Stoel Rives is proud to have co-created and been the leading sponsor in the first annual “Oregon Women In Construction Conference” hosted by the University of Oregon last Thursday, April 27. The event was emceed by City of Portland construction attorney Molly Washington (who led all aspects of the event including topics, speakers, locale, etc.)
It is well known that under California law a real estate broker may act as a “dual agent” for both the seller and the buyer in a property transaction, provided both parties consent to the arrangement after full disclosure. In such representation, a dual agent owes fiduciary duties to both buyer and seller. Pursuant to a recent case, Horiike v. Coldwell Banker, these fiduciary obligations have now been expanded to also apply to “associate licensees” acting on behalf of a brokerage firm (or the salespeople of the given brokerage firm, as they are more commonly known). In a unanimous decision, the court ruled that when an agent representing a seller is working for the same firm as the agent representing the buyer, they are considered an “associate licensee” and must properly investigate and disclose all important information related to the property subject to the transaction.
In Horiike, the seller and buyer of a luxury Malibu mansion were represented by separate real estate agents. However, both of these agents were acting under the license of a single brokerage firm, Coldwell Banker. The seller’s agent had reason to know that residence’s square footage was significantly different than what was represented in the sales material. The buyer purchased the property and began making renovations. Upon reviewing a building permit previously obtained by the prior owner, the buyer discovered that the property had thousands of square feet less living space than what was disclosed in the marketing materials. Coldwell Banker claimed that because the seller’s agent exclusively represented the seller, there was no fiduciary duty to disclose information relating to the square footage to the buyer. The California Supreme Court thought otherwise.
Last week, the California Court of Appeal ruled that a property owner was entitled to a jury trial in a dispute with a lender despite the fact that the loan agreement contained a jury waiver provision and a New York choice-of-law provision.
The case involved the San Francisco apartment complex known as the Rincon Towers. In 2007, the plaintiffs borrowed $110 million on a two-year loan to finance the acquisition. In 2009, the plaintiffs failed to repay the loan. The plaintiffs claimed that under the terms of the loan agreement they were entitled to a one-year extension of the maturity date. The lender disagreed and instead completed a nonjudicial foreclosure sale.
In addition to streamers and fireworks, the new year is occasioned by another tradition: new laws. Several new laws affecting Oregon contractors and developers took effect on January 1, 2016.
Paid sick leave: Most Oregon construction employers must now provide employees with one hour of paid sick leave for every 30 hours worked. Employees…
Dear Ahead of Schedule blog readers. We have enjoyed keeping you informed with construction law and project development news and tips since early 2009. While our commitment to keep you informed hasn’t changed, technology certainly has. Back when we first started posting, it was still a desktop- and RSS-dominated world. Today, more and more of…