Construction Law Firm Welin, O'Shaughnessy + Scheaf Merging with McDonald Hopkins LLC
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a press release on PR Newswire, Columbus, Ohio law firm McDonalds Hopkins LLC is merging with firm Welin, O’Shaughnessy + Scheaf. McDonalds Hopkins LLC is “a business advisory and advocacy law firm with a more than 80-year history.” They are looking to expand their “Columbus presence” by the merger with “the boutique firm” that specializes in construction law, complex business litigation and oil and gas litigation.
Read the court decisionRead the full story...Reprinted courtesy of
Lien Law Unlikely To Change — Yet
May 26, 2011 —
Melissa Brumback, Construction Law in North CarolinaFor those of you following the proposed revisions to the NC lien law that is currently at the NC House Judiciary Subcommittee B, a quick update: the proposed bill (HB 489) is unlikely to be voted on this legislative session due to its unpopularity with several constituency groups, including both the AIA-North Carolinaand the NC Home Builders Association.
Read the full story…
Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.
Read the court decisionRead the full story...Reprinted courtesy of
Contractor Liable for Soils Settlement in Construction Defect Suit
February 10, 2012 —
CDJ STAFFThe California Court of Appeals ruled on January 9 in Burrow v. JTL Dev. Corp., a construction defect case in which houses suffered damage due to improperly compacted soil, upholding the decision of the lower court.
Turf Construction entered into a deal with JTL to develop a parcel they acquired. A third firm, Griffin Homes, withdrew from the agreement “when a geotechnical and soils engineering firm reported significant problems with soil stability on 14 of the lots.” Turf Construction then took over compacting and grading the lots. Turf “had never compacted or graded a residential tract before.” Robert Taylor, the owner of Turf, “testified he knew there was a significant problem with unstable soils.”
After homes were built, the plaintiffs bought homes on the site. Shortly thereafter, the homes suffered damage from soil settlement “and the damage progressively worsened.” They separately filed complaints which the court consolidated.
During trial, the plaintiff’s expert said that there had been an inch and a half in both homes and three to five inches in the backyard and pool areas. “He also testified that there would be four to eight inches of future settlement in the next fifteen to twenty years.” The expert for Turf and JTL “testified that soil consolidation was complete and there would be no further settlement.”
Turf and JTL objected to projections made by the plaintiffs’ soil expert, William LaChappelle. Further, they called into question whether it was permissible for him to rely on work by a non-testifying expert, Mark Russell. The court upheld this noting that LaChappelle “said that they arrived at the opinion together, through a cycle of ‘back and forth’ and peer review, and that the opinion that the soil would settle four to eight inches in fifteen to twenty years was his own.”
Turf and JTL contended that the court relied on speculative damage. The appeals court disagreed, stating that the lower court based its award “on evidence of reasonably certain damage.”
Turf also that it was not strictly liable, since it did not own or sell the properties. The court wrote that they “disagree because Turf’s grading activities rendered it strictly liable as a manufacturer of the lots.” The court concluded that “Turf is strictly liable as a manufacturer of the lots.”
Judge Coffee upheld the decision of the lower court with Judges Yegan and Perren concurring.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Claims Against Broker Dismissed
June 20, 2022 —
Tred R. Eyerly - Insurance Law HawaiiClaims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022).
The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs a homeowners and fire policy far in excess of $100,000 for their condominium unit, which was worth in excess of $600,000. Century moved to dismiss
A fire in the building forced all owners to vacate their units. The entire building was thereafter declared unsafe for habitation by the City of New York. The condominium owners met and voted to not restore the building, but to sell the burnt-out shell and distribute the sales proceeds and the condominium's insurance among the unit owners. There was no indication that the owners would not be made whole once the funds were distributed.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement
September 17, 2015 —
Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLPIn what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work.
In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
How Mansions Can Intensify Wildfires
May 30, 2022 —
Todd Woody - BloombergA neighborhood of $4 million homes that burned Wednesday in a Southern California wildfire highlights the vulnerability of large suburban dwellings to climate-driven blazes, according to fire experts.
The Coastal Fire destroyed at least 20 homes in a gated community in Laguna Niguel, a wealthy Orange County enclave near Laguna Beach. Houses in the Coronado Pointe development line a ridge overlooking the Pacific Ocean. Homes in the neighborhood are palatial, ranging in size from about 4,000 square feet to 10,000 square feet, and sit on large lots with room for swimming pools with coastal views. But the mansions are wedged together with relatively little space between buildings.
When a fire broke out near a wastewater treatment plant on Wednesday, it raced up a chaparral-covered hillside until it encountered an explosive source of fuel – Coronado Pointe.
Read the court decisionRead the full story...Reprinted courtesy of
Todd Woody, Bloomberg
Reasonable Expectations – Pennsylvania’s Case by Case Approach to the Sutton Rule
February 12, 2024 —
Melissa Kenney - The Subrogation StrategistIn Mutual Benefit Ins. Co. a/s/o Michael Sacks v. Koser, No. 1340 MDA 2023, 2023 Pa. Super. LEXIS 574, 2023 PA Super 252 (Mutual Benefit), the Superior Court of Pennsylvania discussed whether a landlord’s property insurer could file a subrogation action against tenants that had negligently damaged the landlord’s property. Despite there being more than one clause in the lease holding the tenants liable for the damages, the court held that because there was a provision requiring the landlord, not the tenants, to insure the leased building, the insurer could not subrogate against the tenants.
In Pennsylvania, a tenant’s liability for damage to a leased premises in a subrogation action brought by a landlord’s insurer is determined by the reasonable expectation of the parties to the lease agreement. Under this approach, to determine if subrogation is permitted, the court considers the circumstances of the case and examines the terms of the lease agreement.
In Mutual Benefit, the tenants leased and resided in a residential home pursuant to a lease agreement. The lease specifically addressed insurance, stating that landlord was responsible for obtaining insurance on the dwelling and the landlord’s personal property, and tenants were encouraged to procure separate insurance for their personal property. The lease also addressed liability for damage to the leased property, stating generally that the tenants were responsible for damage caused by the tenants’ negligence.
Read the court decisionRead the full story...Reprinted courtesy of
Melissa Kenney, White and WilliamsMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
SEC Climate Change Disclosure Letter Foreshadows Anticipated Regulatory Changes
November 08, 2021 —
Karen C. Bennett & Jane C. Luxton - Lewis BrisboisWashington, D.C. (October 13, 2021) - In late September 2021, the Division of Corporation Finance of the Securities and Exchange Commission (SEC) issued a Sample Letter providing guidance to companies on how their climate disclosures will be analyzed for compliance with material risk reporting obligations. The Sample Letter precedes the SEC’s issuance of mandatory climate-related disclosure rules anticipated by year-end and signals a greater focus on specific information used to support securities filings, a development that businesses should take seriously.
The Sample Letter builds on climate change guidance the SEC issued in 2010 and identifies nine categories of disclosures the SEC suggests may be material risks that must be disclosed. These include:
- Consistency between a company’s corporate social responsibility report and its SEC filings;
- Risks associated with climate-related legislation, regulation, or policy, and resulting compliance costs;
- Litigation risks related to climate change; and
- Risks linked to an array of operational and market factors, including capital expenditures, continuity of business operations, supply chain stability, changing demand, reputation, availability of credit and insurance, and other climate-change related potential impacts on the financial condition of the company.
Reprinted courtesy of
Karen C. Bennett, Lewis Brisbois and
Jane C. Luxton, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
Read the court decisionRead the full story...Reprinted courtesy of
