FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Contractor’s Assignment of Construction Contract to Newly Formed Company Before Company Was Licensed, Not Subject to B&P 7031

October 04, 2021 — Garret Murai - California Construction Law Blog
Add one more to the Business and Profession Code section 7031 archives. In Manela v. Stone, Case No. B302660 (July 1, 2021), the 2nd District Court of appeal held that Section 7031 did not apply to a contractor licensed as a sole proprietor who assigned his contract to his newly formed company although at the time of the assignment the contractor’s individual contractor’s license had not yet been reissued to the incorporated company. The Manela Case On January 4, 2015, John Stone doing business as Stone Construction Company entered into a home remodeling contract with Yosef and Nomi Manela. At the time, Stone had held a contractor’s license since 1982. On February 11, 2015, after work on the project had begun, Stone formed JDSS Construction Company, Inc., and filed a fictitious business name using the same name Stone Construction Company. Stone applied to the Contractors State License Board to have his contractor’s license issued from himself personally to his new corporation. On March 15, 2015, while waiting for the CSLB to reissue his contractor’s license, Stone entered into an assignment agreement between himself and his new company assigning the Manela construction contract. The assignment agreement was signed by Stone in his personal capacity and as President of JDSS Construction. The assignment agreement was not signed by the Manelas. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Deadlines Count for Construction Defects in Florida

November 06, 2013 — CDJ STAFF
Scott Kiernan, an attorney in the Orlando offices of Becker & Poliakoff, writing on their Florida Construction Law Authority site notes that “nothing lasts forever, especially the right to sue for building defects.” Under Florida law, according to Mr. Kiernan, the time in which a condominium association can file a construction defect is “only 4 years from the time that the Condominium Association knew or should have known of the defect(s).” However, for defects that aren’t even discovered during those first four years, there is a ten-year period where claims for latent defects can become the subject of a construction defect claim. Read the court decision
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General Contractors Must Plan to Limit Liability for Subcontractor Injury

May 18, 2011 — Douglas Reiser in the Builders Counsel Blog

It takes more than a hard hat, but safety checks, a good policy and a smart contract might save you some problems.If you are a general contractor, you will want to pay close attention to this article. A new Washington appellate decision showcases a general contractor’s liability to subcontractors who are injured on the job, when security barriers fail. But can a general limit this liability? Will its contract help?



In Wrought Corporation, Inc., Appellant V. Mario Interiano (quick note: this opinion is unpublished, but we are here to talk about an issue that was not determined on appeal – WISHA compliance), a subcontractor was injured when a security barrier failed and he fell into an elevator shaft.



A jury awarded a $1.56 million verdict against the general contractor, and the court of appeals affirmed on the basis that the general contractor has a non-delegable duty to ensure compliance with the Washington Industrial Safety and Health Act of 1973, codified under RCW 49.17 (WISHA).

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Subsequent Purchaser Can Assert Claims for Construction Defects

October 17, 2022 — David Adelstein - Florida Construction Legal Updates
Can a subsequent purchaser pursue construction defect claims relating to the original construction of the property? This was the threshold issue on a motion for summary judgment by a drywall manufacturer against a subsequent purchaser of a home in Karpel v. Knauf Gips KG, 2022 WL 4366946 (S.D. Fla. 2022). This matter deals with the defective Chinese drywall that was installed in homes years ago. The plaintiffs, which were subsequent purchasers of a home, sued the manufacturer of the defective drywall for various theories including negligence, negligence per se, strict liability, breach of express and/or implied warranty, private nuisance, unjust enrichment, and Florida’s Deceptive and Unfair Trade Practices Act. The trial court noted, from the onset, that Florida does NOT have a subsequent purchaser rule that prohibits subsequent purchasers from asserting construction defect claims. With this consideration in mind, the trial court went through the claims the plaintiff, as a subsequent purchaser, asserted against the manufacturer to determine whether they were viable claims as a matter of law. Negligence Claim The trial court found that a subsequent purchaser could sue in negligence. “Florida courts have long allowed subsequent purchasers to sue for negligence including in construction defect litigation.” Karpel, supra, at *2. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Bremer Whyte Congratulates Nicole Nuzzo on OCBA Professionalism and Ethics Committee Appointment

