Seattle Washington Building Expert Directory

Coffee Beans, Mars and the 50 States: Civil Code 1542 Waivers and Latent Defects

March 19, 2015 — Garret Murai – California Construction Law Blog
A few years ago, Pulitzer Prize-winning reporter Charles Duhigg wrote a book that was on the New York Times bestseller list for over 60 weeks, The Power of Habit: Why We Do What We Do in Life and Business. As its title suggests, the book is about habits, but more importantly about how we can change our habits to make ourselves happier, healthier and more productive. In his book, Duhigg talks about how habits are “encoded into the structures of our brain” and how this is an advantage because, as an example, “it would be awful if we had to relearn how to drive after every vacation.” Duhigg’s driving example made me think about how much we assume as well, and how, from a practical perspective, it is almost essential that we do so. Using his car example, when we put our key into the ignition and turn it, we assume that the engine will start, and further assume that when we put our foot on the gas pedal that the car will move. If we didn’t or couldn’t assume this, and the many other things we assume in our daily lives, our brains would likely go into overload. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Employee or Independent Contractor? New Administrator’s Interpretation Issued by Department of Labor Provides Guidance

August 04, 2015 — Tanya Salgado – White and Williams LLP
The question of whether a worker should be classified as an independent contractor or an employee is fraught with confusion and misunderstanding for many businesses. Compounding the problem is the fact that there are a number of different tests used to determine employee status, which vary by jurisdiction and by the particular law in question. For example, the Internal Revenue Service uses the common law rules which focus on the degree of control and independence exercised by the worker. In contrast, the United States Department of Labor uses the “economic realities” test which focuses on whether the worker is economically dependent on the employer. In an effort to help combat the confusion over proper worker classification, the United States Department of Labor (DOL) has issued a new Administrator’s Interpretation that provides a detailed explanation of the test used by the DOL to determine if a worker has been misclassified as an independent contractor. The DOL enforces the Fair Labor Standards Act (FLSA), which mandates that employees (but not independent contractors) be paid minimum wage and overtime. When a business misclassifies non-exempt workers as independent contractors, and those workers are not paid the minimum hourly wage for their labor, or are not paid overtime when they work more than 40 hours in a workweek, this violates the FLSA. Read the court decision
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Reprinted courtesy of Tanya Salgado, White and Williams LLP
Ms. Salgado may be contacted at salgadot@whiteandwilliams.com

Noteworthy Construction Defect Cases for 1st Qtr 2014

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
John A. Husmann and Jocelyn F. Cornbleet of BatesCareyLLP analyzed several noteworthy construction defect cases that have already occurred in 2014, as published in Law360. The cases involved “the ‘occurrence’ requirement, contractual liability exclusion and ‘other insurance’ clauses.” Husmann and Cornbleet summarized Owners Insurance Co. v Jim Carr Homebuilder LLC (Alabama), Pennsylvania National Mutual Casualty Insurance Co. v. Snider (also Alabama), Woodward LLC v. Acceptance Indemnification Insurance Co. (Mississippi), and others. Read the court decision
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Design Immunity Defense Gets Special Treatment on Summary Judgment

March 29, 2021 — Garret Murai - California Construction Law Blog
This may be one that is more for the lawyers than it is for the contractors or owners. If you’ve ever filed a motion for summary judgment or summary adjudication you know the standard is clear. You’re going to lose if the court finds a disputed issue of material fact. In other words, since summary judgment or summary adjudication is such an extreme remedy – you win without having to go to trial after all – the standard is pretty high. Thus, if there’s a dispute as to a material fact (was the light green or was it red?) it’s enough that the court will deny your motion. That is, unless you’re seeking summary judgment or adjudication on a design immunity defense as the next case, Menges v. Department of Transportation, Case No. G057643 (December 24, 2020), reveals. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Hawaii Appellate Court Finds Agent May Be Liable for Failing to Submit Claim

