SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Covenant of Good Faith and Fair Dealing Applied to Pass-Through Agreements

June 19, 2023 — Scott D. Cessar - Construction Executive
Pass-through claims are claims by a party that has suffered damages but does not have a contractual relationship with the entity that caused the damages. In the construction industry, subcontractors commonly have claims for additional costs based on actions or inactions by the owner. However, since the subcontractor is not in privity of contract with the owner, it has no direct cause of action against the owner other than, perhaps, on a nongovernment project, a lien claim. In such cases, subcontractors may seek to pass the claim through the general contractor, who is in privity with the owner, to the owner. Indeed, many construction contracts require the subcontractor, in such cases of owner-caused damages, to pass the claim through the general contractor to the owner. And since the harm visited on a subcontractor by the owner usually also affected the general contractor, the subcontractor’s claim is packaged together with the general contractor’s claim, which is usually greater, for presentation to the owner and, if not resolved, litigation with the owner. Reprinted courtesy of Scott D. Cessar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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COVID-19 Is Not Direct Physical Loss Or Damage

April 13, 2020 — Joseph Blyskal, Dennis Brown & Michelle Bernard - Gordon & Rees Insurance Coverage Law Blog
Is a cash register that is not being used damaged property? When you need to wash a table, a chair, or a section of flooring with readily available cleaning products to make them safe and useable, are you repairing damaged property? Is a spilled cup of coffee waiting to be wiped up actual damage to the premises? If your customers stay home to help stop the spread of a virus, has there been a physical loss inside your shuttered store or restaurant? The insuring agreements typically found in commercial property insurance policies require “direct physical loss of or damage to” covered property as the triggering event. Without establishing direct physical loss or damage a policyholder cannot meet its burden to trigger coverage for a purely economic loss of business income resulting from shuttering its business due to concerns over exposure to—or even the actual presence of—COVID-19. Despite this well-understood policy language, it is already beyond question that insurers will confront creative—albeit strained—arguments from policyholder firms attempting to trigger coverage for pure economic loss. The scope of the human and economic tragedy we all face will be matched by the scope of the effort to force the financial harm onto insurance companies. The plaintiffs in what appears to be the first-filed case seeking a declaratory judgment in the context of first-party insurance coverage rely on the assertion that “contamination of the insured premises by the Coronavirus would be a direct physical loss needing remediation to clean the surfaces” of its establishment, a New Orleans restaurant, to trigger coverage for business interruption.[1] See Cajun Conti, LLC, et. al. v. Certain Underwriters at Lloyd’s, London, et. al. Civil District Court for the Parish of Orleans, State of Louisiana. The complaint alleges that the property is insured under an “all risk policy” defining “covered causes of loss” as “direct physical loss.” The plaintiffs rely on the alleged presence of the virus on “the surface of objects” in certain conditions and the need to clean those surfaces. They go so far as to claim that “[a]ny effort by [the insurer] to deny the reality that the virus causes physical damage and loss would constitute a false and potentially fraudulent misrepresentation. . . .” Reprinted courtesy of Gordon & Rees attorneys Joseph Blyskal, Dennis Brown and Michelle Bernard Mr. Blyskal may be contacted at tblatchley@grsm.com Mr. Brown may be contacted at dbrown@grsm.com Ms. Bernard may be contacted at mbernard@grsm.com Read the court decision
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HB 20-1046 - Private Retainage Reform - Postponed Indefinitely

May 04, 2020 — David M. McLain – Colorado Construction Litigation
On Tuesday, February 18th, the Colorado House Business Affairs & Labor Committee voted 10-0 to postpone indefinitely House Bill 1046. If it had been enacted, HB 1046 would have required, for all for all construction contracts of at least $150,000:

• A property owner to make partial payments to the contractor of any amount due under the contract at the end of each calendar month or as soon as practicable after the end of the month;
• A property owner to pay the contractor at least 95% of the value of satisfactorily completed work;
• A property owner to pay the withheld percentage within 60 days after the contract is completed satisfactorily;
• A contractor to pay a subcontractor for work performed under a subcontract within 30 calendar days after receiving payment for the work, not including a withheld percentage not to exceed 5%;
• A subcontractor to pay any supplier, subcontractor, or laborer who provided goods, materials, labor, or equipment to the subcontractor within 30 calendar days after receiving payment under the subcontract; and
• A subcontractor to submit to the contractor a list of the suppliers, sub-subcontractors, and laborers who provided goods, materials, labor, or equipment to the subcontractor for the work.

