In my latest Daily Journal of Commerce Construction column, I discuss the stop notice remedy. When a subcontractor or supplier goes unpaid on a private project, one possible remedy is to file a lien against the land or improvements. The lien remedy has its limits, however. If you start work after the project has gotten
Construction
May a Contractor Sue the Owner’s Lender?
In my latest Daily Journal of Commerce Construction column, I discuss the issue of whether a contractor may sue a lender. This occasionally arises when a project’s owner runs into trouble and the construction lender stops funding. The argument that is occasionally advanced is that the lender knew the contractor had started work and, if…
ADA Claims: The Buck Stops with Developers
In my latest Daily Journal of Commerce Construction column, I discuss tips for developers to help handle claims under the Americans with Disabilities Act. In the column, I recommend several mitigation efforts to reduce liability for ADA defects including: hire vendors with a track record of compliance and competence, verify that all participants insurance policies…
New for 2013! California Form Interrogatories – Construction Litigation (DISC-005)
Any construction litigation party faced with responding to California’s standard form interrogatories is all too familiar with the confusing use of the undefined term “incident” and the largely inapplicable “personal injury” interrogatories in a construction case. Similarly, any construction litigator dealing with the standard form interrogatories has felt the burden of sifting through the plethora of…
Nevada Lenders Beware! Mechanic’s Liens Not Easily Avoided
Following the market crash in 2008-09, the $2.8 billion Fontainebleau development in Las Vegas was halted with 70 percent of the construction completed. Naturally, numerous mechanic’s liens were filed by contractors, subcontractors, professionals and suppliers ("claimants"). In the bankruptcy proceeding, the lenders asserted novel and potentially legally destabilizing theories against the claimants’ rights: a.) the…
The Litigation Process: An Upper Division School of Hard Knocks
Litigation can be one of the most time-consuming and expensive ways to resolve disputes in the construction industry. Often, parties to construction-related disputes prefer to resolve them through alternate dispute resolution procedures, such as mediation or arbitration. However, sometimes litigation cannot be avoided. In his latest article in the Daily Journal of Commerce, Guy Randles…
Five Tips for Defending a Lien Claim
Lien claims can be an unfortunate reality of even the best-laid development plans. Owners or developers facing a lien claim can be held liable to lenders, landlords or investors for liens filed on project property if they are not careful. When faced with lien claims, I recommend that owners and developers ask five questions:
- Is
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Contractual Liability Coverage is a Must
The recent case of Ewing Constr. Co. v. Amerisure Ins. Co., 2012 U.S. App. Lexis 12154 (5th Cir. June 15, 2012) reminds us that, without an endorsement adding back to the policy specific coverage for contractual liabilities, defect claims arising from work under a construction contract may not be covered. In Ewing, the …
Pincetich v. Nolan: A Cautionary Tale About the Risks of Contractor License Suspension
In Pincetich v. Nolan, the Oregon Court of Appeals recently held that a temporary suspension of a contractor’s license during a project will bar the contractor from commencing a lawsuit seeking compensation. The Nolans, husband and wife, contracted with Mr. Pincetich to build a house. During the project, Mr. Pincetich’s liability insurance lapsed and…
Good Project Site Agreements Make Good Neighbors
Construction projects can impact neighboring landowners in ways that range from minor annoyances to dangerous structural issues. Well-drafted temporary and permanent site agreements with neighboring landowners can help project owners maintain good relationships with their neighbors. In my latest article in the Daily Journal of Commerce, I describe some of the types of legal agreements…