Seattle Washington Building Expert Directory

Municipal Ordinances Create Additional Opportunities for the Defense of Construction Defect Claims in Colorado

August 22, 2022 — Ricky Nolen - Colorado Construction Litigation Blog
Municipal ordinances may provide additional defenses for construction professionals where state law does not provide sufficient protection for Colorado’s builders. Colorado state law can be a minefield of potential liability for construction professionals. Even though the state legislature has stated that it must “recognize that Construction defect laws are an existing policy issue that many developers indicate adds to for-sale costs,” the legislature has remained hesitant to provide any meaningful protection from construction defect claims, resulting in almost unlimited exposure for Colorado’s construction professionals. Given this background of state laws that do not go far enough in protecting Colorado’s construction professionals, it may be fruitful to review municipal ordinances for new defenses and to temper state law developments applicable to construction defect claims. This is an area of law that is only just developing in Colorado. In fact, the ordinances discussed in this article were only passed in the last two years with many cities only adopting the present versions of the ordinances in 2021. The two model ordinances discussed below are potentially helpful in three ways. The first model ordinance gives construction professionals a right to repair defects in the multi-family construction and in the common interest community context. The second model ordinance is helpful in two ways. First, it establishes that homeowners associations may not unilaterally circumvent ADR protections included in the original declarations for such communities.[1] Second, the ordinance reduces the risk that strict liability will be imposed on a construction professional where a building code is violated. Read the court decision
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Reprinted courtesy of Ricky Nolen, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Nolen may be contacted at nolen@hhmrlaw.com

Following My Own Advice

October 21, 2015 — Craig Martin – Construction Contractor Advisor
I often advise clients on the use of E-Verify and the importance of getting policies and in place to ensure compliance. This is particularly true for clients that do federal and state work. Now it’s my turn to follow my own advice. I was recently appointed to represent the Nebraska Board of Engineers and Architects. As such, I am a contractor for the State of Nebraska. That means I have to use E-Verify. Here is a refresher of “our” E-Verify obligations as a contractor for the State. Nebraska adopted an E-Verify law in 2009. Nebraska statute section 4-114 requires all contractors that are awarded a contract by a state agency or political subdivision to register with ta federal immigration verification system. Although not explicit in the statute, the Department of Labor has indicated that the obligation to E-Verify applies only to new employees that will be working on the project. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Second Circuit Certifies Question Impacting "Bellefonte Rule"

December 15, 2016 — Ellen Burrows – White and Williams LLP
Calling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1] In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993). Read the court decision
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Reprinted courtesy of Ellen Burrows, White and Williams LLP
Ms. Burrows may be contacted at burrowse@whiteandwilliams.com

Terms of Your Teaming Agreement Matter

July 30, 2019 — Christopher G. Hill - Construction Law Musings
These days in construction, and other pursuits, teaming agreements have become a great method for large and small contractors to work together to take advantage of various contract and job requirements from minority participation to veteran ownership. With the proliferation of these agreements, parties must be careful in how they draft the terms of these agreements. Without proper drafting, the parties risk unenforceability of the teaming agreement in the evewnt of a dispute. One potential pitfall in drafting is an “agreement to agree” or an agreement to negotiate a separate contract in the future. This type of pitfall was illustrated in the case of InDyne Inc. v. Beacon Occupational Health & Safety Services Inc. out of the Eastern District of Virginia. In this case, InDyne and Beacon entered into a teaming agreement that provided that InDyne as Prime would seek to use Beacon, the Sub, in the event that InDyne was awarded a contract using Beacon’s numbers. The teaming agreement further provided:

The agreement shall remain in effect until the first of the following shall occur: … (g) inability of the Prime and the Sub, after negotiating in good faith, to reach agreement on the terms of a subcontract offered by the Prime, in accordance with this agreement.

InDyne was subsequently awarded a contract with the Air Force and shortly thereafter sent a subcontract to Beacon and requested Beacon’s “best and final” pricing. Beacon protested by letter stating that it was only required to act consistently with its original bid pricing. Beacon then returned the subcontract with the original bid pricing and accepting all but a termination for convenience provision. Shortly thereafter, InDyne informed Beacon that InDyne had awarded the subcontract to one of Beacon’s competitors. Beacon of course sued and argued that the teaming agreement required that InDyne award the subcontract to Beacon. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

SunEdison Gets Shinsei Bank Funding for Japan Solar Power Plant

March 12, 2015 — Ehren Goossens – Bloomberg
(Bloomberg) -- SunEdison Inc., a U.S. solar developer, got financing from Tokyo-based Shinsei Bank Ltd. for a large-scale project in the country. The 9.6-megawatt Tarumizu project on the southern Japanese island of Kyushu will power about 3,000 homes, Maryland Heights, Missouri-based SunEdison said Wednesday in a statement. The project is under construction and expected to be completed in September. Financial details weren’t disclosed. Read the court decision
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Reprinted courtesy of Ehren Goossens, Bloomberg
Mr. Goossens may be contacted at egoossens1@bloomberg.net

A Few Green Building Notes

April 03, 2019 — Christopher G. Hill - Construction Law Musings
This past week, the blogosphere (if that’s even the word these days) has been abuzz about green building and the value that green can add to a project. Three items in particular (among many) got my attention. The first of these was the fact that a new private sustainability rating system is ready for launch. The Institute for Sustainable Infrastructure (or ISI) is seeking public comment on its proposed envISIon. This new system (aptly dubbed Version 1.0) will go “live” in July for comment. Why mention this new system? First of all, ISI’s founding members are the American Society of Civil Engineers (ASCE), the American Public Works Association (APWA) and the American Council of Engineering Companies (ACEC). This trio gives the new program some fairly heavy weight backing. Second, while there are rating systems aside from the ever present LEED, none have taken hold in any real way to compete with LEED. I am curious to see if the envISIon system has any better luck. Finally, this shows that sustainable building is of interest to more than the USGBC and those of us that discuss LEED on a daily basis. I find this to be a great thing that could lead to more societal acceptance of sustainable practices as a standard practice rather than a goal. Hopefully such efforts will offset the other two notes that caught my eye recently. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Flood Sublimit Applies, Seawater Corrosion to Amtrak's Equipment Not Ensuing Loss

November 10, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insurers were granted summary judgment on three issues regarding Amtrak's claim for damages caused by Hurricane Sandy. Amtrak v. Aspen Sec. Ins. Co., 2016 U.S. App. LEXIS 16074 (2nd Cir. Aug. 31, 2016). Hurricane Sandy caused flooding which damaged two of Amtrak's tunnels under the East and Hudson Rivers. Seawater from the flooding caused extensive damage to equipment in the tunnels. The district court granted summary judgment to the insurers on the following issues: (1) the damage caused by an inundation of water in the tunnels was subject to the policies' $125 million flood sublimit; and (2) the corrosion of equipment after Amtrak pumped out the seawater was not an "ensuing loss" and therefore was also subject to the flood sublimit. 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

Tech Focus: Water Tech Getting Smarter

June 05, 2023 — Pam McFarland - Engineering News-Record
In early December 2021, the Denver International Airport made headlines across the U.S. after a hot water pipe broke a month before a major terminal expansion project was expected to complete. The scalding water spilled on floors and across the airport concourse, causing $50 million in damage and a nine-month delay to the project. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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