Many building developers utilize a single purpose entity limited liability company (an “LLC”) to purchase and develop property, such as an apartment complex, a subdivision, or a shopping center. Generally, an LLC’s debts, whether incurred or judicially imposed, belong only to the LLC, not to its members. However, an LLC’s individual member may be subject to personal liability under the doctrine of alter ego liability if (1) the individual and the LLC share a unity of interest and ownership such that the separate personalities of the two no longer exist, and (2) treating the debts as the LLC’s alone would impose an inequitable result that rewards the bad faith of the individual. A recent legal decision from Southern California highlights the dangers of disregarding an LLC’s corporate formalities during any construction project.
Idaho Reads Force Majeure Clause Broadly as Written
In a ruling supporting common sense, the Idaho Supreme Court ruled that a county could not avoid the application of a broad force majeure clause in its development agreement with a developer based on the county’s denial of the rezoning required for the very development.
The key facts in Burns Concrete, Inc. v. Teton County
Joint Washington/Oregon Construction Law Seminar – November 4, 2016
On November 4, 2016, my colleague, Andrew Gibson (from the Portland office of Stoel Rives), and I will co-chair a joint OSBA/WSBA construction law CLE, entitled Two States of Construction Law: Working in Both Washington and Oregon, located at the Heathman Lodge in Vancouver, Washington. This seminar will include a panel of knowledgeable lawyers
Concerns over California’s Increased Earthquakes? Landlords and Developers Should Manage Their Risks Now
During the last month or two there has been a rise of news reports regarding potential earthquakes in California at a greater magnitude than in recent history: see here and here. These risks have even been reported recently in a London newspaper. While the unusual Southern California “big one” warning is now past
One Unanticipated Cost of Being an Owner-Builder in California: Liability for Retained Control over Safety
Many times I hear from people who want to “save money” and serve as their own “owner-builder” under the exemption to the California Contractor’s Licensing law, which generally requires that any “construction” work over $500 to be performed by a licensed California contractor in the absence of an exemption. (Bus. & Prof. Code section
Self-Imposed ADA Audits: The Developer’s Best Option
Recent rulings indicate that courts across the country view project owners’ and developers’ liability for ADA claims differently than they do other compliance violations. Owners’ attempts to raise questions of contractor negligence, breach of contract or breach of warranty are being rejected. So what can a project owner do? In my recent article for the
No Crane Trespassing! Swingway Easements Make Good Neighbors
Earlier this year, my colleague Eric Grasberger authored a blog post about a crane collapse in Lower Manhattan. In that post, he mentioned that neighboring landowners may seek to prevent cranes from intruding into the airspace above their property. Contractors and owners alike are often surprised to learn that a crane swinging over adjacent property
OSHA’s New Dust Exposure Rule and Its Potential Impact on Construction Industry
On March 24, 2016, the Occupational Safety and Health Administration (“OSHA”) issued its final rule related to admissible exposure to respirable crystalline silica. The new rule, which dramatically reduces the permissible exposure limit (“PEL”) of respirable crystalline silica from 250 micrograms per cubic meter of air to 50 micrograms per cubic meter of air (an
Yes, Contractor Licensing May Be Required Under California Law Even if the Contractor Does Not Physically Build Anything Itself
It seems that almost weekly, and certainly monthly, I receive a call or inquiry from colleagues and/or prospective clients as to whether a license is really required if the prospective “contractor” is not actually building anything but is merely facilitating a “deal” or is hiring otherwise qualified and licensed contractors and trades. Virtually every time
Hate Negotiating? Think It is a Waste of Time? Think Again. Seven Habits of Successful Negotiators
If you dislike negotiating, you are not alone. But successful negotiators understand and embrace the opportunities that a negotiation presents. In my recent article for the Daily Journal of Commerce, I discuss seven habits of successful negotiators that can help you successfully conclude your construction-related negotiations. Read the full article here.
“Hate Negotiating?