Congratulations to our 2019 Southern California Super Lawyers Rising Stars
July 30, 2019 —
John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty & Michael Parme - Haight Brown & Bonesteel LLPCongratulations to attorneys John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty and Michael Parme who were selected to the 2019 Southern California Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
T. Giovanni “John” Arbucci,
Frances Brower,
Lisa Hsiao,
Kristian Moriarty and
Michael Parme
Mr. Arbucci may be contacted at jarbucci@hbblaw.com
Ms. Brower may be contacted at fma@hbblaw.com
Ms. Lisa may be contacted at lhsiao@hbblaw.com
Mr. Kristian may be contacted at kmoriarty@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
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Underpowered AC Not a Construction Defect
November 07, 2012 —
CDJ STAFFAfter buying a home in Louisiana, Mike Gines determined that the home’s air conditioning unit was insufficient to maintain an appropriate temperature. He contacted the home builder, D.R. Horton, Inc., which worked with the air conditioning installer, Reliant Heating & Air Conditioning, in order to repair the system. When the problems persisted, Gines filed a class action petition against Horton and Reliant in state court. Horton and Reliant moved the case to the federal courts, whereupon Gines asserted the defendants were in violation of the Louisiana New Home Warranty Act (NHWA). Horton stated that the claim under the NHWA was invalid, because Gines had not alleged actual physical damage to his home.
The district court granted Horton’s motion to dismiss. Gines sought a reversal from the Fifth Circuit Court of Appeals and sought to have two questions of state law addressed by the Louisiana Supreme Court.
The district court ruled that the NHWA was the “sole remedy under Louisiana law for a purchaser of a new home with construction defects. Gines argued that court erred in this, but also conceded that this was the conclusion of the Louisiana Supreme Court.
Further, Gines argued that a provision in the NHWA that allows the inclusion of construction defects that do not cause damage was satisfied by paragraph 6 of the contract. The court noted that Gines did not attach a copy of the contract to either the original or amended complaint, and so the court does not need to address these claims. However, the court cautioned that if a copy had been included, they still would have rejected the claim, as “the cited language does not indicate a waiver of the physical damage requirement.” They also note that “paragraph 13 of the contract shows that Gines was aware to the absence of any such waiver in the contract.”
The court concludes that “the moral of this story is that in order to avoid the harsh result that has obtained here, the buyer of a newly constructed home in Louisiana should seek to obtain in the contract of sale an express waiver of the actual damage requirement of the NHWA.” The appeals court affirmed the decision of the circuit court and denied the application to certify questions to the Louisiana Supreme Court.
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Recent Developments with California’s Right to Repair Act
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFIn Lexology, Amy Kuo Alexander of Gordon Rees Scully Mansukhani, LLP analyzed recent decisions involving California’s Right to Repair Act, SB 800. According to Alexander, “SB 800, applies to all new residential construction sold after January 1, 2003” and “[i]t establishes a process to resolve certain construction defect claims prior to the filing of any lawsuit by a homeowner of new residential construction.”
Alexander’s three main discussion points include “SB 800 is Not the Exclusive Remedy,” “Notice Requirements to Builder Under SB 800,” and “Parties Can Opt Out of SB 800 to Adopt Their Own Prelitigation Procedure So Long as the Terms Are Not Unconscionable.”
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California Precludes Surety from Asserting Pay-When-Paid Provision as Defense to Payment Bond Claim
December 21, 2020 —
Nicholas Korst - Ahlers Cressman & Sleight PLLCIn a recent case in California, the Court of Appeals held that a surety who had issued a public works payment bond cannot rely on the “Pay-When-Paid” provision in the subcontract as a defense against the subcontractor’s claim against the payment bond.[1] The case was a public works project in Kern County, CA where the North Edwards Water District (the “District”) hired Clark Bros., Inc. (“Clark”) as the general contractor to build an arsenic removal water treatment plant. Clark hired subcontractor Crosno Construction (“Crosno”) to build and coat two steel reservoir tanks. The subcontract included the following “pay-when-paid” provision, which provided a definition of “reasonable time”:
If the Owner or other responsible party delays in making any payment to the Contractor from which payment to Subcontractor is made, Contractor and its sureties shall have a reasonable time to make payment. “Reasonable time” shall be determined according to the relevant circumstances, but in no event shall be less than the time Contractor and Subcontractor require to pursue to conclusion their legal remedies against the Owner or other responsible party to obtain payment, including (but not limited to) mechanics lien remedies. (emphasis added).
