11/09

We were saddened to hear that Larry Waddell passed on November 23, 2009. details

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10/28/09

Mechanic's Lien Form To Change Effective January 2011

On behalf of various subcontractor associations and groups, the Law Offices of Abdulaziz, Grossbart & Rudman have been participating in the law-making process, both before the Legislature and th California Law Revision Commission, concerning certain overhauls of the mechanic's liens laws... download full PDF article.

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10/22/09

20th Annual Jim Nienow Golf Tournament & 2ND Annual Don Banks Putting Contest Scholarship Awards

At the Tournament on Monday, October 5, 2009 we awarded $21,000.00 in Scholarships!

Thanks to all of you for your rounds of golf, and a special thank you to the sponsors and donors who contributed. We hope you had a wonderful day, and we hope you will be back next year. This year, we awarded 15 scholarships for a total of $21,000.00. Please see the complete list of scholars.

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08/09
ROOFING INDUSTRY MOURNING THE LOSS OF BILL LAVEY

LAVEY, WILLIAM H., William "Bill" Lavey, 81, passed away peacefully at home surrounded by his loving family on Wednesday, July 29, 2009. Bill touched the lives of many and was beloved by all. Family members called Bill "the Snapple of mankind" because he was made with the finest ingredients on earth. Bill was a previous owner of William H. Lavey and Associates. Bill has been roofing in Southern California for over 30 years and several of his employees went on to have very successful businesses through his expertise and mentorship. A celebration of William H. Lavey's life took place on Saturday. In lieu of flowers, donations may be made to "Doctors without Borders." www.doctorswithoutborders.org

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07/09
ATTENTION CONTRACTORS!!!

As a result of a poor legal decision by the judiciary, a number of construction trade associations have retained the services of Abdulaziz, Grossbart & Rudman to represent the group in filing an amicus brief in the Appellate Court. The firm has argued such matters on behalf of contractors previously.

The following is the list of associations and people that Abdulaziz, Grossbart & Rudman will be representing.

• Johnny Zamrzla, personally
• Roofing Contractors Association of California;
• Roofing Contractors Association of Southern California;
• Union Roofing Contractors Association;
• Independent Roofing Contractors of California; and
• Associated Roofing Contractors of the Bay Area Counties.

The issue is whether a contractor should bear the burden of reviewing the County Recorder's records for information to be included in the 20-Day Preliminary Notice and not being allowed to rely on the information given by the project owner. If this burden is put on the contractors, it is likely that many contractors will lose Stop Notice and Mechanic's Lien rights.


Law Offices of Abdulaziz, Grossbart & Rudman
P.O. Box 15458
North Hollywood, CA 91615-5458
(818)760-2000 FAX (818)760-3908
Email: info@AGRLaw.net / www.AGRLaw.net
Emphasizing Construction Law

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10-08
CONTRACTOR WHO DID NOTHING WRONG MAY HAVE TO DEFEND AND INDEMNIFY

The California Supreme Court affirmed a Court of Appeal ruling that a subcontractor may be obliged to defend a developer even if it turns out that the subcontractor was not negligent.

This matter does not deal with insurance policies but a contractual duty. A material supplier/subcontractor supplied wood-framed windows for this particularly large residential project. As part of the contract the subcontractor agreed that (1), "to indemnify and save [builder] harmless against all claims for damages. loss,. and/or theft. growing out of the execution of [subcontractor's] work" as well as, (2) "at [its] own expense to defend any suit or action brought against [builder] founded upon the claim of such damage. loss or theft."

It turns out that numerous homeowners filed complaints alleging numerous construction defects as well as such things as the windows leaked and fogged, which caused much damage due to improper design, manufacturing, and installation. The developer and subcontractor cross-complained. The homeowners eventually settled with the developer. Declaratory relief was granted by the trial court in favor of the developer against the subcontractor for indemnification of over $130,000.00. The subcontractor argued that he did nothing wrong.

Declaratory Relief is when a court determines an issue. In this case, who was liable.

The court looked to the contract and its language regarding indemnity in order to come to this decision. The contract stated in a plain and unambiguous manner that the subcontractor would provide defense on "any suit or action brought against [builder] founded upon the claim of such damage." The court indicated that it was because of the precise language in the contract that the duty to defend was imposed on the subcontractor and that the holding did not go past the language of this contract.

The court also reviewed various cases in an attempt to determine if the duty to defend was conditioned on the subcontractor being negligent. It turned out that negligence was not a condition precedent to the liability of the subcontractors. Liability was based on the language in the contract.

The question that was at hand was whether a subcontractor was obligated to defend and/or indemnify a developer in a lawsuit wherein the complaints alleged defects, but not from the subcontractor's negligence. Even though the subcontractor was found not to be negligent nor that the builder had no rights to indemnification unless the subcontractor was negligent, the court found that the subcontractor was, in fact, obligated to defend the builder in the suit. Mostly based on the language as stated in the contract.

Keep this in mind when entering into contracts. As in this case, the language in the contract will almost always determine who will be responsible.


Attorney Sam Abdulaziz of Abdulaziz, Grossbart & Rudman has been practicing construction law for over 30 years. He has written a book called "California Construction Law" which is updated annually. He represents numerous construction trade associations and contractors. He appears at Contractors State License Board meetings and has argued a number of cases before the appellate courts, including the California Supreme Court dealing with the "Pay-If-Paid Clause." Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients. The documents are of a general nature and are intended to highlight areas of the subject matter and should not be used as a substitute for legal advice. It is intended to highlight the areas being discussed and may not be entirely accurate. This document does not create an attorney-client relationship, or protect any confidential information until a written agreement is signed. You should seek the aid and advice of a competent attorney, accountant and/or other professional instead of relying on the presentation and/or documents. Sam Abdulaziz can be reached at Abdulaziz, Grossbart & Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458; (818) 760-2000, Facsimile (818) 760-3908; or by E-Mail at info@AGRLaw.net. Website: www.AGRLaw.net.