Anaheim California Building Consultant Directory

When Licensing Lapses: How One Contractor Lost a $1 Million Dispute

October 28, 2024 — Matthew DeVries - Best Practices Construction Law
As a construction lawyer, contractor licensing is a very key aspect of my practice. This can include new contractor applications, increase or changes in monetary limits or license classifications, change in ownership or qualifying agent , and, of course, licensing violations. The recent decision in Incident365 Florida, LLC v. Ocean Pointe V Condominium Association serves as an important reminder for general contractors and subcontractors regarding the significance of proper licensing and thorough contract review in disaster recovery and construction services. Case Overview In this case, Incident365 Florida, LLC entered into disaster recovery agreements with several condominium associations (“Associations”) following Hurricane Irma. The agreements involved various tasks such as water damage mitigation, dehumidification, and the removal of unsalvageable materials. However, Incident365 lacked the appropriate contractor’s license when performing the work, which became a focal point in the dispute when the Associations refused to pay the remaining balance of $1 million, citing the absence of the required licensure. Read the full story...
Reprinted courtesy of Matthew DeVries, Buchalter
Mr. DeVries may be contacted at mdevries@buchalter.com

Deferred Maintenance?

December 17, 2024 — Daniel Lund III - Lexology
A Tennessee-based “outsourced maintenance vendor” to an engine company filed suit in Louisiana state court seeking to recover nearly $150,000 on “open account,” for work previously performed. The engine company removed the case to the Federal District Court in New Orleans and asserted as a defense that the vendor lacked a proper Louisiana construction contractor’s license. The engine company filed a motion for summary judgment based on the defense. Under Louisiana law, a contract between parties is “absolutely null”--considered to have never existed--where one of the parties performed services without a required Louisiana contractor’s license, and the combined work reaches a $50,000 threshold. The engine company asserted that the vendor performed typical construction contractor work, including plywood flooring, applied epoxy to concrete flooring, erected part of a commercial carport, undertook certain heavy demolition, and installed fences, guardrails, and wire racks. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies

August 26, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum Corp., 2024 Cal. LEXIS 3271 (Cal. June 17, 2024). From 1944 through the 1970's, Kaiser manufactured asbestos-containing products at numerous different facilities. By 2004, more than 24,000 claimants had filed product liability claims against Kaiser alleging that they had suffered bodily injury as a result of exposure to Kaiser's asbestos products. Kaiser tendered these claims to Truck, one of several primary insurers that had issued CGL policies to Kaiser. In 2001, Truck initiated this coverage action to determine its indemnity and defense obligations to Kaiser. Truck later amended its complaint to add a cause of action for contribution against several of Kaiser's excess insurers. The issue presently before the court was whether Truck was entitled to contribution from various coinsurers that issued first-level excess policies to Kaiser during the period in question. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Real Estate & Construction News Roundup (7/2/24) – Increase in Commercial Property Vacancy Rates, Trouble for the Real Estate Market and Real Estate as a Long-Term Investment

July 31, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, the evolution of stadium construction, an increase in legal and legislative action affecting the multifamily sector, and growing concerns for owners of office space.

The work-from-home trend will likely push up the commercial property vacancy rate in 2026 to a peak average of 24%, or 4 percentage points higher than the first quarter of this year. (Jim Tyson, CFO Dive)
In recent years, stadium construction has evolved to focus more on cultivating the game day experience with some multibillion-dollar projects breaking ground, as existing venues get renovations. (Zachary Phillips, Construction Dive)
A number of prominent issues affecting the multifamily industry, including rent control, fees and antitrust concerns, have been subject to increasing levels of legal and legislative action over the past year. (Mary Salmonsen, Multifamily Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Why Being Climate ‘Positive’ Is the Buzzy New Goal of Green Building

December 10, 2024 — Olivia Rudgard - Bloomberg
The three buildings, dotted around Norway, couldn’t look more different: a soaring timber-and-concrete obelisk in Porsgrunn; a squat, two-story Montessori school on the edge of a forest in Drøbak; and a concrete and glass wedge-shaped office in Trondheim, just a few hundred miles from the edge of the Arctic Circle. But they share a distinctive feature. Each has a roof perfectly tilted to squeeze out every possible drop of solar energy. They are called Powerhouses, and the initiative behind them claims they are all “energy positive”: The upfront energy “cost” of each building, and that of later demolition and disposal, is expected to be made back over the building’s lifetime. Powerhouses sometimes draw from the grid, especially in winter, but in the long Nordic summer days they give back many times over, overspilling excess solar energy into surrounding homes and businesses. Read the full story...
Reprinted courtesy of Olivia Rudgard, Bloomberg

