SB800 Is Now Optional to the Homeowner?
August 30, 2013 —
James Ganion - Ulich & Terry, LLPThe following communication republished courtesy of James Ganion, Ulich & Terry, LLP
Dear Builders, Colleagues, and Interested Parties:
I attach for your review a copy of this week’s opinion of the California Court of Appeal in our case of Liberty Mutual v. Brookfield. This opinion represents a significant change to the right of California builders to repair homes under SB800, California’s Right to Repair Act.
In a nutshell, the Court determined that SB800 was not intended to replace prior applicable law, but merely be supplemental to prior law. Thus, a homeowner, or in this case the homeowner’s insurer, can pick and choose among SB800 and prior law, or even allege both in the alternative. In so deciding, the Court of Appeal reversed the holding of the trial court which had held, as so many trial courts have since 2003, that SB800 was intended to be the new exclusive remedy for construction defect claims.
While we of course take issue with most of what the Court of Appeal has to say, the real life net effect is that SB800 is now optional to the homeowner, meaning the “right” to repair now lies in the hands of the homeowner who can elect to simply bypass that law and proceed with the filing of a lawsuit under prior law. Hardly what any of us believe the legislature intended.
ULICH & TERRY LLP as counsel for Brookfield in this case will be filing a petition for rehearing with the Court of Appeal by September 6, 2013. Anyone interested in supporting the petition may file a letter with the Court of Appeal, preferably by September 13, 2013. Thereafter, assuming the Court of Appeal does not grant rehearing, we will be filing a petition for review with the California Supreme Court.
Our firm, as appellate counsel, has established a website
libertymutualvbrookfieldcrystalcove.com and through it will be providing information regarding the case, including copies of pleadings, orders, deadlines, and information on how to provide support for this case, which is of interest to the home building industry.
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James Ganion James Ganion can be contacted at
jganion@ut-law.com
Asserting Non-Disclosure Claim Involving Residential Real Property and Whether Facts Are “Readily Observable”
September 29, 2021 —
David Adelstein - Florida Construction Legal UpdatesUnder Florida law, there is a claim dealing with the purchase and sale of residential real property known as a Johnson v. Davis or a non-disclosure claim: “[W]here the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer.” Lorber v. Passick, 46 Fla.L.Weekly D1952a (Fla. 4th DCA 2021). A seller’s duty to disclose extends to a seller’s real estate agent/broker. Id.
A non-disclosure claim is asserted by the buyer of residential real property when the buyer discovers defects or damages with the real property that he believes materially affects the value of the property. While there may be the sentiment these are easy claims to prove, they are not.
Remember, a non-disclosure claim deals with facts that materially affect the value of residential real property and are NOT readily observable. The use of the language “readily observable” has been found to mean:
“[I]nformation [that] is within the diligent attention of any buyer. To exercise diligent attention…a buyer would be required to investigate any information furnished by the seller that a reasonable person in the buyer’s position would investigate and take reasonable steps to ascertain the material facts relating to the property and to discovery them—if, of course, they are reasonably ascertainable.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Defect Attorneys Call for Better Funding of Court System
June 28, 2013 —
CDJ STAFFThe construction defect law firm Anderson Shoech has a solution to some of the problems with the California courts. They note that cases often work their way through the system more slowly than they did in the past, due to “unprecedented cuts of over $1 billion from the State Court budget.” Prior to the cuts, cases were resolved “within six months to a year.” Under the current conditions, those involved in a lawsuit “would be lucky if their case was heard within 18 months of filing and could expect at least two full years to pass.”
They recommend that California return to appropriately funding the court system. Failure to do so could cause business to go to states “with a functioning and predictable court system.”
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It Has Started: Supply-Chain, Warehouse and Retail Workers of Essential Businesses Are Filing Suit
June 22, 2020 —
Robert G. Devine, James Burger & Douglas Weck - White and Williams LLPSupply-chain businesses that are appropriately characterized as “essential” have remained open for the delivery of critical supplies while everyone else has been told to close up shop and stay home. Now essential-business employees are contracting COVID-19 and filing suit. Following up on our earlier piece — “Is a Violation of a COVID-19 Order the Basis For Civil Liability?” — it is important to recognize that government directives, oftentimes couched as “recommendations,” can come to define what it means to provide a reasonably safe workplace that protects employees from COVID-19. While common law negligence defenses consider the reasonableness of conduct, these directives will likely become the standard.
