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Navigating the Tricky Waters of the Michigan Builders Trust Fund Act
The Michigan Builders Trust Fund Act (MBTFA) can have a significant financial impact on Michigan restoration contractors. The MFBTA mandates that payments made by an owner to a contractor are to be held “in trust” for paying subcontractors, suppliers, and laborers. This means that if you’re a general contractor who has received project funds, you…
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Navigating the Legal Terrain: Proactive Strategies for Restoration Contractors
At The Law Offices of Edward H. Cross, we continuously strive to empower restoration and disaster remediation contractors with the legal knowledge they need to succeed. That’s why, in a recent appearance on IAQ Radio with legends Joe “Radio Joe” Hughes and Cliff “Z-Man ” Zlotnik, attorney Angela Bajramaj shared invaluable insights on how contractors…
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Protecting Your Right to Payment: What Contractors Must Know in the Wake of Hurricane Hilary
As a disaster recovery contractor, you play a vital role in helping communities rebuild after a devastating natural event like Hurricane Hilary. Your dedication to repairing and restoring homes and businesses is commendable. However, rushing out to address the damage can lead to some legal and financial pitfalls if you don’t carefully navigate California’s labyrinth…
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Navigating the Storm: How Restoration Contractors Can Successfully Work with Difficult Insurance Adjusters
Amidst the roaring winds and crashing waves of the restoration industry, there exists a tale of how contractors and insurance adjusters, like seasoned sailors, can navigate the storm and chart a course to successful collaboration. However, for many restoration contractors, working with difficult insurance adjusters can pose unique challenges. There are many practices and strategies…
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Top Collections Strategies for Restorers
In the latest issue of C&R Magazine, attorney and collections expert Angela Bajramaj tackles one of restorers’ biggest challenges – getting paid – in the article “Top Collections Strategies for Restorers.” The key to successful collections, according Bajramaj, lies in setting realistic expectations, implementing effective communication, and thoroughly documenting throughout the project. Collecting payment starts…
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Preparing Restoration Contractors for Hurricane Season: Essential Steps for Success
As hurricane season approaches in the United States, restoration contractors face a unique set of challenges and opportunities. With the potential for widespread property damage and increased demand for their services, contractors must be well-prepared in order to thrive in the aftermath of these powerful storms. From understanding licensing laws and lien requirements to implementing…
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Law Offices of Ed Cross Now Serving Restorers in Michigan
Detroit, Michigan, May 17, 2023 – The Law Offices of Edward H. Cross is excited to announce that Michigan attorney, Angela Bajramaj, has joined the firm as a partner and will run the firm’s new office in Detroit. Angela is a restoration collections expert. For eight years before joining the firm, Angela served as Corporate…
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Pennsylvania Decides Again that Assignments of Bad Faith to Restorers are Valid
Pennsylvania Federal Court held that bad faith claims could be assigned to a third party, such as a restoration company, who alleged injury from the insurer’s conduct in adjusting the claim. State Farm Fire and Casualty Company (“State Farm”) insured 1133 Columbia LLC’s property (“Columbia”). Royal Water Damage Restoration (“Royal Water”) performed mitigation, remediation, and…
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Cross Examination: Don’t Let Your Cats Turn Into Dogs
How to Manage the Risks of Catastrophe Recovery Work Entering the CAT world is one of the riskiest business decisions a contractor can make. If you plan to pick up your business and move it to a disaster area for a month or more, you must consider everything. Many contractors race to the disaster area…
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Cal OSHA Reminds Employers to Protect Workers from Unhealthy Air due to Wildfire Smoke
California Occupational Safety and Health Administration (Cal OSHA) reminds employers to be prepared to protect workers from unhealthy air before a wildfire occurs. Harmful air quality from wildfire smoke can occur anywhere in California on short notice. California experienced two of its largest wildfires in the past two years: The Dixie Fire in 2021 burned…
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Sanitizing and Disinfecting Service Companies Need Pest Control Business License
California Expands Licensure Requirements California Restoration businesses may be required to obtain another license.”Companies and individuals that advertise, solicit, or perform sanitizing or disinfecting services (such as COVID-19 applications) must hold a Pest Control Business License with the California Department of Pesticide Regulation (DPR) and register with the local County Agricultural Commissioner in each and…
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National Contractor Licensing Agency Coordinated Sting Operations Across the Nation
The National Association of State Contractors Licensing Agencies (NASCLA) coordinated sting operations resulting in 775 cases of violating state licensing requirements. This synchronized national enforcement effort targeted: Arizona, California, Connecticut, District of Columbia, Florida, Mississippi, Nevada, North Carolina (2), Oregon, Texas, and Utah. The intention was to combat “the increased illegal unlicensed activity nationally” and…
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Jordan v. Allstate Ins. Co.: Failure to Conduct a Full, Fair, and Thorough Investigation on a Claim?
