Construction Defect or Just Punch List?
December 11, 2013 —
CDJ STAFFA couple in Dickinson, North Dakota have put big, green “buyer beware” signs on their home. They’re not planning on selling, but just trying to warn prospective neighbors of the problems they’ve had since moving into their new home. Andrea Thermes said her problems included leaking windows and uneven floors. “I absolutely love my house,” she said. “If we didn’t have the issues, I would be the happiest girl in the world.”
One problem was a leaking picture window in her living room. The builder replaced it, but the first window that arrived was the wrong size. The new home is still under a warranty and the builder has been fixing issues as they arise. “They are upset with some of the problems they have had,” said William Henry, president of B-Dev, the builder of the home. Since Ms. Thermes’s window wasn’t repaired in time for Thanksgiving, Mr. Henry sent wine and beer to her home. “Not that that makes up for not having their window, but we’re trying to make this work and trying to appease them,” he said.
But Mr. Henry said that some of the problems “are not really material defects,” characterizing them as “punch-list and warranty items.”
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New York Nonprofit Starts Anti-Scaffold Law Video Series
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to readMedia, The Lawsuit Reform Alliance of New York (LRANY) has released “‘Victims of the Scaffold Law’ video series” that highlights “the impact of New York's ‘Scaffold Law’ on small businesses, taxpayers, and, specifically New York's Minority and Woman Owned Business Enterprises.”
The New York Scaffold Law “imposes total liability on contractors and property owners in lawsuits for gravity-related construction accidents, regardless of any contributing negligence by the worker,” reports readMedia. Furthermore, the law “is responsible for over half of the largest settlements in the state and dramatically increases the cost of liability insurance and construction in New York.”
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Trump Administration Issues Proposed 'Waters of the U.S.' Rule
December 19, 2018 —
Pam Radtke Russell - Engineering News-RecordConstruction contractors said a proposed revised definition of “Waters of the United States,” released by the Environmental Protection Agency and the Army Corps of Engineers on Dec. 11, would provide their firms with clarity about what types of permits they will need for their construction projects near various bodies of water.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com
Anti-Fracking Win in N.Y. Court May Deal Blow to Industry
July 01, 2014 —
Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr. – BloombergNew York’s cities and towns can block hydraulic fracturing within their borders, the state’s highest court ruled, dealing a blow to an industry awaiting Governor Andrew Cuomo’s decision on whether to lift a six-year-old statewide moratorium.
The case, closely watched by the energy industry, may invigorate local challenges to fracking in other states and convince the industry to stay out of New York even if Cuomo allows drilling. Pennsylvania’s highest court issued a similar ruling last year, striking down portions of a state law limiting localities’ ability to regulate drillers.
“This sends a really strong and clear message to the gas companies who have tried to buy their way into the state that these community concerns have to be addressed,” Katherine Nadeau, policy director for Environmental Advocates of New York, an anti-fracking group, said in a phone interview. “This will empower more communities nationwide.”
Mr. Dolmetsch may be contacted at cdolmetsch@bloomberg.net; Mr. Klopott may be contacted at fklopott@bloomberg.net; and Mr. Efstathiou Jr. may be contacted at jefstathiou@bloomberg.net
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Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr., Bloomberg
Assembly Bill 1701 Contemplates Broader Duty to Subcontractor’s Employees by General Contractor
August 17, 2017 —
Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & BargerAB 1701 recently passed the Assembly and is pending in the Senate’s Labor and
Industrial Relations and Judiciary Committees. The Bill, if signed by the Governor, would
create a new section in the California Labor Code (Section 218.7) making “direct contractors” –
defined as a contractor “making or taking a contract in the state for the erection, construction,
alteration, or repair of a building, structure, or other private work” – liable for wages a
subcontractor or sub-subcontractor fails to pay to its employee for work included in the general
contractor’s contract with the project owner.
Under the new law, direct contractors would be liable for up to one year from the date of
completion of the work for unpaid wages, fringe benefits, health and welfare benefits, and
pension fund contributions, including interest and state tax payments owed to a subcontractor’s
employee. The employee, however, would not be able to recover penalties or liquidated
damages from the general contractor.
AB 1701 would give the employee, Labor Commissioner, or a joint labor-management
cooperation committee the right to enforce the direct contractor’s liability through a civil action.
It would also extend to third parties who are owed fringe or other benefit payments or
contributions on the employee’s behalf. Pursuant to the proposed language of the new statute, a
prevailing plaintiff in such an action would be entitled to their reasonable attorneys’ fees and
costs, including expert witness fees.
Although Labor Code § 218.7 would impose certain obligations on the subcontractor to
provide the direct contractor with relevant project and payroll records, the subcontractor’s failure
to comply with those obligations does not relieve the direct contractor from liability.
Impact
AB 1701’s apparent purpose is to protect employees, an undeniably important legislative
goal. However, if passed, the bill could greatly increase general contractors’ exposure when
subcontracting work and their cost of doing business. Especially because the new law would not
impact existing laws requiring a direct contractor to timely pay a subcontractor.
