SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.

November 21, 2022 — Christian Fernandez - Snell & Wilmer Real Estate Litigation Blog
Liquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated damages may be referred to in a variety of ways, such as “earnest money,” a “good-faith deposit,” or a “non-refundable deposit,” but each typically denote a negotiated amount of money that a seller is entitled to retain should a buyer breach a purchase and sale agreement. The purpose of liquidated damages is to provide the parties with certainty when actual damages arising from a breach of contract may be difficult to calculate. Accordingly, liquidated damages provisions alleviate the need for potentially expensive litigation associated with proving damages. While parties are free to negotiate the amount of liquidated damages, the amount must approximate the loss anticipated at the time of contracting, or the loss that actually occurs as a result of a breach. Arizona courts have held that where the amount of liquidated damages is unreasonably large when compared to the anticipated loss or actual loss, the liquidated damages provision is unenforceable as a penalty. A breaching party faced with high liquidated damages will often seek to invalidate the provision as a penalty. If a court agrees, the non-breaching party may still recover damages, but must go through the process of proving such damages. Therefore, when negotiating a real estate contract, consideration should be given as to whether a liquidated damages amount is arbitrarily high when compared to an anticipated loss in the event of a breach. Read the court decision
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Reprinted courtesy of Christian Fernandez, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com

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Virginia General Assembly Helps Construction Contractors

June 10, 2015 — Christopher G. Hill – Construction Law Musings
As reported last week at the Virginia Real Estate, Land Use and Construction Law Blog (authored by my good friend Tim Hughes (@timrhughes)), the Virginia General Assembly has passed an amendment to the jurisdictional limitations of Virginia General District Courts. The new statute, going into effect July 1, 2011, increases the jurisdiction of these courts to $25,000 from the present level of $15,000. Why is this a big deal? As a solo practitioner who represents contractors and subcontractors in cases big and small, this increase is a boon to my practice and the collect-ability of some debts. I think back to the numerous conversations I have had with clients who had bona fide claims for around $20,000. These conversations inevitably turned toward the cost of Circuit Court versus General District Court and whether it would be better to leave money out of the claim to avoid the ramped up attorney fee and filing costs (not to mention the time from filing to judgment). This conversation was especially relevant in the instance where the contracts did not contain an attorney fees provision. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Overview of New Mexico Construction Law

June 25, 2019 — Walter F. Crowson - Snell & Wilmer Under Construction Blog
We’ve seen an uptick in out-of-state companies working on construction projects in New Mexico. The following is an overview of some of the nuances of New Mexico construction law about which companies may want to be aware. Construction Contract Issues Limitation of Liability Clauses are usually Enforceable, but Anti-Indemnity Clauses Are Not New Mexico courts have enforced limitation of liability clauses included in construction contracts. See Fort Knox Self Storage, Inc. v. W. Techs., Inc., 140 N.M. 233, 237 (N.M. Ct. App 2006). New Mexico law recognizes the difference between contracts that insulate a party from any and all liability and those that simply limit liability. Fort Knox Self Storage, Inc., 140 N.M. 233 at 237. An exculpatory clause immunizes a party from liability, whereas a limitation of liability clause merely curtails liability. Id. A limitation of liability clause has been held not to violate New Mexico public policy because the party “still bears substantial responsibility for its actions.” Id.; see also Cowan v. D'Angelico, 2010 WL 11493789, *6 (D. N.M. Apr. 26, 2010). Read the court decision
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Reprinted courtesy of Walker F. Crowson, Snell & Wilmer
Mr. Crowson may be contacted at wcrowson@swlaw.com

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Newmeyer & Dillion Attorneys Selected to Best Lawyers in America© Orange County and as Attorneys of the Year 2018

August 17, 2017 — Newmeyer & Dillion LLP

NEWPORT BEACH, Calif. – AUGUST 17, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that nine of the firm’s attorneys were recently recognized in their respective areas in The Best Lawyers in America© 2018. Two attorneys, Gregory Dillion and Thomas Newmeyer, also have been selected as an Orange County "Lawyer of the Year." Attorneys named to The Best Lawyers in America, include:

