Anaheim California Building Consultant Directory

Preserving Lien Rights on Private Projects in Washington: Three Common Mistakes to Avoid

September 16, 2024 — Kristina Southwell - Ahlers Cressman & Sleight PLLC
The Washington Construction Lien Statute, RCW 60.04 et seq., exists to help secure payment for work performed for the improvement of real property.[1] The statute grants “any person furnishing labor, professional services, materials, or equipment for the improvement of real property” the authority to claim “a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished.” RCW 60.04.021. Exercising lien rights is one of the most useful tools available to a contractor or supplier trying to recover payment owed on a project. A properly recorded lien binds the project property, which is typically the most valuable asset held by the owner, as security for the amounts owed to the lien claimant. Additionally, the lien statute provides a basis for the claimant to recover the costs of recording the lien and its attorneys’ fees and expenses incurred in litigating the foreclosure of the lien. While the lien statute authorizes the right to lien, it also provides a series of strict requirements and procedures that a claimant must follow to properly exercise its rights. The claimant must carefully comply with all statutory requirements. This article does not endeavor to explain all the intricacies of the lien statute, but rather discusses three of the most common mistakes that result in the loss of lien rights. See our lien and bond claim manual for a more detailed guide to construction liens in Washington. Read the full story...
Reprinted courtesy of Kristina Southwell, Ahlers Cressman & Sleight PLLC
Ms. Southwell may be contacted at kristina.southwell@acslawyers.com

Insurer Waives Objection to Appraiser's Partiality by Waiting Until Appraisal Issued

October 21, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit affirmed the district court's denial of the insurer's objections on partiality grounds to the insured's appraiser. Biscayne Beach Club Condominium Association, Inc. v. Westchester Surpus Lines Ins. Co., 2024 U.S. App. LEXIS 19663 (11th Cir. Aug. 6. 2024). Storms damaged buildings at Biscayne Beach Club Condominium. Biscayne Beach filed claims with its insurer, Westchester. Unsatisfied with Westchester's payments, Biscayne Beach sued. Westchester then invoked the appraisal provision in the policy. The district court abated the action so the parties could pursue appraisal. Biscayne Beach appointed Lester Martin, its public adjuster, as its appraiser on a 10 percent contingency fee. Westchester objected because Martinez's retainer created a conflict of interest that would hinder his impartiality. Biscayne Beach then retained Blake Pyka as its appraiser. Westchester appointed its appraiser and and umpire was selected by the parties' two appraisers. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Owners and Contractors are Liable for Injuries Caused by their Independent Contractors under the “Peculiar Risk Doctrine”

October 15, 2024 — William L. Porter - Porter Law Group
Many contractors and owners believe that if they hire an independent contractor to perform work and that independent contractor causes injury to others during the performance of that work, then it is the independent contractor alone who will be liable for those injuries. In most circumstances, this is correct. The owner or the contractor will not be held liable for injuries caused by his or her independent contractor. However, this is not always the case. Under the “Peculiar Risk Doctrine” and California cases interpreting the doctrine, a contractor or owner who hires an independent contractor to do work which is considered to be “inherently dangerous work” can be still be held directly liable for damages when that independent contractor causes injury to others by negligently performing the work. Such liability can generally be imposed on the one hiring the independent contractor under either of two branches of the peculiar risk doctrine. First, where a person hires an independent contractor to do inherently dangerous work, but fails to provide in the contract or in some other manner that special precautions must be taken to avert the peculiar risk of injury related to that work, then the one hiring the independent contractor can be held liable for injuries to others caused by the independent contractor’s negligence. (Restatement Second of Torts Section 413). For example, in Mackey v. Campbell Construction Co. 101 Cal. App. 3d 774, 162 Cal. Rptr. 64 (1980), Western Electric Company, the owner of the project, was found liable for the personal injuries of a subcontractor’s employee because Western’s representatives were on the job at all times, had doubts about the safety of scaffolding being used on the project, yet failed to require use of precautions that could have been taken to avoid injury. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

How U.S. Design and Architecture Firms Can Profit from the Chinese Market and Avoid Pitfalls

December 23, 2024 — Chengdong ("C.D.") Xing - The Dispute Resolver
Despite recent challenges, including obvious political tensions, economic cooling in the PRC, and increased local competition, the Chinese market remains an attractive destination for U.S. design and architecture firms. For instance, PEI Architects has maintained its success in China through long-standing relationships with key clients and is currently involved in two major projects for the Bank of China: a 1.9 million-square-foot complex in Shanghai and a financial center in Haikou.[i] Similarly, NBBJ is playing a critical role in the development of Tencent’s Net City in Shenzhen, a 2-million-square-meter smart city project that aligns with China's goals of sustainable and tech-driven urbanization.[ii] These examples show that while the Chinese market presents challenges, it continues to offer significant opportunities, particularly in sectors where innovative and cutting-edge architectural solutions are in high demand. At the same time, U.S. firms should exercise care: proper advance planning and strategic alliances are crucial for profitable forays into the Chinese market. JR Design Project: A Cautionary Tale When operating in China, U.S. design firms often encounter regulatory challenges, particularly with respect to China’s strict qualification requirements for architectural design services. Failure to meet these requirements can result in serious legal issues, including the potential invalidation of design contracts, as demonstrated in a leading case decided by the Supreme People’s Court of PRC (the nation’s highest court). Read the full story...
Reprinted courtesy of Chengdong ("C.D.") Xing, Rajah & Tann Singapore LLP
Mr. Xing may be contacted at chengdong.xing@rajahtann.com

