EDITOR'S NOTES | Issue 5-33
publication date: Aug 19, 2007
This week’s first case reads more like a Hollywood marquee than a construction lawsuit. Erin Brockovich Ellis hired Femme Fatale Development to remodel her home in Los Angeles shortly after the success of the movie that bore Brockovich’s name. The developer’s president signed the contract with Brockovich Ellis, who did not know at the time that the business did not have a current contractor’s license. A series of legal scuffles ensued after work began. The main questions in the present case are these: If a contract is declared null, does the attorney fee clause survive? And, can a corporate president be held personally liable for attorney fees if the contract was signed in the president’s corporate capacity? In the instant case, the answer to both questions is yes, says a California appeals court.
Though the players in the second case this week are not as high profile, they face a similar question: Can a subcontractor be held personally liable for a breach of warranty if he signs a contract without proper corporate protections? Again, the answer is yes.
Finally, a municipal agency is faulted for not giving reasonable time extensions to a contractor after issuing numerous change orders.
This page is available to members only.
To subscribe, click
here
Construction Claims Online Features and Benefits
Whether your role in the construction claims process is as a building owner, designer, contractor, facility manager, attorney or consultant, you will want to keep up with the latest developments in construction law, federal and state policy, construction process and best practices.
Whether you sign up for our free or paid content, Construction Claims Online provides information you need to achieve successful outcomes for project issues and your clients' best interests.
Avoid costly errors by understanding how the boards and courts look at typical disputes situations.
Achieve successful project outcomes.
Defend against unsubstantiated claims.
Reduce or eliminate risks.
