Brief Discussion of Enforceability of Anti-Indemnity Statutes in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogCalifornia Civil Code Section 2782 has been amended numerous times over the last several years. Essentially, Anti-indemnity statutes may not be fully effective for contracts entered into before January 1, 2009. Some developers and general contractors attempted to comply with the new law, and changed the indemnity provisions of their contracts post January 1, 2006. The time bracket, or zone of danger if you will, is between 1/1/06 and 1/1/09—during those three years California Civil Code §2782 was amended several times. After 1/1/09 Type I indemnity is gone in a residential construction context.
The 2005 amendment to Civil Code §2782 rendered residential construction contracts entered into after 1/1/06 containing a Type I indemnity provision in favor of builders unenforceable;
The 2007 amendment added contractors not affiliated with the builder to the list of contracting parties who could not take advantage of a Type I indemnity provision;
However, the 2008 amendment changed the effective date to 1/1/09, dropped any mention of 2006, and added GCs, other subs, their agents and servants, etc., to the list of possible contracting parties who could not take advantage of a Type I indemnity provision[.]
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
Read the court decisionRead the full story...Reprinted courtesy of
Vietnam Expands Arrests in Coffee Region Property Probe
February 19, 2024 —
Mai Ngoc Chau - BloombergVietnam authorities detained the Communist Party chief of coffee-producing province Lam Dong as they expand an investigation into alleged bribery tied to a tourist and residential project, the public security ministry said in a website statement.
Party chief Tran Duc Quan was arrested for allegedly abusing his power and position, according to the statement. Quan allegedly violated the law while giving instructions to the Dai Ninh property project in the province, causing severe consequences, it said.
A Lam Dong Provincial Party Committee representative declined to provide a comment about the arrest. A representative for Quan was not available.
Read the court decisionRead the full story...Reprinted courtesy of
Mai Ngoc Chau, Bloomberg
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.
Read the court decisionRead the full story...Reprinted courtesy of
Court of Appeal Opens Pandora’s Box on Definition of “Contractor” for Forum Selection Clauses
October 02, 2015 —
David A. Harris & Abigail E. Lighthart – Haight Brown & Bonesteel LLPIn Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc. (“Vita Planning”), the First Appellate District held California’s Code of Civil Procedure section 410.42 (“Section 410.42”) which prohibits an out-of-state contractor from requiring a California subcontractor to litigate disputes in a state other than California, applies not only to traditional “contractors” and “subcontractors” but also to design professionals and architects.
In Vita Planning, a dispute arose when HKS, a Texas based architectural firm, refused to pay Vita Planning and Architecture (“Vita”), a landscape design firm, for work on a luxury hotel in Mammoth Lakes, California (“Project”). HKS contended it was not required to pay Vita until it was paid by the owner of the Project, and any claims regarding the work needed to be filed in Texas pursuant to a forum selection clause contained in a Prime Contract between HKS and the Owner. The forum clause was “incorporated by reference” into an unsigned “standard form” agreement between HKS and Vita. Despite the forum clause, Vita filed a Complaint against HKS in Marin County Superior Court.
Reprinted courtesy of
Abigail E. Lighthart, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Harris may be contacted at dharris@hbblaw.com
Ms. Lighthart may be contacted at alighthart@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Nine ACS Lawyers Recognized as Super Lawyers – Including One Top 10 and Three Top 100 Washington Attorneys
August 14, 2023 —
Travis Colburn - Ahlers Cressman & SleightOur blog articles usually cover construction-related issues, but Ahlers Cressman & Sleight, PLLC – once again – is honored to announce nine members of our firm were awarded the distinction of being a “Super Lawyer” in Washington.
To become a Super Lawyer, only the top attorneys are nominated by their peers. Once nominated, candidates are researched and evaluated by an independent third-party across twelve key categories, such as experience, honors/awards, verdicts/settlements, and others. Next potential Super Lawyers are evaluated by a highly-credentialed “Blue Ribbon Panel” of peers before final selection. The process is extremely competitive and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers. The following – including one Top 10 and three Top 100 attorneys – are Ahlers Cressman & Sleight, PLLC’s Super Lawyers:
John P. Ahlers, one of the firm’s founding partners, was again recognized as a Top 10 Super Lawyer in Washington State for 2023 – this is his seventh year in a row in the Top 10. A founding member of Ahlers Cressman & Sleight, PLLC, he has been named a Super Lawyer in Construction Litigation since 2001—23 years in a row. To read Mr. Ahlers’ full profile, click
here.
