Seattle Washington Building Expert Directory

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

September 01, 2016 — Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog
The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look. In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued. Reprinted courtesy of Michael Lindsay, Snell & Wilmer and Luke Mecklenburg, Snell & Wilmer Mr. Lindsay may be contacted at mlindsay@swlaw.com Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com Read the court decision
Read the full story...
Reprinted courtesy of

Cameron Kalunian to Speak at Casualty Construction Defect Seminar

October 04, 2021 — Cameron Kalunian - Lewis Brisbois
Los Angeles Partner Cameron Kalunian will speak at the Annual West Coast Casualty Construction Defect Seminar, hosted on October 6-8 at the Aria Hotel and Casino in Las Vegas. In a session on Friday, October 8 at 9:30 a.m. PT titled “Maintaining Relationships in the Storm of Multi-Party Construction Litigation,” Mr. Kalunian, along with one construction general counsel and one insurance coverage counsel, will discuss the impact of litigation on continuing business relationships. The session will specifically focus on balancing risk transfer with business goals in the context of multi-tiered contractor construction projects. The panel will discuss the best practices for communications between and among clients, indemnitors, claims handling professional, coverage counsel and defense counsel. This session is a must for insurance professionals that handle claims involving bodily injury or property damage claims arising out of construction disputes related to projects with multi-tiered contractors. CLE credits will be available for attorneys, along with CEU credits for insurance claims handlers. Read the court decision
Read the full story...
Reprinted courtesy of Cameron Kalunian, Lewis Brisbois
Mr. Kalunian may be contacted at Cameron.Kalunian@lewisbrisbois.com

Bank of America’s Countrywide Ordered to Pay $1.3 Billion

July 30, 2014 — Patricia Hurtado – Bloomberg
Bank of America Corp.’s Countrywide unit was ordered to pay $1.3 billion in penalties for defective mortgage loans it sold to Fannie Mae (FNMA) and Freddie Mac in the run-up to the 2008 financial crisis, a little more than half of what the U.S. had requested. U.S. District Judge Jed Rakoff in Manhattan issued the civil penalty against the Charlotte, North Carolina-based bank today in the first mortgage-fraud case brought by the federal government to go to trial. Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable in October for selling thousands of bad loans to the two government-sponsored enterprises. Mairone was ordered today to pay $1 million. Read the court decision
Read the full story...
Reprinted courtesy of Patricia Hurtado, Bloomberg
Ms. Hurtado may be contacted at pathurtado@bloomberg.net

In Hong Kong, You Can Find a Home Where the Buffalo Roam

September 17, 2014 — Shai Oster – Bloomberg
To city dwellers worried about mice and rats, spare a thought for Hong Kongers confronting half-ton feral beasts. A few miles from some of the most densely populated neighborhoods in the world, more than 1,000 cows and buffalo from abandoned farms roam the countryside. Development now is pushing them into harm’s way and onto roads. Hong Kong represents an extreme example of the task many communities face of balancing conservation and growth. Wolves sniff near the suburbs of Paris, bears roam Lake Tahoe and moose stumble across the roads of Halifax. There’s a new word to describe how undomesticated animals adapt to man-made environments: synurbanization. Read the court decision
Read the full story...
Reprinted courtesy of Shai Oster, Bloomberg
Shai Oster may be contacted at soster@bloomberg.net

Philadelphia Proposed Best Value Procurement Bill

December 08, 2016 — Wally Zimolong – Supplemental Conditions
An opinion piece in today’s Philadelphia Inquirer concerning proposed legislation that would change the way the City of Philadelphia awards public construction projects is causing quite a stir. The article concerns legislation that would allow the City to award public construction contracts based on a “best value” approach rather than the current requirement that the contract be awarded to the lowest responsible and responsive bidder. The author worries that by removing the current objective criteria and replacing it with subjective ones, contracts can be steered to politically favored contractors. The author cites the recent no-bid contract awarded to a law firm run by the friend of Mayor Jim Kenney as an example of the chaos would ensue if this bill was passed. Considering that the Bill’s sponsor, Bobby Hennon, is under FBI investigation, and some of the Mayor’s biggest supporters are as well, the author has ever right to be concerned. However, article comes up short in explaining what the Bill says and what best value procurement, if adopted, would mean for public construction work in Philadelphia. First, the Bill that Councilman Hennon is proposing is actually a Bill that would make the best value procurement question a ballot question next November. In other words, the Bill, if passed, would but to a City wide vote the question of whether the City should change it procurement practices to permit the best value approach to be used in addition to the low bid approach that is current used. Read the court decision
Read the full story...
Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

General Contractor’s Excess Insurer Denied Equitable Contribution From Subcontractor’s Excess Insurer

December 15, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Advent v. National Union Fire Ins. Co., etc. (No. H041934 filed 12/6/16), a California appeals court refused to order a subcontractor’s excess insurer to contribute to a general contractor’s excess insurer because the general contractor did not qualify as an additional insured of the subcontractor’s insurer, and the policy wording made the subcontractor’s excess insurer second level excess above the general contractor’s own excess insurance. Advent was the general contractor on a housing development and Johnson was a sub-subcontractor providing concrete on perimeter walls. A Johnson employee dispatched to retrieve plywood dumped between some of the buildings somehow fell down an open stairwell inside one of the unfinished buildings and suffered serious injury. He sued Advent and others for negligence, but could not remember how he fell. 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
Read the full story...
Reprinted courtesy of

Construction Manager Has Defense As Additional Insured

September 03, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court found that the construction manager was an additional insured under the contractor's policy. Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015). The owner hired two contractors, Enclos Corp. and Five Star Electric Corp. In their separate contracts with the owner, each contractor agreed to procure a CGL policy naming the owner and a person identified as the construction manager as additional insureds. Travelers was Enclos's insurer, and Navigators Insurance Company was Five Star's insurer. Turner was hired to "provide pre-construction services and construction management services for the Project." Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Manhattan Townhouse Sells for a Record $79.5 Million

April 05, 2017 — Oshrat Carmiel - Bloomberg
A home on Manhattan’s Upper East Side sold for $79.5 million, according to property records made public Wednesday, making it the highest price ever paid for a townhouse in the borough. The 20,500-square-foot (1,905-square-meter) property, at 19 E. 64th St., had been owned by the Wildenstein family, billionaire art dealers whose gallery was located at the site for more than 80 years. The previous record for a Manhattan townhouse was the $53 million paid for 4 E. 75th St., in 2006, according to appraiser Miller Samuel Inc. Read the court decision
Read the full story...
Reprinted courtesy of Oshrat Carmiel, Bloomberg
Mr. Carmiel may be followed on Twitter @OshratCarmiel

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES