Gray Matters August 2013

August 2013

The Economic Loss Rule: Protection and Pitfalls to the Contractor

Published in: Construction Today

It is important for contractors to have a basic understanding of the Economic Loss Rule and its exception. Generally, a construction contract sets forth within its specific language the rights, obligations, duties and potential liabilities between contracting parties. The failure of any party to perform within the parameters of the contract can lead to a breach of contract action. A contractor is also susceptible to tort liability to both the contracting parties and third parties. Tort liability can arise from a contractor’s negligent actions causing property damage or personal injury. The Economic Loss Rule generally states that a defendant in a tort action, as opposed to a contract action, does not owe a tort duty to prevent economic loss, such as lost earnings/lost profits to third parties in the absence of property damage or personal injury.

Read, “The Economic Loss Rule: Protection and Pitfalls to the Contractor”.

Bars and Security Should Mix Like a Well-Poured Drink

By: Rene Faucher

Published in: Bar Business Magazine

Bars are a unique entertainment venue because they serve alcohol and operate late into the evening and early morning. These are recognized ingredients for security risks to a bar’s patrons and employees and can often lead to lawsuits. Every state and county has different laws, but the laws in California can be an instructive guide no matter where your bar is located.

Do You Need Security Guards?First, you need to determine if your bar needs professional security guards. California courts have recognized certain circumstances which make assaults reasonably foreseeable and for this reason create a “duty” to have security guards. Duty is a term of art that means a legal obligation, the breach of which can create liability. A brain injury that occurs on or near a bar’s property can result in a jury verdict in the millions! Do I have your attention yet?

Read, “Bars and Security Should Mix Like a Well-Poured Drink”.

Gray·Duffy Welcomes

Associate Pamela Bush

to Firm’s Encino Office

Gray·Duffy, LLP is pleased to announce that Pamela H. Bush has joined the firm’s Encino office as an Associate. Ms. Bush has experience in personal injury defense matters with particular knowledge in automobile insurance defense cases. In addition, she has successfully represented and litigated on behalf of clients in family and child custody matters. She obtained her Juris Doctor and Masters in Business Administration from Loyola University Chicago and graduated cum laude from California Lutheran University with a Bachelor’s degree in Criminal Justice.

David Fisher Presented “How to

Avoid Lawsuits in Real Estate Matters” to Rim O’ The World Association of Realtors

Gray·Duffy Partner David Fisher presented, “Common Ways to Land Yourself in Court” at the Rim O’ The World Association of Realtors’ Summer Meeting held on July 10 at the Lake Arrowhead Resort in Lake Arrowhead, CA.

In the presentation, Mr. Fisher addressed the seven most common reasons in which real estate professionals end up in a lawsuit, as well as practical and often overlooked solutions for avoiding lawsuits, such as honesty, proper documentation and regular communication.

If you are interested in scheduling this presentation, please contact David Fisher at [email protected] or (818) 907-4000.

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To read past issues of Gray Matters and test your knowledge with “So You Think You Know The Law”, please visit our newsletter archives .

Gray Matters is provided for informational purposes only, and the contents are not intended and should not be construed as legal advice.

The Economic

Loss Rule

1) A manufacturer of a product is liable for all damages resulting from the product’s failure to perform as warranted. True or False

2) A party to a construction contract who is wronged by a contractor can obtain economic losses, such as lost profits, by suing in tort rather than breach of contract. True or False

3) Economic losses, such as loss of earnings, are recoverable where there is personal injury or property damage. True or False

Should you have any questions regarding the Economic Loss Rule, please contact Ron Mandel at (818) 907-4000 or [email protected] .

Jack Liebhaber Elevated to the Advocate Membership Class of the American Board of Trial Advocates

Senior Associate Jack M. Liebhaber has been elevated to the Advocate membership in the American Board of Trial Advocates (ABOTA) for his work as a trial lawyer. Mr. Liebhaber has achieved membership of this rank by meeting the required minimum of 50 jury trials to verdict, as well as having more than eight years of active experience as a trial lawyer and membership to the State Bar of California. ABOTA seeks, by invitation only, attorneys who display skill, civility and integrity in helping younger peers achieve a higher level of trial advocacy.

Gray·Duffy Offers

Seminars for Clients

As a service to our clients, Gray·Duffy regularly offers complimentary seminars on a variety of topics.

Topics include, but are not limited to:

–Indemnification on commercial building projects: Responding to new changes in the law. –2013 laws, cases and statutes affecting REALTORS®.

–How to handle notice of insurance carrier liquidations.

–Early exit and resolution strategies in personal injury cases.

–How to avoid lawsuits in real estate matters.

If you are interested in scheduling a presentation in your offices, please contact Gary Gray at

(818) 907-4000 or [email protected] .

*CLE credit may be available depending on the topic.

Contact

Gray· Duffy

www.GrayDuffyLaw.com

15760 Ventura Blvd. 16th Floor

Encino, CA 91436

(818) 907-4000

702 Marshall St.

Suite 600

Redwood City, CA 94063

(650) 365-7343

Please Note : This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.