SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

City of Sacramento Approves Kings NBA Financing Plan

May 21, 2014 — Beverley BevenFlorez-CDJ STAFF
Sacramento, California’s city council recently approved a financing plan that will enable the construction of the $477 million downtown arena project to move forward, reported KNOE News. Sacramento will now be responsible for a $223 million subsidy, and “the Kings would contribute $254 million to construct the arena and develop surrounding land with a hotel, office tower and shopping.” “Kings President Chris Granger called it a historic day for the team and Sacramento region, saying the arena would serve as a hub for economic development,” according to KNOE News. “The project would bring 11,000 construction jobs and 4,000 permanent jobs, [Granger] said.” Read the court decision
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White House Reverses Trump Administration NEPA Cutbacks

October 24, 2021 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
The Biden administration's Oct. 6 announcement that it will restore certain long-standing environmental reviews for infrastructure projects—rolled back by the Trump administration last year—won praise from environmental groups but has some in the construction sector wary of new project delays as a major federal funding push looms. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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California Expands on Scope of Coverage for Soft Cost Claims

February 14, 2023 — Caitlin N. Rabiyan - Saxe Doernberger & Vita, P.C.
The California federal district court case of KB Home v. Illinois Union Insurance Co., No. 8:20-cv-00278-JLS-JDE, (C.D. Cal. August 23, 2022), provides much needed guidance for cases involving builder's risk insurance claims for soft cost coverage. The case stems from damage to several of KB Home’s residential building sites caused by a severe rainstorm in January 2017. Each home site was a smaller part of a large housing development project. The damage caused significant delay in the completion of some individual home sites, although there was limited evidence of delay to the overall housing development project. As a result, KB Home sought coverage under a builder’s risk policy purchased from Illinois Union for both hard costs and soft costs. “Hard costs” are the costs directly associated with repairing property damage to the sites. Conversely, “soft costs” are indirect expenses associated with project delays caused by such property damage and repair efforts. For example, hard costs would include labor and materials, whereas the soft costs claimed by KB Home included additional real estate taxes, construction loan interest, and advertising and promotional expenses incurred because of the delays. Illinois Union paid the claim for the hard costs, but denied the soft costs claim. KB Home filed suit and Illinois Union eventually filed a motion for summary judgment. Read the court decision
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Reprinted courtesy of Caitlin N. Rabiyan, Saxe Doernberger & Vita, P.C.
Ms. Rabiyan may be contacted at CRabiyan@sdvlaw.com

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California Supreme Court Addresses “Good Faith” Construction Disputes Under Prompt Payment Laws

June 06, 2018 — Garret Murai - California Construction Law Blog
It’s been a rollercoaster. But the ride appears to be over. In United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., Case No. S231549 (May 14, 2018), the California Supreme Court addressed whether a direct contractor can withhold payment from a subcontractor based on the “good faith dispute” exception of the state’s prompt payment laws if the “dispute” concerns any dispute between the parties or whether the dispute must be directly relevant to the specific payment that would otherwise be due. California’s Prompt Payment Laws California has a number of construction-related prompt payment laws scattered throughout the state’s Civil Code, Public Contracts Code and Business and Professions Code. Their application depends on the type of construction involved, whether public or private; the type of payment involved, whether a progress payment or retention; and who is paying, whether it’s a private owner, public entity, direct contractor, or subcontractor. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Real Estate & Construction News Round-Up (01/11/23) – Construction Tech, Housing Market Confidence, and Decarbonization

February 01, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
To kick of 2023, this week’s news round-up dives into contech inventions projected to impact the industry, shifting home prices and buyer confidence, investors prioritizing decarbonization efforts, and more.

