SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Alleging Property Damage in Construction Defect Lawsuit

September 14, 2020 — David Adelstein - Florida Construction Legal Updates
When there is a construction defect lawsuit, there is an insurance coverage issue or consideration. As I have said repeatedly in other articles, it is all about maximizing insurance coverage regardless of whether you are the plaintiff prosecuting the construction defect claim or the contractor(s) alleged to have committed the construction defect and property damage. It is about triggering first, the insurer’s duty to defend, and second, the insurer’s duty to indemnify its insured for the property damage. The construction defect claim and lawsuit begins with how the claim and, then, lawsuit is couched knowing that the duty to defend is triggered by allegations in the lawsuit (complaint). Thus, preparing the lawsuit (complaint) is vital to maximize the insurer’s duty to defend its insured. In a recent opinion out of the Eleventh Circuit, Southern-Owners Ins. Co. v. MAC Contractors of Florida, LLC, 2020 WL 4345199 (11th Cir. 2020), a general contractor was sued for construction defects in the construction of a custom home. A dispute arose pre-completion and the owner hired another contractor to complete the house and remediate construction defects. The contractor’s CGL insurer originally provided a defense to the general contractor but then withdrew the defense and filed an action for declaratory relief asking for the declaration that it had no duty to defend the contractor because the underlying lawsuit did NOT allege property damage. The trial court agreed with the contractor and granted summary judgment in its favor finding that the underlying complaint did not allege property damage beyond defective work. But, on appeal, the Eleventh Circuit reversed. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

---

Lockton Expands Construction and Design Team

July 19, 2011 — CDJ STAFF

Lockton Companies, LLC, the largest privately held independent insurance broker, has announced that it is expanding its construction and design team with the hiring of Karen Erger and Tom Miller.



Ms. Erger will provide professional liability practice management, loss prevention, contract and complex claims management consulting services to Lockton's architectural, engineering and construction clients in her role as Vice President, Director of Practice Management. Her background includes construction litigation at a leading construction law firm, professional liability claims defense and claims consulting for major professional liability underwriters.



Miller joins Lockton as a Senior Vice President within the Design and Construction Unit. His role will be dedicated to serving the needs of engineering, architecture and construction firms performing services around the globe. He has spent more than 15 years concentrating on professional liability for design professionals and contractors in multiple roles. He previously managed the professional liability underwriting of one of the largest construction insurers and has developed numerous manuscript insurance products as well as focused on strategic planning to enhance business unit opportunities.



Read the full story…

Read the court decision
Read the full story...
Reprinted courtesy of

---

Drones Give Inspectors a Closer Look at Bridges

January 02, 2019 — Aileen Cho - Engineering News-Record
Ted Zoli, national chief bridge engineer with HNTB, compares bridge inspections to taking his kids to the doctor. “Every few years you take another set of pictures of the bridge, and ultimately you can pattern it. You pay attention in a deeper way to responses, and have a record.” But like parents who don’t want to send kids to the doctor at the first sign of a sniffle, once managers understand the characteristics of a bridge and its behavior, they don’t need to do constant in-depth reinspections. They are constantly looking for ways to make better decisions with the data they already have. “We spend a lot of money inspecting bridges,” says Zoli. “The question becomes whether there is a more technologically efficient way to do it.” Read the court decision
Read the full story...
Reprinted courtesy of Aileen Cho, ENR
ENR may be contacted at ENR.com@bnpmedia.com

---

Musings: Moving or Going into a New Service Area, There is More to It Than Just…

July 16, 2023 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Construction Law Musings, we would like to welcome back (again) Sean Lintow Sr. (@The_HTRC) Sean has over 20 years in the construction and project management fields. As many know he pulled up stakes and moved to the State of Illinois almost a year ago where he still focuses on the “green” / energy efficiency markets by helping builders & trade professionals to improve their methods not only locally but nationally. Currently he is RESNET Rater, AEE CEA (Certified Energy Auditor), ENERGY STAR partner & verifier, EPA Indoor airPLUS verifier, Level 2 Infrared Thermographer, Volunteer Energy Rater for Habitat for Humanity, and Builders Challenge Partner & Verifier. I would like to thank Chris for inviting me back as a guest poster. One item that struck a bell with me lately was his recent post for contractors considering work in another state is to check that states contractor licensing laws. Part of me was just saying – ahh if it were just that simple… With that in mind, here are some additional thoughts of mine along with advice picked up and given to others considering a move to greener pastures in another state, another town or maybe even taking that sweet little project outside of your current area that seems too good to pass up. Licensing: Yep this is a no-brainer – but unfortunately, as I pointed out in a 2012 piece it isn’t always that simple as in some cases the state may not require licensing and instead leave it to the towns which can be real fun to figure out. How long will it take to obtain? Ahh, but what about other licenses that a township may require? Working on a pre-78 house – is the state a self-managed one or is your current EPA certificate and training good enough? (Living in a self-managed state but working on an Indian Reservation? Well you will need to be EPA certified) Does the area require a specialty Storm Water Certificate or??? Read the court decision
Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

