Join the Wolfe Law Group Fantasy Football Team

What can we say, being from New Orleans with the Saints as the reigning champions has us all excited about the 2010 NFL Football Season. That’s why we’ve gotten together with our friends at Zlien and set up an NFL Fantasy Football League through Yahoo!

And we’re inviting participation from our clients, colleagues, readers and friends. To sign up, just click on this link and set up your team. You will need to know the password, and the password is “construction.”

I must warn you….the Wolfe Law Group staff not only knows the law, we know football. So be prepared to lose.

Celebrating Our 5th Year Blogging – Simplified Look and Free Construction Resources

Happy Birthday to Wolfe Law Group’s construction law blog, the Construction Law Monitor.    To celebrate, we’ve made things a lot better on our site.

We’re now in our 5th year of blogging about construction law issues that matter to contractors, subcontractors and suppliers across the country…and all of our postings and tagging has transformed the Monitor into a leading construction law resource.

To celebrate the milestone, we’ve made things even better.

First, we’ve simplified our design.   Posts on the left, topics on the right, and a search bar at the top.   We’ve even gone through the site and re-tagged and re-categorized each post to make it more intuitive for folks to find posts on-topic.

Second – and we’re most excited about this – we’ve added a Resources Page with free construction law resources.   Highlights of the free Resoucres include:

• Construction Law Blog Directory.   This is the only directory of construction law focused blogs on the web.  We list them all outright, but also sort and organize the blogs by state and topic (green building v. chinese drywall, for example).   Something missing?   You can add your link to our directory by filling out the form at the bottom of the directory’s page.
• Avvo Legal Guides and Answers.    Wolfe Law Group participates in the legal Q&A forum and publication of legal guides at the lawyer-rating website, Avvo.com.   We stream those answers and guides to you on the Monitor.
• Free Forms and Documents.   Powered by JD Supra, we provide visitors with free forms, legal pleadings, and other types of documents.
• Webinars.   Our webinars and construction law presentations, powered by SlideShare.

Third (and finally), we’ve brought back three Special Feature category of posts:  (1) About our Services; (2) Around the Web; and (3) From the Experts.

We’ll build upon the Resources page as time goes by, and continue posting about important  construction law issues.   You can subscribe the the Monitor by RSS Feed, by following us on Twitter, or liking us on Facebook.

100% of Nothing is Nothing: Justifying the Contingency Fee

What is contingency fee?

Here is the definition:

A method of paying a lawyer for legal representation by which, instead of an hourly or per job fee, the lawyer receives a percentage of the money her client obtains after settling or winning a case.  Often contingency fee agreements award the successful lawyer between 20% and 50% of the amount recovered [read definition on wikipedia].

In plain english, you attorney works on a “contingent” basis, meaning the attorney’s payment is dependent on the outcome of the case.  If you recover money, the attorney gets a percentage of the recovery.  If nothing is recovered, you pay nothing in fees.

What’s Good About Contingency Fees?

For the client, contingency fees have many positives.

The cash-flow impact of litigation is substantially lower, you gain leverage over the other party who needs cash flow to fund the case, and a portion of the case’s risk is transferred and borne by your attorney.

The only “negative” of a contingency fee is that the fee can be substantial. When a recovery is made, the attorney fee is usually between 30-45% of the amount recovered. But, as we’re about to explain, this really isn’t as bad as it sounds.

100% of Nothing is Nothing

For the client, contingency fees have many positives.

The cash-flow impact of litigation is substantially lower, you gain leverage over the other party who needs cash flow to fund the case, and a portion of the case’s risk is transferred and borne by your attorney.

The only “negative” of a contingency fee is that the fee can be substantial. When a recovery is made, the attorney fee is usually between 30-45% of the amount recovered. But, as we’re about to explain, this really isn’t as bad as it sounds.

WLG Loves Contingency Fees

We love representing clients on a contingent fee basis for one very important reason: We can more zealously represent our clients.

When clients are billed for fees, it’s inevitable that bills will be challenged and cash crunches will arise. This effects how our firm can represent a client.

If $10,000 in discovery motions are needed, for example, but the client can’t afford it, the client’s claim is weakened.

Contingency fees result in more aggressive litigation…which results in higher settlements and more successful trials.

Avvo Legal Guides on Oregon and Louisiana Liens Published

Want a step-by-step guide on how to file construction or mechanic liens in Louisiana or Oregon?   Your call has been answered this weekend with the publication of Avvo Legal Guides on both these subjects, which you can view here:

How to File a Construction Lien in Oregon

How to File a Construction Lien in Louisiana

These two legal guides offer plain english explanations on how to prepare and file a construction lien in either of these states.

