What If Your CCP 998 Offer is Silent on Costs?
March 18, 2019 —
Tony Carucci - Snell & Wilmer Real Estate Litigation BlogIn California, the “prevailing party” in litigation is generally entitled to recover its costs as a matter of law. See Cal. Code Civ. Proc. § 1032. But under California Code of Civil Procedure section 998, a party may make a so-called “offer to compromise,” which can reverse the parties’ entitlement to costs after the date of the offer, depending on the outcome of the litigation. Cal. Code Civ. Proc. § 998. The potential payoff of a 998 offer is that “If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall not recover his or her postoffer costs and shall pay the defendant’s costs from the time of the offer.” Cal. Code Civ. Proc. § 998(c)(1) (emphasis added).
But how do you determine whether a plaintiff obtained a more favorable judgment when the 998 offer is silent with respect to whether it includes costs?
In Martinez v. Eatlite One, Inc. (2018) 27 Cal.App.5th 1181, 1182–83, the defendant made a 998 offer of $12,001 that was silent regarding the treatment of attorneys’ fees and costs. Plaintiff did not respond to the offer, and the jury ultimately awarded plaintiff damages of $11,490. Id. In resolving the parties’ competing memoranda of costs and plaintiff’s motion for attorneys’ fees, the trial court awarded plaintiff her costs and attorneys’ fees. Id. at 1182. The trial court reasoned that plaintiff had obtained a more favorable judgment than the 998 offer because she was entitled to pre-offer costs and attorneys’ fees under the statute, which meant plaintiff’s ultimate recovery exceeded the 998 offer when added to the judgment. Id. at 1183. In other words, the court added plaintiff’s pre-offer costs and attorneys’ fees to the $11,490 verdict for the purposes of determining whether the “judgment” was greater than the 998 offer of $12,001. Id.
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Tony Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
Construction Attorneys Get an AI Assist in Document Crunch
May 20, 2024 —
Jeff Yoders - Engineering News-RecordArtificial intelligence is often touted as a gamechanger for construction processes, and Document Crunch, a company co-founded by a longtime construction attorney, is already changing up one key area: construction contracts.
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Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com
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Los Angeles Construction Sites May Be on Fault Lines
December 30, 2013 —
CDJ STAFFCalifornia law prohibits building near or on top of earthquake fault lines, but Los Angeles County building officials may have used outdated information that misreported the location of certain faults. The Los Angeles Times reports that after their earlier articles on fault lines, the officials have started using newer maps.
According to the older maps, an apartment building under construction on Brockton Avenue in Los Angeles is 1.9 miles away from the Santa Monica fault. But a more recent map, created by the state in 2010, shows that the fault line could potentially be right under the building site.
The builders of another apartment building potentially located on the Santa Monica fault said that the city did not ask for a fault investigation. The Los Angeles Department of Building and Safety said that there was no official zone designation for the Santa Monica fault, and so did not require seismic studies.
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Negligence Claim Not Barred by Gist of the Action Doctrine
February 18, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Pennsylvania Supreme Court held that the insureds' negligence claim survived because it was not based upon breach of a duty created by the policy, but upon the alleged breach of a duty imposed by tort law. Bruno v. Erie Ins. Co,, 2014 Pa. LEXIS 3319 (Dec. 15, 2014).
After purchasing their home, the insureds obtained a homeowner's policy from Erie. A separate endorsement covered loss to the property caused by "fungi," which was included as any form of mold. The endorsement obligated Erie to pay up to $5,000 for loss caused by mold. The policy required Erie to pay the cost of testing the air to confirm the absence or presence of mold. If mold was present, Erie was to pay for the cost of removal, including the cost of tearing out any part of the property needed to gain access to the mold.
While renovating the basement, the insureds discovered two areas of black mold in close proximity to leaking water pipes. Erie was notified and sent an adjuster to view the mold. The adjuster took no action, but returned a couple of days later with an engineer. The adjuster and engineer informed the insureds that the mold was harmless and that health problems associated with mold were a media frenzy and overblown.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Legislation Update: S-865 Public-Private Partnerships in New Jersey Passed by Both Houses-Awaiting Governor’s Signature
July 02, 2018 —
Steven M. Charney & Charles F. Kenny - Peckar & Abramson, P.C.New Jersey is finally close to being among the many states with broad authority to develop or improve public projects through a Public-Private Partnership (P3) delivery method. This contracting model has stimulated growth and improvements in other States and led to the delivery of projects that may not otherwise have happened. Senate Bill 865 (“S-865”), after undergoing some last-minute amendments in a frenzied legislature dealing with budget and other critical issues, has passed in both houses of the Legislature and is waiting for Governor Murphy’s signature, which is expected shortly. The law will be effective 180 days from formal enactment. The administrative framework is now in place to make Public-Private Partnerships a reality in New Jersey.
