Seattle Washington Building Expert Directory

Hawaii Supreme Court Tackles "Other Insurance" Issues

February 25, 2014 — Tred Eyerly – Insurance Law Hawaii
Responding to four certified questions from the Ninth Circuit, the Hawaii Supreme Court addressed various issues raised by competing "other insurance" provisions in two CGL policies. Nautilus Ins. Co. v. Lexington Ins. Co., 2014 Haw. LEXIS 59 (Haw. Feb. 13, 2014). Coverage for a development on Maui was at issue. The developer, VP & PK (ML) LLC, was insured by Lexington. The other insurance provision in Lexington's policy provided it was excess over "any other primary insurance available to you covering liability for damages arising out of the premises . . . for which you have been added as an additional insured." Kila Kila Construction was one of VP & PK's subcontractors. Kika Kila was not an additional insured under Lexington's policy. Kila Kila had its own CGL policy with Nautilus. The Nautilus other insurance clause stated the insurance was excess over "any other primary insurance available to you covering liability arising out of the premises or operations for which you ahve been added as an additional insured." An endorsement added VP & PK as an additional insured, but only for liability arising out of Kila Kila's negligence. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Zurich American Insurance Company v. Ironshore Specialty Insurance Company

October 05, 2020 — Michael Velladao - Lewis Brisbois
In Zurich American Ins. Co. v. Ironshore Specialty Ins. Co., __F.3d__(July 2, 2020), the United States Ninth Circuit Court of Appeals certified the following questions to the Nevada Supreme Court in connection with a contribution action for defense costs filed by Zurich American Insurance Company and American Guarantee & Liability Insurance Company (“Zurich”) against Ironshore Specialty Insurance Company (“Ironshore”) with respect to the defense and settlement of 14 construction defect lawsuits on behalf of eight subcontractors (“lawsuits”) insured by both companies:

Whether, under Nevada law, the burden of proving the applicability of an exception to an exclusion of coverage in an insurance policy falls on the insurer or the insured? Whichever party bears such a burden, may it rely on evidence extrinsic to the complaint to carry its burden, and if so, is it limited to extrinsic evidence available at the time the insured tendered the defense of the lawsuit to the insurer?

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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

Structural Failure of Precast-Concrete Span Sets Back Sydney Metro Job

February 23, 2017 — Chris Webb - Engineering News-Record
A key component of Australia’s biggest public transport infrastructure project—Sydney’s $6.3-billion Metro North West—is the subject of a critical and detailed technical report describing how an elevated viaduct span failed at a stitch joint between two precast segments during construction last September. Project officials say the affected span, which did not suffer a progressive collapse, has since been removed and its replacement fast-tracked to avoid further delays. Little additional detail was provided. Read the court decision
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Reprinted courtesy of Chris Webb, ENR
ENR may be contacted at ENR.com@bnpmedia.com

10 Answers to Those Nagging Mechanics Lien Questions Keeping You Up at Night. Kind of

November 05, 2014 — Garret Murai - California Construction Law Blog
Construction lawyers may not ponder the great questions in life. We leave that to the estate planning attorneys. But ponder we do. And the next case, as I’ll explain below, “kind of” answers 10 important mechanics lien questions we construction attorneys toss and turn over at night. Background In Palomar Grading & Paving, Inc. v. Wells Fargo Bank, Case Nos. G049907 and G049910 (October 14, 2014), developer Inland-LGC Beaumont, LLC (“Inland”) hired general contractor 361 Group Construction Services, Inc. (“361″) to construct a Kohl’s department store in Beaumont, California. The Kohl’s department store was to be constructed on one parcel of a three-parcel tract. Inland later sold the parcel on which the Kohl’s department store was to be located to Kohl’s and the two other parcels were later acquired by Wells Fargo who foreclosed on the construction loan for the project. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