Jason M. Caruso	Personal Injury Litigation, Product Liability Litigation
Michael S. Cucchissi	Real Estate Law
Gregory L. Dillion	Commercial Litigation, Construction Law, Insurance Law, Litigation – Construction, Litigation – Real Estate
Jeffrey M. Dennis	Insurance Law
Joseph A. Ferrentino	Litigation – Construction, Litigation – Real Estate
Thomas F. Newmeyer	Commercial Litigation, Construction Law, Litigation – Real Estate
John A. O'Hara	Litigation – Construction
Bonnie T. Roadarmel	Insurance Law
Carol Sherman Zaist	Commercial Litigation

Additionally, Gregory Dillion was selected as the Orange County Construction Litigation "Lawyer of the Year" and Thomas Newmeyer was selected as the Orange County Construction Law "Lawyer of the Year."

Best Lawyers is the oldest peer-review publication within the legal profession with a history of over 30 years. Attorneys are selected through intensive peer-review surveys in which leading lawyers evaluate their professional peers. Their listings are published in 75 countries worldwide and are recognized for their reliable and unbiased selections. Newmeyer & Dillion is immensely proud of these lawyers and looks forward to their future endeavors.

About Newmeyer & Dillion

For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.

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Towards Paperless Construction: PaperLight

June 02, 2016 — Aarni Heiskanen – AEC Business
I just toured the newly built headquarters of a financial corporation. Our guide, a M&A specialist, boasted that they have completely removed paper from their offices. Could paperless construction become feasible any time soon? PaperLight is a portable smart board that could replace paper drawings on many occasions. Rollout, Inc., the developer of PaperLight, says that 90% of contractors still use paper plans. AEC firms spend, on average, $1600 per employee on printing annually. Over 37 million construction drawings are printed every year. Finding a usable solution that reduces these numbers makes economic sense. Even more so if you consider all the costs of errors that result from using outdated paper drawings. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aarni@aepartners.fi

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Narrow House Has Wide Opposition

January 17, 2013 — CDJ STAFF
A small building project on Staten Island is causing some big complaints. While many residents of the area are still dealing with the aftermath of Hurricane Sandy, residents in the Port Richmond neighborhood are concerned about a house that is being built on a lot that at its widest is only seventeen feet. On the other end, the lot is only eleven feet wide. Initially, the Staten Island did not give permission to build on the Orange Avenue lot, but the developer went to the city’s Board of Standards and Appeals who gave permission. The daughter of one neighbor described the foundation as looking “like a swimming pool, not a house.” Her mother’s house has a 40-foot frontage. Another neighbor (37-foot frontage) described the plans to build the narrow house as “pretty stupid.” Work currently stopped on the building over complaints that the site’s fence was incomplete. After the developer repairs the fence, the site needs to be inspected before work continues. Read the court decision
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Righting Past Wrongs Through Equitable Development

January 17, 2022 — Bruce Buckley & Pam Radtke Russell - Engineering News-Record
Standing on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Pam Radtke Russell, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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In Florida, Component Parts of an Improvement to Real Property are Subject to the Statute of Repose for Products Liability Claims

December 02, 2015 — Michael L. DeBona – White and Williams LLP
In Dominguez v. Hayward Industries, Inc., Certified Gunite Company d/b/a Custom Pools, and John M. Pieklo, — So.3d —-, 2015 WL 5438782 (3d DCA Sept. 16, 2015), the District Court of Appeal of Florida, Third District, discussed whether products liability claims related to a pool filter, a component part of a pool system, were subject to Florida’s twelve-year products liability statute of repose, section 95.031, Florida Statutes. The court held that a pool filter does not constitute an improvement to real property and, thus, the plaintiffs’ claims were subject to the statute of repose. Background Facts Ryan and Jessica Dominguez had a pool installed at their house; the delivery and installation of the pool and its filter were completed on December 20, 1999. Over twelve years later – on November 17, 2012 – the pool filter exploded, causing Mr. Dominguez a severe head injury. Mr. Dominguez and his wife brought a products liability action against, among others, the pool filter manufacturer and distributor, Hayward Industries, Inc., and the installer of the pool and intermediate distributor of the pool filter, Certified Gunite Company. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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