Most insurance policies contain terms that are hard to understand, and the policies are often written ambiguously and confusingly. Besides providing coverage, policies also assign responsibilities to the insured and duties to the insurer. One duty is the implied covenant of good faith and fair dealing. A moniker for the breach of this covenant is…
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Allstate Pays Contractor $335,000 to Settle Dispute Over $33,000 Restoration Invoice – C&R
SANTA ANA, CA – Allstate Insurance Company has paid $335,000 to settle an insurance bad faith lawsuit filed by an Orange County, California property damage restoration contractor with an Assignment of Insurance Rights (AOR) that included an assignment of benefits. The case arose from a $250,000 insurance claim for a fire that burned part of…
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How to NOT Get Roasted in a Deposition
5 Tips for the Subpoenaed & a Music Video A deposition can be a traumatic experience. Depositions are a tool used by the parties to gather oral evidence during the discovery process. Not only could the process of being deposed be excruciating, but it could also be expensive. If you have a looming deposition, it…
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Unlicensed California Contractors Get Nailed in Statewide Sting Operations
In California, it’s illegal for an unlicensed person to bid for or perform any home improvement valued at $500 or more in combined labor and material costs. The Contractors State License Board (CSLB) licenses and regulates almost 290,000 contractors in California and is one of the leading consumer protection agencies in the United States. In…
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Cross-Examination: Who is in Charge of Setting Restoration Prices?
‘We Don’t Pay for That.’ Why DON’T you Pay for That? The insurance industry is legally required to adapt to what the restoration industry charges. It is not the other way around. Carriers need an objectively reasonable justification for denial of claims decisions or they face liability for insurance bad faith. “When restorers allow insurers…
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Cross Examination: Are Work Authorizations Really Contracts?
There is continuous confusion about work authorizations and contracts. A work authorization authorizes the restorer to enter and do the work. A contract is an agreement between 2 or more parties intending to be legally enforceable. Work Authorization + Payment Clause ? Contract. The purpose of a contract, especially when thought out intentionally, is to…
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Uncle Ed Pleads With You for Better Documentation
Break the Vicious Circle With Insurance Adjusters “Let’s face it; the property damage insurance claim environment has become increasingly adversarial in recent years. There is plenty of blame to go around. Some adjusters are too heavy-handed in adjusting and some restorers are too heavy-handed in billing. Insurers who routinely chop 25% off every restoration invoice…
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Don’t Be a Restoration Cannibal
Restorers complain that insurance companies pay too little and don’t treat them fairly, but some restorers contribute to the problem by pandering to insurance companies and foolishly undercutting the value of restoration services. Not only are these cannibal restorers driving down prices but they have started driving the homeowners against them too. Homeowners have started…
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1 minute tip on Mechanics Liens
A mechanic lien is a security interest against real property recorded in favor of a party who prepared or improved that real property. It constitutes an encumbrance against the legal title on the property. Liens are often invalid because they are not timely recorded. Don’t take chances or rely on guesswork when filing a lien.…
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Restorer Defeats State Farm
This video was initially released in 2010, yet this problem is still common in the restoration industry; Monday morning quarterbacking by adjusters and competitors throwing criticism about the work being done or the price being charged. They throw judgment at the first responders who witnessed and inspected the actual emergency firsthand. Courts place a high…
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How is RIA helping restorers in 2022?
