SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

No Coverage for Roof Collapse During Hurricane

January 29, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit affirmed the district court's determination that the insured's roof collapse was not covered. Exclusive Real Estate Inv., L.L.C. v. S.G.L. No. 1, Ltd., 2023 U.S. App. LEXIS 29368 (5th Cir. Nov. 3, 2023). A building owned by Exclusive Real Estate partially collapsed during a rain-storm. The insurer, SGL, inspected the roof and determined that there was no coverage. Exclusive sued SGL for breach of contract and bad faith. SGL moved for summary judgment, which was granted by the district court. Exclusive appealed. The poicy covered "direct physical loss to the property" caused by windstorms. Exclusions, however, precluded coverage for losses "caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Substitutions On a Construction Project — A Specification Writer Responds

July 03, 2022 — Melissa Dewey Brumback - Construction Law in North Carolina
In response to the post about Substitute Materials on a construction project, Phil Kabza explains how his company, SpecGuy, handles tracking of all such materials on a project. Phil writes: Excellent and important topic, about which there is much confusion among design professionals and contractors. We try to maintain definitions for:

• Pre-bid requests for prior approval of proposed comparable products where products are named in the specifications
• True pre-bid substitution requests that present an alternate type of product from that specified (ie., not “comparable” but perhaps suitable)
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

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Las Vegas, Back From the Bust, Revives Dead Projects

June 11, 2014 — Brian Louis – Bloomberg
For almost five years, the desert plot at the western edge of the Las Vegas valley was home to hulking steel skeletons -- ghostly ruins of a construction project halted by the recession. Now the 106-acre (43-hectare) site bustles with hundreds of workers building the first phase of Downtown Summerlin, an office, entertainment and retail complex that’s scheduled to open in October. Howard Hughes Corp. (HHC) revived the development last year after the previous owner, General Growth Properties Inc., shut it down in 2008. The commercial real estate market in Las Vegas, littered with vacant buildings and abandoned construction sites by overreaching developers during the U.S. property crash, is coming back to life as the local economy improves and tourists return to the nation’s gambling capital. Blackstone Group LP’s deal to buy the Cosmopolitan resort and Genting Bhd. (GENT)’s proposed resurrection of an abandoned project on Las Vegas Boulevard are further signs of investor confidence in the nascent recovery. Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

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Florida Federal Court to Examine Issues of Alleged Arbitrator Conflicts of Interests in Panama Canal Case

May 24, 2021 — Sarah B. Biser & Philip Z. Langer - ConsensusDocs
The parties in a $238-million dispute over the construction of the third set of locks for the Panama Canal are raising issues concerning alleged conflicts of interest on the part of the International Chamber of Commerce (“ICC”) arbitrators in the United States District Court for the Southern District of Florida.[2] The case may address rarely litigated issues concerning whether arbitrators who sit on multiple arbitration panels together or who support appointment of each other to lead arbitration panels have disabling conflicts of interest. The case pits Grupo Unidos por el Canal, S.A. (“Grupo”), a consortium of Spanish, Italian, Belgian, and Panamanian construction firms, against Autoridad del Canal de Panama (“ACP”), the Panamanian entity that operates the Panama Canal and that sponsored the multi-billion-dollar, decade-long project to expand the Canal’s capacity by building a new set of locks (the “Project”). The current dispute (the “Panama 1 Arbitration”), which centers on the suitability of the rock coming from the excavations to be used to produce concrete aggregates for the Project, was arbitrated before a three-member ICC Tribunal and resulted in a $238-million award to ACP and against Grupo. The ICC Tribunal reversed a decision of the dispute review board established in the parties’ contract. Reprinted courtesy of Sarah B. Biser, Fox Rothschild LLP and Philip Z. Langer, Fox Rothschild LLP Ms. Biser may be contacted at sbiser@foxrothschild.com Mr. Langer may be contacted at planger@foxrothschild.com Read the court decision
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Insurer Wrongfully Denies Coverage When Household Member Fails to Submit to EUO

May 06, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court determined that coverage for a loss by fire could not be denied when the insured's son failed to appear for a examination under oath (EUO). Adekola v. Allstate Vehicle & Prop. Ins. Co., 2024 U.S. Dist. LEXIS 27125 (E.D. Pa. Feb. 16, 2024). Plaintiff had a homeowners policy with Allstate. Plaintiff - Michele Adekola - was the named insured under the policy. After the fire, Allstate provided payments for temporary housing. Allstate requested examinations under oath of Plaintiff and her son, Nico. Plaintiff and her son were examined by Zoom. Allstate then sought to examine Plaintiff's other son, Lemmeco, but these efforts were unsuccessful. Allstate then stopped paying for Plaintiff's temporary housing and informed Plaintiff that Lemmeco's failure to participate in an EUO was a material breach of duties under the policy and the breach was prejudicial to Allstate. Allstate further contended that Lemmeco had a duty to submit to an EUO. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Anti-Concurrent Causation Clause Preserves Possibility of Coverage

January 15, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The policy's anti-concurrent causation clause preserved the possibility of coverage when the insurer's motion for summary judgment to disclaim its indemnity obligation for damage caused by Hurricane Sandy was overturned by the Second Circuit. Madelaine Chocolate Novelties, Inc. v. Great Northern Ins. Co., 2018 U.S. App. LEXIS 29821 (Oct. 23, 2018 2nd Cir. ) In 2012, Madelaine Chocolate suffered significant damage to its business due to storm surges created by Hurricane Sandy. Madelaine Chocolate had an "all-risk" policy issued by Great Northern. Madelaine Chocolate filed a claim for property damage of approximately $40 million and business income loss and extra operation expenses of $13.5 million. Great Northern denied most of the claim, reasoning that the storm surge damage was excluded under the policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Automated Weather Insurance Could Offer Help in an Increasingly Hot World

July 10, 2023 — Michelle Ma - Bloomberg
Carlos José Báez experienced the full brunt of Hurricane Maria when it made landfall in Puerto Rico as a catastrophic storm in 2017. The auto paint shop owner, who lives in Aguas Buenas, Puerto Rico, saw his home badly damaged by Maria’s ferocious winds and rain. Despite submitting claims to his homeowner’s insurance policy for over $25,000, Báez ultimately received a payout of $11,000. “We had a lot of property damage and insurance, but they didn’t want to pay,” Báez said in an interview in Spanish. More than $1.6 billion in insurance claims remained unresolved more than two years after Maria while others were denied completely. The latter happened to Jonathan González’s mother, who waited nearly a year for an adjuster to come take photos of water damage and a broken wheelchair ramp only for the claim to be denied six months later. Read the court decision
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Reprinted courtesy of Michelle Ma, Bloomberg


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The Riskiest Housing Markets in the U.S.

June 26, 2014 — Ben Steverman – Bloomberg
The real estate rollercoaster ride for U.S. homeowners isn't new. Some markets had even rockier rides in the early 1980s or '90s. When so much wealth is tied up in one asset, the risk -- or stability -- of a local market can mean a lot to a homeowner. (See “The Hidden Risks in Your Housing Market” for more on this.)

 Bloomberg.com asked real estate website Zillow.com to help us figure out which U.S. markets have been the riskiest over the last 35 years. Our measure of risk: Assuming buyers held on to their homes for five years before selling, what was their chance of suffering a loss? As a secondary criterion, we compared the worst annual losses homeowners in these markets have experienced since 1979. Read the court decision
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Reprinted courtesy of Ben Steverman, Bloomberg
Mr. Steverman may be contacted at bsteverman@bloomberg.net

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