Mirror of Justice

Palm Springs, Laguna Beach, Newport Beach & San Diego Construction Lawyer Discusses the Building Industry in California

July 11th, 2009 at 02:56am Under Construction Law

If you are a general or sub-contractor or are employed in connected with the construction industry and work in any of the hard hit areas of Southern California such as Laguna Beach, Newport Beach, Huntington Beach, Santa Ana, Anaheim, Palm Springs, Riverside, San Bernardino, Fontana, Fullerton, San Diego, Chula Vista, El Cajon, Temecula, Rancho Cucamonga, Ontario, Redlands, Moreno Valley, Palm Springs, Palm Desert, Orange County, Desert Hot Springs, Cathedral City, Fontana, Moreno Valley, Ontario, Rancho Mirage, Indian Wells, Indio, Coachella, Thermal, Yucca Valley, Victorville, Rancho Cucamonga, Corona, Hesperia, Apple Valley, Big Bear, Corona or Joshua Tree, the bad news is there may be worse to come on the horizon.

California’s Construction Industry could be facing a perfect storm of monumental proportions as the credit crunch and delinquent construction and commercial real estate loans threaten to produce even less construction and more construction defect litigation.

It’s being reported with greater frequency, higher and higher rates of delinquency in payments of construction and commercial real estate loans. Now with the credit crisis and bank failures, it is being reported that banks are cutting off credit to builders and more and more contractors are being forced to declare bankruptcy or to go out of business.

As builders and subcontractors cut corners to make a profit on losing propositions, construction defect litigation is almost certain to rise. If the possible scope of this economic crisis comes to fruition, fewer of the contractors and subcontractors responsible for defects may be around to fix the problems.

Liability insurance for builders and contractors in California has already been tight and some contractors have looked at their policies only to complain that despite the higher deductible, they still offer spotty protection.

A spot check of defendants in construction lawsuits filed over the past few years finds a significant percentage of the defendants in such lawsuits may no longer in business. Whether it is the result of such lawsuits or the economic crisis and the housing slump can’t be determined. What can, however, be said, is that homeowners can no longer count on their contractor or subcontractors to be in business when problems are found in the construction of their homes.

While such builders may still have insurance which covers them for their defects, it can be hard for a homeowner’s attorney to find that insurance when the builder is no longer around.When a subcontractor or his insurer is no longer around to stand up for their mistakes, general contractors worry.

In the Coachella Valley, construction spending fell 41.4 percent in the second quarter of 2008 from a year ago. Home prices dropped 22.7 percent. New construction starts are off by 90 percent since the peak of market activity in the third quarter of 2004. Unemployment in the Inland Empire of California was at 9.2 percent in August 2008. The construction industry that at one point employed nearly a third of the Coachella Valley’s work force has seen its jobs cut almost in half.

Contractors who see the economic storm coming are cutting costs, selling the trucks and equipment they no longer need and just trying to hunker down until conditions improve. It is probably wise to cut back as much as they can because at last check, the wind speed of problems for this industry was increasing and as far as anyone can tell, the eye of the storm hasn’t even come close.

If you have construction law issues and need help, whether you are a general contractor, a subcontractor, a homeowner or connected in any manner to the construction industry or the real estate market, we invite you to call us for a consultation.

If you have a construction law, real estate or mortgage issue in Orange County, San Diego, in Riverside, Palm Springs or anywhere in Southern California, we have the knowledge and resources to be your California Real Estate Lawyers, and Orange County and San Diego Construction Attorneys. For this reason, be sure to hire a California law firm with real estate and Construction lawyers who can represent you from Palm Springs, Laguna, Newport and Huntington Beach, Corona del Mar, Yorba Linda, Carlsbad, San Diego, Costa Mesa, Westminster, Murrieta, to Chula Vista, and Coachella.

If you have a construction law or real estate legal issue, and need to know your rights, call the Law Offices of R. Sebastian Gibson, or visit our website at http://www.sebastiangibsonlaw.com  and learn how we can assist you. You can also call us to speak directly to Sebastian Gibson on the phone about your legal matter.