R&R’s Valerie King gets the low down on the RIA initiatives being tackled this year. A few initiatives discussed include: Developing career pathways with the IICRC New position papers such as the New Construction Price List Industry Key trends and the RIA 2022 International Restoration Convention in April. Watch the podcast here to get the highlights of all that RIA is…
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Enforceability of Assignments of Benefits
Clarifying CA v. Montgomery-Sansome In December 2021, a California trial court decision caused confusion in some circles regarding contractors’ use of Assignments of Benefits (AOB). The case, entitled California v. Montgomery-Sansome, is not about AOBs. The case is about illegal public adjusting and the failure to comply with California’s strict rules about what must be…
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Maximize Restoration Collections
Collection Hassles? Along with high quality workmanship and good people skills, good contracts and documentation are the most important tools to prevent collection hassles such as, operational inconsistency, strained customer relations and expensive and time-consuming legal controversy. They should be professionally-prepared and reviewed annually by an attorney. This adds a layer of protection in the…
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California’s Debt Collection License
Debt Collection License for Restorers? The Debt Collection Licensing Act (DCLA) takes effect on January 1, 2022 and requires licenses of those who, in the ordinary course of business, are “regularly” engaged in the business of collecting debts owed by individuals for goods and services, subject to certain exceptions. This act stems from SB-908. The…
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How to Save Your Bacon with a Strong Release of Liability | Cross Examination with Ed Cross
There is sometimes a temptation to incorporate releases and waivers into the contracting process when restorers are faced with either high demand or extenuating circumstances, including natural disasters. Releases came to the forefront of the national restoration conversation this year when the polar vortex caused widespread unexpected damage, primarily from pipe breaks, in the great…
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C&R Magazine In-Depth Coverage On: The Key to Recovering Fair Market Value for Restoration Services
Want stronger rights to payment for your job? Policyholders running off with policy proceeds and not paying you? An Assignment Is Your Best Protection! I am excited to share this article, and podcast/video interview, from Cleaning & Restoration Magazine, by the incredibly talented Michelle Blevins. An assignment makes you the owner of the insurance proceeds.…
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Healthy Buildings Conference Bridges The Gap Between Research & Practice
Healthy Buildings America is LIVE AND IN-PERSON January 18-20, 2022, in Honolulu!!! This event brings leading scientists together with restorers for lively exchange about the latest methodologies and technologies. This groundbreaking conference will connect the scientific research of ISIAQ’s core membership with the experience of practitioners and technicians in the fields of IAQ pertaining to ventilation,…
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Former Claims Adjusters Recount Fraudulent Claims Handling Practices
Former Insurance adjusters testified, February 2021 to Washington state lawmakers, in support of House Bill 1428, giving first hand accounts of the corruption and fraud in the claims handling world. Both claims professionals gave testimony that was contrary to the Insurance Industry’s reports regarding the “adequate protection,” and “the desire among insurers to provide quality service at…
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Han v. State Farm Fire and Casualty Company
A class action claims State Farm Fire and Casualty Company has wrongfully used lower “new construction” estimates in paying claims for projects that amount to “reconstruction” of damaged property. State Farm obtained estimating data from Xactware reflecting that over the past six years, State Farm estimated over $90 million in repair damage replacement costs using…
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How to Set Customer Expectations in a COVID Cleanup Contract
Many uncertainties surround efforts to control the dreaded coronavirus in an indoor environment. Customers who hire professionals have high expectations, but the professionals cannot see, smell, or photograph the virus, so it is difficult to prove the necessity or the success of the work. This increases the chances of misunderstandings that create liability risks to service…
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Contractors State License Board Catches One Hundred and Sixty-Nine Suspects in Series of Statewide Contractor Stings and Sweeps
Source: CSLB SACRAMENTO – One hundred and sixty-nine legal actions were taken against both licensed and unlicensed contractors after the Contractors State License Board (CSLB) conducted three undercover sting operations and 46 sweep operations around California. The enforcement actions, which took place between June 3 and June 25, 2019, were part of a nationwide effort coordinated by the National…