SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Superintendent’s On-Site Supervision Compensable as Labor Under Miller Act

March 13, 2023 — David Adelstein - Florida Construction Legal Updates
A recent Miller Act payment bond decision out of the District of Columbia Circuit Court of Appeals, U.S. f/u/b/o Civil Construction, LLC v. Hirani Engineering & Land Surveying, PC, 58 F.4th 1250 (D.C. Circ. 2023), dealt with the issue of whether a subcontractor’s superintendent constitutes recoverable “labor” within the meaning of the Miller Act and compensable as a cost under the Miller Act that typically views labor as on-site physical labor. The issue is that the Miller Act covers “[e]very person that has furnished labor or material in carrying out work provided for in a contract.” Civil Construction, supra, at 1253 quoting 40 U.S.C. s. 3133(b)(1). The Miller Act does not define labor. The subcontractor claimed labor includes actual superintending at the job site. The surety disagreed that a superintendent’s presence on a job site constitutes labor as the superintendent has to actually perform physical labor on the job site to constitute compensable labor under the Miller Act. The subcontractor argued its subcontract and the government’s quality control standards required detailed daily reports that verified manpower, equipment, and work performed at the job site. It further claimed its superintendent had to continuously supervise and inspect construction activities on-site: “[the] superintendent had to be on-site to account for, among other things, hours worked by crew members, usage and standby hours for each piece of equipment, materials delivered, weather throughout the day, and all work performed. These on-site responsibilities reflected the government’s quality control standards, under which the superintendent as ‘the most senior site manager at the project, is responsible for the overall construction activities at the site…includ[ing] all quality, workmanship, and production of crews and equipment.” Civil Construction, supra, at 1253-54. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

---

Warren Renews Criticism of Private Equity’s Role in Housing

February 01, 2022 — Akayla Gardner - Bloomberg
Senator Elizabeth Warren is doubling down on her criticism of private equity’s involvement in the U.S. housing market as the nation grapples with an affordable-housing shortage. In letters sent Thursday, the Massachusetts Democrat asked housing firms Progress Residential LLC, Invitation Homes Inc. and American Homes 4 Rent about recent rent hikes, plans to acquire more properties and the number of evictions in recent years. Warren and other Democrats have scrutinized Wall Street’s role in the housing market since the 2008 financial crisis. During the pandemic, lawmakers have been on high alert for violations of eviction moratoriums and unfair treatment as Americans struggled financially to stay on their feet. Warren also expressed concern about automated homebuying practices, which allow companies to buy up properties using algorithms. Bloomberg reported that last year Zillow offloaded thousands of homes to institutional investors. Read the court decision
Read the full story...
Reprinted courtesy of Akayla Gardner, Bloomberg

---

Appeals Court Rules that CGL Policy Doesn’t Cover Subcontractors’ Faulty Work

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Business Insurance, in J-McDaniel Construction Co. Inc. v. Mid-Continental Casualty Co. et al., an appeals court upheld a lower court ruling that a “construction company's commercial general liability insurance policy does not provide coverage for faulty workmanship or subcontractor negligence.” “We are not at liberty to disregard the binding law of the state, nor may we substitute our judgment for that of the Arkansas Supreme Court,” said the panel, in affirming the lower court ruling, as quoted in Business Insurance. Judy Greenwald of Business Insurance pointed out that “[l]ast year, the 6th U.S. Circuit Court of Appeals in Cincinnati held that a subcontractor's allegedly faulty preparation of a building pad, which resulted in subsequent settling and structural damage to the building constructed on top of it, was not an occurrence within the standard coverage language of a CGL policy.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Delaware Settlements with Minors and the Uniform Transfer to Minor Act

October 15, 2014 — Stephen J. Milewski – White and Williams LLP
As a Delaware lawyer, one of the most frequently asked questions I get from insurance clients is: “Do all personal injury settlements with minors need to be approved by the Court?” The answer is and always has been yes. This is true regardless of the amount of the settlement. There have, however, been some recent changes under Delaware law which may help facilitate the process and even reduce the costs associated with settling small tort cases with minors. Traditionally, when settling cases with a minor, a Petition would be filed with the trial court (Superior Court) and then a hearing would be scheduled for the parties to present to the Court the terms of the settlement, explain the plaintiff’s injuries and itemize the fee breakdown. This would be the settlement approval process. After that, the plaintiff would be required to have a guardian appointed over the proceeds, which had to be approved by Chancery Court (Delaware’s Court of Equity). The purpose of this process was to ensure the settlement money going to the minor was managed properly; the net proceeds were generally placed into a bank account not to be used by the guardian or the minor until the minor reached the age of majority. To both the plaintiff, and the insurance carrier paying out the settlement, this process was burdensome and added disproportionate costs to small settlements. Read the court decision
Read the full story...
Reprinted courtesy of Stephen J. Milewski, White and Williams LLP
Mr. Milewski may be contacted at milewskis@whiteandwiliams.com