---

Court of Appeals Issues Decision Regarding Second-Tier Subcontractors and Pre-Lien Notice

February 06, 2023 — Travis Colburn - Ahlers Cressman & Sleight
Velazquez Framing, LLC (“Velazquez”) v. Cascadia Homes, Inc. (“Cascadia”) is a Court of Appeals, Division 2 case where the primary issue on appeal was whether a second tier subcontractor was required to provide pre-lien notice under RCW 60.04 for its labor. The defendant, Cascadia, was the general contractor that planned to build a home on property it owned in Lakewood, Washington.[1] High End Construction, LLC (“High End”), submitted a bid to Cascadia for framing work on the home. High End began work on Cascadia’s home, but later subcontracted with Velazquez to complete the framing work.[2] Velazquez did not submit a prelien notice for its work on Cascadia’s home, and Cascadia claimed it was unaware that High End subcontracted with Velazquez for framing at the project. High End invoiced Cascadia and was paid for its work, but High End never paid Velazquez. Subsequently, Velazquez recorded a lien for both labor and materials, and later filed a complaint to foreclose its lien. Cascadia, due to the fact Velazquez did not provide it with prelien notice, moved for summary judgment, arguing prelien notice was required under RCW 60.04.031(1)[3] and the labor portion of a lien cannot be segregated where a subcontractor’s lien includes both labor and materials. Velazquez argued that no prelien notice was required under RCW 60.04.021[4] and RCW 60.04.031 and claimed that subcontractors can segregate the labor portion from the materials portion. The trial court granted Cascadia’s motion and ruled Velazquez did not fall within one of the exceptions for prelien notice in RCW 60.04.031(2), and therefore, could not enforce the lien. Velazquez appealed. Read the court decision
Read the full story...
Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

---

Chambers USA 2023 Recognizes Six Partners and Three Practices at Lewis Brisbois

June 19, 2023 — Lewis Brisbois Newsroom
New York, N.Y. (June 6, 2023) – Six Lewis Brisbois partners and three Lewis Brisbois practices were recently ranked by Chambers in its 2023 USA rankings list. Kansas City & Wichita Managing Partner Alan L. Rupe and Phoenix Managing Partner Carl F. Mariano were both ranked Band 1 for “Labor & Employment – Kansas” and “Insurance – Arizona,” respectively. Phoenix Partner Gina M. Bartoszek was ranked Band 2 for “Insurance – Arizona.” Washington, D.C. Managing Partner Jane C. Luxton and Minneapolis Partner Tina A. Syring were both ranked Band 4 for “Environment – District of Columbia” and “Labor & Employment – Minnesota,” respectively. Additionally, Washington, D.C. & Fort Lauderdale Partner J. Mario Fontes, Jr. was ranked Band 5 for “Corporate/M&A & Private Equity – Florida: South.” Read the court decision
Read the full story...
Reprinted courtesy of Lewis Brisbois

---

Ohio Court Finds No Coverage for Construction Defect Claims

March 01, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Charles and Valerie Myers hired Perry Miller to build their home. Myers v. United Ohio Ins. Co., 2012 Ohio App. LEXIS 287 (Ohio Ct. App. Jan. 26, 2012). After completion of the home, Miller was again hired to construct an addition which included a full basement, staircases, bathroom, bedroom, hallway and garage.



After the addition was completed, one of the basement walls began to crack and bow. Miller began to make repairs, but eventually stopped working on the project. Other contractors were hired to make repairs, but further problems developed. A second basement wall began to bow and crack, allowing water into the basement. The wall eventually had to be replaced. Subsequently, the roof over the addition began to leak in five or six places before the drywall could be painted. The leaks caused water stains on the drywall and cause it to separate and tear. It was discovered the roof needed to be replaced.



The Myers sued Miller and his insurer, United Ohio Insurance Company. The trial court ruled that the policy did not provide coverage for faulty workmanship, but did provide coverage for consequential damages caused by repeated exposure to the elements. United Ohio conceded liability in the amount of $2,000 to repair water damage to the drywall. United Ohio was also found liable for $51,576, which included $31,000 to repair the roof and ceiling and $18,576 to replace the basement wall.

Read the full story…



Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

 Read the court decision
Read the full story...
Reprinted courtesy of

---

Depreciation of Labor in Calculating Actual Cash Value Against Public Policy

February 16, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insurer's depreciation of labor in the calculation of actual cash value was found to be against Arkansas public policy. Shelter Mut. Ins. Co. v. Goodner, 2015 Ark. LEXIS 460 (Ark. Dec. 10, 2015). Shelter Mutual's policy provided that it would pay the insured "the actual cash value of all the damaged parts of the covered property." "Actual cash value" was defined as "total restoration cost less depreciation." The policy explained, "When calculating depreciation, we will include the depreciation of the materials, the labor, and the tax attributable to each party which must be replaced to allow for replacement of the damaged part, whether or not that part is damaged." Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---