Seattle Washington Building Expert Directory

Lump Sum Subcontract? Perhaps Not.

August 20, 2019 — David Adelstein - Florida Construction Legal Updates
Lump sum subcontract? Perhaps not due to a recent ruling where the trial court said “No!” based on the language in the subcontract and contract documents generally incorporated into the subcontract. This is a ruling on an interpretation of a subcontract and contract documents incorporated into the subcontract that I do not agree with and struggle to fully comprehend. The issue was whether the subcontract amount was a lump sum or subject to an audit, adjustment, and definitization based on actual costs incurred. Of course, the subcontractor (or any person in any business) is not just interested in recouping actual costs, but there needs to be a margin to cover profit and home office overhead that does not get factored into field general conditions. In United States v. Travelers Casualty and Surety Company, 2018 WL 6571234 (M.D.Fla. 2018), a prime contractor was hired to perform work on a federal project. During the work, the Government issued the prime contractor a Modification that had a not-to-exceed value and required the prime contractor to track its costs for this Modification separate from other contract costs. In other words, based on this Modification, the prime contractor was paid its costs up to a maximum amount and the prime contractor would separately cost-code and track the costs for this work differently than other work it was performing under the prime contract. 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

Drones Give Inspectors a Closer Look at Bridges

January 02, 2019 — Aileen Cho - Engineering News-Record
Ted Zoli, national chief bridge engineer with HNTB, compares bridge inspections to taking his kids to the doctor. “Every few years you take another set of pictures of the bridge, and ultimately you can pattern it. You pay attention in a deeper way to responses, and have a record.” But like parents who don’t want to send kids to the doctor at the first sign of a sniffle, once managers understand the characteristics of a bridge and its behavior, they don’t need to do constant in-depth reinspections. They are constantly looking for ways to make better decisions with the data they already have. “We spend a lot of money inspecting bridges,” says Zoli. “The question becomes whether there is a more technologically efficient way to do it.” Read the court decision
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Reprinted courtesy of Aileen Cho, ENR
ENR may be contacted at ENR.com@bnpmedia.com

If You Purchase a House at an HOA Lien Foreclosure, Are You Entitled to Excess Sale Proceeds?

February 03, 2020 — Ben Reeves - Snell & Wilmer Real Estate Litigation Blog
That pesky excess sale proceeds statute, A.R.S. § 33-727, is making waves again. We previously blogged about this statute here. In the prior post, we explained that excess sale proceeds (i.e., a foreclosure sale price greater than the lien being foreclosed) must be used to pay other lien creditors, in full, before the owner receives anything. Recently, the Arizona Court of Appeals held that creditors also take excess sale proceeds before the person who purchased the property at foreclosure. The case, Vista Santa Fe Homeowners Association v. Millan, No. 1 CA-CV 18-0609 (Ct. App. Oct. 15, 2019), is discussed below. The Facts In Vista Santa Fe, an individual bought a home secured by a first and second deed and trust. The homeowner defaulted on assessments owed to the Vista Santa Fe Homeowners Association (the “HOA”), and the HOA commenced an action to foreclose the resulting assessment lien. At the time, the HOA was owed approximately $14,000. Patterson Commercial Land Acquisition & Development, LLC (“Patterson”) purchased the property at the HOA’s sheriff’s sale for $42,000. After satisfying the HOA’s lien, the sheriff deposited the excess sale proceeds, in the amount of approximately $28,000, with the clerk of the court. Both Patterson and the second deed of trust holder, Bank of New York Mellon (“Bank”), submitted claims for the excess sale proceeds.[1] The trial court awarded the money to the Bank, and Patterson appealed. Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer

Candis Jones Named to Atlanta Magazine’s 2023 “Atlanta 500” List

February 01, 2023 — Candis Jones - Lewis Brisbois Newsroom
Atlanta, Ga. (January 30, 2023) - Atlanta Partner Candis R. Jones has been named to Atlanta Magazine’s 2023 “Atlanta 500” list of the most powerful law professionals in Atlanta. This is the third year in a row she has received this recognition. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionaries who led programs for their communities and created opportunities for employees. According to Atlanta Magazine, this year's nominees displayed an "intensified commitment to inclusiveness." Read the court decision
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Reprinted courtesy of Candis Jones, Lewis Brisbois
Ms. Jones may be contacted at Candis.Jones@lewisbrisbois.com

No Coverage For Construction Defects When Complaint Alleges Contractual Damages

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The underlying plaintiff’s allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage.See Nat’l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).

Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.

Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment.

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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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Quick Note: Subcontractor Payment Bond = Common Law Payment Bond

February 16, 2017 — David Adelstein – Florida Construction Legal Updates
What is a common law payment bond? A common law payment bond is a bond not required or governed by a statute. For example, if a prime contractor provides the owner a payment bond, that bond will be a statutory payment bond. On the other hand, if a subcontractor provides the general contractor with a payment bond, that bond will be a common law payment bond. Why? Because there is not a statute that specifically governs the requirements of a subcontractor’s payment bond given to a general contractor. The subcontractor’s payment bond is aimed at protecting the general contractor (and the general contractor’s payment bond) in the event the subcontractor fails to pay its own subcontractors and suppliers. The subcontractor’s payment bond will generally identify that claimants, as defined by the bond, are those subcontractors and suppliers the subcontractor has failed to pay. This common law payment bond is not recorded in the public records so sometimes it can be challenging for a claimant (anyone unpaid working under the subcontractor that furnished the bond) to obtain a copy of the bond. With that said, an unpaid claimant should consider pursuing a copy of this bond in certain situations, particularly if it may not have preserved a claim against the general contractor’s statutory payment bond. 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

Actual Cost Value Includes Depreciation of Repair Labor Costs

November 07, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022). Hurricane Laura damaged the insured's home. She filed a claim with Allstate under her homeowners policy. Allstate issued payment. The insured filed suit alleging Allstate wrongfully withheld amounts by depreciating labor when calculating the ACV of the damaged property. Allstate moved to dismiss. The policy was a replacement cost policy where the insured would receive the actual cash value of her insured property when it was damaged or destroyed by a covered peril. ACV was calculated by taking the repair/replacment which included both material and labor, and then deducting for depreciation. If no repairs or replacements were made, the insured was paid the ACV. If repairs or replacement was done, Allstate reimbursed the insured for the depreciation deduction. The insured challenged Allstate's refusal to pay 100% of the future labor costs, without any depreciation, even if the insured did not replace or repair the damaged property. 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

GRSM Named Among 2025 “Best Law Firms” by Best Lawyers

December 23, 2024 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has been recognized in the 2025 "Best Law Firms" survey published by Best Lawyers. To be eligible for a 2025 ranking, a law firm must have at least one lawyer recognized in the 2025 edition of the Best Lawyers in America in a "Best Law Firms" practice area and geographic jurisdiction. GRSM announced earlier this year that 166 lawyers were recognized in the 2025 edition of Best Lawyers in America®, while 74 lawyers were named to the 2025 edition of Best Lawyers: Ones to Watch. Explore the full list of GRSM recognized attorneys. No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Prior results do not guarantee a similar outcome. For details about Best Law Firms' methodology, please click here. The firm received National "Tier 1" rankings in the following areas:

Admiralty and Maritime Law
Commercial Litigation
Construction Law
Insurance Law
Litigation – Construction
Mass Tort Litigation / Class Actions – Defendants

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Reprinted courtesy of Gordon Rees Scully Mansukhani

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