Seattle Washington Building Expert Directory

California Supreme Court to Examine Arbitration Provisions in Several Upcoming Cases

December 09, 2011 — CDJ STAFF

Glen C. Hansen, writing on Abbott & Kinderman’s Land Use Law Blog looks at several cases pending before the California Supreme Court which ask if a developer can insist on arbitration of construction defect claims, based on provision in the CC&Rs. Currently, there is a split of opinions in the California appeals courts on the issue.

Four of the cases are in California’s Fourth Appellate District. In the earliest case, Villa Milano Homeowners Association v. Il Davorge, from 2000, the court concluded that the arbitration clause was sufficient to require that construction defect claims undergo arbitration. However, the Fourth Appellate District Court concluded in three later cases that the arbitration clauses did not allow the developer to compel arbitration. In two cases, argued in 2008 and 2010, the court concluded that to do otherwise would deprive the homeowners of their right to a jury trial. In the most recent case, Villa Vicenza Homeowners Association v. Nobel Court Development, the court decided that the CC&Rs did not create contractual rights for the developer.

The Second Appellate District Court came to a similar decision in Promenade at Playa Vista Homeowners Association v. Western Pacific Housing, Inc. In their decision, the court noted that CC&Rs could be enforced by homeowners and homeowners associations, but not developers.

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Insurer Has Duty to Defend Sub-Contractor

July 25, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Interpreting Connecticut law, the federal district court had that the insured sub-contractor was entitled to a defense. County Wide Mech. Servs. LLC v. Regent Ins. Co., 2022 U.S. Dist. LEXIS 86726 (D. Conn. May 13, 2022). The underlying plaintiff, The Saybrook at Haddam, entered a contract with PAC Group to serve as general contractor for construction of an addition to The Saybrook's facility. PAC Group sub-contracted with County Wide Mechanical Services to install the HVAC system. The HVAC system was put into service on November 14, 2014. In October 2019, The Saybrook filed the underlying action against PAC group, County Wide, and others. The underlying complaint alleged that there had been at least seven "critical failures" of the HVAC system. As a result, The Seabrook had to replace multiple compressors and several circuit boards, valves, and other components. Further, the entire system had to be replaced. The underlying complaint alleged breach of contract against PAC Group and County Wide. In addition to the alleged breach of contract between The Saybrook and County Wide, the Saybrook also alleged it was a third-party beneficiary of PAC Group's contract with County Wide regarding installation of the HVAC system. PAC Group cross-claimed against County Wide, asserting one count of contractual indemnification and one count of breach of contract under the PAC Group's contract with County Wide. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Value In Being Deemed “Statutory Employer” Under Workers Compensation Law

November 21, 2022 — David Adelstein - Florida Construction Legal Updates
When it comes to workers compensation law, as a contractor, there are a couple of important considerations. One, you will be deemed a statutory employer. And two, you want your subcontractors (and, of course, yourself) to have workers compensation insurance so that you can enjoy the protection of workers compensation immunity. Workers compensation immunity provides immunity to an employer (i.e., a statutory employer) by workers compensation insurance becoming the exclusive form of liability. A recent non-construction case, Bar-Harbour Tower Condominium Association, Inc. v. Bellorin, 47 Fla.L.Weekly D2114a (Fla. 3d DCA 2022), illustrates the importance of these considerations. Here, a condominium association per its governing documents (i.e., declaration of condominium) was authorized to contract for valet parking services for its unit owners. An employee of the valet company (hired by the association) got hurt and sued the association. The association argued it should be deemed a statutory employer under workers compensation law and, as such, entitled to workers compensation immunity. The trial court disagreed, and the association appealed. The Third District Court of Appeal held the association was the statutory employer and, thus, workers compensation immunity did apply. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New Index Tracking Mortgages for New Homes

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
The National Association of Home Builders’ Eye on Housing reported that the Mortage Bankers Association (MBA) completed their Builder Application Survey (BAS), which demonstrated that “mortgage applications for new home purchases decreased by a not seasonally adjusted monthly rate of 8.4% in May 2014. However, on a 12-month basis, mortgage applications for new home purchases in May 2014 were 4.9% higher than their level in May 2013.” According to Eye on Housing, “This is the fifth consecutive month of year-over-year increases in mortgage applications for new home purchases.” Read the court decision
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Just How Climate-Friendly Are Timber Buildings? It’s Complicated

February 12, 2024 — Eric Roston - Bloomberg
This article is part of the Bloomberg Green series Timber Town, which looks at the global rise of timber as a low-carbon building material. The number of people living in urban areas around the world will swell by upwards of 2 billion over the next three decades. Many of those people will need new homes. But building those with conventional materials would unleash a gusher of carbon dioxide: Concrete, steel, glass and bricks for construction make up a combined 9% of global CO2 emissions, according to research by the United Nations Environment Program. Enter engineered wood, a seemingly no-brainer solution. Mass timber is not the typical lumber that has structured single-family houses in North America for decades. The wood components are strong enough to hold up an office tower or apartment block, and building with them is thought to emit much less CO2 than using standard materials. And since wood is about 50% carbon, the material itself even stores a little carbon, to boot. Read the court decision
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Reprinted courtesy of Eric Roston, Bloomberg

A Word to the Wise: The AIA Revised Contract Documents Could Lead to New and Unanticipated Risks - Part II

October 16, 2018 — George Talarico - Construction Executive
Part I addressed general conditions, revised insurance terms, revisions that affect owner’s required insurance and revisions that affect contractor’s required insurance. REVISIONS THAT AFFECT DISPUTE RESOLUTION A seemingly minor but noteworthy change is to the definition of “Claim.” Under Section 15.1 a “Claim” is defined to:

include a request for a modification of contract time; and
exclude any requirement that an owner must file a claim to impose liquidated damages.

Notably, any request relating to contract time must be brought within the specified time period for Notice of Claim and in the prescribed manner. There are at least two traps for the unwary. First, even though email is regularly used for communications among the parties, the revised contract documents do not recognize email as an acceptable form of delivery of a Notice of Claim. Second, an unwary contractor may wrongly assume that an owner’s failure to assert a claim for LDs means that LDs will not be imposed. This may lull the contractor into failing to timely assert its own claim for a time extension and thereby waiving its ability to do so. Reprinted courtesy of George Talarico, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Talarico may be contacted at gtalarico@sillscummis.com

Want to Use Drones in Your Construction Project? FAA Has Just Made It Easier.

March 01, 2017 — Masaki J. Yamada – Ahlers & Cressman PLLC
The new Part 107 FAA Rules took effect on Monday, August 29, 2016. Unlike the previous requirements for flying a drone commercially, the new rules are much more simplistic and permissive of a broad amount of commercial drone usage. The following is the basic knowledge you need to legally use a drone on your future projects. To fly a drone commercially, there are now four major requirements:

You must be at least sixteen years old;
You must register your drone online;
You must pass an aviation knowledge test administered at an FAA-approved testing center; and
You must pass review by the Transportation Security Administration.

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Reprinted courtesy of Masaki J. Yamada, Ahlers & Cressman PLLC
Mr. Yamada may be contacted at myamada@ac-lawyers.com

Housing Inflation Begins to Rise

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Kathleen Madigan writing for The Wall Street Journal, “inflation remains muted at the start of 2014” except in one category: housing. Madigan stated that housing costs were “worth watching.” The “owners’ equivalent rent index had been rising at a steady pace through most of 2012 and 2013, with 12-month percent changes hovering around 2%” however, “the pace picked up” at the end of last year. Read the court decision
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