San Diego California Publishing Attorney Talks About Publishing, Elections, the Media, and Constitutional Law

July 9th, 2009 at 08:56pm Under Constitutional Law

No matter where you live, whether it is in San Diego, Orange County, Los Angeles, La Jolla, Del Mar, Pacific Beach, Carlsbad, Oceanside, San Marcos, Mission Beach and Escondido or the cities of Huntington Beach, Anaheim Hills, Yorba Linda, Buena Park, Anaheim, Santa Ana, Irvine, Costa Mesa, Irvine, Newport Beach, Corona del Mar, Laguna Beach, and Laguna Hills, Buena Park, Temecula, Indian Wells, La Quinta, or Palm Springs, unless you haven’t turned on the television or read a newspaper during the 2008 Presidential election, or looked at the internet, you have seen claims by the Republican campaign that the publishing media is biased.

Attacking the media has long been a tactic of national candidates. In this election, once again, we have seen this tactic employed, yet with little of the success it enjoyed in previous Presidential campaigns.  As an election and  constituitonal lawyer, one can only applaud this lack of success in the use of this tactic in this election.

For the most part in this Presidential campaign, one candidate has been leveling these attacks on the press with regularity and with increasing anger, John McCain. While newspapers expect this to some extent, the public that is not wedded to one side of the fence or the other appears to be tiring of the attacks.

Recently, John McCain denounced the New York times in the strongest words, following a Times report that McCain’s campaign manager, Rick Davis, had been pain nearly $2 million by mortgage entities Fannie Mae and Freddie Mac. McCain’s chief strategist, Steve Schmidt said the New York Times is no longer a journalistic organization but is 150 percent in the tank for Barack Obama. Schmidt earlier attacked MSNBC as being an organ of the Democratic National Committee, and said the news media are on a mission to destroy Sarah Palin.

Unfortunately for John McCain, it has since been reported in the press that McCain’s campaign manager’s lobbying firm owned by his campaign manager has received $15,000/month for nearly three years and that and that the campaign manager was paid $30,000/month for nearly five years by an advocacy organization that he headed and which was financed by Fannie Mae and Freddie Mac to fight regulation. It has further been reported that McCain’s senior advisor, his campaign’s vice chairman, and his Congressional liaison, also made large sums of money from Fannie and Freddie lobbying or were in firms that did.

In an apparent attempt to deflect attention away from his mistaken attack on the New York Times story, McCain then announced he was suspending his campaign to immediately fly to Washington after awaking that morning to find a report in the Washington Post that he was behind in the polls by nine points. Soon after attempting to criticize that finding, and knowing what the disaster Sarah Palin’s interview with Katie Couric would be aired that night, McCain chose to dump his appearance on the David Letterman show, upstage the Couric interview with his own interview on the CBS News, and announce the suspension of his campaign that was in reality, never a suspension.

In hindsight of course, McCain’s actions were a huge error in judgment. His dilly-dallying around New York after ditching Letterman were picked up on and hammered at him unmercifully for two nights on the David Letterman show and later on the Daily Show, other news shows, on the internet and in the press. By the time he arrived the next day in Washington, it had already been announced that there was bipartisan support for the bailout bill, that just as quickly dissipated upon his arrival. It was reported that his campaign had not been suspended and Letterman, among others joked at his expense why he must have felt he could not leave his campaign in the hands of Sarah Palin, when she was seen incapable of answering simple questions put to her by Katie Couric. And after announcing he would not take part in the debate until there was either a bailout bill or great progress toward one, he had to fly back from Washington for the debate with no bailout bill in hand and Congress much less united than when he had arrived.

In the past, attacking the press has proved fruitful for Presidential candidates. This time the attack is falling on deaf ears and has either been the exception to the rule that it will help a candidate, or there is a change taking place in what a candidate risks if he is wrong.  As an election, campaign, publishing, marketing, media and constitutional law attorney, one can only conclude that negative attacks by the candidates are not working as they used to, whether it is against the media or against the other candidate.  The public has become weary of such tactics and it is showing in the polls.

Visit the Sebastian Gibson Law website at http://www.SebastianGibsonLaw.com . If you have a publishing, literary, first amendment, media, marketing or constitutional law issue, come to an experienced law firm who can represent you as your California Publishing Lawyer, your San Diego Constitutional Attorney and your attorney throughout Southern California. We have the resources and knowledge to represent you from San Diego to Orange County, from Huntington Beach and Newport Beach to Long Beach, Santa Monica, Ventura, Santa Barbara and San Luis Obispo. We also represent clients inland from Anaheim to Temecula, from Rancho Cucamonga to Palm Springs and Indian Wells.