A “Flood” of Uncertainty; Massachusetts SJC Finds Policy Term Ambiguous

August 26, 2024 — Michael S. Levine & Torrye Zullo - Hunton Insurance Recovery Blog
The highest court in Massachusetts recently held that term “Flood” and the associated phrase “surface waters,” as used in two all-risk insurance policies, is ambiguous in the context of water that accumulated on a parapet roof and rooftop courtyard, thereby negating the insurers’ attempt to limit coverage to a sublimited coverage for “Flood.” Background In June 2020, a severe storm caused damage to Norwood Hospital, owned by Medical Properties Trust, Inc. (“MPT”) and leased to Steward Health Care System (“Steward”), the policyholders. The relevant portion of the damage included damage from rain that accumulated on the rooftop courtyard and seeped into the interior of the building causing damage to the building and its contents. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Torrye Zullo, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Zullo may be contacted at tzullo@HuntonAK.com Read the full story...

Parks and Degradation: The Mess at Yosemite

September 09, 2024 — Laura Bliss - Bloomberg
A couple of miles past the western entrance to Yosemite National Park, visitors pass from California into a postcard. The road opens to a majestic view of Half Dome, El Capitan and Cathedral Rocks—celebrity peaks if ever there were—which form the towering walls of Yosemite Valley. On the pine-scented floor of John Muir’s mountain mansion, the Merced River flows gently by the side of the road as signs point toward trailheads and tourist destinations. Not far from Curry Village, a cluster of tent cabins and eateries at the eastern end of the road, is a section of employee housing known as the Stables. It was there that Erin Rau found herself wrapped in a sleeping bag one broiling afternoon last summer, wondering whether she was about to die. Rau was a little over a month into a seasonal job selling goods in the village’s general store. Almost as soon as she arrived from Michigan, she recalls, she got the sense this wouldn’t be the carefree, post-college summer gig she’d imagined. In the evenings, she was left alone to manage a bunch of fellow early-twentysomethings making the same sixteenish bucks an hour until the shop closed at 10. At night a family of ringtail possums would crawl down from the rafters to tear into a display of baked goods, a long-standing issue she says her bosses did nothing to resolve, apart from throwing away half-eaten muffins in the morning. Similarly, deer mice kept leaving droppings on the pillows and sheets in the cabin Rau shared with three other women. When one of her roommates complained, she says, management supplied a Ziploc with a couple of mouse traps, a mask, gloves and some hand wipes, leaving the employees to sort out the rest. Read the full story...
Reprinted courtesy of Laura Bliss, Bloomberg

First Circuit Finds No Coverage For Subcontracted Faulty Work

December 17, 2024 — Eric Hermanson & Austin Moody - White and Williams LLP
After almost two years' deliberation, the First Circuit last week issued its long-awaited decision in Admiral Ins. Co. v. Tocci Bldg. Corp.[1]: affirming on other grounds, and leaving in place a district court decision that found subcontracted faulty work was not an "occurrence" and did not lead to covered “property damage” under Massachusetts law. The decision leaves Massachusetts among a number of states where general contractors should not expect coverage from their commercial general liability (CGL) insurers for damage falling within the contractor’s scope of work. Since the "scope of work" – where general contractors are involved – often encompasses an entire project, contractors who want coverage in Massachusetts should take care to make alternative arrangements: transferring risk to subcontractors through indemnity provisions and additional-insured endorsements, or relying on other policy forms where available. Reprinted courtesy of Eric Hermanson, White and Williams LLP and Austin Moody, White and Williams LLP Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the full story...

Snooze You Lose? Enforcement of Notice and Timing Provisions

November 11, 2024 — Cornelius F. "Lee" Banta, Jr. - ConsensusDocs
Deadlines are an inescapable part of the construction industry. Bid deadlines. Submittal deadlines. Material delivery deadlines. Substantial completion. Final completion. And so, inevitably, fighting about deadlines becomes a necessary byproduct. Was the deadline really a deadline? Was the schedule slippage on the critical path? Should there be an equitable extension to the date of substantial completion? Given the amount of attention and concern conferred on deadlines, those drafting construction contracts naturally seek to clarify which deadlines really matter with the inclusion of notice and timing provisions. A contract’s change order and claims procedures are often a key friction point for those drafting and administering the contract. Should there be a requirement for prior written notice of a claim for cost/time relief? How much advance notice? Who should the request be sent to? Is a specific form of notice required? What are the consequences of failing to provide timely notice? A practitioner should pay careful attention to negotiating these terms on the front end, because rest assured, these contract provisions will garner scrutiny when a change order dispute boils over. Read the full story...
Reprinted courtesy of Cornelius F. "Lee" Banta, Jr., Peckar & Abramson, P.C.
Mr. Banta may be contacted at lbanta@pecklaw.com

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