How to Determine the Deadline for Recording a California Mechanics Lien
September 17, 2015 —
William L. Porter, Esq. – Porter Law Group BulletinThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California private works construction project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. As noted below, in order to pursue this remedy, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414).
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William L. Porter, The Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
California Complex Civil Litigation Superior Court Panels
December 31, 2014 —
Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq., and David A. Napper, Esq. – Chapman Glucksman Dean Roeb & Barger BulletinThe Complex Civil Litigation Program is relatively new as it has only existed in California
since 2000. Complex divisions dedicate courtrooms solely for litigation of complex civil
cases that require exceptional judicial management including construction defects, antitrust,
securities, toxic torts, mass torts, and class actions. Complex civil courtrooms help the trial
court operate in a more efficient, expeditious, and effective manner. A complex court
reduces costs for litigants by streamlining motion practice and expeditiously resolving
discovery disputes.
Not all counties have dedicated complex civil divisions. For those that do, each county has
its own local rules, and some complex divisions have their own particular set of rules. The
Judicial management of complex cases begins early, and is applied continuously and actively
with the idea that final resolution be expedited as much as possible. In focusing on
cooperation amongst the parties to achieve these goals, often requiring joint statements to
the court and a prohibition on discovery motions until after the parties have formally metand-
conferred on the issues. Moreover, complex cases are centralized and are assigned to
one highly skilled Judge for all purposes.
The first six California counties to create a Complex Civil division include Alameda, Contra
Costa, Los Angeles, Orange, San Francisco, and Santa Clara. Riverside County Superior
Court is the most recent California County to add a Complex division, effective January 2015.
Riverside county Superior Court’s Complex department consists of ten civil judges, seven of
which are in the main courthouse with Riverside. Riverside county expects to consolidate all
complex civil litigation into one courtroom by January 2015. Riverside county Judge Sharon
Waters state that "[i]t's been something that I personally have felt has been long overdue"
and that "[t]he idea is that put it with one judge and let him or her develop the expertise."
Judge Waters believes "[t]he potential value of establishing a complex litigation courtroom
[is that] it allows the judge to focus on the cases full time."1
As of October 2014, Riverside county had about 450 to 500 pending cases designated as
complex, over fifty percent (50%) of which involved construction defect matters. The sole
Judge who will preside over the complex cases has not yet been named.
1 Jolly, Vik. "Riverside to Shift Complex Civil Cases to 1 Courtroom." Los Angeles Daily Journal (October 13,
2014)
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto and
David A. Napper
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com;
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com;
and Mr. Napper may be contacted at dnapper@cgdrblaw.com
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Risk Protection: Force Majeure Agreements Take on Renewed Relevance
November 30, 2020 —
Michael E. Carson - Construction ExecutiveForce majeure clauses have been standard in contracts dating back hundreds of years in the United States—and even longer in Europe. “Force majeure,” which is French for “greater force,” removes liability for unforeseen events that prevent parties from fulfilling contractual obligations.
In a year defined by the COVID-19 pandemic, these clauses have gone from boilerplate basics to something worthy of further examination and attention in order to minimize risk for all parties involved in a construction project. Prior to COVID-19, drafters might have considered a localized or regional event that would lead to invoking a force majeure clause. It is doubtful, however, that anybody envisioned the impact on such a world-wide scale.
UNDERSTANDING THE AGREEMENTS
Force majeure clauses cover unforeseen events, a broad term that encompasses both acts of God and human-caused incidents. These range from natural disasters like earthquakes and hurricanes to acts of terrorism, strikes, political strife, government actions, war and other difficult- or impossible-to-predict disruptions. When such an event occurs, the force majeure clause attempts to remove, or at least reduce, uncertainty as to the rights and liabilities of the parties to the agreement.
Reprinted courtesy of
Michael E. Carson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Carson may be contacted at
michael.carson@nationwide.com
Construction Insurance Rates Up in the United States
November 20, 2013 —
CDJ STAFFA new report says that construction firms paid from three to seven percent more on average during the first six months of 2013 than they had in the last half of 2012. Firms with poor loss histories paid even more, reaching double-digit increases.
Michael Anderson, of Marsh’s U.S. Construction Practice said that “U.S. construction firms are grappling with a firming insurance market, especially when it comes to liability insurance where underwriters continue to tighten coverage terms and seek rate increases to make up for reduced investment income.” He did note that “the good news for well-managed construction firms is they can still generally find competitive pricing and terms.”
