Court Holds That Public Entity Can Unilaterally Replace Subcontractor Under California’s Subletting and Subcontracting Fair Practices Act
July 22, 2019 —
Garret Murai - California Construction Law BlogThe Subletting and Subcontracting Fair Practices Act (Public Contract Code section 4100 et seq.), also known as the Listing Law, is intended to prevent direct contractors on public works projects from “bid shopping” and “bid peddling.”
Bid Shopping: Bid shopping is when a direct contractor discloses a subcontractor’s bid to other subcontractors in an attempt to obtain a lower bid than the one in which it based its bid to the owner.
Bid Peddling: Bid peddling is the other side of the equation. It is when a subcontractor whose bid was not selected, lowers its bid in an attempt to induce the direct contractor to substitute it for another subcontractor after the prime contractor’s bid has been awarded.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Small Airport to Grow with Tower
October 25, 2013 —
CDJ STAFFThe city Hammond, Louisiana is finding that their airport just keeps getting busier. Mayson Foster, the mayor of Hammond noted that the city now has “various types of aircraft ranging from blimps, regional jets, smaller private planes, helicopters and other aircraft using the airport.” Spartan Construction Company has made a successful $1.6 million bid to build the tower.
Funding will come from the sale of 17 acres of land near the airport. Air traffic at the Northshore Regional Airport is expected to increase after the tower becomes operational.
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Lawsuit Gives Teeth to Massachusetts Pay Law
September 16, 2024 —
Joseph Barra - Robinson+Cole“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered.
Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds.
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Joseph Barra, Robinson+ColeMr. Barra may be contacted at
jbarra@rc.com
Homeowner’s Claims Defeated Because “Gravamen” of Complaint was Fraud, not Breach of Contract
September 29, 2021 —
Garret Murai - California Construction Law BlogBe careful what you wish for or, as in the next case, what you plead. In Vera v. REL-BC, LLC, Case Nos. A155807, A156823, and A159141 (June 30, 2021) 1st District Court of Appeal, a the buyer of a remodeled home who asserted breach of contract and fraud claims against a developer discovered that her claims, including her breach of written contract claim, was subject to a shorter 3 year statute of limitations because the “gravamen” of her complaint was fraud.
The REL-BC Case
Homeowner Adriana Vera purchased a remodeled home in Oakland, California from developers REL-BC, LLC and SNL Real Estate Solutions, LLC. The developers had purchased the home in July 2011, remodeled it, and sold it to Vera in November 2011.
As is typical in such transactions, the purchase agreement for the house required that the sellers disclose known material facts and defects affecting the property. In their disclosure, the sellers stated that they were not aware of any significant defects or malfunctions with respect to the property. The disclosure also stated that the sellers were not aware of any water intrusion issues with respect to the property.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Colorado Senate Voted to Kill One of Three Construction Defect Bills
May 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Denver Business Journal reported that the Colorado Senate Appropriations Committee voted 5-2 to kill SB 219, one of the three construction defect bills introduced by Sen. Jessie Ulibarri, D-Commerce City. SB 219 “would have given the divisions of housing, insurance and law a combined $150,000 to collect data that would shine light on the reasons for the current shortage of owner-occupied affordable housing.”
However, the two other construction defect related bills are still alive. SB 216 “would offer financial incentives for building condos worth less than $500,000 and SB 220, would make it more difficult for condo owners to file a class-action lawsuit regarding alleged defects.”
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Insureds' Summary Judgment Motion on Mold Limitation Denied
November 10, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe insureds' motion for partial summary judgment on the applicability of the homeowner's mold limitation was denied. R.W.& R. v. Liberty Mutual Fire Ins. Co., 2016 U.S.Dist. LEXIS 131586 (W.D. Wash. Sept. 26, 2016).
The policy imposed a $5,000 limit on losses caused by mold. Plaintiffs discovered that their dishwasher was leaking and reported the loss to Liberty. Liberty's contractor concluded that the bottom of the dishwasher had rusted out, causing water to seep into parts of the kitchen and the laundry/utility room below. The contractor used dehumidifiers to extract moisture from the affected areas and removed damaged cabinetry, drywall and tiling. The contractor discovered mold that it believed predated the dishwasher leak. Although the contractor took steps to remove the mold, its dehumidification efforts exacerbated the problem by dispersing mold spores throughout portions of the house.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida’s Construction Defect Statute of Repose
August 24, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Butler Weihmuller of Katz Craig LLP discussed Florida’s 10-year statute of repose law: “Under § 95.11(3)(c), the action must commence within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.”
However, Weihmuller explains that parties may disagree on the specific date For instance, in Busch v. Lennar Homes, LLC, Florida’s 5th DCA recently “reversed a trial court’s dismissal of a homeowner’s construction defect claim that was filed just beyond 10 years after the closing date on the property.” The previous decision had been based on the notion that the contract had been completed upon the date of closing. The 5th DCA declared that “a contract is not completed until both sides of a contract have been performed” and “pointed to the ‘inspection and punch-list clause’ of the contract.” The clause indicated that “[a]ny remaining items that Seller has agreed to correct will be corrected by Seller at Seller’s sole cost and expense prior to closing or at Seller’s option within a reasonable time after closing.” Since not all punch-list items had been completed prior to closing, the 5th DCA held that the contract had not been completed at closing, and therefore the statute of repose did not begin until the punch-items had been accomplished.
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OSHA Issues Guidance on Mitigating, Preventing Spread of COVID-19 in the Workplace
February 22, 2021 —
Amy R. Patton & Blake A. Dillion - Payne & FearsOn January 29, 2021, the Occupational Safety and Health Administration (“OSHA”) issued new employer guidance on mitigating and preventing the spread of COVID-19 in the workplace. This guidance is intended to help employers and workers outside the healthcare setting to identify risks of being exposed to and of contracting COVID-19 and to determine any appropriate control measures to implement. While this guidance is largely duplicative of prior OSHA and Centers for Disease Control and Prevention (“CDC”) guidance and recommendations, it contains a few new and updated recommendations that employers should note:
Face Coverings
OSHA recognizes that face coverings, either cloth face coverings or surgical masks, are simple barriers that help prevent the spread of COVID-19, and are beneficial for the wearer as well as others. OSHA recommends that employers should provide all workers with face coverings, unless their work task requires a respirator. These face coverings should be provided at no cost and should be made of at least two layers of tightly woven breathable fabric, and should not have exhalation valves or vents. Employers should also require any other individuals at the workplace (i.e., visitors, customers, non-employees) to wear a face covering unless they are under the age of 2 or are actively consuming food or beverages on site. Wearing a face covering does not eliminate the need for physical distancing of at least six feet apart.
Employers must discuss the possibility of “reasonable accommodations” for any workers who are unable to wear or have difficulty wearing certain types of face coverings due to a disability. In workplaces with employees who are deaf or have hearing deficits, employers should consider acquiring masks with clear coverings over the mouth.
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Amy R. Patton, Payne & Fears and
Blake A. Dillion, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Mr. Dillion may be contacted at bad@paynefears.com
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