Seattle Washington Building Expert Directory

Design Professionals Owe a Duty of Care to Homeowners

July 09, 2014 — Stephen A. Sunseri - Gatzke Dillon & Ballance LLP
Today, the California Supreme Court, in Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (Jul. 3, 2014, S208173) __Cal.4th__ [2014 WL 2988058], held that architects owe a duty of care to future homeowners of residential buildings, particularly if they act as principal architects on a project, and are not subordinate to any other design professional. Until now, design professionals were rarely held liable, if at all, for third-party claims for design deficiencies. In Beacon, architectural and engineering firms provided sole design services for The Beacon residential condominium project, a 595 unit project located in San Francisco. The condominiums were initially leased after construction, but were eventually sold to individual owners. The design firms claimed their role was limited to only providing design recommendations to the project's owner, who ultimately controlled and directed which design elements to construct. Not long after completion of the project, the homeowners' association sued the design firms (among others) for construction defects and damages related to alleged water infiltration, inadequate fire separations, structural cracks, and other purported safety hazards. The claims included allegations under SB 800 (the "Right to Repair Act," Civil Code §895, et seq.) and common law negligence theories. The design firms demurred to the complaint, which the trial court sustained. On appeal, however, the Court of Appeal reversed the trial court's ruling, concluding that the design firms owed a duty of care to third parties. The Supreme Court affirmed. Historically, liability for deficient goods and services hinged on whether there is a contractual relationship between a buyer and seller. However, the Supreme Court recognized that in certain circumstances a contractual relationship is not required. In its ruling, the Supreme Court relied on fifty year old precedent, Biankanja v. Irving (1958) 49 Cal.2d 647. In Biankanja, the California Supreme Court outlined several factors to determine whether a duty of care is owed to non-contracting third parties. Although Biankanja analyzes many factors, emphasis was placed placed on whether a purported harm was foreseeable by a defendant's conduct and how close of a connection there is between that conduct and an injury. Here, the Court recognized that even though the design firms did not actually build the project, they did conduct weekly inspections, monitored contractor compliance, altered design elements when issues arose, and advised the owners of any nonconforming work. In applying the Biankanja factors to these circumstances, the Supreme Court determined the homeowners were intended beneficiaries of the design work and the design firms' primary role in the project bore a close connection to the alleged injuries. As a result, the Supreme Court held that the allegations in the complaint were sufficient and, if proven, establishes the defendants owed a duty of care to the homeowners' association. Interestingly, the Supreme Court sidestepped the issue of whether SB 800 was intended to exclusively capture design defects in its scope, even though the Court indicated it may. Nevertheless, the Supreme Court's ruling is significant. The case will affect how design professionals allocate risk on future residential projects, perhaps by raising design prices or insuring around the liability exposure. The likely outcome, however, is that design professionals are now targets in construction defect lawsuits. Read the court decision
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Reprinted courtesy of Stephen A. Sunseri, Gatzke Dillon & Ballance LLP
Mr. Sunseri may be contacted at ssunseri@gdandb.com

Safety Data: Noon Presents the Hour of Greatest Danger

April 20, 2017 — Richard Korman - Engineering News-Record
Unlike previous research into construction fatalities, a new review of three years of Labor Dept. data found that most occur between 10 am and 3 pm, with a peak at noon. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

ACS Obtains Overwhelming Jury Trial Victory for General Contractor Client

March 28, 2022 — Scott R. Sleight - Ahlers Cressman & Sleight PLLC
ACS is pleased to share news of our recent $19.2 million victory for a general contractor client after a lengthy virtual jury trial involving the Nexus condominium project in downtown Seattle. On Tuesday March 22, 2022, ACS obtained a jury verdict awarding significant damages to our general contractor client and denying nearly all damages claimed against our client by the project owner. The 28-day jury trial commenced via Zoom on January 24 and involved testimony from more than two dozen witnesses on more than 185 discrete change issues and subcontractor pass-through claims as well as counterclaims from the owner for liquidated damages and other damages. Amazingly, after only two days of deliberating the jury reached a verdict resolving all claims overwhelmingly in favor of our general contractor client. Our client was awarded $19.5 million on its claims totaling $20.6 million and largely defeated the owner’s counterclaims of $4.3 million, with the jury awarding only $318,000 to the owner. This results in a net judgment of $19.2 million in favor of our client. The ACS team, along with the client, worked incredibly hard on this case. The team includes lawyers Scott Sleight, Saki Yamada, Kristina Southwell, Cam Sheldon and paralegals Christina Granquist, Cydney Fermstad, Auzree Hightower, Amy Capell, Samina Helsley and Bernadette Bresee. Read the court decision
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Reprinted courtesy of Scott R. Sleight, Ahlers Cressman & Sleight PLLC
Mr. Sleight may be contacted at scott.sleight@acslawyers.com

