SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Court Rules that Collapse Coverage for Damage Caused “Only By” Specified Perils Violates Efficient Proximate Cause Rule and is Unenforceable

January 26, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Vardanyan v. Amco Ins. Co. (No. F069953, filed 12/11/15) a California appeals court held that policy wording that the collapse coverage for damage “caused only by” certain specified perils did not mean “solely” by those specified perils, but that coverage may nonetheless apply even if excluded causes contributed to the loss, under the Insurance Code section 530 and the efficient proximate cause rule. In Vardanyan, the insured made a claim for water damage from unknown origin to a rental house. An engineer concluded that the various sources of moisture—roof leaks, gutters and downspouts that did not channel the water away from the house, a faucet spraying water on the exterior of the house, leaking toilet and bathtub, and humidity—contributed to the damage to the house, along with poor construction, termite damage and decay. The insurer denied coverage citing multiple policy exclusions, including damage caused by seepage or leakage of water from a plumbing system; deterioration; mold, wet or dry rot; settling of foundations, walls or floors; earth movement; water damage; neglect; weather conditions; acts or decisions of any person; and faulty or defective design, workmanship, repair, construction, or maintenance. The insured retained a public adjuster who disagreed, in particular citing the policy’s “Other Coverage 9” coverage for collapse of a building or part of a building “caused only by one or more” of a list of perils, including hidden decay, hidden insect damage, and weight of contents, equipment, or people. 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
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Dallas Condo Project to Expand

November 20, 2013 — CDJ STAFF
Cooper & Stebbins has announced that they are building additional units at Southlake Town Square. One set of additions will expand the Garden District Brownstones, which were built in 2006. There will additionally be a five-story building to be called The Residences. Southlake Town Square is a mixed-use development, combining retail and residences. Read the court decision
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White House Seeks $310M To Fix Critical San Diego Wastewater Plant

December 04, 2023 — James Leggate - Engineering News-Record
The Biden administration’s $55.9-billion supplemental funding request to Congress for disaster response and other issues includes $310 million for a project to repair and expand the ailing South Bay International Wastewater Treatment Plant in San Diego, Calif. The plant is part of a repeatedly overwhelmed wastewater treatment system on the U.S.-Mexico border that has allowed untreated sewage flows to foul area beaches. 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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Documentation Important for Defending Construction Defect Claims

November 27, 2013 — CDJ STAFF
When insurers are faced with a construction defect claim, they want information. Unfortunately, insurers “typically struggle to find the documents we need to understand what exactly happened and why it happened,” according to Robert Kreuzer, second vice president of construction risk control for Travelers. “The documents are either not there, or they’re inaccurate, or we can’t find them.” Not only does it make determining what happened more difficult, it also slows downs the litigation process. Mr. Kreuzer also noted that by properly documenting and maintaining documents, “you have a better chance of getting yourself out of the dispute, and avoiding that 11-year headache.” Read the court decision
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Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions

July 08, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured’s crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used to raise the structure a few inches at a time. There was substantial damage to the entire structure.



The homeowners sued, asserting several claims, including negligence and breach of contract. The complaint alleged the homeowners entered a contract with the insured to raise their structure while maintaining its integrity. However, the insured failed to use proper equipment, which caused the house to fall and be completely destroyed.



The insured tendered the claim to its insurer, Lafayette Insurance Company. Lafayette defended under a reservation of rights and filed suit for a declaratory judgment. Lafayette’s subsequent motion for summary judgment contended there was no “occurrence” alleged in the underlying complaint and, even if there was, the business risk exclusions barred coverage.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Pending Home Sales in U.S. Increase Less Than Forecast

October 29, 2014 — Michelle Jamrisko – Bloomberg
The number of contracts to buy existing homes rose less than forecast in September, signaling demand will probably plateau heading into the end of 2014. The pending home sales index increased 0.3 percent after dropping 1 percent in August, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for a 1 percent gain. Home resales have yet to regain last year’s peak as still-tight credit and low inventories remain hurdles for the industry, which means residential real estate will make a limited contribution to the expansion. The recent drop in mortgage rates and pickup in hiring will probably help underpin demand, even as first-time buyers struggle to enter the market. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net

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Oregon Supreme Court Confirms Broad Duty to Defend

November 21, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
Originally published by CDJ on January 13, 2017 The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

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Domtar Update

June 11, 2014 — Robert M. Caplan – White and Williams LLP
On May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?” In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf. Read the court decision
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Reprinted courtesy of Robert M. Caplan, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com

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