A third party complaint was filed against Lapolla. The homeowners also amended their complaint to assert a products-liability claim against Lapolla.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Traub Lieberman Attorneys Win Motion for Judgment on the Pleadings In Favor of Insurer
June 26, 2023 —
Jeremy S. Macklin & Danielle K. Kegley - Traub LiebermanTraub Lieberman Partner Jeremy Macklin and Associate Danielle Kegley obtained judgment on the pleadings in favor of Admiral Insurance Company (“Admiral”), in a matter brought before the Chancery Division of the Circuit Court of Cook County, Illinois. In the underlying case, an injured employee sued various companies, and their agents, for injuries he sustained on a construction project. The insureds, one of the defendant companies and its employee, sought coverage for the underlying lawsuit under a professional liability policy issued to that company by Admiral. The policy at issue provided coverage for the company and its employees, for negligent acts or omissions committed in the rendering of “professional services,” defined as services “involving specialized training and skill while in the pursuit of” mechanical and process engineering.
After initially defending the insureds, Admiral filed a declaratory judgment action asking the Court to declare that the company has no duty to defend or indemnify the insureds in the underlying lawsuit and to allow Admiral to immediately withdraw its defense of the insureds. Admiral argued there is no coverage under the professional liability policy, as the underlying lawsuit does not contain allegations that the underlying plaintiff’s injuries arose from the rendering of or failure to render “professional services.” The insureds argued that since they were hired as mechanical and process engineers for the project, that any lawsuits against them must necessarily arise from their “professional services.” Further, the insureds asked the Court to disregard the express allegations in the underlying lawsuit concerning their role on the project as a general contractor.
Reprinted courtesy of
Jeremy S. Macklin, Traub Lieberman and
Danielle K. Kegley, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com
Ms. Kegley may be contacted at dkegley@tlsslaw.com
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Mexico’s Construction Industry Posts First Expansion Since 2012
August 13, 2014 —
Brendan Case – BloombergMexico’s construction industry expanded in June for the first time in 19 months, adding to signs that the economy is rebounding after missing analyst estimates in seven of the last eight quarters.
Construction increased 2.2 percent from the year earlier, helping industrial production to expand 2 percent, according to data released today by the national statistics agency. The median estimate of 19 economists surveyed by Bloomberg was for industrial output to rise 2.1 percent.
“Industrial activity continued strengthening in June, very much in line with what the market expected,” Mario Correa, the chief Mexico economist at Bank of Nova Scotia, said in a note to clients today. “The construction industry finally showed a positive growth rate.”
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Brendan Case, BloombergMr. Case may be contacted at
bcase4@bloomberg.net
Lien Attaches To Landlord’s Interest When Landlord Is Party To Tenant Improvement Construction Contract
January 03, 2022 —
David Adelstein - Florida Construction Legal UpdatesIf you are a landlord / lessor, then you want to maximize the protections afforded to you under Florida’s Lien Law in Florida Statute s. 713.10. These protections are designed to protect your property from liens for improvements performed by your tenant / lessee. The intent is that if you comply with s. 713.10, then a tenant improvement contractor’s recourse is against the leasehold interest, and NOT against the interest of the real property (or your interest as the landlord / lessor). Needless to say, it is imperative that a landlord / lessor make efforts to comply with this section when a tenant is performing tenant improvements, even when the landlord is contributing money to those improvements.
Section 713.10 provides in material part:
(1) Except as provided in s. 713.12, a lien under this part shall extend to, and only to, the right, title, and interest of the person who contracts for the improvement as such right, title, and interest exists at the commencement of the improvement or is thereafter acquired in the real property. When an improvement is made by a lessee in accordance with an agreement between such lessee and her or his lessor, the lien shall extend also to the interest of such lessor.
(2)(a) When the lease expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any such improvements of such provision or provisions in the lease, and the knowing or willful failure of the lessee to provide such notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Future of Airport Infrastructure in a Post-Pandemic World
March 21, 2022 —
Cait Horner & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law BlogIn the wake of the COVID-19 pandemic, many service industries are reevaluating their physical footprint, and the aviation industry is no exception. Opportunities abound for developers, designers, and contractors to update and expand airport terminals to accommodate traditional needs while also meeting the growing demand for more open space (including larger outdoor areas in terminals and larger cargo facilities to meet the needs of Amazon, FedEx and UPS).
The Future of Passenger Terminals
In nearly every service industry, safety and hygiene policies are being overhauled, with a specific emphasis on the desire for more space across the board. Even before the pandemic caused a seismic shift in the way individuals interact with each other, airports and airlines had started reducing the number of unnecessary interactions between travelers and employees by introducing self-service check-in kiosks and contactless ordering at restaurants. The automation inside the airport will only continue to advance.
Reprinted courtesy of
Cait Horner, Pillsbury and
Adam J. Weaver, Pillsbury
Ms. Horner may be contacted at cait.horner@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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It’s All a Matter of [Statutory] Construction: Supreme Court Narrowly Interprets the Good Faith Dispute Exception to Prompt Payment Requirements in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co.
May 30, 2018 —
Erinn Contreras & Joy O. Siu - Sheppard Mullin Construction & Infrastructure Law BlogOn May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good faith” exception to the general rule that a direct contractor must make retention payments to its subcontractors within 10 days of receiving any retention payment. The exception provides that “[i]f a good faith dispute exists between the direct contractor and a subcontractor, the direct contractor may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” Cal. Civ. Code section 8814(c).
Reprinted courtesy of
Erinn Contreras, Sheppard Mullin and
Joy O. Siu, Sheppard Mullin
Ms. Contreras may be contacted at econtreras@sheppardmullin.com
Ms. Siu may be contacted at jsiu@sheppardmullin.com
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