SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

NY Pay-to-Play Charges Dropped Against LPCiminelli Executive As Another Pleads Guilty

June 06, 2018 — Mary B. Powers & Debra K. Rubin - Engineerings News-Record
The former president of New York contractor LPCiminelli—the firm that has been at the center of an alleged pay-to-play scheme playing out since 2016 when he and two other executives were indicted—got a reprieve as federal prosecutors said they were dropping all charges against him, including wire fraud, conspiracy to commit wire fraud and making false statements to federal agents, according to a June 1 court filing. Reprinted courtesy of Mary B. Powers, ENR and Debra K. Rubin, ENR Ms. Rubin may be contacted at rubind@enr.com Read the court decision
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Expired Contract Not Revived Due to Sovereign Immunity and the Ex Contractu Clause

September 15, 2016 — David R. Cook Jr. – AHHC Construction Law Blog
A few months ago, a decision by the Supreme Court of Georgia in Georgia Department of Labor v. RTT Associates, Inc. provided a strict rule for contractors who work with state agencies to determine whether a state agency has waived its sovereign immunity. The issue as framed by the Court was “whether an agency’s waiver of immunity from a breach of contract claim as a result of entering into a written contract remains intact in the event the contract is extended without a written document signed by both parties expressly amending the contract, as required by its terms.” The case involved a contract executed on March 1, 2012, by a contractor, RTT Associates, Inc. (RTT), and the Georgia Department of Labor (DOL), whereby RTT was to develop certain computer software for the DOL by the completion date, June 30, 2012. The contract required that amendments be in writing and fully executed by both parties. Time was of the essence and RTT’s obligation under the contract survived the expiration or termination of the contract. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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The Best Laid Plans: Contingency in a Construction Contract

September 13, 2021 — Josh Levy, Katesha Long & Samantha Schacht - Construction Executive
This article is the first of a three-part series on contingencies in construction contracts. This series will explain:

• what a construction contingency is;
• the two primary schools of thought regarding how a construction contingency fund should be used and managed; and
• construction contract drafting considerations for contingency clauses.

Armed with this information, owners and contractors will be better equipped to tackle the inevitable project surprises. Life is full of surprises, some good and some not too good. Surprises during construction are seldom welcome events. However, experienced owners and contractors know to expect the unexpected and plan accordingly by including contingency funds in their budgets. For them, the question is not whether or not to include a contingency, but how much to set aside and how to structure and manage the fund. Reprinted courtesy of Josh Levy, Katesha Long & Samantha Schacht, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com Ms. Long may be contacted at katesha.long@huschblackwell.com Read the court decision
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Why 8 Out of 9 Californians Don't Buy Earthquake Insurance

August 27, 2014 — Alyssa Abkowitz – Bloomberg
Early estimates suggest the economic losses from Sunday’s 6.0-magnitude earthquake in Northern California, the largest quake to hit the Golden State in 25 years, could hit $1 billion. When it comes to rebuilding, much of the cost will come out of people’s own pockets. The percentage of homeowners with earthquake insurance in California and across the U.S. has declined, despite rising estimates of the risk of an earthquake. A survey by the Insurance Information Institute, a nonprofit that’s funded by the insurance industry, found that 7 percent of U.S. homeowners have earthquake insurance, down from 13 percent just two years ago. In the West, ground zero for U.S. quakes, 10 percent of homeowners have coverage, down from 22 percent a year ago; in California, about 12 percent do, according to the California Earthquake Authority. But as fewer people opt for earthquake insurance, the government is upping its assessment of the risk of a sizable shake. Last month, the U.S. Geological Survey updated its seismic hazard maps for the first time since 2008. The update showed an increased earthquake risk for almost half the country. Parts of Washington, Oregon, Oklahoma, and Tennessee, among others, moved into the top two hazard zones. The San Francisco Bay area, for example, shows a 63 percent chance of one or more major earthquakes before 2036, according to the agency. Read the court decision
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Reprinted courtesy of Alyssa Abkowitz, Bloomberg

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Eastern District of Pennsylvania Denies Bad Faith Claim in HO Policy Dispute

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Patrick Nugent of Saul Ewing LLP’s article in JD Supra Business Advisor, the Eastern District of Pennsylvania entered a summary judgment for the insurer on a statutory bad faith claim in a coverage dispute under a homeowner’s policy. The coverage dispute was over “the collapse of a wall in the plaintiffs’ home.” The Plaintiffs alleged that “the collapse resulted from excessive rainfall during a storm in March 2011.” However, Metropolitan Direct Property and Casualty Insurance Company’s engineer concluded that the collapse “resulted from long-term and on-going water infiltration attributable to poor maintenance.” Water damage had occurred a year prior to the collapse, but had not been repaired. In response, “Plaintiffs filed a complaint in Pennsylvania state court alleging breach of contract and statutory bad faith.” The court “determined that Metropolitan’s denial of benefits ‘was not only reasonable, but correct under the Policy language,’” and “ruled that the plaintiffs could not demonstrate that Metropolitan lacked a reasonable basis for denying their claim and entered summary judgment for Metropolitan on the plaintiffs’ bad faith claim.” Read the court decision
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Project-Specific Policies and Products-Completed Operations Hazard Extensions

