ANAHEIM CALIFORNIA BUILDING CONSULTANT
DIRECTORY AND CAPABILITIES

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

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Construction Litigation Roundup: “D’Oh!”

August 12, 2024 — Daniel Lund III - Lexology
The U.S. DOL found itself on June 24 on the wrong end of a preliminary injunction concerning recent changes to the Davis-Bacon Act. The lawsuit, initiated in Texas federal court by the Associated General Contractors of America and other concerned citizens, sought a preliminary injunction barring implementation and enforcement of “specified portions of § 5.2 and § 5.5(e) of the DOL’s ‘Updating the Davis-Bacon and Related Acts Regulations’” – the “Final Rule,” published August 23, 2023. After determining the appropriateness of the “standing” of the plaintiffs based upon the plaintiffs being “adversely affected” by the Final Rule, the federal court preliminarily enjoined enforcement of the Final Rule. In noting its disagreement with the Final Rule, the court stated:

“… the Final Rule amends the DBA [the Davis-Bacon Act] by imposing a stealth selfimplementing DBA requirement in the contract by an operation-of-law provision that contradicts the express statutory language of the Act [the court bristling at the idea that contracts might exclude with impunity the otherwise mandated DBA clauses]. Further, the Final Rule amends the Act to extend the DBA to apply to workers who are not mechanics and laborers, and to extend the scope of the work covered by DBA to include work is not performed ‘directly on the site of the work.’

Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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The Privette Doctrine and Its Exceptions: Court of Appeal Grapples With the Easy and Not So Easy

November 18, 2024 — Garret Murai - California Construction Law Blog
In CBRE v. Superior Court, 102 Cal.App.5th 639 (2024), the 4th District Court of Appeal grappled with a thorny and not-so-thorny issue involving injured parties under the Privette doctrine. The less thorny issue was whether application of the Privette doctrine depends on whether a written contract exists between the parties. Spoiler: It does not. The thorny issue was whether the Hooker exception to the Privette doctrine – which applies when a landowner exercises control over a project – should apply where a landowner directs a contractor to perform work that is at odds with legal requirements. The CBRE Case Property Reserve, Inc. owns an office building managed by CBRE in San Diego, California. On April 9, 2019, PRI entered into a lease agreement with a new tenant for a suite in the building. The lease required that PRI perform certain tenant improvements. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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“For What It’s Worth”

October 21, 2024 — Daniel Lund III - Lexology
The legal doctrine of quantum meruit is essentially referring to recovering “for what it’s worth,” incorporating the Latin phrase for “as much as one has deserved.” Quantum meruit recovery occurs when there is no contract between parties for the particular item for which recovery is sought. Hence, quantum meruit recovery is generally a means of last resort to endeavor to make oneself whole. So, it was for a subcontractor seeking nearly $14,000,000 for work it performed on a construction project in Portsmouth, New Hampshire. The subcontractor sued on contract as well as quantum meruit/unjust enrichment. The court initially dismissed the quantum meruit/unjust enrichment claims – because there was a contract claim – whereupon the contract claim was dismissed on summary judgment: the subcontractor failed to timely submit change proposals and, consequently, “lost contract remedies available to recover amounts it sought in the change proposals.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Do You Have the Receipt? Pennsylvania Court Finds Insufficient Evidence That Defendant Sold the Product

December 23, 2024 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Coway USA, Inc., No. 22-cv-3516, 2024 U.S. Dist. LEXIS 192849, the United States District Court for the Eastern District of Pennsylvania (District Court) considered whether the plaintiff produced sufficient evidence to establish that the defendant sold and/or marketed a product and, thus, could be held liable for an alleged defect in the product. The plaintiff, a subrogating insurance carrier, brought strict product liability and breach of warranty claims against the defendant—the installer of a bidet in its insured’s home—claiming that the defendant also marketed and sold the bidet. The sole evidence to support a finding that the defendant sold the bidet was the homeowner’s testimony that she bought the product from the installer. The court found that the insured’s testimony, without any documentation or other corroborating evidence, was insufficient to establish that the defendant sold the product. Since proof of a sale is a required element for strict product liability and breach of warranty claims, the District Court granted the defendant’s motion for summary judgment, dismissing the case. This case involved a water loss to the Pennsylvania residence of Mikyung Kim and her husband Adrian Kim (collectively, the Kims) that was discovered in April 2021. An investigation revealed that the water loss originated from the failure of a bidet for a toilet in the second-floor bathroom. The Kims alleged that defendant, Coway USA, Inc. (Coway), sold the bidet and installed it around 2010. An employee of the plaintiff’s liability expert, a materials engineer, opined that a T-connector—a plastic valve that regulates the flow of water to and through the bidet—failed due to overtightening of the connector during the manufacturing process. Read the full story...
Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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2024 Update to CEB’s Mechanics Liens Now Available