As a result, many coalitions against AB 1701 stress the halting effect this could have on
the construction industry as a whole, particularly private construction, which is not as heavily
regulated as public works.
CGDRB will continue to monitor this Bill and provide updates as developments occur.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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In One of the First Civil Jury Trials to Proceed Live in Los Angeles Superior Court During Covid, Aneta Freeman Successfully Prevailed on Behalf of our Client and Obtained a Directed Verdict and Non-Suit
July 05, 2021 —
Aneta B. Freeman – Chapman Glucksman Dean & Roeb News AlertIn one of the first civil jury trials to proceed live in Los Angeles Superior Court during Covid, Aneta Freeman obtained a rare directed verdict and nonsuit in a complex, high exposure action, after seven days of trial. The dismissal was obtained after the parties rested after the liability phase of the bifurcated trial.
Ms. Freeman represented a general contractor in an action in which Plaintiff alleged that the general contractor and the County of Los Angeles (which was dismissed earlier on statutory immunity grounds) created a dangerous condition when they allegedly allowed mosquitos to breed in 2015 during construction at a flood retention basin in Marina Del Rey.
Plaintiff contracted West Nile Virus, and subsequently developed myasthenia gravis and a myriad of other conditions and ailments. Plaintiff relied heavily on a 2015 report from the Los Angeles West Vector Control District which suggested that the construction was the source of mosquitos which resulted in a “cluster” of West Nile Virus cases in the Marina Del Rey and surrounding areas.
In pretrial motions, Ms. Freeman successfully excluded that report, opinion testimony from the vector control former executive director, narrowed the scope of plaintiff’s entomologist testimony, and excluded Brad Avrit from testifying for the Plaintiff on construction standard of care.
The matter proceeded with a stipulated a 10 person jury, and all participants socially distanced and masked throughout the trial. Witnesses appeared live, with the exception of Plaintiff’s entomologist, portions of whose video deposition were played.
Following seven days of trial after both parties rested, Judge Mark Young granted the general contractor’s nonsuit and also, in the alternative, a directed a verdict for our client.
Plaintiff had demanded $10,000,000 of the County and the general contractor globally prior to trial, and $5,000,000 from the general contractor. The general contractor issued two CCP 998s, which were ignored by Plaintiff.
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Aneta B. Freeman, Chapman Glucksman Dean & RoebMs. Freeman may be contacted at
afreeman@cgdrlaw.com
Homebuilder Confidence Takes a Beating
October 21, 2013 —
CDJ STAFFHomebuilder confidence dropped to fifty-five percent in October, the lowest percentage seen in the last four months. The score had been rising on the strength of renewed home sales. The current slump is attributed to increases in interest rates, which have made home purchases more expensive for prospective buyers, and the uncertainty of the budget struggle in Washington.
John Stumpf, the chairman and CEO of Wells Fargo said that “home price appreciation remains strong and affordability remains excellent.” Mr. Strum has “guarded optimism” over the effects of the budget struggle.
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Pennsylvania Superior Court Fires up a Case-By-Case Analysis for Landlord-Tenant, Implied Co-Insured Questions
February 03, 2020 —
Gus Sara - The Subrogation StrategistIn Joella v. Cole, 2019 PA Super. 313, the Superior Court of Pennsylvania recently considered whether a tenant, alleged by the landlord’s property insurance carrier to have carelessly caused a fire, was an implied co-insured on the landlord’s policy. The court found that the tenant was an implied co-insured because the lease stated that the landlord would procure insurance for the building, which created a reasonable expectation that the tenant would be a co-insured under the policy. Since the tenant was an implied co-insured on the policy, the insurance carrier could not maintain a subrogation action against the tenant. This case confirms that Pennsylvania follows a case-by-case approach when determining whether a tenant was an implied co-insured on a landlord’s insurance policy.
The Joella case stems from a fire at an apartment building in Northampton County, Pennsylvania. The landlord’s property insurance carrier paid the landlord $180,000 to repair the damages resulting from the fire. In March 2018, the insurer brought a subrogation action against Annie Cole, a tenant in the building, alleging that Ms. Cole’s negligent use of an extension cord caused the fire. Ms. Cole raised the affirmative defense that she was an implied co-insured on the landlord’s insurance policy. The subrogating insurer filed a partial motion for summary judgment seeking to dismiss Ms. Cole’s defense. In response, Ms. Cole filed a cross motion for partial judgment, arguing that because the lease specified that the landlord would maintain fire insurance for the building, there was a reasonable expectation that she would be a co-insured on that policy. The trial court found in favor of Ms. Cole, holding that the landlord’s insurer could not maintain a subrogation action against her because she was an implied co-insured of the landlord’s insurance policy under the terms of the lease. The landlord’s insurer filed an appeal with the Superior Court of Pennsylvania.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com