Seattle Washington Building Expert Directory

Insurer Could Not Rely on Extrinsic Evidence to Circumvent Its Duty to Defend

February 14, 2023 — Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery Blog
In First Mercury Insurance Co. v. First Florida Building Corp., et al., a federal district court ordered that an insurer had a duty to defend its insured against an underlying personal injury lawsuit. 2023 WL 23116, at *1 (M.D. Fla. Jan. 3, 2023). First Mercury is a cautionary tale about how insurers may try to circumvent their obligations by improperly considering extrinsic evidence when determining whether they have a duty to defend their insureds. First Mercury is a coverage dispute over an underlying personal injury lawsuit that was filed against the insured, a construction company, for injuries the claimant allegedly sustained at a construction site. Id. The claimant alleged that he was at the construction site as an invitee who was “working with” the insured. Id. The insurer agreed to defend the insured against the personal injury lawsuit under a reservation of rights. Id. However, the insurer filed a coverage action seeking a declaration that coverage for the personal injury lawsuit was excluded under the policy. Id. Specifically, the insurer, on summary judgment, argued that the claimant was an employee of the insured who was injured in the course of his employment, thus falling within the employer’s liability and workers’ compensation exclusions in the policy. Id. Although the insurer acknowledged that the personal injury complaint against the insured triggered its duty to defend under the policy, the insurer argued that those exclusions relieved its duty to defend or indemnify the insured. Id. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Baltimore Bridge Collapse Occurred After Ship Lost Power Multiple Times

May 28, 2024 — Allyson Versprille - Bloomberg
The container ship that rammed into Baltimore’s Francis Scott Key Bridge in March lost power multiple times on both the day of the fatal accident and the day before, according to a preliminary report. The Dali, which sails under the flag of Singapore, lost power twice on March 26 before hitting the bridge and causing it to collapse, killing six construction workers who were on the structure at the time. The first blackout was caused when electrical breakers powering most of the vessel’s equipment and lighting unexpectedly tripped, the National Transportation Safety Board said in a report Tuesday. The crew eventually was able to restore electrical power, but then a second blackout occurred only 0.2 miles from the bridge. They regained power, but the ship lacked the propulsion needed to avoid striking the bridge, safety inspectors found. Read the court decision
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Reprinted courtesy of Allyson Versprille, Bloomberg

If You Can’t Dazzle Em’ With Brilliance, Baffle Em’ With BS: Apprentices on Public Works Projects

October 24, 2023 — Garret Murai - California Construction Law Blog
The “Big Four” when it comes to public works contracting on state and local projects in California are:

Registration with the California Department of Industrial Relations (“DIR”);
Payment of prevailing of wages and maintenance and submission of certified payroll;
Compliance with the “skilled and trained workforce” requirements on certain projects; and
Hiring apprentices on state and local public works projects with a value of $30,000 or more.

The next case, GRFCO, Inc. v. Superior Court, 89 Cal.App.5th 1295 (2023), discusses the last of these requirements. The case also reminded me of W.C. Field’s old saying – “If you can’t dazzle em’ with brilliance, baffle em’ with bullshit” – and which ended with expected results. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Work to Solve the Mental Health Crisis in Construction

September 05, 2022 — Bruce Morton & Diane Andrea - Construction Executive
The suicide rate for construction is one of the highest among major industries. That statistic is from a 2018 report from the Centers for Disease Control and Prevention. And it’s one major reason why the concern about mental health in the construction industry has grown. Research shows that as many as 90% of all people who die by suicide have a mental health condition. Depression is the most common cause, but other conditions such as substance use disorders may have an impact as well. What is causing mental health conditions in the construction industry? According to the U.S. Bureau of Labor Statistics, 97% of the U.S. construction industry is male—and men experience the highest rate of suicides. Yet, while the suicide rate for women in construction is lower than that for men in the construction industry, it appears to be much higher than the suicide rate for the general female population. Being “tough” and “strong” are highly valued; acknowledging mental health concerns—or even seeking help—may be considered a sign of weakness. There is often fear of shame and judgment for admitting you have a problem. In addition, the nature of construction industry jobs may affect mental health. Injuries may cause chronic pain, which can result in substance disorders like opioid use. Seasonal work can result in layoffs, which puts a strain on family relationships and finances. The job is high-stress and the work is deadline-driven. Employees work long hours, potentially resulting in fatigue. Sometimes work is away from home for extended periods. The pandemic has exacerbated every other problem while creating its own. Reprinted courtesy of Bruce Morton and Diane Andrea, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Morton may be contacted at bruce.morton@marshmma.com Ms. Andrea may be contacted at Diane.Andrea@MarshMMA.com Read the court decision
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Builder Waits too Long to Dispute Contract in Construction Defect Claim

May 10, 2012 — CDJ STAFF

The Louisiana Court of Appeals has affirmed the lower court’s judgment in the case of Richard v. Alleman. The Richards initiated this lawsuit under Louisiana’s New Home Warranty Act, claiming that they had entered into a construction contract with Mr. Alleman and that they quickly found that his materials and methods had been substandard. They sued for the cost of repairing the home and filing the lawsuit. Mr. Alleman countersued, claiming the Richards failed to pay for labor, materials, and services. By his claim, they owed him $12,838.80.

