SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

An Uncharted Frontier: Nevada First State to Prohibit Defense-Within-Limits Provisions

July 10, 2023 — Geoffrey B. Fehling & Andrew S. Koelz - Hunton Insurance Recovery Blog
Nevada recently became the first state to prohibit defense-within-limits provisions in liability insurance policies. Defense-within-limits provisions—resulting in what’s called “eroding” or “wasting” policies—reduce the policy’s applicable limit of insurance by amounts the insurer pays to defend the policyholder against a claim or suit. These provisions are commonly included in errors and omissions (E&O), directors and officers (D&O) and other management liability policies. This is in contrast to other policies, most commonly commercial general liability policies, which provide defense “outside of limits” where defense costs do not reduce the policy’s limit. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth and Andrew S. Koelz, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Koelz may be contacted at akoelz@HuntonAK.com Read the court decision
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Under the Hood of U.S. Construction Spending Is Revised Data

January 06, 2016 — Vince Golle – Bloomberg
Here’s one key takeaway from the Commerce Department’s report Monday on U.S. construction spending. The 0.4 percent decrease in November, which itself was weaker than the most pessimistic Bloomberg survey forecast, was accompanied by downward revisions to prior months. The combination suggests some economists may revise down their fourth-quarter GDP tracking forecasts. * October construction spending rose 0.3 percent, compared with a prior estimate of 1 percent, while September outlays advanced 0.2 percent versus a previous estimate of a 0.6 percent gain Read the court decision
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Reprinted courtesy of Vince Golle, Bloomberg

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Potential Coverage Issues Implicated by the Champlain Towers Collapse

March 21, 2022 — Theresa A. Guertin & Holly A. Rice - Saxe Doernberger & Vita, P.C.
In June 24, 2021, the Champlain Towers South in Surfside, Florida collapsed, killing nearly 100 individuals (the “Collapse”). As experts uncover more information regarding the cause of the Collapse, those individuals who have filed lawsuits as well as the potentially culpable defendants are looking to insurers for coverage of their bodily injury and property damage claims. Contractors, engineers, and other professionals are or anticipate being sued for their roles in the Collapse. Those professionals have professional liability policies and/or director and officer liability policies. Likewise, the condominium association’s commercial general liability (CGL) policies and its business property policy may have a duty to defend and/or indemnify their insureds as well. Finally, individual unit owners/renters may look to their homeowners’ insurance, auto insurance, health insurance, and/or life insurance policies for coverage.1 The potential breadth of insurance coverage issues raised by the Collapse is beyond the scope of this article. The article will consider some concerns that could impact insurance coverage under a standard CGL policy in the case of a building collapse. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and Holly A. Rice, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at TGuertin@sdvlaw.com Ms. Rice may be contacted at HRice@sdvlaw.com Read the court decision
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California Supreme Court Rejects Third Exception to Privette Doctrine

July 03, 2022 — Lewis Brisbois
Walnut Creek, Calif. (May 25, 2022) - In Gonzalez v. Mathis (August 19, 2021) 12 Cal. 5th 29, the California Supreme Court considered whether to create a third exception to the Privette Doctrine specific to known hazards on a worksite, when a contractor cannot remedy the hazard by taking reasonable safety precautions to protect against it. Privette Background Under the Privette Doctrine, the hirer of an independent contractor generally cannot be liable for injuries sustained by the independent contractor or its employees while on the job. This is due to the “strong presumption” that the hirer delegates all responsibility for workplace safety to the independent contractor. See Privette v. Superior Court (1993) 5 Cal. 4th 689. Since the Privette ruling in 1993, the California Supreme Court has identified two circumstances in which the presumption may be overcome. First, the hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury. Hooker v. Dept. of Transportation (2002) 27 Cal. 4th 198, 213. Second, a landowner who hires an independent contractor may be liable if the landowner knew, or should have known, of a concealed hazard to the property that the contractor did not know of and could not have reasonably discovered, and the landowner failed to warn the contractor of the hazard. Kinsman v. Unocal Corp. (2005) 37 Cal. 4th 659, 664. Here, in the Gonzalez case, the court considered whether a landowner could be liable for known hazards on the property. Read the court decision
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Asbestos Confirmed After New York City Steam Pipe Blast

July 21, 2018 — Eydie Cubarrubia - Engineering News-Record
Asbestos has been found at the site where an underground steam pipe exploded early Thursday morning near the Flatiron building in midtown Manhattan. Read the court decision
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Reprinted courtesy of Eydie Cubarrubia, ENR
Ms. Cubarrubia may be contacted at cubarrubiae@enr.com

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Supreme Court Grants Petition for Review Regarding Necessary Parties in Lien Foreclosure Actions

August 17, 2017 — Lindsay K. Taft - Ahlers & Cressman PLLC
For several years, the requirements for which parties must be named in a lien foreclosure action when a release of lien bond is in place have been cloudy. RCW 60.04 et seq., the “mechanics’ lien” or “construction lien” statute, provides protection for a party or person who provides labor, materials, or equipment to a construction project. That person or party, if not paid, can file a lien against the construction project property to secure recovery. As the lien impacts the property by “clouding title” and could potentially result in foreclosure of the property, the statute sets forth strict requirements with respect to timing, notice, and parties. For example, the lien must be recorded within 90 days of the person or party’s last day of work or materials or equipment supplied, and the lien claimant must then give a copy of the claim of lien to the owner or reputed owner within 14 days of the lien recording. RCW 60.04.081. The statute also allows a property owner or other party to “free” the property from the lien prior to the claim being resolved by issuing a release of lien bond. While the claim is still in dispute, the lien then attaches to the bond and not the property. The same rules about foreclosure, however, still apply but not without some confusion. Read the court decision
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Reprinted courtesy of Lindsay K. Taft, Ahlers & Cressman PLLC
Ms. Taft may be contacted at ltaft@ac-lawyers.com

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Additional Dismissals of COVID Business Interruption, Civil Authority Claims

December 29, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Among the recent decisions dismissing complaints for business interruption and civil authority coverage due to closures caused by COVID-19 are Pappy's Barber Shops, Inc. v. Farmers Group, Inc., 2020 U.S. Dist. LEXIS 166808 (S.D. Calif. Sept. 11, 2020) and Sandy Point Dental v. Cincinnati Insurance Co., 2020 U.S. Dist. LEXIS 171979 (E.D. Ill. Sept. 21, 2020). The difficulty in proving "direct physical loss" was the downfall of both cases. In Pappy's, claims were made for business income losses insured as a result of local and state closure orders. The policy required "direct physical loss of or damage to property at the described premises." Plaintiffs argued that "direct physical loss of" did not require a tangible damage or alteration to property and that the loss of the ability to continue operating their businesses as a result of the government orders met this requirement. The court relied upon a prior decision, 10E, LLC v. Travelers Indem. Co. of Connecticut, 2020 U.S. Dist. LEXIS 165252 (C.D. Calif. Sept. 2, 2020) [post here], where the court noted that under California law, losses from inability to use property did not amount to "direct physical loss" within the meaning of the policy. 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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Architect Norman Foster Tells COP26: Change 'Traditional' City Design to Combat Climate Change

November 19, 2021 — James Leggate - Engineering News-Record
Regaining control over the climate crisis will require a change in the way cities are designed and built, noted British architect Sir Norman Foster told global attendees at the COP26 summit in Glasgow, Scotland, in a presentation with John Kerry, President Joe Biden's special climate envoy. 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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