SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California’s Prompt Payment Laws: Just Because an Owner Has Changed Course Doesn’t Mean It’s Changed Course on Previous Payments

April 20, 2016 — Garret Murai – California Construction Law Blog
We’ve written before about California’s prompt payment laws which are designed to help contractors get paid in a timely and orderly fashion, which is always nice, right? California’s prompt payment laws require that project owners pay their direct contractors, who are in turn required to pay their subcontractors who are in turn required to pay their sub-subcontractors and so on within certain statutorily set deadlines, or be subject to prompt payment penalties nearly as high as the interest you pay on your credit cards. 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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Is Privity of Contract with the Owner a Requirement of a Valid Mechanic’s Lien? Not for GC’s

January 04, 2021 — Christopher G. Hill - Construction Law Musings
As any reader of this construction law blog knows, mechanic’s liens make up much of the discussion here at Construction Law Musings. A recent case out of Fairfax County, Virginia examined the question of whether contractual privity between the general contractor and owner of the property at issue is necessary. As a reminder, in most situations, for a contract claim to be made, the claimant has to have a direct contract (privity) with the entity it sues. Further, for a subcontractor to have a valid mechanic’s lien it would have to have privity with the general contractor or with the Owner. The Fairfax case, The Barber of Seville, Inc. v. Bironco, Inc., examined the question of whether contractual privity is necessary between the general contractor and the Owner. In Bironco, the claimant, Bironco, performed certain improvements for a barbershop pursuant to a contract executed by the two owners of the Plaintiff. We wouldn’t have the case here at Musings if Bironco had been paid in full. Bironco then recorded a lien against the leasehold interest of The Barber of Seville, Inc., the entity holding the lease. The Plaintiff filed an action seeking to have the lien declared invalid because Brionco had privity of contract with the individuals that executed the contract, but not directly with the corporate entity. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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A Closer Look at an HOA Board Member’s Duty to Homeowners

August 27, 2013 — Derek Lindenschmidt — Higgings, Hopkins, McLain & Roswell, LLC
Whenever a homeowner association (HOA) starts thinking in terms of a construction defect lawsuit against its developer and/or builder, its board members will inevitably be confronted with the purported risk and liability to their homeowners if they do not pursue the alleged defects and deficiencies brought to their attention. Not surprisingly, the board members are on occasion led to believe that pursuing such claims is synonymous with acting in the homeowners’ “best interests.” Further—and unfortunately—board members often feel as though they will breach their obligation to the homeowners if theydon’t agree to proceed with such claims. Nevertheless, how well do we really know what the board members’ duty actually consists of, when it applies, and what potential liability exists for a board member’s breach of same? The answers might surprise you. Read the court decision
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Reprinted courtesy of Derek Lindenschmidt
Derek Lindenschmidt can be contacted at lindenschmidt@hhmrlaw.com

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Construction Defect Claim Must Be Defended Under Florida Law

February 15, 2018 — Tred R. Eyerly – Insurance Law Hawaii

The Eleventh Circuit found that the insured caused property damage to areas beyond its own work, obligating the insurer to defend. Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass'n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017).

The condominium association contracted with Poma Construction Corp. to replace the building's aging concrete balcony railings with new aluminum and glass railings. Poma subcontracted with Windsor Metal Specialties, Inc. to paint the new railings. Work was completed on February 24, 2012. Poma issued a 10-year warranty covering its installation of the railings. Windsor issued a 20-year limited warranty covering the paint job.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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AI in Construction: What Does It Mean for Our Contractors?

December 17, 2024 — Patrick Scarpati - Construction Executive
Artificial intelligence is revolutionizing the construction industry by enhancing efficiency, safety and decision-making throughout the project lifecycle. AI in construction involves the application of advanced technologies like machine learning, computer vision and data analytics to various construction processes. Through AI, machines can learn and imitate human cognitive functions. The possibilities may sound endless, but as an industry traditionally looking from the outside in at technology, we must first step back to educate ourselves on the basics. This paper is meant to function as a starting point in your journey to understand AI and its potential impact on the construction industry. By reading through definitions, construction use cases and considerations, the reader should walk away with a base level of knowledge to ensure they can actively participate in future conversations on AI in construction. Reprinted courtesy of Patrick Scarpati, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Staying the Course, Texas Supreme Court Rejects Insurer’s Argument for Exception to Eight-Corners Rule in Determining Duty to Defend