The two above-listed legal guides were written and published by Scott Wolfe Jr., the founding attorney of Wolfe Law Group.  He previously published a similar legal article on Avvo.com about filing construction liens in Washington, which you can read here.

Budgets, Changes Orders and A Green Building Project

If you were to survey green building critics, it’s safe to guess most will argue that the cost to build green do not outweigh the benefits.

Indeed, many have suggested that the cost of building green (especially gaining LEED certification) is significantly higher than building to ordinary standards.   Others argue that LEED certification can be achieved through an everyday budget.

Regardless of where you fall on this issue, everyone should agree that green building projects have certain specifications, and bidding contractors must project the construction costs responsibly.

And so, one of the most challenging components of a constructing a green building may be the process of bidding it.

Since green building work is just starting to take hold in the construction industry, many contractors and subcontractors are working on little-to-no experience on green projects.   And sometimes the data behind green building techniques and products are thin (see greenwashing).

On Wolfe Law Group’s Construction Law Monitor, we published a 2-part article on the Bidding Process and Change Orders:   Bidding Errors and Change Orders: Avoiding a Nightmare [Part One and Part Two].

How do we suggest you avoid Bidding Error nightmares?   Spend time with the Contract Documents pre-bid.

With green building projects, this is more true than usual.

When preparing your green bid, here are some example thoughts that should be considered:

• If the project is being certified with LEED or another standard, who will be responsible for the submittal process?   Who will be responsible for monitoring the construction process?
• Contact vendors who will be providing the project’s materials, and review the data they have to back-up their performance and environmental claims.   It would be a pity to plan on using one product, and being forced to later use a more expensive substitute.   See this article on how to shop for green building materials.
• If the builder is anticipating a tax credit, do you understand the requirements to qualify for the credit?   Will this increase your construction costs?

A successful green building project starts where successful ordinary projects begin:  during the bidding and contracting period.

Whether your green building project will increase costs, or not, understand the green building expenses associated with your project, and avoid bidding errors and change order nightmares.

This article was originally posted on Wolfe Law Group’s topic-specific Louisiana Green Building Law Blog.

Chinese Drywall Presentation on July 31st – Slides Now Available

On July 31, 2009, Wolfe Law Group’s Scott Wolfe and Doug Reiser will co-present at Half Moon Seminar’s Chinese Drywall Conference in New Orleans, Louisiana.   The program is titled “Chinese Drywall Problems and Litigation.“  Attorneys, contractors, engineers and architects can all obtain CLE credit for attending the program [register here].

Wolfe & Reiser will co-present during the program’s middle segment, “Exploring the Current Status of Chinese Drywall Claims and Litigation.”

Be sure to attend the program on July 31st in New Orleans.   To get ready, or in case you can’t make it, below is the slide presentation we’ll use during the presentation.

This article was originally posted on Wolfe Law Group’s topic-specific Chinese Drywall Blog.

Frequently Asked Questions from Homeowners About Chinese Drywall Claims

As homeowners retain Wolfe Law Group to represent them against their builders and insurers, we’re encountering some frequently asked questions.   We thought that these questions (and answers) were widely applicable to those considering representation, and so we are posting them here.   Please read the disclaimer at the end of this post.

Who is liable for my damages?

This is the golden question.  The Chinese Drywall situation is unique in that there are so many parties, and so many possibly claims.   The builder, supplier, manufacturer, and insurers may all have exposure for the damages under various legal theories.  It’s too soon to say who will ultimately be liable for Chinese Drywall damages.   Wolfe Law Group recommends filing direct individual actions against the builders and suppliers, their insurers, and a homeowner’s insurance policy.

Is this a class action?

The action recommended by Wolfe Law Group is not part of the Chinese Drywall “class action.”   While the class action has merit, it is a suit against the manufacturer and not the builders and insurers.  The class action litigation could take a long time to resolve, may have problems collecting from foreign defendants and does not address the liability of builders, local suppliers and insurers.

Wolfe Law Group encourages its clients to talk with class action attorneys about being represented in these proceedings, as claims against the manufactures do have merit.   However, Wolfe Law Group does not represent you in these actions.

How long will my lawsuit take?

It’s difficult to predict the length of any litigation, as some cases may settle shortly after filing a complaint, and others may take years to resolve.   On the one hand, Chinese Drywall claims present unique legal arguments that may take some time to resolve.  On the other hand, however, the claims will be expensive to litigate and this encourages settlement.   In general, lawsuits take between 8 months and 4 years to resolve.

What do I do now?

If you retain Wolfe Law Group as counsel, we will begin litigation promptly after retention.  You will be kept apprised of the progress of your case, and as we require information about your claim, we will contact you to acquire it.   We will also schedule an inspection of your property to confirm the presence of contaminated drywall.

