Chinese Drywall

The Daily Journal just reported that a Florida couple was awarded $2.4 million in damages on Friday in the nation's first jury trial over defective Chinese drywall. The damages were for loss of use and enjoyment of the home, cost of repair, and diminution in value. The developer is vowing to appeal the verdict. This is one to keep an eye on.

I am attorney Robert A. von Esch IV. I practice real estate and construction defect litigation. You can reach me via www.voneschlaw.com.

New Firm

After 10 years of paying my dues, I have decided to open my own firm. As of June 15, 2010, I am no longer an employee of Schroeder & Associates. I am now the owner of the LAW OFFICE OF ROBERT A. VON ESCH IV, ALC. I have offices in Orange County and the Inland Empire. I am practicing real estate, business, construction defect, and personal injury litigation, as I have for the past 10 years. If you wish to contact me, please visit www.voneschlaw.com.

Right To Repair Act

In California, we have Civil Code 896 et seq, also known as the Right To Repair Act. The Act requires a homeowner to give the builder a chance to repair before the homeowner can sue the developer for construction defects, assuming the developer complies with the Act (this is an entirely separate and lengthy discussion). Once the developer gets notice of the defects, he can inspect and make an offer to repair or settle.

If the developer offers to repair, he cannot get a relase from the homeowner. Thus, the homeowner can still sue the developer. In fact, the homeowner may have additional claims after the repairs have been made 1) original defects and 2) defective repair work.

If the developer offers a cash settlement instead of offering to make repairs, he can obtain a release, assuming the homeowner is willing to accept the cash offer.

In essence, there are pros and cons to both approaches. Repairs may be cheaper for the developer, but may not get you out of a lawsuit. Cash may be more expensive up front but, may get you out of a lawsuit.

I am attorney Robert A. Von Esch IV. I handle construction defect, contractor disputes, and real estate matters. If you need asssistance in these areas, please do not hesitate to contact me via www.voneschlaw.com.

No Insurance Coverage For Following The Plans?

I believe most contractors follow the plans they are given, unless, they discover a flaw or mistake in the plans. I believe most contractors and clients would characterize the job as a success if the plans were followed correctly. Interestingly enough, major insurance carriers are considering punishing both the contractor and consumer for good work.

I just attended an insurance industry conference, and major insurance coverage attorneys for the major carriers lectured about "intentional conduct." Intentional conduct is generally not covered. Thus, if you commit fraud or intentionally do something wrong, there is no insurance coverage for this act.

However, the insurance industry is seemingly taking this concept to a perverse level. Carriers are now discussing the following: if a contractor follows the plans but, there are still problems with the construction that render the project damaged (leaks, cracks, etc.), there may be no coverage. Why? The contractor followed the plans and intended to build the house as constructed thus, his intentional conduct should not be covered, even when unintended results arise, such as leaks, cracks, etc. In essence, contractors and consumers will be punished for following the plans, which before now, was considered the sign of a job well done.

This is an area of the law to keep an eye on!

I practice construction defect, real estate, and serious injury litigation. If you need assistance or have questions, please do not hesitate to contact me via www.voneschlaw.com

Adequate Insurance Coverage

I cannot emphasize the importance of making sure you (contractor) have adequate insurance coverage before you begin a construction project. Whether you are a sub or gc, take the time to assess primary and excess coverage and limits. Determine whether the policies are burning limits, work completed, wrap, and know the exclusions. Is coverage denied without a valid indemnity clause in the construction agreement? Are subsidence, mold, or sb 800 claims covered? Taking the time to address these issues at the onset can save you a lot of money and heartache. Call me for an insurance evaluation before your next project. I can be reached via www.voneschlaw.com.

Insurance Coverage For Contractors

Most Commercial General Liability (CGL) insurance policies require contractors to obtain written contracts with their subcontractors. In fact, some of them require the written contract to contain an indemnity clause (promise to defend and/or cover the cost of the judgment). If you fail to meet these requirements, the CGL carrier takes the position that your work is not covered. Thus, if you get sued, don't count on having the carrier defend you or cover the judgment or settlement, unless, you have a signed written contract with your sub-contractor, that contains an indemnity clause.

However, there is a common mistake made by the insurance companies that may enable you to obtain coverage. If a sub-contractor names you as an additional insured and the sub-contractors carrier fails to provide you with a copy of the policy or give you notice of the exclusion, the carrier may not be able to rely on the exclusion as a basis for denying coverage. In otherwords, if the carrier doesn't tell you in advance that it will not provide coverage without a signed contract that contains an indemnity clause, they may have to provide you coverage.

I am attorney Robert A. Von Esch IV. If you are involved in a construction defect or construction dispute, and your carrier is denying coverage, please do not hesitate to contact me. My contact information is available at www.voneschlaw.com.

Naples Sea Wall

Naples is a nice coastal community in the Long Beach area. It is a community surrounded by water ways or canals. The property owners along the waters edge are protected by sea walls. The sea walls protect the abutting propery owners from erosion and subsidence. However, as a result of their neighbors failure to maintain their portions of the sea wall system, abutting property owners are at risk of losing portions of their lots as erosion and subsidence takes its toll. Civil Code 832 says property owners owe one another a duty of subjacent and lateral support. Furthermore, the failure to maintain the sea wall may constitute a nuisance if it is threatening a neighbors lot. This peacefull community may be entagled in a nasty fight as homeowners resort to legal action against their neighbors in order to protect their homes.