October 15, 2024 — Garret Murai - California Construction Law Blog
For a number of years we have had the honor to serve as update authors for several publications of California’s Continuing Education of the Bar (CEB). I didn’t realize it until now but the CEB, a program of the University of California, was started more than 75 years ago following WWII to provide veterans who were attorneys with practical guidance on changes to the law as they returned to their practices following the war. Pretty cool! Reprinted courtesy of Garret Murai, Nomos LLP Mr. Murai may be contacted at gmurai@nomosllp.com Read the full story...

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Traub Lieberman Attorneys Lisa M. Rolle and Justyn Verzillo Win Motion for Summary Judgment

December 23, 2024 — Lisa M. Rolle & Justyn Verzillo - Traub Lieberman
In this subrogation action brought in the Supreme Court of the State of New York, Dutchess County, Traub Lieberman attorneys Lisa M. Rolle and Justyn Verzillo successfully obtained dismissal of a third-party complaint against their client, a fire-system protection company. In the underlying case, a fire sprinkler system within a commercial building leaked water into multiple tenant spaces, causing damage. The tenants’ insurers alleged that they each paid several hundred thousand dollars to cover their insureds’ claims. The insurers then filed complaints against the company which originally installed the sprinkler (the “Installer”), asserting that the company breached its duty of care. The Installer commenced a third-party action against the property owner and two fire-system protection companies—including Traub Lieberman’s client—who had separately conducted annual inspections of the sprinkler system over the years. The property owner and the two fire-system protection companies each asserted cross-claims against each other. Reprinted courtesy of Lisa M. Rolle, Traub Lieberman and Justyn Verzillo, Traub Lieberman Ms. Rolle may be contacted at lrolle@tlsslaw.com Mr. Verzillo may be contacted at jverzillo@tlsslaw.com Read the full story...

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You Cannot Always Contract Your Way Out of a Problem (The Case for Dispute Resolution in Mega and Large Complex Construction Projects)

September 16, 2024 — Lisa D. Love - The Dispute Resolver
Most experienced commercial transaction and construction attorneys strive to negotiate a concisely written and well-drafted contract that addresses all scenarios and issues that creative and highly contemplative professionals can conjure. Although contracts are extremely important in construction projects, “you can’t generally contract your way out of a problem,” states Michael Loulakis, a founder of Capital Project Strategies, LLC and a nationally recognized expert on project delivery systems in complex public sector design-build projects and public-private partnership programs. Loulakis adds, “the contract certainly matters. But particularly when the losses are big, litigators prosecuting the contractors often find effective ways to argue that facts and circumstances trump the contract.” However, “the difference between the best construction projects and the worst construction projects is not the written words of the contracts but how the parties have committed to engage collaboratively and with trust to complete the project,” notes Robynn Thaxton, an attorney and consultant with Thaxton Parkinson PLLC and Progressive Design-Build Consulting, LLC and one of the leading experts in construction law and alternative procurement on a national basis.[i] In large, complex construction projects, the need for parties to collaboratively resolve disputes is highlighted by the judicial acceptance of the “Doctrine of the Contextual Contract”[ii] to interpret construction contracts. “As construction’s increasing technological and managerial complexity came to be recognized, some common law courts began turning away from strict interpretation of language within the four corners of a contract and moving toward recognizing in the enforcement of contracts the construction industry’s own experience, customs, practices and implied conditions and duties and the factual context underlying the contract. Courts [began the journey] along the road from ‘text’ to ‘context.’”[iii] Thus, the precise wording of the contract has become less important and industry practices and other conditions provide insight for resolving disputes. Consequently, despite the specific language of any construction contract and the clear allocation of responsibilities and risks, early dispute evaluation and resolution are critical to a successful project. Read the full story...
Reprinted courtesy of Lisa D. Love, JAMS

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