The recent case of FTR International, Inc. v. Rio School District (2015) DJDAR 1141 has shifted the balance of power to contractors in public works projects. The FTR Court held that under Public Contract Code § 7107, a public agency could not justify their refusal to release the retention because of disputed change orders not related to the retention. Public … Read More
On February 25, 2015, Governor Sandoval signed into law Assembly Bill 125 which significantly reforms Nevada’s construction defect law statute, also known as “Chapter 40.” The reforms to the statute have been an ongoing issue in previous legislative sessions over the past 10 years and will have a significant effect on subsequent construction defect litigation in Nevada.
Originally, the purpose … Read More
The California Supreme Court has agreed to review a case greatly affecting construction defect litigation. All working contractors and subcontractors know how difficult it can be to force design professionals to be involved in construction litigation, even when their work is clearly at issue.
From the beginning of a case, established law tips in the favor of design architects and … Read More
Offers of Judgment in Nevada are governed by Nevada Revised Statute 17.115 and Nevada Rule of Civil Procedure 68. At any time, up to ten days before trial, any party may serve on one or more of the parties, a written offer to allow judgment to be taken in accordance with the terms and conditions of the offer. The opposing … Read More
Approximately 80% of construction defect lawsuits which we defend involve stucco-clad houses. Depending on the plaintiffs’ expert, alleged stucco defects usually comprise anywhere from 20% to 50% of the total cost of repair. Therefore, it is important for those involved in defending stucco subcontractors to understand, and so be better able to defend, stucco defect allegations. In this article, we … Read More
The recent California case of American Safety Indemnity Co. v. Admiral Insurance Co. (2013) 220 Cal. App. 4th 1, confirms that policy language must be unambiguous when an insurer seeks to limit its obligations under an insurance policy. In this matter, the Court of Appeal found that while the language at issue clearly imposed a $250,000 Self-Insured Retention (“SIR”) on … Read More
California’s Right to Repair Act, set forth at California Civil Code Sections 895-945.5, and commonly referred to as “SB 800,” allows homeowners to recover the cost to repair certain specified construction defects even though no actual damages have yet occurred because of the defects. SB 800 was enacted in 2002 in response to the California Supreme Court’s decision is Aas … Read More
Earlier this summer, Mr. John Schroeder of Kring & Chung, LLP wrote an article about bidding mistakes in public contract projects. In his article, Schroeder discusses the mistakes that most often occur during the bidding process and uses real examples to explain how complex the bidding process can be. One of the complexities he discusses is surety bonding. Many … Read More
It is four o’clock on Friday afternoon and you have been working on your bid to the general contractor all day. The bid is due by five o’clock and you are finally ready to bring the numbers over from your workup sheet to the formal bidding form provided by the general contractor in his instructions to bidders. Then it happens……you … Read More
The old saying “let the buyer beware” is of little relevance to California real estate transactions. If you are contemplating the sale of your home in California and have had construction defects or a prior lawsuit involving defects in your home, you should be aware of the basic disclosure requirements under California law.
Sellers of real property in California have … Read More