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Senator Ray Scott Introduced a Bill to Reduce Colorado’s Statute of Repose for Construction Defect Actions to Four Years
January 21, 2015 —
David M. McLain – Colorado Construction LitigationFor those of you reading this blog who are familiar with Colorado’s law as it pertains to construction defect actions, which I assume to be anyone reading this blog as it does not seem to get much random traffic, you are probably aware that the statute of repose applicable to construction defect actions in Colorado is generally thought of as being six plus two years. Specifically, C.R.S. § 13-80-104 states, in pertinent part:
(1)(a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Is Your Home Improvement Contract Putting You At Risk?
February 10, 2020 —
Hannah Kreuser - Porter Law GroupIf you are like many contractors, odds are that your home improvement contract (HIC) is not compliant with California law, putting you at risk for disciplinary action, voiding of the contract, and even criminal prosecution.
Generally, the laws allow parties to contract how they wish. However, California HICs are an exception and California Business and Professions Code (BPC) requires much in the way of content, form and formatting for a HIC to meet the legal requirements. This is because California has written its laws to provide broad protections to homeowners when it comes to construction work performed at their residence. However, in attempting to promote this goal, the laws surrounding HICs have produced requirements that are confusing and fail to account for the realities of a home improvement project, making it difficult and uncomfortable for contractors to comply.
A HIC is required for home improvement projects that change a residence or property. Specifically, the law defines a “home improvement” as “the repairing, remodeling, altering, converting, or modernizing of, or adding to, residential property and shall include, but not be limited to, the construction, erection, replacement or improvement of driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house.” (BPC section 7151.) A HIC is not required for new residential construction; for work priced at $500 or less; the sale, installation, and service of a fire alarm or burglar system; or a service and repair contract (which has its own requirements).
When a HIC is used, BPC section 7159 specifies certain content, form, and format requirements, all of which must be followed to produce a compliant HIC. While this article will not discuss all of these requirements, it will discuss some of the problems commonly seen in HICs.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Approaching Design-Build Projects to Avoid (or Win) Disputes
August 07, 2023 —
Stuart Eisler - Construction ExecutiveStakeholders engage in design-build projects believing the collaborative nature better aligns parties' interests and reduces overall risk exposure. Each of the lead parties bases this belief on different factors—the owner sees an opportunity to reduce change-order exposure and improve delivery times, the design-builder (or contractor) aims to control design volatility by ensuring project components match budgeted projections, and the designer intends to benefit by greater constructability review from the design-builder team and often additional time to detail designs. Rarely do design-build parties contemplate claims arising while initiating a project.
This being said, design-build projects carry unique, inherent risks due to the award of often fixed-price contracts utilizing incomplete, preliminary designs. As scopes creep and costs balloon, previously harmonious parties experience discord and lurking claims. While the majority of design-build projects are completed without major dispute, there are strategies available to further avoid disputes and prevail in those that are unavoidable.
Reprinted courtesy of
Stuart Eisler, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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FEMA Fire Management Assistance Granted for the French Fire
July 08, 2024 —
The Federal Emergency Management AgencyOAKLAND, Calif. – The Federal Emergency Management Agency's (FEMA) Region 9 Administrator authorized the use of federal funds on July 4 at 11:37 p.m. PDT / 2:37 a.m. EDT to assist the state of California to combat the French Fire burning in Mariposa County.
On July 4, the state of California submitted a request for a Fire Management Assistance Grant (FMAG). At the time of the request, the fire threatened approximately 1,019 homes in and around Mariposa, CA, population 1,300. 95% of the threatened homes are primary residences and 5% are secondary residences.
The fire started on July 4, 2024 and had burned more than 790 acres of State and private land. The fire was 0% contained. There are five large fires burning uncontrolled within the State.
FMAGs provide federal funding for up to 75 percent of eligible firefighting costs. The Disaster Relief Fund provides allowances for FMAGs through FEMA to assist in fighting fires that threaten to become a greater incident.
Eligible costs covered by FMAGs can include expenses for field camps, equipment use, materials, supplies and mobilization, and demobilization activities attributed to fighting the fire.
For more information on FMAGs, visit https://www.fema.gov/assistance/public/fire-management-assistance.
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