SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Not in My Kitchen – California Supreme Court Decertifies Golden State Boring Case

November 26, 2014 — Roger Hughes – California Construction Law Blog
On November 11, 2014, the California Supreme Court rejected the recent California Court of Appeals decision Golden State Boring & Pipe Jacking, Inc. v Eastern Municipal Water District, 228 Cal.App.4th 273 (2014) which we wrote about earlier by “decertifying” it (meaning that lawyers cannot cite to the case as legal precedent) The decertification removed a decision that added substantially to the confusion as to when an action on a payment bond is timely filed. Even though the decision was determined in accordance with pre-2014 statutes, the case was relevant precedent for construction attorneys when determining time deadlines for filing a claim on a bond. Background In July of this year, the California Court of Appeals for the Fourth Appellate District upheld a trial court’s granting of summary judgment against a project subcontractor Golden State Boring & Pipe Jacking, Inc. (GSB) who sued Safeco Insurance Company (Safeco) for unpaid contract amounts on a project payment bond issued by Safeco. Both at the trial level and on appeal Safeco successfully argued that GSB’s action on its payment bond claim was time barred by former California Civil Code Sections 3249 (now Section 9558), because it was filed more than six month after the period in which stop notices may be filed as provided by California’s Civil Code Section 3184 (now Section 9558). Read the court decision
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Reprinted courtesy of Roger Hughes, Wendel Rosen Black & Dean LLP
Mr. Hughes may be contacted at rhughes@wendel.com

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Would You Trade a Parking Spot for an Extra Bedroom?

August 23, 2021 — Virginia Postrel - Bloomberg
A bill wending its way through the California Legislature could suddenly make a lot more new housing economically feasible. Known as AB 1401, the legislation would abolish local parking requirements for new residential and commercial developments near bus or train stops. It applies to counties with more than 600,000 residents and cities with more than 75,000 people. The bill does not prohibit or restrict parking. It merely deregulates it, allowing developers to decide what works best for a given project. It opens up the possibility, for example, of providing parking in an off-site garage or lot. It permits tandem parking to save space or subsidized shared ride services. It doesn’t prescribe a one-size-fits-all solution to how buildings can best serve the people who use them, and it allows flexibility as transportation options evolve. Most homeowners and tenants want some sort of parking, but local mandates can be extreme — and extremely expensive. Twenty-one California towns even require more than three parking places for a three-bedroom single-family home. Read the court decision
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Reprinted courtesy of Virginia Postrel, Bloomberg

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What You Need to Know About “Ipso Facto” Clauses and Their Impact on Termination of a Contractor or Subcontractor in a Bankruptcy

September 12, 2022 — Martha B. Chovanes & Laurie A. Stanziale - ConsensusDocs
While contractor bankruptcies have long been an issue in the construction industry, in the aftermath of COVID-19 and the resultant labor, material and supply-chain delays, contractor bankruptcies are of even greater concern. Many construction contracts attempt to protect the upstream party from a bankruptcy filing of its contractor or subcontractor by providing for an automatic right to terminate a contract, referred to as “ipso facto” clauses. However, such clauses are generally unenforceable as bankruptcy laws, specifically Section 365(e) of Title 11 of the United States Code, protect the party filing for bankruptcy (the “Debtor”) from unilateral termination of the contract by the non-Debtor party. What is an “Ipso Facto” clause? An ipso facto clause is a provision in an agreement which permits its termination by one party due to the bankruptcy, insolvency or financial condition of the other party. Reprinted courtesy of Martha B. Chovanes, Fox Rothschild LLP (ConsensusDocs) and Laurie A. Stanziale, Fox Rothschild LLP (ConsensusDocs) Ms. Chovanes may be contacted at mchovanes@foxrothschild.com Ms. Stanziale may be contacted at lstanziale@foxrothschild.com Read the court decision
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Reprinted courtesy of

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Understanding Lien Waivers

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
Zlien on their Construction Payment Blog explained how to read a lien waiver. According to Zlien, “Lien waivers are meant to function as a sort of receipt – if a party is paid a certain amount that party waives his or her right to claim a lien for that amount. “ The blog post breaks down the types of lien waivers, including Conditional Waivers, Unconditional Waivers, Final Payment, and Progress Payment. Once the type of waiver has been identified, Zlien suggests checking the length: “Because the party signing the lien waiver may feel obligated to sign whatever document is presented in order to get paid, unscrupulous or oblivious parties may attempt to use the lien waiver as a legal positioning tool and cram all sorts of other language into the lien waiver that really has no legitimate right or reason to be there.” Zlien recommends that if the document is long or confusing to consult an attorney. Read the court decision
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Reprinted courtesy of

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Conditional Judgment On Replacement Costs Awarded

January 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The appellate court determined that a conditional judgment on replacement costs was appropriate after the insurer denied coverage. Stephens & Stephens XII, LLC v. Fireman's Fund Ins. Co., 2014 Cal. App. LEXIS 1073 (Cal. Ct. App. Nov. 24, 2014). Stephens operated a large industrial warehouse. It initially purchased a commercial liability policy from Fireman's Fund when an tenant occupied the building. After the tenant left, Stephens purchased from Fireman's Fund property coverage on June 28, 2007. On July 1, Stephens discovered that burglars had caused more than $2 million in damage to the property. All conductive material was stripped from the building and taken away. There was water damage throughout the building. The estimated cost of repair exceeded $1 million. Stephens notified Fireman's Fund. The insurer paid emergency repairs, but it neither accepted nor denied coverage for the loss. Finally, five years after the incident and on the eve of trial, Fireman's Fund denied coverage. 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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Housing Starts Plunge by the Most in Four Years

March 19, 2015 — Bloomberg News
(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover. Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists. “Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.” Read the court decision
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Reprinted courtesy of Bloomberg News
Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net

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William Lyon to Acquire RSI Communities

February 22, 2018 — Dave Suggs - CDJ STAFF
According to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas. RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target. President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.” Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.” Read the court decision
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Real Estate & Construction News Round-Up (11/30/22) – Proptech Trends, Green Construction, and Sustainable Buildings

December 13, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores 4 key trends expected to impact proptech in 2023, global investment in green construction technologies, sustainable buildings and their perceived value for tenants in Europe, and more.

• Sitting at the crossroads between real estate and technology, proptech has experienced significant growth, which is expected to accelerate via 4 key trends in 2023. (Zain Jaffer, Forbes)
• Global investment in green construction technologies reached $2.2 billion in 2022, with legislation and technological innovation serving as the key driving forces behind this growth. (Jennifer Kite-Powell, Forbes)
• In Europe, sustainable buildings have increased the asset values for commercial real estate managers, with tenants willing to pay more for efficient buildings. (David Worford, Environment + Energy Leader)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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