From a non-legal perspective, the health effects of Chinese Drywall are still unknown.  If you are living in a home with Chinese Drywall, it is safest to find alternative living arrangements.   We do understand that some do not have the means to make this move, and in these circumstances we recommend having the drywall replaced as soon as possible.

Disclaimer:  These frequently asked questions and answers are posted to provide information to property owners who have contacted Wolfe Law Group and are interested in retaining the firm in representing them against builders and insurers.  The information posted herein is not legal advice, and does not create an attorney / client relationship between Wolfe Law Group and the reader.    To become a client of our firm and retain Wolfe Law Group, it is required that you sign a Fee Agreement.  Only upon the signing of a Fee Agreement will an attorney/client relationship be created, and legal advice procured.   This post is provided for information only.

This article was originally posted on Wolfe Law Group’s topic-specific Chinese Drywall Blog.

Is the Avalanche of Lawsuits Against Builders Imminent?

Wolfe Law Group’s own Scott Wolfe, Jr. provides the leading quote in a recent article from HousingZone.com:   Homeowners Increasing Suing Local Builders.   Scott gave this quote to the publication:

The best and quickest way to get the drywall out is to go after the builder, who ultimately has to live up to his warranty.   If the consumer tinkers with class-action lawsuits that can drag out for months, their warranties start to expire, and their chances of getting something from the builder are slimmer.

If we’ve said it once on this blog, we’ve said it a thousand times (here, here, here, here and here).

While class action suits have their purpose, it presents real challenges to homeowners who are interested in getting the Chinese Drywall out of their property.

The class action suits have their warts, and homeowners may find a better remedy by filing a direct action against their builders, suppliers and insurers.

With every day that passes, however, deadlines are drawing closer.    The one year deadline for insurance claims and torts.  The 3-4 year deadline with claims in redhibition.   And the 1, 2 or 5 year deadlines associated with construction warranty claims.

The worst news about the deadlines being that many, if not most of the statutory periods begin when the drywall was delivered or installed…and not when the homeowner learned of the problem.

All was quiet with regard to individual lawsuits against builders and suppliers, but recent news reports indicate that the remedy is gaining some steam.

The article from HousingZone.com is not alone.  The Times Picayune recently reported that homeowners are more frequently suing builders, and Baton Rouge’s Advocate had the same analysis.

Could an avalanche of Homeowner v. Builder suits be on the horizon?

If you’re interested in learning more about bringing a suit against your builder, or your construction company is interested in bringing suit its suppliers and insurers, contact Wolfe Law Group today.

This article was originally posted on Wolfe Law Group’s topic-specific Chinese Drywall Blog.

Construction Outlook Grim through 2010 – Staying Ahead of Accounts Receivables To Retain Its Importance

Ken Simonson, the chief economist for the Associated General Contractors of America, doesn’t have good news for the construction industry as the challenging year 2009 drags into its 3rd Quarter.

According to Simonson, the commercial construction industry forecast remains grim “at least through 2010.”

For contractors, suppliers, and other construction professionals throughout the nation, this means that good record-keeping and collection practices remain important.

Almost one year ago, Wolfe Law Group posted an article on its Construction Law Monitor after Ken Simonson reported that 2009 would present economic challenges to contractors.

Now more than ever, the article stated, contractors should consider the benefits of a construction or mechanics lien.  The article went on to state:

As soon as the construction project comes to a halt or payment is late, contractors, subcontractors and suppliers should rush to file its construction / mechanics lien to protect its interest in the property. Construction liens are available in virtually every state, and works to transform the project job site as a sort of “collateral” to the contractor for its payment.

The time available to file a construction lien is not indefinite, and the legal requirements should be followed to the letter. However, when filed correctly, a construction lien can help your company recover payment for its project.

Although the stimulus spending will be cause for some optimism in the construction industry, it appears economic struggles will stick around into 2010.    And the recommendations of Wolfe Law Group in 2009 are repeated today.

This article was originally posted on Express Lien’s topic-specific Construction Lien Blog.

Wolfe Law Group Offers Services to Homeowners with Defective Chinese Drywall

Wolfe Law Group, a construction law firm with offices in Louisiana, Washington and Oregon, is now offering services to homeowners with defective drywall who are interested in bringing a direct claim against their builder or supplier for recovery.

Recently, we’ve written on this blog about why class action litigation may not be the most direct and beneficial course of action for homeowners with Chinese Drywall.

Homeowners have contract and warranty claims directly against their builders and the builder’s insurer, which may produce tangible recovery much quicker than a prolonged and complex class action proceeding.

Wolfe Law Group is now offering services to homeowners who are interested in presenting these claims against their insurers and/or builders.  For more information on this practice area and the associated fees, please click here to visit wolfelaw.com’s page on the same.