Seattle Washington Building Expert Directory

Tort Claims Against an Alter Ego May Be Considered an Action “On a Contract” for the Purposes of an Attorneys’ Fees Award under California Civil Code section 1717

April 12, 2021 — Tony Carucci - Snell & Wilmer Real Estate Litigation Blog
California Civil Code section 1717 entitles the prevailing party to attorneys’ fees “[i]n any action on a contract,” where the contract provides for an award of attorneys’ fees to the prevailing party, regardless of whether the prevailing party is the party specified in the contract or not. But what about an action that alleges tort causes of action against an alter ego of a contracting party but that does not include a breach of contract claim against the alter ego? This was the question facing the California Court of Appeal in 347 Group, Inc. v. Philip Hawkins Architect, Inc. (2020) 58 Cal.App.5th 209. In that case, the plaintiff 347 Group sued and obtained a default judgment for breach of contract against defendant Philip Hawkins Architect, Inc. Id. at 211–12. 347 Group had also sued Philip Hawkins individually as well as Design-Build, Inc., the company Hawkins founded after putting Philip Hawkins Architect, Inc. into bankruptcy. Id. at 212. 347 Group originally alleged claims for breach of contract, fraudulent conveyance, and conspiracy against Hawkins and Design-Build, seeking to establish that Hawkins and Design-Build were the alter egos of the contracting party, Philip Hawkins Architect, Inc., but later dismissed the breach of contract claim. Id. Hawkins and Design-Build eventually prevailed on the tort causes of action, and moved for attorneys’ fees. Id. Read the court decision
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Reprinted courtesy of Tony Carucci, Snell & Wilmer
Mr. Carucci may be contacted at acarucci@swlaw.com

Where Standing, Mechanic’s Liens, and Bankruptcy Collide

September 17, 2018 — Christopher G. Hill - Construction Law Musings
I have spoken often about mechanic’s liens and the implications of such liens as they relate to bankruptcy here at Construction Law Musings. A recent case out of Loudoun County, Virginia added another wrinkle to this discussion, that of standing and what happens on conveyance of the property and what interest in the property is required to allow a party to seek removal of the mechanic’s lien. In Leesburg Bldg. P’rs LLC v. Mike Berger Inc. the Loudoun County Circuit Court faced the following scenario. Leesburg Building Partners developed certain condominiums and hired Lansdowne Construction to perform the work as general contractor and paid Landsdowne in full for the work. Lansdowne hired Mike Berger, Inc. (“MBI”) to perform concrete work for the project. Landsdowne didn’t pay MBI approximately $48,000.00 and subsequently filed for bankruptcy. MBI, seeking to protect it’s interest in the money it was owed, recorded a mechanic’s lien on the property. Leesburg Building Partners filed an action to declare the lien invalid and have it removed from the property based upon its “payment defense” and the fact that it had paid Landsdowne in full. A relatively simple scenario and one that has been discussed before here at Musings. Not so fast. . . Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Quick Note: Steps to Protect and Avoid the “Misappropriation” of a “Trade Secret”

November 23, 2020 — David Adelstein - Florida Construction Legal Updates
Florida’s Uniform Trade Secret Act (included in Florida Statute s. 688.001 en seq.) defines the terms “trade secret” and “misappropriation.” These definitions (found here) are important in that just because 1) we deem something a trade secret does not, in of itself, make it so, and 2) we deem someone to have misappropriated a trade secret does not, in of itself, make it so. If a party deems something to be a trade secret they should identify the document or paper as “confidential trade secret” as the first-step in preserving the confidentiality of that information. The party should also consider entering into an agreement with the party that may receive that information to maximize the protection of such confidential trade secret information during the parties’ agreement. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

The New York Lien Law - Top Ten Things You Ought to Know

December 23, 2023 — Ralph E. Arpajian - White and Williams LLP
Over the course of my career, I have had the privilege of working with and representing numerous construction lenders (and borrowers/developers) in the financing of some of the largest commercial projects in the United States. A number of these projects have been in New York, where one encounters the New York Lien Law (the “Lien Law”). Many of my clients, particularly those lenders, borrowers, and their counsel, located outside of New York, are often perplexed by my advice regarding the Lien Law and the loan structuring requirements which result. In the hope that it would be helpful (especially for non-New York counsel), I have compiled a “top ten” list outlining, in my view, the most critical (and most perplexing) aspects of structuring New York construction loans under the Lien Law. Read the court decision
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Reprinted courtesy of Ralph E. Arpajian, White and Williams LLP
Mr. Arpajian may be contacted at arpajianr@whiteandwilliams.com