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Steven M. Charney, Peckar & Abramson, P.C. and
Charles F. Kenny, Peckar & Abramson, P.C.
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Kenny may be contacted at ckenny@pecklaw.com
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Crime Policy Insurance Quotes Falsely Represented the Scope of its Coverage
July 13, 2020 —
Brian J Clifford - Saxe Doernberger & VitaAn Indiana businessman found out the hard way how far his insurance company was willing to go to avoid paying a claim after it misrepresented the coverage of a crime policy it sold to him. The quote for the policy indicated that it included coverage for losses resulting from computer hacking. Despite this representation, when the policyholder’s bank accounts were hacked, the insurer denied coverage on the ground that there was no provision for hacking coverage in the policy. Fortunately, the Indiana Court of Appeals recognized the insured’s right to argue before a jury that the insurer’s quotes falsely represented the scope of its coverage.
In Metal Pro Roofing, LLC v. Cincinnati Ins. Co., Richard Cornett, principal of Metal Pro Roofing, LLC and Cornett Restoration, LLC (the “LLCs”), purchased a Cincinnati Insurance Company CinciPlus Crime XC+ Policy (the “Policy”). At the time Mr. Cornett purchased this coverage, and during all subsequent renewals, Cincinnati issued insurance quotes that stated:
Cincinnati can insure your money and securities while at your premises, inside your bank and even off site in the custody of a courier. While you’ve taken precautions to protect your money and securities, you run the risk of loss from employees, robbers, burglars, computer hackers and even physical perils such as fire.
Give yourself peace of mind with Cincinnati’s crime coverage to insure the money and securities you worked so hard to earn.
Crime Expanded Coverage (XC®)Plus Endorsement $125.00.
(Emphasis added.)
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Brian J Clifford, Saxe Doernberger & VitaMr. Clifford may be contacted at
bjc@sdvlaw.com
The Top 3 Trends That Will Impact the Construction Industry in 2024
December 04, 2023 —
The Hartford Staff - The Hartford InsightsAs more than 40% of the current U.S. construction workforce will retire in the next decade, industry leaders need to equip themselves with the necessary resources to combat the shifting work environment.1
“Trends in the construction industry will fluctuate in the coming years, which can lead to additional risks for industry leaders. It will be important to think about how they can address any potential risk factors. A lot of leaders have been increasing their planning efforts and looking into technology solutions to combat the ongoing labor shortage,” said David DeSilva, head of construction at The Hartford. Here, he outlines the top three top trends for business leaders to watch in 2024.
1. Ongoing Labor Shortages
Construction is an industry that traditionally has a high labor turnover rate, which means companies needs to hire more frequently. This only increases during labor shortages. The construction workforce is up against several factors, including an aging workforce and recruitment struggles.
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The Hartford Staff, The Hartford Insights
China Bans Tallest Skyscrapers Following Safety Concerns
July 25, 2021 —
Bloomberg NewsChina is prohibiting construction of the tallest skyscrapers to ensure safety following mounting concerns over the quality of some projects.
The outright ban covers buildings that are taller than 500 meters (1,640 feet), the National Development and Reform Commission said in a notice Tuesday. Local authorities will also need to strictly limit building of towers that are more than 250 meters tall.
The top economic planner cited quality problems and safety hazards in some developments stemming from loose oversight. A 72-story tower in Shenzhen was closed in May for checks following reports of unexplained wobbling, feeding concern about the stability of one of the technology hub’s tallest buildings.
Construction of buildings exceeding 100 meters should strictly match the scale of the city where they will be located, along with its fire rescue capability, the commission said.
“It’s primarily for safety,” said Qiao Shitong, an associate law professor at the University of Hong Kong who studies property and urban law. Extremely tall buildings “are more like signature projects for mayors and not necessarily efficient.”
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Bloomberg