Benefit of the Coblentz Agreement and Consent Judgment

August 26, 2024 — David Adelstein - Florida Construction Legal Updates
If you are not familiar with the concept of what is commonly known as a Coblentz agreement relative to an insurance coverage dispute, review these prior postings (here and here and here). This is a good-to-know agreement if you are a claimant and need to consider an avenue of collection if the insured’s carrier denies coverage out of the gate (meaning the carrier has denied both the duty to defend and the duty to indemnify). A recent Eleventh Circuit Court of Appeals opinion demonstrates the Coblentz agreement concept. In Barrs v. Auto-Owners Ins. Co., 2024 WL 3673089 (11th Cir. 2024), an owner asserted a construction defect claim against its contractor. The owner hired the contractor to deconstruct a building and the contractor hired a demolition subcontractor. The owner noticed work was not being performed and materials (e.g., lumber) were missing; the demolition subcontractor had stolen materials. The subcontractor was terminated, and the owner claimed the contractor’s negligence allowed the theft and delayed his project. The contractor’s commercial general liability (CGL) insurer notified the insured-contractor that coverage did not exist and refused to defend the contractor. The owner sued the contractor under various theories of liability. The owner and contractor entered into a settlement agreement (i.e., the Coblentz agreement) where the contractor “admitted liability in the amount of $557,500.00….A consent judgment was entered against [the contractor] that closely tracked the settlement agreement but did not indicate which portion of the damages award was attributed to which claims. The agreement also assigned [owner] and all of [the contractor’s] rights to claim coverage and to recover available funds under [the contractor’s CGL policy].” Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Toolbox Talk Series Recap - Guided Choice Mediation

November 05, 2024 — Douglas J. Mackin - The Dispute Resolver
In the September 26, 2024 edition of Division 1's Toolbox Talk Series, Clifford Shapiro presented on Guided Choice Mediation (“GCM”) and how it can lead to better outcomes in construction disputes. GCM is an approach to mediation that focuses on early and efficient dispute resolution, which prominent mediators created as a public interest project. Shapiro described his particular variant of GCM based on his experience while acknowledging that other Guided Choice Mediators’ processes may differ from his in various ways. Shapiro’s brand of GCM focuses on ensuring that parties have reasonable expectations and appropriate settlement authority prior to arriving at a mediation. Some of the strategies to help accomplish these noble goals are (i) early mediator engagement, (ii) mediator facilitation of information exchange, (iii) mediator involvement with insurance issues (particularly important in construction defect cases, especially those with multiple defendants), (iii) pre-mediation ex parte meetings, and (iv) mediator participation in risk analysis. These strategies are not typical in the more traditional/historic approach to mediation in which mediation is scheduled based on a scheduling order, mediation statements are sent to the mediator roughly a week before the scheduled mediation (and sometimes not even shared with anyone other than the mediator), and the parties speak with the mediator for the first time on the day of the mediation. Read the full story...
Reprinted courtesy of Douglas J. Mackin, Cozen O’Connor
Mr. Mackin may be contacted at dmackin@cozen.com

California Court of Appeal Finds Coverage for Injured Worker Despite Contractor's Exclusion

August 05, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's finding that the policy covered a worker's injuries despite the Contractor's Exclusion. Cal. Spec. Insulation . Allied Work Surplus Lines, Ins. Co., 2024 Cal. App. LEXIS 317 (Cal. Ct. App. May 17, 2024). Air Control Systems, Inc. was retained by a property owner to perform improvement work on a building. Air Control retained California Specialty Insulation, Inc. (CSI) to install duct insulation. Jason Standiford, an Air Control employee, sure CSI, asserting negligence for injuries he suffered when he fell 16 to 20 feet after. A CSI employee drove a scissor lift into a ladder he was standing on. CSI was insured through a commercial general liability policy from Allied World. The policy included an endorsement titled "Bodily Injury to Any Employee or Temporary Worker of Contractors Exclusion." The Contractor Exclusion state the policy did not apply to "'Bodily injury' . . . to any 'employee' or 'ten,poary work' of any contractor or subcontractor arising out of in or the course of the rendering or performing services of any kind or nature by such contractor or subcontractor." Neither the endorsement nor the policy defined the term "contractor." Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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