Read the court decisionRead the full story...Reprinted courtesy of
Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
The Condominium Warranty Against Structural Defects in the District of Columbia
July 24, 2023 —
Nicholas D. Cowie - Cowie Law GroupTHE CONDOMINIUM WARRANTY AGAINST STRUCTURAL DEFECTS
Condominium developers in Washington DC are required by statute to warrant against structural defects in residential condominiums. District of Columbia Condominium Act (“DC Condo Act”) § 42-1903.16(b). The warranty applies to both condominium common elements and each condominium unit. It requires a developer to repair structural defects, including any resulting damage to the condominium caused by a common element structural defect. DC Condo Act § 42-1903.16(a-1)(2). The statute creating this warranty is called the “Warranty Against Structural Defects,” contained in the DC Condo Act § 42-1903.16.
“Structural Defects” Defined
The warranty applies to “structural defects,” which are very broadly defined to include many types of construction defects. Structural defects are not just limited to defects in the supporting structure of the building. Rather, a structural defect can be any condition that:
“(A) Reduces the stability or safety of unit or common elements below standards commonly accepted in the real estate market,” or
(B) Restricts the normally intended use of all or part of the common elements of a unit and which requires repair, renovation, restoration, or replacement to serve the purpose for which it was intended.”
DC Condo Act § 42-1903.16(j)(6).
Read the court decisionRead the full story...Reprinted courtesy of
Nicholas D. Cowie, Cowie Law GroupMr. Cowie may be contacted at
ndc@cowielawgroup.com
Whether Subcontractor's Faulty Workmanship Is an Occurrence Creates Ambiguity
March 16, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Ohio Court of Appeals determined that the CGL policy was ambiguous as to whether a subcontractor's faulty workmanship was an "occurrence." Ohio N. Univ. v. Charles Constr. Serv., 2017 Ohio App. LEXIS 258 (Ohio Ct. App. Jan. 23, 2017).
In 2007, Ohio Northern University (ONU) entered a contract with Charles Construction Services, Inc. (CCS) to construct a hotel on the campus. In 2011, the building was completed, but ONU found water intrusion and moisture damage in the interior. When remediating the water damage, ONU found additional, serious structural defects.
ONU sued CCS, alleging breach of contract, breach of express warranty, and negligent misrepresentation. CCS filed a third-party action against many of its subcontractors. Cincinnati Insurance Company (CIC) intervened and filed a cross-claim for a declaratory judgment that it had no duty to provide coverage to CCS. CIC and ONU filed cross motions for summary judgment.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Year-End Review of the Environmental Regulatory Landscape
January 11, 2022 —
Anne Idsal Austin & Joel Simon - Gravel2Gavel Construction & Real Estate Law BlogOur guest today is Anne Idsal Austin, a nationally recognized environmental lawyer who has held several high-profile federal and state regulatory roles. As a partner who recently joined Pillsbury’s environmental and natural resources practice, she provides strategic consulting and policy advice, helping clients navigate the dynamic regulatory and legal waters in an era of energy transition, decarbonization and an emphasis on ESG principles. Prior to joining Pillsbury, Anne was the Principal Deputy Assistant Administrator for the U.S. Environmental Protection Agency’s Office of Air and Radiation, known as OAR or OAR, where she had primary oversight over United States clean air policy and regulation. Prior to that, she served as the EPA regional administrator for Region 6, overseeing all federal environmental programs in Texas, Louisiana, New Mexico, Oklahoma and Arkansas. Prior to joining EPA, Anne held several positions where she shaped environmental and energy policy at the highest levels of government in the state of Texas. Welcome to our podcast, Anne.
Anne Austin: Thanks so much. It’s great to be here today, Joel.
Joel Simon: Anne, I’m really excited for this chance to speak with you because there’s so much going on at the federal environmental policy level, and it would be great to have someone really knowledgeable present this to us in an organized fashion. So with that minor task ahead of you, could you start us off with a brief overview of the environmental regulatory landscape?
Reprinted courtesy of
Anne Idsal Austin, Pillsbury and
Joel Simon, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Mr. Simon may be contacted at joel.simon@pillsburylaw.com
Read the court decisionRead the full story...Reprinted courtesy of