Class Actions Under California’s Right to Repair Act. Nope. Well . . . Nope.
January 15, 2019 —
Garret Murai - California Construction Law BlogIt’s the holidays. A time when family and friends, and even neighbors, gather together.
And nothing brings neighbors closer together than class action residential construction defect litigation.
In Kohler Co. v. Superior Court, Case No. B288935 (November 14, 2018), the Second District Court of Appeal addressed whether neighbors can bring class action lawsuits under the Right to Repair Act. For those who are regular readers of the California Construction Law Blog you’re familiar with the Right to Repair Act codified at Civil Code sections 895 et seq.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Contractor Sentenced to Seven Years for Embezzling $3 Million
July 20, 2020 —
Garret Murai - California Construction Law BlogMichael Medeiros was not a good guy. Ok, on a scale of 1 to 10, maybe not a 9 or 10 (when you’re including guys like Charles Manson), but a solid 6 or 7 at least.
The next case, People v. Medeiros, Case No. A155648, 1st District Court of Appeals (March 26, 2020), is less important for its legal holding than as a reminder that while most legal disputes on construction projects end up with one party owing the other party money, sometimes, when a party’s conduct has been really bad, it can end in a loss of liberty (i.e., jail time) as well.
People v. Medeiros
Medeiros was a painting contractor operating under the name Professional Painting Company, Inc. In the early 1990s, Medeiros met Susan Lambert, who served as the property manager for a homeowners’ association, Woodlake Association, in Hayward, California.
Lambert was an alcoholic. Following a series of surgeries in 2005 and 2007 she became addicted to opiates as well. She also had a gambling problem. As a result, Lambert regularly found herself in financial difficulty.
And this is where Lambert and Medeiros found that they shared common ground. At some point, Medeiros confided to Lambert that he was having cash flow and tax problems.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Insurer's Motion for Summary Judgment on Faulty Workmanship Denied
June 04, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024).
Heather Way sued AAA Discount Homes, LLC and Delta Transport & Management, Inc. for manufacturing defects found in a manufactured home which was delivered and assembled by Delta. Way had contracted with AAA for the construction, delivery, assembly, setting, tie down with brick underpinning steps and construction of front and back porches. AAA, assisted by Delta, delivered the home and assembled it, including raising the roof, over the course of a few days.
Subsequently, Way discovered extensive water damage and mold in the home. Way alleged that AAA and its subcontractors made careless, unsafe, and unsuccessful attempts at removing the old and repairing the water damage. The presence of chemicals in the home made it uninhabitable. Way alleged the home was improperly assembled by Delta and its negligence resulted in damages.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
In Colorado, Primary Insurers are Necessary Parties in Declaratory Judgment Actions
December 09, 2011 —
Heather M. Anderson, Colorado Construction LitigationThe United States District Court for the District of Colorado recently ruled that primary insurers are necessary parties, under Fed. R. Civ. P. 19, in a declaratory judgment action being pursued by an excess carrier. See Insurance Co. of State of Pennsylvania v. LNC Communities II, LLC, 2011 WL 5548955 (D. Colo. 2011). Federal Rule of Civil Procedure 19 is almost identical to Colorado Rule of Civil Procedure 19 and pertains to the joinder of persons needed for “just adjudication.” The Insurance Co. of the State of Pennsylvania (“ICSOP”) sought a declaratory judgment that it did not have a duty to defend or indemnify the defendants (collectively referred to as “Lennar Companies”) with regard to the underlying lawsuit brought by The Falls at Legend Trail Owners Association, Inc. (the “HOA”). Id. at *2. In its lawsuit, the HOA alleged Lennar Companies were liable for construction defects at The Falls at Legend Trail residential development.
Lennar Companies held two primary insurance policies, one issued by OneBeacon Insurance Company f/k/a General Accident Insurance Company (“General Accident”) and the other issued by American Safety Risk Retention Group, Inc. (“American Safety”). Lennar Companies also carried excess policies issued by ICSOP and Ohio Casualty Insurance Company (“Ohio Casualty”).