Seattle Condos, Close to Waterfront, Construction Defects Included

February 11, 2013 — CDJ STAFF
There's a cluster of eight condominium projects in Seattle, some within easy walking distance of each other, that are either in construction defect lawsuits, arbitration, or mediation. Jeff Reynolds, contributing a Seattle PI.com reader blog, notes that as Seattle condo projects have neared the end of the four-year warranty period, condo boards are being targeted by attorneys. Reynolds writes that "once [the attorneys] are hired by the associations, they retain specialists that test for any and all construction defects with the building envelope." The problem that Reynolds sees is that that "major lending institutions stay away from condos with lawsuits." And so homeowners dealing with construction defects have apartments they can't sell to anyone who might want to use financing. This tightens Seattle's already limited inventory, leading to both frustrated sellers and frustrated buyers. Read the court decision
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Flood Policy Does Not Cover Debris Removal from Property

May 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Third Circuit affirmed the granting summary judgment to the insurer over a dispute as to debris removal under a Standard Flood Insurance Policy (SFIP). Torre v. Liberty Mut. Fire Ins. Co., 2015 U.S. App. LEXIS 4902 (3rd Cir. March 26, 2015). The Torres' property sustained substantial damage from Hurricane Sandy. Claims for flood damage were submitted to Liberty. Liberty paid a total of $235,751.68, which included the cost of removing debris from the house. An additional $15,520 for the cost of removing sand and other debris deposited on their land in front of and behind the Torres' home was denied on the grounds that the SFIP did not cover such removal. The Torres filed suit and cross-motions for summary judgment were filed. The district court denied the Torres' motion and granted Liberty's motion. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

AB 3018: Amendments to the Skilled and Trained Workforce Requirements on California Public Projects

February 18, 2019 — Alex R. Bagdassarian & Nathan A. Cohen - Peckar & Abramson
What California Contractors Need To Know About AB 3018 California contractors used to face limited consequences for non-compliance with the state’s skilled and trained workforce requirements on public works projects. A sea-change to the statutory landscape went into effect on January 1, 2019 as a result of Assembly Bill No. 3018 (“AB 3018”).1 The Code re-defines what constitutes a skilled/trained workforce by eliminating existing exemptions, strengthens monthly reporting guidelines and agency oversight, and empowers the Labor Commissioner and public agencies with enforcement tools that include monetary penalties and debarment. Contractors who fail to institute a program to comply with AB 3018’s reporting requirements do so at their peril. What Does The 30% Requirement Mean? Previously, in order to comply with the skilled workforce requirements2, 30% of skilled journeypersons had to be graduates of an apprenticeship program, except for certain listed trades which were exempt from the apprenticeship percentage requirement3. AB 3018 eliminates this exception for the listed occupations and requires 30% of all trades to be comprised of apprenticeship program graduates. Reprinted courtesy of Alex R. Baghdassarian, Peckar & Abramson and Nathan A. Cohen, Peckar & Abramson Mr. Baghdassarian may be contacted at Abaghdassarian@pecklaw.com Mr. Cohen may be contacted at ncohen@pecklaw.com Read the court decision
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California Supreme Court Finds that the Notice-Prejudice Rule Applicable to Insurance is a Fundamental Public Policy of the State

October 14, 2019 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Pitzer College v. Indian Harbor Ins. Co. (No. S239510, filed 8/29/19), the California Supreme Court held that California’s notice-prejudice rule is a fundamental public policy in the insurance context, supporting the application of California law under a choice of laws analysis. In addition, the Court held that the rule generally applies to consent (aka “no voluntary payments”) provisions in first party insurance policies but not to consent provisions in third party liability policies. Pitzer College discovered soils contamination while building a new dormitory. Under pressure to complete construction before the start of the school year, Pitzer proceeded to remediate the soils, incurring $2 million in expense. Pitzer submitted a claim to Indian Harbor, which provided Pitzer insurance covering legal and remediation expenses resulting from pollution conditions discovered during the policy period. The policy contained a notice provision requiring Pitzer to provide oral or written notice of any pollution condition to Indian Harbor and, in the event of oral notice, to “furnish … a written report as soon as practicable.” In addition, a consent provision required Pitzer to obtain Indian Harbor’s written consent before incurring expenses, making payments, assuming obligations, and/or commencing remediation due to a pollution condition. The consent provision had an emergency exception for costs incurred “on an emergency basis where any delay … would cause injury to persons or damage to property or increase significantly the cost of responding to any [pollution condition],” in which case Pitzer was required to notify Indian Harbor “immediately thereafter.” Lastly, a choice of law provision stated that New York law governed all matters arising under the policy. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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