• From holograms to robots, these 6 contech innovations are projected to tackle some of construction’s toughest issues. (Robyn Griggs Lawrence, Construction Dive)
• Manufacturing and data center projects will support the U.S. construction industry as work begins to slow on retail projects, warehouses and offices. (Sebastian Obando, Construction Dive)
• Despite macroeconomic headwinds, doubling down on decarbonization efforts is projected to be top-of-mind for investors and occupiers in 2023. (JLL)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Can Baltimore Get a Great Bridge?

June 21, 2024 — James S. Russell - Bloomberg
When the Francis Scott Key Bridge collapsed after being struck by a massive container ship early in the morning on March 26, six highway workers were killed, a segment of the Baltimore Beltway was severed, the Port of Baltimore was largely shut down for two months — and the city lost an important piece of its identity. Before its destruction made it famous, the Key Bridge was not really a landmark like San Francisco’s Golden Gate Bridge or other charismatic spans that serve as symbols for their host cities. Built in 1977, it was a more utilitarian structure, with brawny trusswork that evoked the city’s industrial past, and an important job to do: It could carry the fuel-hauling tanker trucks that are prohibited from traveling through two nearby tunnels. Its visibility at the mouth of Baltimore’s harbor marked it as a prominent link between the modest communities that line the blue-collar waterfront and the glass apartment and office towers that now define the downtown skyline. Read the court decision
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Reprinted courtesy of James S. Russell, Bloomberg

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State Farm Too Quick To Deny Coverage, Court Rules

July 22, 2011 — CDJ STAFF

On July 13, 2011, Judge Sarah S. Vance of the US District Court issued a rule in the case of Travelers Cas. & Surety Co. of Am. v. Univ. Facilities, Inc. (E.D. La., 2011). In this case, Stanley Smith Drywall was contracted by Capstone Building Corporation to “perform undisclosed work at the facility believed to involve the installation of drywall.” The project involved the design and construction of student residences for the Southeastern Louisiana University in Hammond, Louisiana. In May, 2009, University Facilities, Inc. (UFI) sued Capstone Development Corporation and Capstone On-Campus Management.



State Farm insured Stanley Smith Drywall and they sought a declaration that they have no duty: “(1) to insure Stanley Smith or CBC, or (2) to defend or indemnify any party against UFI's claims in the pending arbitration.” State Farm contends “(1) there is no "occurrence" to trigger coverage under the policy; (2) only breach of contract claims are asserted; (3) there is no property damage alleged; and (4) various coverage limitations and exclusions apply to prevent coverage.’



The court concluded that “whether State Farm has a duty to defend in the arbitration must be determined by considering the claims asserted in the arbitration.” However, the arbitration claims were not made part of the record. There, “, the Court cannot determine as a matter of law State Farm's duty to defend on the present record.” The same was true of State Farm’s duty to indemnify. “Stanley Smith and CBC assert that State Farm's motion for summary judgment was filed before any discovery was conducted in the arbitration proceeding or in this case. The Court finds that State Farm has failed to develop the record sufficiently to establish that there is no genuine issue of material fact as to its duty to indemnify Stanley Smith or CBC in the arbitration.’



The court denied State Farm’s motion for a summary judgment on its duty to defend and indemnify.



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Court Denies Insurer's Motion to Dismiss Collapse Claim

January 20, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Facing yet another collapse claim based upon alleged poorly mixed cement, the Federal District Court in Connecticut denied the insurer's motion to dismiss. Oliveria v. Safeco Ins Co., 2019 U.S. Dist. LEXIS 147256 (D. Conn. Aug. 29, 2019). In 1993, the insureds' purchased their home that had been built in 1986. Safeco insured the property. In February 2017, the insureds noticed that the basement walls had a series of cracks. They consulted professionals and learned that the cracking was due to a chemical compound found in certain concrete walls constructed in the late 1980s with concrete most likely from the J. J. Mottes Concrete Company. The insureds submitted a claim to Safeco for the substantial impairment to the structural integrity of their basement walls. Safeco denied the claim. The insureds filed suit. Safeco moved to dismiss. 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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