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Reprinted courtesy of Heather M. Anderson of Higgins, Hopkins, McClain & Roswell, LLP. Ms Anderson can be contacted at anderson@hhmrlaw.com
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Can a Receiver Prime and Strip Liens Against Real Property?
September 20, 2021 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogCourts overseeing receivers generally enjoy broad discretion in directing and approving a receiver’s proposed actions. But does that authority extend to a receiver not only granting a super-priority lien ahead of existing liens, but also selling the real property free and clear of all liens? In County of Sonoma v. Quail, 56 Cal.App.5th 657 (Ct. App. 2020), the California Court of Appeals answered that question in the affirmative.
Quail involved a 47,480 square-foot lot with two houses, a few garages, several outbuildings, and numerous trailers surrounded by a veritable junk yard. Despite many of these structures being uninhabitable, unsanitary, and dangerous, multiple families resided on the lot. Although Sonoma County (the “County”) ordered the owner to remediate the property several times, he failed and refused to do so. After several years of these violations going unabated, the County ultimately sought and obtained the appointment of a receiver over the real property.
To obtain funds necessary to repair the property, the receiver asked the court for permission to borrow money through the issuance of a receivership certificate to be secured by a super-priority lien—i.e., a lien ahead of all other liens—against the real property. Although the trial court initially declined to prime existing liens, when the receiver could find no one to lend money (since the land lacked equity), the trial court relented and approved a super-priority lien despite the senior secured lender’s objection (the “lender”).
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Meet BWB&O’s 2025 Best Lawyers in America!
September 09, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce Partners
Nicole Whyte,
Keith Bremer,
Vik Nagpal,
John O’Meara,
Sheila Stiles,
Patrick Au, and
Nicole Schmidt have been selected by their peers for inclusion in the 31st edition of The Best Lawyers in America, and Partner
Devin Gifford, and Associates
Melissa Youngpeter,
Ryan Flanagan, and
Alexandria Zeis are included in the fifth edition of Best Lawyers: Ones to Watch in America. Each person is being recognized for their diligent work in the areas of Family Law, Construction, Commercial, Personal Injury, and Real Estate Litigation.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
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CalOSHA Updates its FAQ on its COVID-19 Emergency Temporary Regulations
March 22, 2021 —
Garret Murai - California Construction Law BlogAs we reported in early December, CalOSHA adopted emergency temporary regulations requiring, among other things, that employers implement a written COVID-19 prevention program, that notice be given by employers to employees in the event of potential COVID-19 exposure, and that employers continue to pay employees who have been exposed to COVID-19 even if the employee has no paid time off available. In conjunction with the emergency temporary regulations, CalOSHA posted a FAQ on the emergency regulations.
On February 26, 2021, CalOSHA updated its FAQ. Among other things, the updated FAQ updates the following sections of the FAQ:
- Scope of Coverage: Clarifies that the emergency regulations apply even to workplaces with only one employee but that it does not apply to employees working remotely.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Homebuilders Offer Hope for U.K. Economy
August 20, 2014 —
Mark Gilbert – BloombergThe two elements of the U.K. economy that the Bank of England currently finds most worrying are the overheating housing market and the paucity of wage growth. Earnings reports this week from two of the nation's biggest homebuilders make for cheery reading on both counts.
Persimmon Plc, the U.K.'s largest homebuilder by market value, said today it completed 6,408 new homes in the first half of the year, a 28 percent increase from the year-earlier period. Bovis Homes Group, which mostly builds what it calls "traditional" family homes in the south of England outside London, said it sold 1,487 new homes in the first six months, a gain of 54 percent.
"The government has told us that we need 230,000 new homes per annum, and far be it for us to disagree with that," Bovis Chief Executive Officer David Ritchie said on a conference call. He expects to build about 3,650 homes this year, and reckons that "5,000 to 6,000 homes per annum is a very sensible target for the business."
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Mark Gilbert, BloombergMr. Gilbert may be contacted at
magilbert@bloomberg.net