Seattle Washington Building Expert Directory

KB to Spend $43.2 Million on Florida Construction Defects

August 27, 2013 — CDJ STAFF
In their second quarter filing with the SEC, KB Homes estimates that repairing damage caused by defects in framing, stucco, roofs, and sealant will cost it $43.2 million. That estimate includes homes that are yet to be identified. KB had estimated lower costs earlier, but subsequently determined it was necessary to increase the funds by $15.9. As a result, the firm showed a loss in the second quarter. The company hopes to recover some funds in insurance settlements. Read the court decision
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Dreyer v. Am. Natl. Prop. & Cas. Co. Or: Do Not Enter into Nunn-Agreements for Injuries that Occurred After Expiration of the Subject Insurance Policy

January 20, 2020 — Jean Meyer - Colorado Construction Litigation
While Nunn-Agreements[1] may be appealing for both plaintiffs and defendants where an insurer unreasonably fails to defend a lawsuit, a recent opinion from The Honorable Marcia Krieger in the United States District Court of Colorado[2] (“Opinion”) demonstrates the importance of first confirming that there exists a viable insurance claim before proceeding with such a Nunn- Agreement. The facts giving rise to the Opinion were as follows. In March 2015, a Homeowner couple (the “Homeowners”) suffered damages to their home resulting from a brushfire. Fortunately, the Homeowners were insured, they submitted their claim to their homeowners’ insurance carrier which was in effect at the time of the brushfire (the “Insurance Carrier”), and the Insurance Carrier paid the claim. Ostensibly as part of the Homeowners’ remediation efforts to their home they removed a large bush which left a hole in the ground. After paying the claim, in August 2015 the Insurance Carrier cancelled or elected not to renew the Homeowners’ policy. In October 2015, a repairman working on the Home (the “Repairman”) was injured after his ladder fell over allegedly because of the hole in the ground caused by the bush that had been removed. As a result of injuries caused by the fall from the ladder, the Repairman brought suit against the Homeowners. In response to the Repairman’s claim, the Homeowners again tendered to their Insurance Carrier. This time, however, the Insurance Carrier denied coverage on the basis that the Repairman’s injuries occurred after the expiration of the relevant policy. Without insurance coverage, the Homeowner’s entered into a Nunn-Agreement with the Repairman, conceding liability, and assigning any claims they might have had against the Insurance Carrier in lieu of execution of any judgment against the Homeowners. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

Limitation on Coverage for Payment of Damages Creates Ambiguity

April 03, 2013 — Tred Eyerly
Unable to discern the meaning of a provision stating that payment of damages would be made "through a trial but not any appeal", the court found an ambiguity.Parker v. Am. Family Ins. Co., 2013 U.S. Dist. LEXIS 9085 (D. Ore. Jan. 23, 2013). The homeowners sued the general contractor for defective construction of their home. In November 2008, the homeowners reached a settlement through mediation with the general contractor. The general contractor's claims under its policies with American Family and Mid-Continent were assigned to the homeowners. The homeowners then sued both insurers for breach of insurance contract and/or equitable contribution. American Family moved for summary judgment, claiming the homeowners did not prove their damages claim against the general contractor "through a trial but not any appeal." Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Insured's Motion for Reconsideration on Protecting the Integrity of Referral Sources under Florida Statute s. 542.335

September 28, 2017 — David Adelstein - Florida Construction Legal Updates
Referral sources are generally important for all businesses. Due to their importance, certain businesses require employees to execute non-solicitation or even non-compete agreements to protect the integrity of their referral sources. Now, whether referral sources for a particular business constitutes a legitimate business interest (very important words) is a question where the context must be examined. Nonetheless, in a case that is certainly important for businesses, the Florida Supreme Court held that referral sources can serve as a legitimate business interest. While this case dealt with home health care companies, the rationale would be the same no matter the business, provided that referral sources are contextually a legitimate business interest for that business. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Washington Court Limits Lien Rights of Construction Managers

August 17, 2011 — Douglas Reiser, Builders Council Blog

A newly filed, yet unpublished, court opinion opines that a construction manager cannot file a construction lien in Washington state. So, how far reaching is this opinion?

In the case of Blue Diamond Group Inc. v. KB Seattle 1, Inc., et al, a New York construction manager filed a lien against the Westfield Southcenter Mall in Tukwila, Washington. The lien was filed after the owner of a coffee stand failed to pay Blue Diamond for consulting services used in the construction of a kiosk.

Blue Diamond served as the owner’s agent, assisting with managing subcontractors, vendors and other tasks. The manager’s tasks also included paying invoices, managing deliveries, setting schedules and other site managerial tasks. Blue Diamond was not registered as a contractor under Washington’s RCW 18.27.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Additional Insured Prevails on Summary Judgment For Duty to Defend, Indemnify

October 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
On summary judgment, the insured general contractor prevailed not only on the duty to defend, but also the duty to indemnify. Wausau Underwriters Ins. Co. v. Old Republic Gen. Ins. Co., 2015 U.S. Dist. LEXIS 103954 (S.D. N. Y. Aug. 7, 2015). 170 Broadway entered into a construction management agreement with McGowan Builders Inc. to serve as its construction manager for a hotel being built in Manhattan. Under the agreement, McGowan obtained a general liability policy from Old Republic naming 170 Broadway as an additional insured. 170 Broadway also secured its own policy from Wausau. Adam Burawski, an employee of a security company, came to the 170 Broadway site to meet with McGowan about provided security services for the project. Before the meeting, Burawski tripped and fell, sustaining a serious injury. 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

Investigation Continues on Children Drowning at Construction Site

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Two months ago, in Hobart, Illinois, two young boys (brothers) “drowned in an unsecured, excavated pit that filled with water” on a site owned by Goldschmidt Construction Services LLC of Hobart. The Post-Tribune reported that “Police Chief Richard Zormier said the department is waiting on reports from other agencies as it continues to investigate circumstances surrounding” the accident. “We want to be thorough. The young boys deserve it. Their family deserves it,” Zormier told the Post-Tribune. The family of the victims has filed a $60 million lawsuit against Goldschmidt Construction. Read the court decision
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Washington State Safety Officials Cite Contractor After Worker's Fatal Fall

October 09, 2023 — James Leggate - Engineering News-Record
Inspectors with the Washington State Dept. of Labor & Industries found that flipper deck platforms were not used in line with the manufacturer’s specifications on a jobsite where a worker was killed in a fall earlier this year. Officials cited a contractor, SAK Builders Inc., for $16,800 in penalties over three alleged serious violations. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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