Federal Court Requires Auto Liability Carrier to Cover Suit Involving Independent Contractor Despite “Employee Exclusion”

August 30, 2017 — H. Scott Williams & Brendan Holt - Saxe Doernberger & Vita, P.C.
A recent federal court decision rendered in July of 2017 highlights the importance of worker classification in the transportation industry and the potential insurance implications. In Spirit Commercial Auto Risk Retention Grp., Inc. v. Kailey, 1 the court determined that an “employee exclusion” in a motor carrier’s automobile liability insurance policy did not exclude coverage for liability resulting from the bodily injury of an independent contractor operating the motor carrier’s tractor-trailer. In April of 2014, a team of two drivers hired by the motor carrier, Kailey Trucking Line (KTL), were involved in a collision while operating KTL’s truck. The passenger in the truck, who was not operating the vehicle at the time, was killed in the accident. Subsequently, the spouse of the decedent filed suit against KTL as well as the driver of the truck. KTL sought coverage for the suit under its automobile liability insurance policy, issued by Spirit Commercial Auto Risk Retention Group, Incorporated (Spirit). However, Spirit took the position that it had no duty to defend or indemnify KTL, and ultimately filed a declaratory judgment action in United States District Court for the Eastern District of Missouri. The policy issued to KTL provided coverage for damages due to bodily injury or property damage caused by an accident resulting from the ownership, maintenance, or use of a covered auto. However, the policy excluded from coverage any bodily injury to an employee or fellow employee of the insured arising out of and in the course of employment of the insured. Accordingly, to the extent that the decedent qualified as an “employee” of KTL, Spirit had no duty to indemnify KTL in the litigation. Reprinted courtesy of H. Scott Williams, Saxe Doernberger & Vita, P.C. and Brendan C. Colt, Saxe Doernberger & Vita, P.C. Mr. Holt may be contacted at bch@sdvlaw.com Mr. Williams may be contacted at hsw@sdvlaw.com Read the court decision
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Do We Need Blockchain in Construction?

June 22, 2020 — Cristina Savian - AEC Business
Blockchain technology claimed to have the potential to disrupt many aspects of how companies do business. And like other emerging technologies, I have been exploring its uses, benefits and assessing its potential opportunities in the construction industry. If like me, you have been wondering what it is and if its applications are limited to financial services and cryptocurrencies; you will be pleasantly surprised to discover that it has a lot more applications with exciting opportunities for our sector too. Blockchain could have a significant impact on our industry. In writing this article I have discovered that the Australian government is full steam ahead, that many organisations are currently building their own blockchain networks and that it is something that businesses right across the built environment should be preparing for now. But more on that soon, first we need to define what blockchain is. Read the court decision
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Reprinted courtesy of Cristina Savian, AEC Business

A Court-Side Seat: Clean Air, Clean Water, Endangered Species and Deliberative Process Privilege

April 19, 2021 — Anthony B. Cavender - Gravel2Gavel
The federal courts have issued some significant environmental law rulings in the past few days. THE U.S. SUPREME COURT U.S. Fish and Wildlife Service v. Sierra Club, Inc. On March 4, 2021, the court held that the deliberative process privilege of the Freedom of Information Act shields from disclosure in-house draft governmental biological opinions that are both “predecisional” and deliberative. According to the court, these opinions, opining on the Endangered Species Act (ESA) effects on aquatic species of a proposed federal rule affecting cooling water intake structures—which was promulgated in 2019—are exempt from disclosure because they do not reflect a “final” agency opinion. Indeed, these ESA-required opinions reflect a preliminary view, and the Services did not treat them as being the final or last word on the project’s desirability. The Sierra Club, invoking the FOIA, sought many records generated by the rulemaking proceeding, and received thousands of pages. However, the Service declined to release the draft biological opinions that were created in connection with the ESA consultative process. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Where Parched California Is Finding New Water Sources

June 13, 2022 — Pam McFarland - Engineering News-Record
As drought-plagued western states watch their water sources literally dry up, California is digging deeper to tap the most basic source of all: groundwater. 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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Philadelphia Court Rejects Expert Methodology for Detecting Asbestos

October 11, 2017 — Christian Singewald, Wesley Payne & Jonathan Woy - White and Williams LLP
Lawsuits against talcum powder manufacturers have recently made headlines for the multimillion dollar verdicts returned in favor of plaintiffs with ovarian cancer. However, lawsuits brought by individuals with mesothelioma who did not work in occupations traditionally associated with asbestos exposure represent another potential liability for talcum powder manufacturers and retailers. In such cases, expert testimony linking mesothelioma to trace amounts of asbestos in talcum powder should be carefully scrutinized. Reprinted courtesy of White and Williams LLP attorneys Christian Singewald, Wesley Payne and Jonathan Woy Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com Mr. Payne may be contacted at paynew@whiteandwilliams.com Mr. Woy may be contacted at woyj@whiteandwilliams.com Read the court decision
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