News 67-2011


Abdulaziz, Grossbart & Rudman Newsletter

August/September 2011


We hope that you enjoy this edition of our Newsletter. If there are any specific topics that you would like us to include, please send us an email.




The Staff At
Abdulaziz, Grossbart & Rudman
Contract For Required Upgrades Before You Start The Work!

One of our larger home improvement contractors recently informed us that they are having trouble getting their permits approved for final inspection on a project in one room, where the home did not have updated carbon monoxide protectors (which are now recently required in many jurisdictions), smoke detectors, and GFI outlets, even in other rooms.I know many contracts have provisions that provide that the contractor is not required to perform work required by existing code violations.It may be a good idea to negotiate up-front the price for you to perform this additional work, so that if you have to perform the work, you do not get into an argument with the homeowner.Obviously, whether you have to install an electric or battery operated detector, or the number of detectors or outlets, vary from home to home, or based upon the requirements of the city.Thus, you might include in your description of the work, a per unit price for each item that could come up in your business, installed, and then you would only need to prove how many were installed, and the owner would be obligated to pay you for that work.

Come And Take a Look At Us Now!

We have redone our website!

In addition to a whole new look, we have brand new features as well as all of the useful information that was on our prior website.

Come check us out and tell you what you
Secrets To A Happy Marriage
1. It is important to find a woman that cooks and cleans.

2. It is important to find a woman that makes good money.

3. It is important to find a woman that likesintimacy.


4. It is important that these three women never meet!
Disclosure Of Conflicts


There was a case that dealt with the sanctity of arbitration and disclosure of potential conflicts.It involved more than one party on each side.However, for our purposes, we will treat all of the parties as either Advantage Medical Services, LLC (Advantage) or Deborah Hoffman (Hoffman).


Advantage and Hoffman made claims against each other that went to binding arbitration through the American Arbitration Association (AAA).The arbitrator issued an interim or temporary award in favor of the plaintiffs (Advantage).


Shortly after the interim award, Hoffman found out that the arbitrator and his law firm represented several protection and indemnity clubs who purchased reinsurance services from Lloyds of London.Lloyds also insured Advantage and a representative from Lloyd's was present throughout the arbitration.After finding out this information, Hoffman requested that the AAA disqualify the arbitrator.


The AAA denied Hoffman's request to disqualify the arbitrator and Hoffman then filed a petition in trial court seeking an order to disqualify the arbitrator for failure to disclose his and his law firms ties to Lloyd's and to vacate the interim award.The trial court granted the petition to vacate the award and agreed with the order to disqualify the arbitrator.Advantage appealed the decision.


Although the Court of Appeal ruled that it was wrong to disqualify the arbitrator since Hoffman did not try to disqualify the arbitratorbeforeany decisions were rendered, the Court of Appeal did agree with the trial court's decision to vacate the award because the arbitrator did fail to disclose all of the proper information.

Over 50Exercise

Begin by standing on a comfortable surface, where you have plenty of room at each side. With a 5 lb. potato bag in each hand, extend your arms straight out from your sides and hold them there as long as you can. Try to reach a full minute, and then relax.

Each day, you will find that you can hold this position for just a bit longer. After a couple of weeks, move up to 10 lb. potato bags.

Then try 50 lb. potato bags and then eventually try to get where you can left a 100 lb. potato bag in each hand and hold your arms straight for more than a full minute.


After you feel confident at that level, you can put a potato in each bag.
No Retention, No Attorneys Fees


This case is a dispute between a licensed contractor, Diaa Yassin (Yassin), and homeowners Vincico and Sonia Solis (Solis).Yassin sued Solis for money he claimed was owed to him upon completion of his work.Solis filed a cross-complaint for breach of contract (among other things) on the work performed and asked for attorneys fees partially based onCivil Codesection 3260(g).


During trial it was proven that Yassin did substandard work and Solis needed to hire another licensed contractor to fix Yassin's shoddy work.Therefore, the trial court awarded $50,000 in damages to Solis.In addition, based onCivil Codesection 3260(g), which deals with penalties and attorneys fees for wrongfully withheld retention payments, the trial court awarded approximately $36,205 in attorneys fees.


Yassin appealed the trial court's decision.In his appeal he claimed that the last payment that was due upon completion of the work did not involve retention under the definition inCivil Codesection 3260.The terms of the contract stated that the sum of the contract would be paid as follows:"$7,500 downpayment on the signing of this Agreement; $22,500 Foundation placement; $22,500 Rough Framing Inspection; $15,000 Final Inspection; $7,500 Certificate of Occupancy... The final payment shall be made upon completion of the work and before occupancy..."Yassin demanded hisfinal payment.Solis stated that since Yassin performed deficient work and violated the Contractors' State License Law by using unlicensed subcontractors, they had to hire another contractor to complete the work.Yassin argued in the appeal that there was no withholding of progress payments or retention of monies due under the contract but that he had not been paid the final payment.ThereforeCivil Codesection 3260(g) did not apply.The Court of Appeal agreed with Yassin since the withholding of a final payment isnotconsidered retention.The attorneys fees portion of the trial courts ruling was reversed and Solis only received the $50,000 for damages.

Abdulaziz, Grossbart & Rudman
provides this information as a service to its friends and clients. This Newsletter is of a general nature and is not intended to be a substitute for legal advice. This Newsletter does not establish an attorney-client relationship with the reader. Since laws are ever changing, please contact an attorney before using any of the information contained within this Newsletter.

Abdulaziz, Grossbart & Rudman
P.O. Box 15458, North Hollywood, CA 91615
(818) 760-2000; (818) 760-3908 (fax)
In This Issue
Contract For Required Upgrades Before You Start The Work!
Come And Take A Look At Us Now!
Secrets To A Happy Marriage... ha ha ha
Disclosure Of Conflicts
Over 50 Exercise... ha ha ha
No Retention, No Attorneys Fees

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