Welcome to the twelfth edition of The Construction Advantage! In this issue, we bring you issues of competitive bidding, more mechanics lien case law, and a Maine case of a dismissed appeal. We hope that you enjoy our...more
In This Issue:
- Retainage limited to 5 percent in Massachusetts: Outlier or coming to your state?
- Pennsylvania overhauls mechanic’s lien law with creation of state construction notices directory
In California, a general contractor can usually rest assured that in the event of nonpayment, it can rely upon the remedy of a mechanics lien, which remedy is, in fact, even a constitutional right....more
In an opinion published in September 2014, entitled Moorefield Construction, Inc. v. Intervest Mortgage Investment Company, et al., D065464, the California Court of Appeal held an original contractor can contractually waive...more
Notable 2014 Case Law:
In Ponderosa Fire District v. Coconino County, 235 Ariz. 597 (Ct. App. Ariz. 2014), the Court of Appeals considered whether the County had discretion to decide not to call...more
Construction lenders often go to great lengths to ensure their deeds of trust have priority over mechanic’s liens. Typically, as part of the construction loan process, general contractors are asked to sign documents...more
On November 11, 2014, the California Supreme Court rejected the recent California Court of Appeals decision Golden State Boring & Pipe Jacking, Inc. v Eastern Municipal Water District, 228 Cal.App.4th 273 (2014) which we...more
Welcome to the first Thanksgiving edition of The Construction Advantage! In this issue, we bring you yet another tale of a mechanics lien case and a priority between an engineer and a lender in a failed golf course project....more
Under California Civil Code (CC) Section 3289, a mechanic’s lien claimant may obtain pre-judgment interest against contracting property owners calculated at 10 percent per annum from the date of breach. In Palomar Grading &...more
Mechanics’ Lien -
• An In Rem lien (against real property).
• For the payment of all debts due by an owner to a contractor (or by a contractor to his subcontractors) for Labor or Materials furnished....more
I’ve been writing for the CEB – the Continuing Education of the Bar – which publishes legal practice guides for lawyers for some time now.
But I don’t think I’ve been quite as excited to write for the CEB than writing...more
Last month, a divided Supreme Court held that a subcontractor on a public works program should have timely proceeded against the project bond, and had no remedy against the Village after the general contractor went bankrupt...more
In Moorefield Construction, Inc. v. Intervest-Mortgage Investment Co., 230 Cal. App. 4th 146 (4th Dist. 2014), a California appellate court upheld an agreement executed by a general contractor which subordinated its...more
When a property owner undertakes a construction project, chances are that he looks forward to enjoying his new (or improved) property. Drawings in hand, he anticipates the day when his project will be complete and ready for...more
Construction lawyers may not ponder the great questions in life.
We leave that to the estate planning attorneys.
But ponder we do.
And the next case, as I’ll explain below, “kind of” answers 10 important...more
The Pennsylvania Legislature recently passed, and Governor Tom Corbett signed into law, Act 142 amending the Mechanics’ Lien Law of 1963 to create the State Construction Notices Directory. The Directory, which is slated to...more
Lenders know that recording their construction deeds of trust after the commencement of construction is risky because of the possibility of losing priority to mechanic’s liens. A recent case sheds light on a strategy lenders...more
Addressing an issue of first impression, the Fourth Appellate District has determined that in a mechanic's lien foreclosure action against an innocent property owner who did not contract with the mechanic's lien claimant, the...more
The rate of bankruptcies among construction industry participants is higher than some think. The bankruptcy of a developer creates an “automatic stay” under federal law preventing almost all collection activities, including...more
In what can only be described as a devastating result for a general contractor, the Fourth Appellate District held that a general contractor may prospectively waive the priority of a mechanic’s lien to the owner’s...more
Did you know that California is the only state in the country in which mechanics liens are a constitutional right? Tis true.
Article XIV of the California Constitution states:
Mechanics, persons furnishing...more
Pending House Bill 473 seeks to amend the current lien law by creating a centralized construction notices registry in Pennsylvania known as the State Construction Notices Directory (“Directory”), which would provide owners...more
In 1791, Thomas Jefferson and James Madison proposed the first mechanics liens legislation in order to promote development in Washington.
The Maryland Assembly (which governed Washington at that time) passed the...more
One of the most common and effective ways for a subcontractor to secure a payment claim is to file a lien. Assuming any applicable, pre-lien notice requirements are satisfied, an unpaid subcontractor can lien a private...more
FLORIDA STATE CASES -
Forum selection clause in construction contract will not be enforced where third party defendant would be forced to testify in two venues. Forum selection clauses in contracts are generally...more
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