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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Minnesota Civil Engineers Give the State's Infrastructure a "C" Grade for the Second Time

May 02, 2022 — American Society of Civil Engineers
SAINT PAUL, Mn. — The Minnesota Section of the American Society of Civil Engineers (ASCE) today released preliminary findings from the 2022 Report Card for Minnesota's Infrastructure, with 10 categories of infrastructure receiving an overall grade of a 'C', meaning Minnesota's infrastructure is in mediocre condition. Minnesota has taken steps to make its infrastructure network more sustainable to withstand increasingly severe weather, but additional steps must be taken as the state's infrastructure is aging. Funding has been limited for systems throughout the state, particularly for surface transportation networks, and local and state funding must be increased to bring these critical systems up to speed. Civil engineers graded aviation (B), bridges (C), dams (C), drinking water (C-), energy (C), parks (B-), ports (C-), roads (D+), transit (C-) and wastewater (C). "The ASCE report card serves as an important benchmark for where our infrastructure currently stands and lays out how we can make improvements," said Sen. Sandy Pappas, DFL-St. Paul. "Knowing that these systems play such a crucial role in economic progress and the safety of Minnesotan families, we have made infrastructure a topline issue and must continue to do so to secure a prosperous future here in Minnesota." ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Apprentices on Public Works Projects: Sometimes it’s Not What You Do But Who You Do the Work For That Counts

September 17, 2015 — Garret Murai – California Construction Law Blog
If you’re a public works contractor in California you’re familiar with prevailing wages. The Prevailing Wage Law, a Depression era law designed to encourage the hiring of local labor, sets a minimum wage that employers must pay to workers on public works projects. But because the Prevailing Wage Law sets a floor on wages it also limits the opportunity for lesser-skilled workers to gain experience. To address this, the Prevailing Wage Law permits contractors to pay apprentices a lower “apprentice wage” if the apprentice is enrolled in a state-approved apprenticeship program and requires contractors who hire workers in an “apprenticeable craft or trade” to hire a certain number of apprentices. But are particular apprentices required to be hired depending on the type of work being performed? In Henson v. C. Overaa & Company, Case No A139966 (June 29, 2015), the California Court of Appeals for the First District held that apprentices are required to be hired based on the craft or trade of the journeymen performing work not based on the type of work being performed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Workers Hurt in Casino Floor Collapse

February 10, 2012 — CDJ STAFF

More than a dozen construction workers fell about thirty feet when a floor collapsed in a Cincinnati casino. The workers were pouring cement on the second-floor level when the accident happened. The area in question will be the gaming area in the completed casino. Scott Allen, OSHA’s regional spokesperson, said their investigation of the accident would probably take about a month to complete.



The cause of the collapse is still undetermined. Although the weather has been wet in the area, experts thought it unlikely to be the cause. A construction forensics professor at Ohio State University said that “concrete pouring is very common” and that “you cannot go wrong unless something happens with the connection.” Engineering experts said it was more likely an issue with the metal decking.

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Hunton Insurance Partner Among Top 250 Women in Litigation

October 05, 2020 — Hunton Insurance Recovery Blog
Benchmark Litigation recently identified the Top 250 Women in Litigation. The list is based on an extensive research process, feedback from clients, and one-on-one interviews. Benchmark has identified the litigators who have participated “in some of the most impactful litigation matters in recent history” and have earned “hard-won respect of their peers and clients.” Lorelie S. Masters was included in the list for the seventh time. Reprinted courtesy of Hunton Andrews Kurth LLP Read the full story... Read the court decision
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Famed NYC Bridge’s Armor Is Focus of Suit Against French Company

January 18, 2021 — Joel Rosenblatt - Bloomberg
French construction giant Vinci SA faces allegations it’s partly to blame for the degradation of the armor installed on New York City’s Kosciuszko Bridge to protect against terrorist attacks and accidents. Hardwire LLC, a Baltimore company that bid unsuccessfully on the project, previously sued one of its former executives for allegedly stealing its proprietary technology for bridge armor so he could win the contract. On Tuesday, Hardwire sought permission to add two units of Vinci to the suit, which claims damages of more than $40 million. The armor is “splitting, delaminating, and is in danger of falling off,” causing a “clear and present danger,” according to the proposed revised complaint filed in federal court in Maryland. The separation “leaves significant vulnerabilities for the bridge cable.” Read the court decision
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Reprinted courtesy of Joel Rosenblatt, Bloomberg

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