The California Supreme Court decided a case with far‐reaching implications in the construction industry, holding that a contractor unlicensed for even a small portion of a large job cannot get paid for any part of that job. The decision may have national impact.
R.E.A.C.H. February 2009: Enforceable Option Agreements
THIS ISSUE: In September 2007, we reported on a court of appeal decision holding that an option purchase agreement in a residential lease was unenforceable because it was too uncertain. Recently, however, the California Supreme Court has reversed that decision, finding that even though the option was not perfect, it was nevertheless sufficiently certain to be enforced.
R.E.A.C.H. January 2009: Property Owner Protection from Tenant Mechanic’s Liens
THIS ISSUE: Commercial property tenant improvements can be costly. In an economic environment where tenants may be financially uncertain, can property owners protect themselves from mechanic’s liens relating to those tenant improvements?
R.E.A.C.H. December 2008: Exclusive Use Easements
THIS ISSUE: Typically, courts do not interpret an easement as an “exclusive use” right in land, since such a use would preclude all others – including the owner of the land – from using it. But one recent case held that the clear language of a granted easement created just such an exclusive use right, entitling the easement holders to use the land without interference of any kind from anyone, including the fee owners of the land.
R.E.A.C.H. November 2008: Guarantor Risks After Foreclosure
THIS ISSUE: The California Court of Appeal recently held that some guarantors may be liable for a loan deficiency judgment after a foreclosure sale on real property, while others may not.1 The decision follows long California precedent, but may be ripe for legislative review regarding the inherent risks in personal guaranties during a real estate foreclosure.
R.E.A.C.H. October 2008: Easements Extinguished by Merger
THIS ISSUE: One person’s ownership of two parcels of land will extinguish easements benefitting either of the parcels through the process of “merger.” But what happens when the parcels are owned by multiple parties?
R.E.A.C.H. September 2008: Protecting Arbitration Rights in Lien Proceedings
THIS ISSUE: How can parties to a construction contract guard against the inadvertent loss of contractual rights to arbitration in lien enforcement proceedings?
R.E.A.C.H. August 2008: Disguised Option Agreements
THIS ISSUE: When does an option to purchase real property become an enforceable contract of sale? Can an option agreement be unilaterally cancelled?
R.E.A.C.H. July 2008: Mandatory Mediation Enforcement
THIS ISSUE: Most residential purchase agreements contain a mandatory mediation agreement. California courts have upheld this provision, and the resulting waiver of the right to recover attorney fees for breach.
R.E.A.C.H. June 2008: California Solar Rights Act
THIS ISSUE: Seeking to promote the use of solar energy in California, the Legislature passed the California Solar Rights Act in 1978. This Act has recently received a lot of public attention, both in court and out.