The trial court split the issues of liability and damages. In the first trial, the court concluded that there was a contact between Alleman and the Richards and that the New Home Warranty Act applied. Mr. Alleman did not appeal this trial.

The second trial was on the issue of damages. Under the New Home Warranty Act, the Richards were found to be entitled to $36,977.11 in damages. In a second judgment, the couple was awarded $18,355.59 in attorney’s fees. Mr. Alleman appealed both judgments.

In his appeal, Alleman contended that the trial court erred in determining that the Home Warranty Act applied. This was, however, not the subject of the trial, having been determined at the earlier trial. Nor did the court accept Alleman’s claim that the Richards failed to comply with the Act. The trial record made clear that the Richards provided Alleman with a list of problems with their home by certified mail.

The court did not establish whether the Richards told Alleman to never return to their home, or if Alleman said he would never return to the home, but one thing was clear: Alleman did not complete the repairs in the list.

A further repair was added after the original list. The Richards claimed that with a loud noise, a large crack appeared in their tile flooring. Mr. Alleman stated that he was not liable for this as he was not given a chance to repair the damage, the Richards hired the flooring subcontractors, and that the trial court rejected the claim that the slab was defective. The appeals court found no problem with the award. Alleman had already “refused to make any of the repairs.”

Finally Alleman made a claim on a retainage held by the Richards. Since Alleman did not bring forth proof at trial, the appeals court upheld the trial courts refusal to award a credit to Alleman.

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Claims Against Broker Dismissed

June 20, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Claims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022). The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs a homeowners and fire policy far in excess of $100,000 for their condominium unit, which was worth in excess of $600,000. Century moved to dismiss A fire in the building forced all owners to vacate their units. The entire building was thereafter declared unsafe for habitation by the City of New York. The condominium owners met and voted to not restore the building, but to sell the burnt-out shell and distribute the sales proceeds and the condominium's insurance among the unit owners. There was no indication that the owners would not be made whole once the funds were distributed. 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

The Importance of Providing Notice to a Surety

October 21, 2015 — Craig Martin – Construction Contractor Advisor
A recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default. When the question of whether a surety will be obligated under the bond is in the balance, notice is crucial. In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided:

“PRINCIPAL DEFAULT. Whenever the Principal [Subcontractor] shall be, and is declared by the Obligee [CMS] to be in default under the Subcontract, with the Obligee having performed its obligations in the Subcontract, the Surety [Safeco] may promptly remedy the default, or shall promptly: 4.1 COMPLETE SUBCONTRACT. . . . 4.2 OBTAIN NEW CONTRACTORS. . . . 4.3 PAY OBLIGEE. . . . 4.4 DENY LIABILITY. . .”

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Sacramento Water Works Recognized as a Historic Civil Engineering Landmark

October 03, 2022 — The American Society of Civil Engineers
RESTON, Va. – The American Society of Civil Engineers (ASCE) Sacramento Section today recognized the City of Sacramento Water Works a Historic Civil Engineering Landmark. The landmark, which was completed in 1854, was recognized at a dedication ceremony at the Sacramento History Museum led by ASCE's Sacramento Section, which is celebrating its centennial anniversary of the Section's founding. The section was joined by Ken Rosenfield, director, ASCE Region 9 and Chuck Spinks, chair, Region 9 History and Heritage Committee. ASCE represents more than 150,000 members of the civil engineering profession worldwide. It is the oldest national engineering society in the United States. ASCE recognizes historically significant civil engineering projects, structures, and sites all over the world. More than 280 projects have earned the prestigious title for creativity and innovation, and almost all are executed under challenging conditions. The City of Sacramento Water Works was the first municipal, city-owned water system west of the Mississippi River. This project was inspired by a disastrous fire in 1852 that destroyed 27 blocks in Sacramento and the city did not have a water system capable of putting out fires. The water works site was equipped with a distribution system with hydrants that could fight fires. The City of Sacramento Water Works was nominated by the ASCE Sacramento Section Centennial Committee. For more information about ASCE's Historic Civil Engineering Landmark Program, go to https://www.asce.org/about-civil-engineering/history-and-heritage/historic-landmarks. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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