Summary Judgment Granted to Insurer for Hurricane Damage

January 24, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion for summary judgment, contending there was no coverage for hurricane damage, was granted. Laurence v. Liberty Ins. Corp., 2021 U.S. Dist. LEXIS 227807 (S.D. Texas Nov. 29, 2021). When Hurricane Harvey hit, Mike Laurence held a homeowner's policy from Liberty Insurance Corporation and a contractor policy for his business, Pride Plumbing, Inc., issued by State Farm Lloyds. Laurence's property suffered water damage during the storm. State Farm investigated and concluded that all but a small amount, within the policy's deductible, was from flood damage and excluded. Laurence sued. The property covered by the State Farm policy included Laurence's home, Pride Plumbing's office and two sheds. Pride Pluming did not own or lease any of the buildings on the property. Laurence testified in his deposition that the only damage to his property not caused by flood water was to three buildings from fallen tree limbs and equipment from his business. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Party Cannot Skirt Out of the Very Fraud It Perpetrates

January 09, 2023 — David Adelstein - Florida Construction Legal Updates
An interesting case came out of Florida’s Fourth District Court of Appeal that touches upon two important points. First, the independent tort doctrine does not apply when there is not a contract between the parties. Second, an officer cannot escape fraud simply by claiming his or her actions were done as an officer of the company when he or she actively participated in the fraud. Both of these points are best explained by initially going into the facts of this case. As you will see, the Court’s rationale relates to the premise that a party should not be able to skirt out of the very fraud it perpetrates. Factual Background Costa Investors, LLC v. Liberty Grande, LLC, 48 Fla.L.Weekly D7b (Fla. 4th DCA 2022) involved the ultimate development and construction of four adjacent properties into the Costa Hollywood Hotel. The properties were purchased by a company called Liberty Grande. Its president / manager was also the president of Liberty Grande’s wholly owned subsidiary called Costa Hollywood Property. Liberty Grande transferred the properties to Costa Hollywood Property and the deed was signed by the president / manager. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Dangerous Condition, Dangerous Precedent: California Supreme Court Expands Scope of Dangerous Condition Liability Involving Third Party Negligent/Criminal Conduct

August 19, 2015 — R. Bryan Martin, Laura C. Williams, & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP
In Cordova v. City of Los Angeles (filed 8/13/15, Case No. S208130), the California Supreme Court held a government entity is not categorically immune from liability where the plaintiff alleges a dangerous condition of public property caused the plaintiff’s injury, but did not cause the third party conduct which precipitated the accident. The case arises out of a traffic collision by which the negligent driving of a third party motorist caused another car to careen into a tree planted in the center median owned and maintained by the City of Los Angeles (“City”). Of the four occupants in the car that collided with the tree, three died and the fourth was badly injured. The parents of two of the occupants sued the City for a dangerous condition of public property under Government Code Section 835. The plaintiffs alleged the roadway was in a dangerous condition because the trees in the median were too close to the traveling portion of the road, posing an unreasonable risk of harm to motorists who might lose control of their vehicles. The City successfully moved for summary judgment, which plaintiffs appealed. On review, the Court of Appeal affirmed holding the tree was not a dangerous condition as a matter of law because there was no evidence that the tree had contributed to the criminally negligent driving of the third party motorist. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin, Laura C. Williams and Lawrence S. Zucker II Mr. Martin may be contacted at bmartin@hbblaw.com Ms. Williams may be contacted at lwilliams@hbblaw.com And Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Without Reservations: Fourth Circuit Affirms That Vague Reservation of Rights Waived Insurers’ Coverage Arguments

January 09, 2023 — Lara Degenhart Cassidy & Matthew J. Revis - Hunton Insurance Recovery Blog
The Fourth Circuit recently affirmed insurance coverage for a South Carolina policyholder based on the “axiomatic principle” that an insurer which fails to fully and fairly articulate its potential coverage defenses in a reservation of rights letter loses the right to contest coverage on those grounds. Stoneledge at Lake Keowee Owner’s Assoc. v. Cincinnati Ins. Co., No. 19-2009, 2022 WL 17592121 (4th Cir. 2022) (quoting Harleysville Group Insurance v. Heritage Communities, Inc., 803 S.E.2d 288 (S.C. 2017)). More particularly, in Stoneledge, the Fourth Circuit affirmed per curiam a South Carolina District Court’s grant of summary judgment in favor of a homeowners association that had successfully sued its general contractors for construction defects and was seeking to recover the damages owed from the contractors’ insurers. The Fourth Circuit agreed that the insurers’ vague reservation of rights letters failed to reserve the defenses on which the insurers purported to deny coverage. The question before the court in Stoneledge was whether the two insurers that had each agreed to defend their respective general-contractor insureds in the homeowner association’s underlying litigation had sufficiently informed their policyholders of their coverage positions. Specifically, the court considered whether the insurers provided notice of their intention to challenge coverage on specific bases and explained why those bases applied in their respective reservation of rights letters. Both of the insurers’ letters followed the typical approach of identifying various policy provisions and exclusions and outlining the general mechanics of those provisions, but they fell short of applying the provisions or exclusions to the facts in the case at hand. Further, the letters stated that the insurers would reevaluate how the provisions applied as the underlying case progressed. One of the insurer’s letters expressed doubt as to coverage but did not offer any analysis on the reasons for the prospective coverage denial. Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Matthew J. Revis, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Revis may be contacted at mrevis@HuntonAK.com Read the court decision
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