Seattle Washington Building Expert Directory

Oregon Supreme Court Confirms Broad Duty to Defend

January 13, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
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

California Supreme Court Declines to Create Exception to Privette Doctrine for “Known Hazards”

September 13, 2021 — Tracy D. Forbath - Lewis Brisbois
In Gonzalez v. Mathis (Aug. 19, 2021, S247677) __ Cal.5th___, the California Supreme Court reversed an appellate decision holding that a landowner may be liable to an independent contractor, or the contractor’s workers, for injuries resulting from “known hazards,” as running contrary to the Privette doctrine. In Gonzalez, the contractor, who specialized in washing skylights, slipped and fell while accessing the landowner’s particularly hard to reach skylight from a narrow retaining wall that was allegedly covered in loose gravel and slippery. (Slip opn., p. 3.) While the trial court initially granted the landowner summary judgment pursuant to the Privette doctrine, the appellate court reversed and held that the landowner had a responsibility to take reasonable safety precautions where there was a known safety hazard on the landowner’s premises. (Id. at p. 6.) Whether the landowner could have taken various safety precautions also raised disputed issues of material fact precluding summary judgment. (Ibid.) However, the California Supreme Court concluded that no broad, third exception to the Privette doctrine lies; “unless a landowner retains control over any part of the contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury [citation], it will not be liable to an independent contractor or its workers for an injury resulting from a known hazard on the premises.” (Slip opn., p. 2.) Read the court decision
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Reprinted courtesy of Tracy D. Forbath, Lewis Brisbois
Ms. Forbath may be contacted at Tracy.Forbath@lewisbrisbois.com

Additional Insured Not Covered Where Injury Does Not Arise Out Of Insured's Work

April 15, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court found the contractor did not have coverage as an additional insured under the subcontractor's policy. Walton Constr. v. First Fin. Ins. Co., 2015 US. Dist. LEXIS 30710 (E.D. La. March 12, 2015). John Maestri was injured while working on a construction project for the Jefferson Parish School Board. Maestri was a commercial glazier for A-1 Glass Services Inc. A-1 was a subcontractor for Walton Construction. While Maestri was installing glass on the project, a high-voltage power line maintained by Entergy Louisiana, LLC electrocuted him, causing burns on his body. Maestri sued Entergy. Entergy filed a third-party complaint against A-1 and Walton, alleging that the Louisiana Overhead Power Line Safety Act had been violated by failing to give advance notice that their workers would be working near the power lines. Entergy argued that under the statute, A-1 and Walton are liable for any damages that Entergy had to pay Maestri. 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

Recent Amendments and Caselaw Affecting the Construction Industry in Texas

April 19, 2022 — Frederick H. Wen - Gordon Rees Scully Mansukhani, LLP
Here are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas. 1) Recent Legislative Amendments Concerning the Construction Industry: a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs: Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions. Read the court decision
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Reprinted courtesy of Frederick H. Wen, Gordon Rees Scully Mansukhani, LLP
Mr. Wen may be contacted at fhwen@grsm.com

Timber Prices Likely to Keep Rising

October 30, 2013 — CDJ STAFF
Lumber prices are expected to keep rising, and according to Terry Shumacher, who does business acquisition for private equity firms, that’s a sign to invest in lumber stocks. Writing at Seeking Alpha, he looks at one such company, Tembec, the eleventh largest lumber producer in North America. Tembec is headquartered in Canada, but its stock trades on both the Canadian and American markets. Mr. Schumacher points out that one of the advantages of Tembec as an investment is that its stock is currently trading at about $2.59 a share, so a $50 per million board feet increase in the cost of lumber would make a large percentage change to its earnings to price ratio. (As comparison, Mr. Schumacher offers West Fraser, which is trading at about $89.59. There, the increase in lumber prices would have a much smaller effect on the stock price.) There’s going to be a greater demand for lumber, not only due to increased housing starts but that North American firms have started exporting lumber to China. Add to that the loss of trees in some areas due to beetle infestations. The death of standing timber has lead to some sawmills shutting down for lack of logs. All of which points to increased timber prices. Read the court decision
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Reprinted courtesy of

California’s Wildfire Dilemma: Put Houses or Forests First?

November 29, 2021 — Jim Hinch - Bloomberg
As record-breaking fires blacken millions of acres in California and elsewhere in the West this year, politicians are mostly sticking to a standard script in response. President Joe Biden’s proposed budget this year includes a $500 million boost to what the White House calls “forest management” and other efforts to reduce wildfire risk. In July, California lawmakers approved $1.5 billion in similar prevention spending. The funds are in addition to the $2 billion the federal government spends each year fighting fires — a figure twice what it was 10 years ago and roughly five times more than in the 1980s and 1990s. A study last year found that in 2018, wildfires in California caused $148.5 billion in economic damage, including $46 billion outside the state. Roughly one in three American houses is now in what forest scientists call the wildland-urban interface, where growing cities, remote workers, second-home buyers and commuters priced out of other housing markets are often pushing into fire-prone regions. A 2017 study found that 900,000 homes in the Western U.S. worth a combined $237 billion were “at high risk for fire damage.” Read the court decision
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Reprinted courtesy of Jim Hinch, Bloomberg

Attorneys’ Fees and the American Arbitration Association Rule

September 09, 2024 — Bill Wilson - Construction Law Zone
A common question from clients, when a dispute arises on a construction project, is whether they can recover their attorney’s fees from the other side if they pursue a case and win. More often than not, such fees are not recoverable. As a general rule (commonly known as the “American Rule”), each party to a dispute must bear their own attorney’s fees unless there is some statutory provision or contractual agreement between the parties allowing otherwise. Since most construction disputes involve claims for breach of contract and/or negligence, no realistic statutory provision often allows for attorney’s fees. Many construction contracts do not typically provide a prevailing party the right to collect attorney’s fees from the other side. However, even if the American Rule applies, there may be another path to recovering attorney’s fees if the parties agree to arbitrate their dispute under the American Arbitration Association (AAA) rules. Reprinted courtesy of Bill Wilson, Robinson & Cole LLP Mr. Wilson may be contacted at wwilson@rc.com Read the full story... Read the court decision
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Washington State Enacts Law Restricting Non-Compete Agreements

September 23, 2019 — Ellie Perka - Ahlers Cressman & Sleight PLLC
Washington State has enacted a new law that means big changes for employers. The new law, in effect on January 1, 2020, will dramatically limit the enforcement of non-compete agreements in our state and imposes tough penalties on employers found to be in violation. While the new law does not take effect for many months, businesses should nonetheless act quickly and before year’s end to evaluate practices and, if necessary, revise existing and future non-compete agreements to ensure compliance. Under the new law, if an employee successfully proves a company’s non-compete agreement is unenforceable, then the employer will be required to pay the greater of $5,000 or an employee’s actual damages, plus the employee’s attorneys’ fees (and its own, in defending the non-compete), expenses and costs incurred in challenging the agreement. Brief Summary of Changes Washington Courts have typically disfavored restrictive covenants but usually enforced a non-competition agreement that protected an employer’s legitimate business interests and was reasonable in scope, geographic reach, and duration. The Legislature halted this trend through passage of Engrossed Substitute House Bill 1450. Read the court decision
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Reprinted courtesy of Ellie Perka, Ahlers Cressman & Sleight PLLC
Ms. Perka may be contacted at ellie.perka@acslawyers.com

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