Seattle Washington Building Expert Directory

Michigan Court Waives Goodbye to Subrogation Claims, Except as to Gross Negligence

March 13, 2023 — Lian Skaf - The Subrogation Strategist
In Ace American Insurance Company, et. al. v. Toledo Engineering Co., Inc., et. al., No. 18-11503, 2023 U.S. Dist. LEXIS 15222 (Ace American), the United States District Court for the Eastern District of Michigan determined whether insurers could pursue their subrogation claims against the defendants despite a waiver of subrogation in each of the contracts the insured had with the respective defendants. Based on the language of the contracts and the circumstances leading up to the loss, the court held that the insurers could not pursue their subrogation claims – other than their claims for gross negligence – due to waivers of subrogation in the applicable contracts. In Ace American, the insured, Guardian Industries, LLC (Guardian), retained Toledo Engineer Co., Inc. (TECO) and Dreicor, Inc. (Dreicor) to renovate a glass furnace in the insured’s glass manufacturing plant. Guardian and TECO entered into a contract on December 6, 2016. Guardian and Dreicor entered into a contract on September 29, 2013, that the parties later updated on June 3, 2016. Both defendants began work on the project in the spring of 2017 and were finished with the portion of the work known as the “Cold Tank Repair” prior to the loss. On June 3, 2017, there was an explosion and fire at the plant that caused significant property damage. The plaintiff insurers (Plaintiffs) made payments in the amount of $80 million and became subrogated to its insured’s rights. Plaintiffs then initiated this action. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

Back to Basics: What is a Changes Clause?

July 18, 2018 — J. Cole Phillips – Smith Currie
The Changes Clause is one of the most important, perhaps the most important, provision in any construction contract. Project designs are rarely perfect. A Changes Clause provides a mechanism for dealing with such imperfections as well as allowing project owners the flexibility to update a project’s design as the project progresses. A good Changes Clause specifies when an owner can change the original scope of the contract, how the parties should resolve the value of the changed scope and when payment should be made to the contractor or a credit given to the owner. A good Changes Clause will also provide a mechanism for the contractor to notify the owner when it believes a change order is due and specify the time within which such notice must be given. For the contractor, failure to pay attention to the requirements of the Changes Clause can lead to forfeiture of the right to seek an adjustment to the contract value or contract completion date. For an Owner, failure to pay attention to and enforce the requirements of the Changes Clause can result in unnecessary payments to the Contractor. Read the court decision
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Reprinted courtesy of J. Cole Phillips, Smith Currie
Mr. Phillips may be contacted at jcphillips@smithcurrie.com

There's No Place Like Home

March 02, 2020 — Brian Brenner - Engineering News-Record
Two things that generally do not go well together, bridges and tornadoes, collided with unfortunate results on July 21, 2003. On that date, a tornado struck the Kinzua viaduct in northwestern Pennsylvania. The old bridge structure already had deteriorated foundation supports, which were then under repair. The tornado lifted parts of the bridge off its foundation, and more than half of the structure collapsed. Brian Brenner, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Rio Olympic Infrastructure Costs of $2.3 Billion Are Set to Rise

January 31, 2014 — Tariq Panja and David Biller – Bloomberg
Brazilian authorities announced 5.6 billion reais ($2.3 billion) will be spent on infrastructure directly related to the 2016 Rio de Janeiro Olympic Games and those costs will rise as projects are added. Yesterday’s announcement comes months behind schedule, and after pressure on public bodies to reveal exactly how much it will cost for Rio to be the first South American city to host the quadrennial showpiece. Delays and cost overruns to several projects related to this year’s soccer World Cup have sharpened the focus on the Olympics. “We are committed to being on schedule,” Sports Minister Aldo Rebelo said at a press conference in Rio to announce the spending plans. “It is the first time we have a consortium of three levels of government. It is in an effort to ensure the success and execution of all the commitments to deliver the Olympics in Rio in 2016.” Mr. Panja may be contacted at tpanja@bloomberg.net and Mr. Biller may be contacted at dbiller1@bloomberg.net. Read the court decision
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Reprinted courtesy of Tariq Panja and David Biller, Bloomberg