May 31, 2021 — Jeremiah M. Welch - Saxe Doernberger & Vita
1. Understanding the “Products-Completed Operations Hazard” ISO commercial general liability (“CGL”) policies use the term “products-completed operations hazard” (“PCOH”) to define a category of risk which is treated specially by certain exclusions within the policy and often subject to separate limits of insurance. In construction, we think about PCOH as being about coverage for completed work. Bodily injury and property damage arising out of completed work is a significant construction risk. Most construction contracts include warranty and indemnity obligations for completed work. All states allow lawsuits to be brought alleging bodily injury or property damage because of completed work based on common law. Contract and common law claims are subject to statutes of limitation – laws which define the time in which suits must be brought. Most states provide exceptions to their statutes of limitation for common law claims – the most common example is an extension to file a lawsuit based on a latent defect until the defect is discovered. Most states also have “statutes of repose” – laws that set a date after which suit may no longer be brought, no matter what the circumstances are. A construction contractor, therefore, has potential liability until the statute of repose period has expired. Thus, a contractor looks to ensure that it has coverage for the PCOH for its full statute of repose liability period. Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita
Mr. Welch may be contacted at JWelch@sdvlaw.com

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West Coast Casualty Promises Exciting Line Up at the Nineteenth Annual Conference

March 28, 2012 — CDJ STAFF

West Coast Casualty has announced the lineup for the annual WCC Construction Defect Seminar. This year’s seminar will be the nineteenth anniversary, and it will be held on May 17th and 18th, 2012 in Anaheim, California. They are the largest construction defect event in the world and this year’s seminar will again bring the top people in the field to address many of the current issues and where the construction defect community will be going in the future.



The event, anticipated to be even larger than prior years, will have numerous panels and presentations on the current state of construction defect litigation. Among the topics that will be presented are “Arbitrate? Let’s See You Make Me!” “Defending Construction Defect Failure Mechanisms?An Expert’s Perspective,” and “Current Trends in Effectively Handling SB800 Cases.”



Speakers at the event will include judges, lawyers, and representatives of the insurance industry. One event, “Meet Your Judges, A Candid Discussion on Construction Defect Claims and Litigation from the Bench?” will include judges from five states, including the Honorable Nancy M. Saitta, Chief Justice of the Nevada Supreme Court, the Honorable Clifton Newman of the South Carolina Circuit Court, and the Honorable Rex Heeseman of the Los Angeles County Superior Court.



Daniel A. Berman, Esq. and Stephen Henning, Esq. will be talking on the topic of “Social Networking Sites: Strategies, Ethical Pitfalls, and Practice Pointers for Litigating and Winning Your Construction Defect Case.” Mr. Berman is a Founding and Managing Partner of Wood, Smith, Henning & Berman LLP. He has been named a Southern California Super Lawyer for eight consecutive years. Mr. Henning is a Founding Partner of Wood, Smith, Henning & Berman, LLP and Fellow of the Litigation Counsel of America. Mr. Henning will also be one of the presenters on the panel “Important Court Decisions Impacting Construction Defect Claims.”



The panel “Why Do We Need to Know Certain Things and How Decisions Are Made” will be presented by important figures in the construction claims industry, including Phyllis Modlin, Todd Schweitzer, Teresa D. Wolcott, and Lee Wright. Ms. Modlin is a Construction Defect Claims Supervisor responsible for nationwide claims for Markel Corporation. Mr. Schweitzer is an Assistant Vice President of Major Case for Construction Defect and Professional Liability Claims Services at Zurich North America. Ms. Wolcott is the National Product Manager for Construction Defect Claims within the Construction Claims Organization at Travelers Insurance. Mr. Wright is an Assistant Vice President and Senior Claims Consultant for XL Specialty Insurance.



The event will also include a Science and Technology Fair in which exhibitors will be presenting technological problem solving and decision making as they relate to resolving ongoing construction and post construction-defect related issues while reducing costs for all those involved in claims and litigation. The fair is dedicated to these novel applications of science and technology that benefit the construction defect community but are not yet commonly available. This will be the third time the Construction Defect Seminar will include a Science and Technology Fair.



Sessions at the event are approved for MCLE credit in Arizona, California, Colorado, Illinois, Maine, Minnesota, New York, Ohio, and Pennsylvania. MCLE credits vary by state; attendees can obtain up to 10.25 hours of credit in Arizona, California, Maine, and New York. Applications for several other states are still pending. Additionally, the event is also worth continuing education credits with the Florida Department of Insurance and for Registered Professional Adjusters. West Coast Casualty has applications pending for adjuster continuing education in an additional thirty-six states.



West Coast Casualty recommends this event for anyone involved in construction or construction defect claims, whether they are a claims adjuster, a member of a homeowner board, a judge, a property manager, a construction claims attorney, a general contractor, or anyone else with an interest in this area. The event typically has more than 1,600 attendees. Those interested can register online.

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Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

December 11, 2018 — Timothy Carroll - White and Williams LLP
Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship. Read the court decision
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Reprinted courtesy of Timothy Carroll, White and Williams LLP
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com

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