I am attorney Robert A. Von Esch IV and I practice real estate, construction defect, and subsidence law. If you have any questions, please do not hesitate to contact me via www.voneschlaw.com.

Soil Compaction

Soil compaction or the lack thereof, is a common problem. If your soil is not compacted properly, your home will move or sink. Common signs of soil compaction problems are concrete cracks, stucco cracks, and drywall cracks. If you notice these conditions, you may have a construction defect or soil subsidence claim against your builder. I am attorney Robert A. Von Esch IV and I handle construction and real estate cases. If you would like a free consultation or additional information, please do not hesitate to contact me via www.voneschlaw.com.

Construction Defect Today

What you need to know about construction defect law today is contained within Senate Bill 800, also known as Civil Code 895 et seq. There are many important things you need to know about SB 800 but, three stand out in my opinion: 1) You must give the builder notice of the defects and a chance to inspect and repair before filing suit, 2) You must give the builder a chance to mediate, and 3) With some exceptions, you no longer need to prove damage has been caused by building code violations. In otherwords, you can recover the cost to repair the building code violations.

I am attorney Robert A. von Esch IV and I practice construction defect law, soil sudsidence and landslide, and real estate law. If you would like any advice regarding the above or any other relevant legal matter, please do not hesitate to contact me via http://www.voneschlaw.com/.

PCV Pipe Prone To Leaks?

A major lawsuit was filed by the Federal Government and several municipalities against JM Eagle, one of the leading manufacturers of pvc pipe. The lawsuit alleges that JM Eagle knowingly sold pvc pipe that does not meet minimum strength specifications and that the pvc pipe will wear out prematurely.

Why is this important? The pvc pipelines utilized by the Federal Government and municipalities carry large amounts of water. If they leak, there is a potential for significant property damage. For example, leaking water lines cause flood damage, landslide and subsidence damage, just to name a few. This could be a serious problem and this is a lawsuit to keep an eye on. U.S. v. J-M Manufacturing Co, Inc., CV 06-55 (C.D. Cal).

I am attorney Robert A. Von Esch IV, and I represent property owners. If your property has been damaged by no fault of your own, call me for a free consultation. More information regarding my firm and services can be found at www.voneschlaw.com.

Water, Rot, & Mold

Throughout these heavy rains, I have received numerous calls from homeowners experiencing water leaking through their foundations/slabs. If your home was built after Jan 2003, water leaking through your foundation/slab is a violation of Senate Bill 800. Your builder must design a foundation/slab that prevents water intrusion.

The damages caused by a foundation/slab leak can be very expensive. Common damages are mold and rot. The water and/or mold damages carpet, baseboards, cabinets, and any other items that come into contact with the water and/or mold.

I am Robert A. Von Esch IV and I represent property owners in construction defect matters. Call me for a free consultation. Don't take a chance with your most important investment and your health if you suspect water intrusion or mold growth. My information can be found at www.voneschlaw.com.

Real Estate Disclosure Obligations That Buyers And Sellers Should Be Aware Of.

If you are buying or selling a property in California, the primary statute that you need to be aware of is California Civil Code Section 1102.6, also known as the Real Estate Transfer Disclosure Statement. It requires the seller to disclose of any appliances or components of the property that are inoperable, malfunctioning, or significantly defective. The disclosure requirement is incredibly broad and includes appliances, electrical, plumbing, structural, walls, insulation, roof, foundations, slabs, yard drainage, etc. It requires a seller to disclose of improper construction, leaks, mold, and other conditions that would impact the value and desirability of the property.

The seller's agent also has an obligation to conduct a visual inpsection of the property and to identify reasonably discoverable conditions. A seller's agent cannot put his or her head in the sand and ignore problems. A seller's agent cannot rely on the representations of the seller alone.

The seller's failure to disclose of defects or other conditions that would negatively impact the value and desirability of the property can subject himself or herself to serious liability, including punitive damages. The agent's (sellers) failure to perform a thorough inspection can result in significant liability exposure as well.

Sometimes it is difficult to prove that a seller or seller's agent failed to disclose of certain conditions. However, sometimes it is very easy. For example, if the seller made a warranty request to the developer for repairs or was aware of neighbors being involved in a construction defect lawsuit for issues that concerned the neigborhood in general (Example: improper soil compaction, ground water problems, chinese drywall, etc.), it may be easy for an upset buyer who laters discovers the undisclosed defects to successfully sue the seller or seller's agent for failure to disclose. A simple subpoena to the developer is likely to reveal a prior warranty repair request that the seller made to the developer. A quick conversation with a neighbor might reveal the seller's prior and undisclosed knowledge of certain problems or defects. Neighbors tend to know a lot about one another.

I am attorney Robert A. Von Esch IV. I represent individuals and businesses in a variety of construction defect and real estate matters. If you have any questions, please feel free to contact me via http://www.voneschlaw.com/.