November 17, 2016 — Beverley BevenFlorez – CDJ Staff
Nicole Nuzzo of Bremer Whyte Brown & O’Meara LLP was selected as one of the fifteen members of the Orange County Bar Association’s (OCBA) Professionalism and Ethics Committee, announced the firm. Committee members “are committed to supporting and encouraging OCBA members to engage in the professional and ethical practice of law. Members of the Committee are appointed by the OCBA president.” Ms. Nuzzo practices Family Law at the firm’s Newport Beach, California office. Read the court decision
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4 Steps to Take When a Worker Is Injured on Your Construction Site

March 27, 2023 — Zachary Perecman - Construction Executive
The construction industry continues to be one of the fastest-growing labor trades. According to the Center for Construction Research and Training, since 2019, 11.4 million U.S. workers have been employed in construction, a 25% increase from 2011. Amid this growth, the industry has remained one of the most dangerous, and workers are often at higher risk of injuries and deaths due to occupational incidents. According to the U.S. Bureau of Labor Statistics, there are 150,000 injuries on construction work sites annually. Under Occupational Health and Safety Administration (OSHA) law, employers have a responsibility to provide a safe work environment. That includes providing a workplace that is free of serious recognized hazards. Despite best efforts in implementing risk-mitigation and safety protocols, employers must be prepared with an incident procedure should an incident occur on a jobsite. Taking immediate, clear actions can impact the severity and outcome of injuries from a workplace incident. With this in mind, employers should take the lead in implementing safety procedures for injuries on construction sites and should inform all safety site managers and workers of the steps that should be taken. Reprinted courtesy of Zachary Perecman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Court Sharpens The “Sword” And Strengthens The “Shield” Of Contractors’ License Law

July 24, 2023 — Kyle S. Case - ConsensusDocs
Performing construction work without the necessary license can have significant repercussions on a contractor’s business. California in particular has become known for its imposition of “strict and harsh” penalties for a contractor’s failure to maintain proper licensure. In the realm of public works projects, any contract with an unlicensed contractor is deemed void. See Business & Professions Code Section 7028.15(e). On private projects, California’s Contractors’ License Law prohibits contractors from maintaining any action to recover payment for their work, and more severe, may require a contractor to disgorge all funds paid to it for performing unlicensed work. See Business & Professions Code Section 7031). These methods of deterrence are referred to as the “shield” and “sword” of the Contractors’ State License Law. Loranger v. Jones, 184 Cal. App. 4th 847, 854 (2010). In any discussion surrounding licensure, it is important to review the language of the Business and Professions Code (“Bus. & Prof.”). Section 7031(a) states:

Except as provided in subdivision (e), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person…

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Reprinted courtesy of Kyle S. Case, Watt, Tieder, Hoffar & Fitzgerald LLP
Mr. Case may be contacted at kcase@watttieder.com

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No Coverage Based Upon Your Prior Work Exclusion

October 01, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's determination of no coverage for construction defects based upon the policy's prior work exclusion. Yu v. Landmark Am. Ins. Co., 2014 Cal. App. Unpub. LEXIS 5966 (Cal. Ct. App. Aug. 22, 2014). Plaintiff was the owner and developer of a hotel. She contracted with ATMI Design Build to act as general contractor to construct the hotel. C&A Framing Company was a subcontractor to provide rough framing for the project. In May 2003, ATMI fired C&A before it had completed all the work required by the subcontract. After May 2003, C&A never returned to the construction site. Notice of Completion for the project was recorded April 15, 2004. In September 2004, Landmark issued to C&A a CGL policy for the period September 18, 2004 to September 18, 2005. The policy was later cancelled, effective January 14, 2005. The policy contained an endorsement entitled, "Exclusion - Your Prior Work." The exclusion barred coverage for "'property damage' arising out of 'your work' prior to 9/18/04." 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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