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Nick Korst, Ahlers Cressman & Sleight PLLCMr. Korst may be contacted at
nicholas.korst@acslawyers.com
Insurers Get “Floored” by Court of Appeals Regarding the Presumptive Measure of Damages in Consent Judgments
May 13, 2014 —
Mark Scheer and Brent Williams-Ruth – Scheer & Zehnder LLPCASE: Miller v. Kenny, 68594-5-I, 2014 WL 1672946 (Wash. Ct. App. Apr. 28, 2014).
Snapshot Synopsis: $21 million bad faith consent judgment verdict upheld. $4.15 million underlying stipulated consent judgment was the “floor,” and additional damages allowed.
ISSUES:
1. Can a jury award damages for an insurer’s bad faith in excess of the amount of the stipulated covenant judgment? YES
2. Can a trial court admit evidence of insurance liability reserves in a bad faith action? YES
3. *Note: Other evidentiary and procedural issues were addressed by the court in its decision but not analyzed in this summary*
FACTS: This appeal arose out of an automobile accident on August 23, 2000. Patrick Kenny was driving a 1994 Volkswagen Passat owned by one of the passengers, when he rear-ended a cement truck. The accident severely injured his three passengers: Ryan Miller, Ashley Bethards, and Cassandra Peterson. Kenny was covered for liability under the insurance policy issued to Peterson's parents by Safeco Insurance Company. Safeco defended Kenny without a reservation of rights.
Reprinted courtesy of
Mark Scheer, Scheer & Zehnder LLP and
Brent Williams-Ruth, Scheer & Zehnder LLP
Mr. Scheer may be contacted at mscheer@scheerlaw.com; Mr. Williams-Ruth may be contacted at bwilliamsruth@scheerlaw.com
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Homeowners May Not Need to Pay Lien on Defective Log Cabin
July 01, 2011 —
CDJ STAFFThe Idaho Supreme Court has ruled in the case of Perception Construction Management v. Bell. The Bells hired PCM to build a log home, agreeing to play monthly invoices in full within ten days. The Bells paid the first four invoices in full, part of the fifth, and ceased payment after that. Beofre seventh invoice, the Bells terminated the contract and hired a new contractor. PCM filed a claim of lien and ceased work.
The Bells responded that PCM was in breach of contract and had failed to fulfill the contract in a workmanlike manner. They claimed construction defects and in the lien suit, sought to include testimony from an architect and a plumber reviewing PCM’s work. The court only allowed the architect to testify as to whether the amount of the lien was reasonable. No testimony was permitted from the plumber.
The Idaho Supreme Court concluded that the claims of construction defects were important to case and remanded it to the lower court for a new trial taking into evidence that Bell’s contention that PCM’s work was defective.
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Just When You Thought General Contractors Were Necessary Parties. . .
December 31, 2014 —
Christopher G. Hill – Construction Law MusingsDid you think that a subcontractor had to name a general contractor in a mechanic’s lien suit? I did. Did you think that nothing about this changed in the case where a Virginia mechanic’s lien was “bonded off” pursuant to Va. Code Section 43-71? I did.
Well, a recent Virginia Supreme Court case, Synchronized Construction Services Inc. v. Prav Lodging LLC, seems to at least create some doubt as to whether the a general contractor is a “necessary” party to a lawsuit by a subcontractor in the case where a bond is posted for release of a mechanic’s lien.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Energy Efficiency Ratings Aren’t Actually Predicting Energy Efficiency
February 07, 2022 —
Ryan Hesketh - BloombergThere’s a secret dogging British buildings with some of the most coveted environmental ratings: On paper they’re green, but scratch the surface and they’re red hot. Buildings that have received the highest rating in the U.K. — an A Energy Performance Certificate — use more energy than some of their peers rated C, D, E or even F.
This disparity between how buildings are designed and what their actual emissions are is widespread in the U.K., according to recent findings from the Better Buildings Partnership, which analyzed 2020 self-reported energy data provided for more than 1,100 commercial properties.
It found that commercial buildings regularly use more energy than their sterling eco-friendly labels would suggest. In fact, the analysis finds, the ratings are so far off that the median energy intensity for all B-rated buildings is higher than for C-rated buildings.
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Ryan Hesketh, Bloomberg