Seattle Washington Building Expert Directory

Sustainable, Versatile and Resilient: How Mass Timber Construction Can Shake Up the Building Industry

April 10, 2023 — Cait Horner, Adam J. Weaver & Allan C. Van Vliet - Gravel2Gavel Construction & Real Estate Law Blog
Design professionals, real estate developers and builders alike are advocating for a relatively new way of using one of the world’s oldest building materials—wood—in large-scale commercial and residential construction projects. Mass timber, or structural timber, touts such benefits as carbon reduction and seismic durability—all with a lower construction time. With ESG on the minds of clients, investors and tenants, mass timber projects present an attractive construction option for the integration of sustainable resources and these various benefits. The most common and popular form of mass timber, cross-laminated timber (CLT), has been recently gaining popularity in the U.S. after widespread adoption in Europe over the past 20 years. CLT consists of layers of trimmed and kiln-dried lumber boards, usually three, five or seven across, stacked and glued crosswise at 90-degree angles. These stacked lumber boards create large slabs that are used to build floors, walls and ceilings—put those fabricated pieces together, and you have a whole building constructed of CLT. Reprinted courtesy of Cait Horner, Pillsbury, Adam J. Weaver, Pillsbury and Allan C. Van Vliet, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com Read the court decision
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What is a Subordination Agreement?

May 06, 2019 — Bremer Whyte Brown & O'Meara LLP
Put simply, a subordination agreement is a legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. It is an arrangement that alters the lien position. Without a subordination clause, loans take chronological priority which means that a deed of trust recorded first will be considered senior to all deeds of trusts recorded after. As such, the oldest loan becomes the primary loan, with first call on any proceeds from a sale of a property. However, a subordination agreement acknowledges that one party’s claim or interest is inferior to that of another party in the event that the borrowing entity liquidates its assets. Further, shareholders are subordinate to all creditors. The junior debt is referred to as a “subordinated debt”, and the debt which has a higher claim to any assets is the senior debt. Often, the borrower does not have enough funds to pay all debts, and lower priority debts may receive little or no repayment. For example, if a business has $400,000 in senior debt, $100,000 in subordinated debt, and a total asset value of $420,000, upon liquidation of the company, only the senior debtholder will be paid in full. The remaining $20,000 will be distributed among the subordinated debtholders. Subordinated debts are, therefore, riskier and lenders will require a higher interest rate as compensation. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Contractor Disputes Report Amid Amazon Warehouse Collapse Lawsuit

May 02, 2022 — James Leggate - Engineering News-Record
A contractor facing a lawsuit related to the December partial collapse of an Amazon.com Inc. warehouse that was hit by a tornado is pushing back on claims in a fire marshal’s report that highlighted possible “significant structural issues” with the building. 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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Is It Time to Revisit Construction Defects in Kentucky?

December 11, 2013 — CDJ STAFF
The Kentucky Supreme Court ruled in 2010 that faulty workmanship on a construction project could not be considered an accident under a commercial general liability policy. The first reason they cited, according to Carl A. Salisbury of Kilpatrick Townsend & Stockton LLP, was that a majority of states had concluded that “claims of faulty workmanship, standing alone, are not ‘occurrences’ under CGL policies.” Mr. Salisbury points out a problem with that: “an overwhelming majority of state Supreme Courts that have considered the question have held that faulty workmanship can be (and usually is) accidental and, therefore, is a covered ‘occurrence.’’ He also notes that in four states, the legislatures have passed laws confirming that faulty workmanship is an occurrence. The “majority viewpoint” cited by the Kansas Supreme Court is currently held by four other states, while twenty states hold the view that construction defects are accidents and thus occurrences. Since 2010, five states have reversed their stance, coming to what is now the clear majority view, including South Carolina. The Kansas court relied on a South Carolina decision that Mr. Salisbury described as “since repudiated” by “both the legislature and Supreme Court of that state.” Read the court decision
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NYC’s Developers Plow Ahead With Ambitious Plans to Reshape City

May 03, 2021 — Patrick Clark & Natalie Wong - Bloomberg
New York City’s builders have had a curious reaction to a pandemic that emptied Manhattan’s office towers, shuttered restaurants and kept tourists home. Over the past year, as scores of businesses closed and many residents beat it out of town, developers doubled-down on visions of steel-and-glass grandeur, hatching plans that could transform the city. Vornado Realty Trust recently said it will demolish the Hotel Pennsylvania and add an office tower taller than 1,200 feet (366 meters) at the site by Madison Square Garden. Near Grand Central Terminal, giant towers are sprouting, including a project to redevelop the Grand Hyatt next to the transit hub. The developers are proposing a 1,600-foot skyscraper that would be among the tallest in the Western Hemisphere. Read the court decision
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Reprinted courtesy of Patrick Clark & Natalie Wong, Bloomberg

Quick Note: Submitting Civil Remedy Notice

May 10, 2017 — David Adelstein - Florida Construction Legal Updates
There are steps an insured or claimant need to take in order to assert a statutory bad faith claim. The first step is the obligatory Civil Remedy Notice. This obligation is set forth in Florida Statute s. 624.155. The Civil Remedy Notice is, in essence, written notice of the specific violation(s) that are being claimed against the insurer that give rise to potential bad faith and an opportunity for the insurer to cure the violation(s). Florida Statute s. 624.155 would not be confused as a model of clarity, so it is important that a insured or claimant work with an attorney regarding any bad faith claim including filling out the Civil Remedy Notice. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Economic Loss Not Property Damage

November 04, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit agreed with the district court that the insured subcontractor's economic losses did not amount to covered property damage. Greenwich Ins. Co. v. Capsco Industries, Inc., 2019 U.S. App. LEXIS 23949 (5th Cir. Aug 12, 2019). Capsco Industries, Inc. was a subcontractor on the construction of a casino. Capsco subcontracted with Ground Control to install water, sewage, and storm-drain lines. Ground Control was terminated from the project by the general contractor for alleged safety violations and failed drug tests of its employees. Ground Control sued in state court against multiple parties, including Capsco, seeking payment for work on the project. The claims were dismissed on summary judgment because neither party had obtained the required certificates of responsibility from the state, making the parties' contract void. The Mississippi Supreme Court agreed the contract was void, but reversed and remanded for further proceedings based solely on theories of unjust enrichment and quantum meruit. While the state case was on remand, Capsco's liability insurers, Greenwich Insurance Company and Indian Harbor Insurance Company, filed a compliant for declaratory judgment in federal district court seeking a declaration that they did not owe a defense or indemnity to Capsco. The defendants were Ground Control, Capsco, the general contractor, and the casino owner. The latter two parties were dismissed. Ground Control counterclaimed for coverage of its claims against Capsco. The district court stayed proceedings until the state court litigation ended. 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

Insurer Prevails on Summary Judgment for Bad Faith Claim

July 16, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted summary judgment to the insurer on the insured's claim for bad faith due to denial of the claim. Treigle v. State Farm Fire and Cas. Ins. Co., 2023 U.S. Dist. LEXIS 87786 (E.D. La. May 19, 2023). The insured's home sustained serious water damage due to Hurricane in August 2021. Her policy with State Farm excluded losses related to surface water and mold. The insured reported the loss from Hurricane Ida after she returned to her home and found two inches of standing water in the house. State Farm advised the insured to hire a water mitigation company to help with the water. The insured contacted 7 Brothers Company to start mitigation, including tearing out the disposing of wet building materials. 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

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