November 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After the agent informed the insured there was no coverage and submitting a claim would be a useless effort, the Hawaii Intermediate Court of Appeal reversed the trial court's dismissal of the insured's suit against the agent. Pflueger, Inc. v. AIG Holdings, Inc., 2022 Haw. App. LEXIS 279 (Haw. Ct. App. Sept. 2, 2022). In May 2008, Pflueger notified its agent, Noguchi & Associates, Inc., that it had received federal grand jury subpoenas. Noguchi informed Pflueger that the subpoenas did not qualify as a "claim" under two policies issued by National Union. Consequently, Noguchi did not forward a claim or the subpoenas to National Union and did not seek clarification as to whether the grand jury subpoenas were covered under the policies. Pflueger relied upon Noguchi's representations and took no further action until its attorney submitted a demand letter tendering Pflueger's defense to Nation Union nine months later, in February 2009. 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

Mitsui Fudosan Said to Consider Rebuilding Tilted Apartments

October 28, 2015 — Katsuyo Kuwako – Bloomberg
Mitsui Fudosan Co., Japan’s biggest developer, is considering rebuilding an apartment complex in Yokohama after one of the four buildings started to tilt, according to a person familiar with the situation. Kiyotaka Fujibayashi, president and chief executive officer of Mitsui Fudosan Residential Co., on Thursday explained the plans to residents, according to the person, who asked not to be named because the information is private. Another option the company is studying is buying back the apartments from the residents at a price higher than what they had paid, the person said. The project was sold in 2006. Mitsui Fudosan is the latest developer to come under scrutiny for defects at residential projects in the Tokyo area. Mitsubishi Estate Co., Japan’s biggest developer by market value, said last year it would rebuild a residential complex in the upscale Aoyama neighborhood after finding faults. Also last year, Sekisui House Ltd. said it would reconstruct a residential complex that was being built by Taisei Corp. after finding some columns were missing reinforcing metals. Read the court decision
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Reprinted courtesy of Katsuyo Kuwako, Bloomberg

Negligent Inspection Claim Against Supervising Design Professional / Consultant

August 07, 2023 — David Adelstein - Florida Construction Legal Updates
Can a negligence argument be created against consulting design professionals or entities that are involved in the inspection of a trade’s work? The recent opinion in Bautech USA, Inc. v. Resolve Equipment, Inc., 2023 WL 4186395 (S.D.Fla. 2023) contains an interesting fact pattern that touches upon this issue. While the case dealt with a motion to dismiss, it contains a number of issues that may be discussed in follow-up postings. Here, a prime contractor was hired by Broward County, Florida to install offshore reef mitigation units. The contractor entered into a subcontract with a concrete fabricator to fabricate the reef mitigation units. The contractor also separately hired consultants to inspect the units. The contractor and its consultants rejected the units even after the fabricator implemented design revisions. The fabricator was then terminated and not paid for contract work plus revisions it implemented to finished units. The fabricator sued the contractor and the contractor’s consultants for non-payment under many (ten) different theories of liability claiming it was damaged to the tune of millions of dollars. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Construction Is Holding Back the Economy

February 28, 2018 — Noah Smith - Bloomberg
Changes in contracts and rules could make the sector a lot more efficient. The question of whether to prioritize jobs or economic efficiency is always difficult. Nowhere is this more of a dilemma than in the construction industry. In a world of rapid technological disruption, construction is a rock of solidity to which many blue-collar workers can cling. The industry still employs about 7 million workers in the U.S. The job doesn’t change that much from decade to decade. It’s a big broad occupation, unlike social-media marketing or other new niche jobs, so it allows working-class people to minimize the time and effort they spend building for a career. And workers get trained on the job, without years of college. What’s more, construction workers are mostly male. To the degree this is a result of sexism, that’s bad. But it also means that the construction industry employs lots of men, at a time when they haven’t been doing so well in the jobs department. Read the court decision
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Reprinted courtesy of Noah Smith, Bloomberg

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