---

General Contractor/Developer May Not Rely on the Homeowner Protection Act to Avoid a Waiver of Consequential Damages in an AIA Contract

August 04, 2011 — Higgins, Hopkins, McLain & Roswell, LLC

Recently, in Caribou Ridge Homes, LLC v. Zero Energy, LLC, et al., Case No. 10CV1094, Boulder County District Court Judge Ingrid S. Bakke entered a ruling and order on the Plaintiff’s Motion for Determination of Question of Law Pursuant to C.R.C.P. 56(h) on Issue of Damages. The Order found that the Plaintiff was not a homeowner intended to be protected by the Homeowner Protection Act (the “HPA”) and thus could not pursue its claims for consequential damages against Defendant.



By way of background, on June 18, 2008, Plaintiff Caribou Ridge Homes, LLC (“Caribou”) entered into a Standard Form Agreement Between Owner and Contractor AIA Document A114-2001 (the “Contract”) with Defendant Zero Energy, LLC (“Zero Energy”). Plaintiff hired Zero Energy to serve as a general contractor for the construction of a single-family home in the Caribou Ridge subdivision in Nederland, Colorado. A provision in the contract contained a mutual waiver of consequential damages (“Waiver”).

Read the full story…



Reprinted courtesy Higgins, Hopkins, McLain & Roswell, LLC

Read the court decision
Read the full story...
Reprinted courtesy of

---

Detroit Craftsmen Sift House Rubble in Quest for Treasured Wood

March 19, 2015 — Chris Christoff and Alexandra Mondalek – Bloomberg
(Bloomberg) -- Detroit’s 70,000 abandoned homes are proving to be a trove for entrepreneurs who recycle century-old lumber, glass and brick into everything from terrariums to $4,500 guitars. “It’s like a treasure hunt,” said Craig Varterian, executive director of Reclaim Detroit, a nonprofit group that’s stripped and sold materials from almost 70 demolished homes. Floorboards and joists of early 20th century maple, walnut, hickory, fir and even chestnut are prized for their density and fine grain. As Detroit ramps up demolitions of vacant dwellings, Mayor Mike Duggan plans a reclamation center in a city-owned building to keep tons of rubble out of landfills and create jobs and merchandise. Recycling would become a centerpiece of the city’s blight-removal effort, which is struggling to maintain funding. Reprinted courtesy of Chris Christoff, Bloomberg and Alexandra Mondalek, Bloomberg Mr. Christoff may be contacted at cchristoff@bloomberg.net Ms. Mondalek may be contacted at amondalek@bloomberg.net Read the court decision
Read the full story...
Reprinted courtesy of

---

Perovskite: The Super Solar Cells

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
“Embedding solar cells into buildings has always been more of a nice idea instead of an economical approach,” according to Gigaom, however they reported that a new kind of solar cell developed by a researcher at Oxford University might change things. Henry Snaith and his research team through experimentation discovered “perovskites,” which increase the amount of sunlight converted to electricity by 17 percent over other solar cells. Solar cells currently used have, at times, proved inefficient. “Solar cells that won’t obstruct the view that a window offers historically have done poorly in converting much sunlight into electricity,” Gigaom reported. “Other types of solar cells have been too expensive to make. Plus, they won’t produce as much electricity when they line one side of a building rather than its rooftop, where they get sun for longer hours each day.” Currently, Oxford PV, the perovskite start-up company, is pushing into commercializing its solar technology, and “is looking at opening an office in Silicon Valley.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Court Confirms No Duty to Reimburse for Prophylactic Repairs Prior to Actual Collapse

October 28, 2015 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Grebow v. Mercury Insurance Company (No. B261172, filed 10/21/15), a California appeals court held that coverage for collapse in a homeowners policy does not extend to prophylactic repairs undertaken to mitigate damage before actual collapse of the structure. In Grebow, the insureds had a general contractor inspect the rear deck of their house because of recurring watermarks. The contractor discovered severe decay in the steel beams and poles supporting the second floor of the house. He opined that they could not support the upper portion of the house, and that a large portion of the house would fall. A structural engineer agreed, blaming decay and corrosion. The insureds were advised not to enter the top part of the house, and they contracted for repairs. They also made a claim to Mercury, which denied coverage. The insureds ultimately spent $91,000 out of pocket having the home remediated. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---