Jason Poore Receives 2018 Joseph H. Foster Young Lawyer Award

July 21, 2018 — Jason Poore - White and Williams LLP
Jason Poore, an associate in the General Litigation Group, recently received the 2018 Joseph H. Foster Young Lawyer Award during the Philadelphia Association of Defense Counsel’s annual meeting. The Joseph H. Foster Young Lawyer Award honors “a young lawyer who best exemplifies the qualities of professionalism and dedication as defense counsel in the practice of law and in the promotion of the highest ideals of justice in the community." Jason continues to make significant contributions to the local bar and community. In addition to serving on the Executive Committee of the Philadelphia Bar Association Young Lawyers Division, he is the creator and Chair of the PBA's Youth Courts Committee. Read the court decision
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Reprinted courtesy of Jason Poore, White and Williams LLP
Mr. Poore may be contacted at poorej@whiteandwilliams.com

Congratulations to Partners Nicole Whyte, Keith Bremer, Peter Brown, Karen Baytosh, and Associate Matthew Cox for Their Inclusion in 2022 Best Lawyers!

September 13, 2021 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is proud to announce Partners Nicole Whyte, Keith Bremer, Peter Brown, and Karen Baytosh have been selected by their peers for inclusion in the 2022 Edition of The Best Lawyers in America, and Associate Matthew Cox has been included in the Second Edition of Best Lawyers: Ones to Watch. Each person is being recognized for their diligent work in the areas of Family Law, Construction, Commercial, and Personal Injury Litigation. Best Lawyers is the most respected peer-review publication in the history of the legal profession. Acknowledgment in both The Best Lawyers in America and Best Lawyers: Ones to Watch edition is widely regarded by both clients and legal professionals as a significant honor, bestowed on a lawyer by his or her peers. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Read Her Lips: “No New Buildings”

November 18, 2011 — CDJ STAFF

Martha Johnson, the head of the General Services Administration, has said that her agency will not be building any new buildings in the near future. Among other duties, the GSA is responsible for the building, renovating, and leasing of federal office space. The White House had proposed $840 million in new construction, the Senate only $56 million. The House did not appropriate any money for the agency to use for new construction.

In addition to cutbacks on new buildings, Congress is suggesting only $280 million in repairs of existing government buildings. In order to cut back, the GSA has dropped plans to renovate their own offices in favor of renovations at the Department of Homeland Security and the Food and Drug Administration.

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Back Posting with Thoughts on Lien Waivers

May 20, 2015 — Christopher G. Hill – Construction Law Musings
After a week of being unable to post due to the rigors of my solo construction practice, I’m back on the blogging train. For those of you that missed my new musings this past week, I hope that you had a chance to look through some of the past Guest Post Friday posts for some good stuff to read. During the course of my busy week last week, a question came up regarding the mechanic’s lien waivers that commercial construction companies routinely execute as part of the payment process. The waiver forms vary, but each essentially states that in exchange for payment the payee, whether a subcontractor or supplier (or even general contractor) waives its future rights to record a mechanic’s lien for the work that is covered by the payment received. Most if not all of these forms further require a certification that the funds paid will either be used to pay suppliers or that suppliers have already been paid. This general description is not the reason for this post. As is always the case in the Commonwealth of Virginia where the contract is king and a court is unlikely to reinterpret any written contractual document, the devil is in how that waiver is worded. Some waivers are worded in such a way that they essentially require a payee to certify receipt of the funds prior to payment being received. These same forms require the same pre-payment certification that all suppliers and subcontractors of the payee have already been paid. In short they require a payee to both place complete trust in the payor that the check will be paid and that the check will not bounce while in many cases (often with an unstated “wink and nod”) claiming payment was already made when all know the likelihood is that it has not. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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