April 27, 2020 — John C. Eichman, Sergio F. Oehninger, Grayson L. Linyard & Leah B. Nommensen - Hunton Insurance Recovery Blog
In responding to a certified question from the Fifth Circuit in Richards v. State Farm Lloyds, the Texas Supreme Court held that the “policy-language exception” to the eight-corners rule articulated by the federal district court is not a permissible exception under Texas law. See Richards v. State Farm Lloyds, 19-0802, 2020 WL 1313782, at *1 (Tex. Mar. 20, 2020). The eight-corners rule generally provides that Texas courts may only consider the four corners of the petition and the four corners of the applicable insurance policy when determining whether a duty to defend exists. State Farm argued that a “policy-language exception” prevents application of the eight-corners rule unless the insurance policy explicitly requires the insurer to defend “all actions against its insured no matter if the allegations of the suit are groundless, false or fraudulent,” relying on B. Hall Contracting Inc. v. Evanston Ins. Co., 447 F. Supp. 2d 634, 645 (N.D. Tex. 2006). The Texas Supreme Court rejected the insurer’s argument, citing Texas’ long history of applying the eight-corners rule without regard for the presence or absence of a “groundless-claims” clause. The underlying dispute in Richards concerned whether State Farm must defend its insureds, Janet and Melvin Richards, against claims of negligent failure to supervise and instruct after their 10-year old grandson died in an ATV accident. The Richardses asked State Farm to provide a defense to the lawsuit by their grandson’s mother and, if necessary, to indemnify them against any damages. To support its argument that no coverage under the policy existed, and in turn, it had no duty to defend, State Farm relied on: (1) a police report to prove the location of the accident occurred off the insured property; and (2) a court order detailing the custody arrangement of the deceased child to prove the child was an insured under the policy. The federal district court held that the eight-corners rule did not apply, and thus extrinsic evidence could be considered regarding the duty to defend, because the policy did not contain a statement that the insurer would defend “groundless, false, or fraudulent” claims. In light of the extrinsic police report and extrinsic custody order, the district court granted summary judgment to State Farm. Reprinted courtesy of Hunton Andrews Kurth attorneys John C. Eichman, Sergio F. Oehninger, Grayson L. Linyard and Leah B. Nommensen Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Linyard may be contacted at glinyard@HuntonAK.com Ms. Nommensen may be contacted at leahnommensen@HuntonAK.com Read the court decision
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OSHA’s New Severe Injury and Fatality Reporting Requirements, Are You Ready?

December 31, 2014 — Craig Martin – Construction Contractor Advisor
Last September, OSHA announced its final rules for reporting severe injuries and fatalities. The new rules take effect on January 1, 2015. Are you ready? The New Rule Requirements

• OSHA’s severe injury and fatality reporting requirements apply to all employers covered by OSHA, not just those with 10 or more employees.
• All employee work-related fatalities must be reported within 8 hours of the death. The previous rule required reporting only when 3 or more employees suffered a work related fatality.

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

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Law Firm's Business Income, Civil Authority Claim Due to Hurricanes Survives Insurer's Motion for Summary Judgment

December 20, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insurer was unsuccessful in moving for summary judgment on the insured's claim for loss of business income and civil authority coverage due to losses caused by two hurricanes. Townsley v. Ohio Security Ins. Co., 2021 U.S. Dist. LEXIS 202698 (W.D. La. Oct. 20, 2021). Hurricane Laura struck southeast Louisiana on August 27, 2020 and Hurricane Delta made landfall in the same area on October 9, 2020. Both hurricanes caused property damage and an interruption of business for the insured law firm. Power outages and mandatory evacuation orders caused by both storms created a loss of income for the law firm. Ohio Security denied coverage under the business income, extra expense, and civil authority provisions. The law firm sued and Ohio Security moved for summary judgment. From the undisputed facts, the court could not determine the law firm's entitlement to business income and extra expense coverage, so the motion was denied for these claims. 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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