The cases that have been filed are overwhelmingly premised upon the timeless negligence construct. The negligence construct, simply put, imposes a duty to act as a reasonable person would under the circumstances. Nonetheless, while the negligence construct lives in the ordinary world of “reasonableness,” infection-control guidance lives in the rapidly developing world of the science of COVID-19. Guidance on seemingly basic questions, such as the methods of transmission (e.g., personal contact, mucus membrane only, airborne transmission) or even the virus’s shelf life on different surfaces, of particular interest packaging and material handling equipment, can change by the day. All of this provides challenges for the supply-side business looking to protect its workforce.
Reprinted courtesy of White and Williams LLP attorneys
James Burger,
Robert Devine and
Douglas Weck
Mr. Burger may be contacted at burgerj@whiteandwilliams.com
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Weck may be contacted at weckd@whiteandwilliams.com
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Damages or Injury “Likely to Occur” or “Imminent” May No Longer Trigger Insurance Coverage
January 05, 2017 —
Masaki J. Yamada – Ahlers & Cressman PLLCWashington Courts allow an insurer to determine its duty to defend an insured against a lawsuit based only on the face of the complaint and the limitations of the insurance policy. This is otherwise known as the “eight corners” rule (four corners of the complaint plus the four corners of the policy). In other words, the insurance company is not permitted to rely on facts extrinsic to the complaint in order to deny its duty to defend an insured. See Truck Ins. Exch. v. VanPort Homes, Inc., 147 Wn.2d 751, 763 (2002). The laws in Washington provide greater protection to the insured over the insurer when it comes to the insurer’s duty to defend. The duty to defend a claim is triggered if a claim could “conceivably” be covered under the policy. See Woo v. Fireman’s Insurance, 161 Wn.2d 43 (2007). If there is any ambiguity in a policy with regard to coverage, the ambiguity is interpreted in favor of the insured.
As a result, contractors in Washington regularly tender claims or potential claims to their insurers even when damage has not occurred but will occur in the imminent future. Especially in the context of construction defect cases, a contractor will tender such a claim to its insurer to trigger the broad duty of the insurer to provide a defense. We also regularly recommend this to our contractor clients. For example, if a building owner serves a contractor with a claim that the construction and installation of a window system will imminently cause leaks and corrosion, we would recommend that the contractor tender the claim to its commercial general liability insurer. Washington courts have found a duty to defend when there are allegations in the complaint that covered damages will occur in the imminent future.
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Masaki J. Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
Instant Hotel Tower, But Is It Safe?
March 28, 2012 —
CDJ STAFFBroad Sustainable Building has leapfrogged in China’s construction boom by building a thirty-story hotel in just fifteen days in the city of Changsha. According to an article in the Los Angeles Times, most of the building was prefabricated, but most prefabricated buildings require a longer time for assembly. Broad claimed that it cut no corners on safety. However, Zhang Li, a Beijing architect, told the Times that “incredible speed also means incredible risk.”
At the completion date, the interior was still partially finished. Some rooms were furnished, while others weren’t quite so ready. The hotel will be used to house clients who are visiting Broad and some of its employees.
Broad called their process “the most profound innovation in human history” and predicted that soon a third of new buildings worldwide would be constructed this way. The company anticipates using the same process to build taller buildings, with hopes of eventually constructing a 150-story building.
China is currently undergoing a building boom which Zhang attributed to a desire to catch up to the developed world. As a result of this boom, he noted that building inspections are often skipped in China to speed up building.
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What You Need to Know to Protect the Project Against Defect Claims
October 28, 2024 —
Scott L. Baker - Los Angeles Litigation BlogIf a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage?
Here are three things to know before beginning a project to effectively protect it and
manage construction defect claims.
1. Documentation is key
California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County
will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans.
However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you:
- Stay updated and aware of the project’s progress
- Proactively catch and handle issues that could result in disputes
- Create a record of evidence that can help manage defect claims
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Exculpatory Provisions in Business Contracts
May 30, 2018 —
David Adelstein - Florida Construction Legal UpdatesAn exculpatory provision in a contract is a provision that relieves one party from liability for damages. It shifts the risk of an issue entirely to the other party. Such a provision is generally drafted by the party preparing the contract that is looking to eliminate or disclaim liability associated with a particular risk, oftentimes a risk within their control. These provisions are also known as limitation of liability provisions because they do exactly that — limit liability as to a risk. For this reason, they can be useful provisions based on the context of certain risks, and are provisions that are included in business contracts (such as construction contracts).
While such clauses are disfavored, they are enforceable if they are drafted clearly, unambiguously, and unequivocally. If they are unclear, ambiguous, or equivocal, they will construed against enforcement. See Obsessions In Time, Inc. v. Jewelry Exchange Venture, LLP, 43 Fla.L.Weekly D1033a (Fla. 3d DCA 2018) (finding exculpatory clause in lease ambiguous and, therefore, unenforceable as to lessor looking to benefit from the exculpatory clause).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com