SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Utah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical Reports

November 19, 2021 — Kyle Rice - The Subrogation Specialist
The Supreme Court of Utah recently found that an incorrect pre-construction geotechnical engineering report is a “defective design.” Thus, actions arising from an incorrect geotechnical report are appropriately governed by Utah’s Economic Loss Statute (Statute), Utah Code Ann. § 78B-4-513(1). Hayes v. Intermountain GeoEnvironmental Servs. No. 20190764, 2021 UT 62, 2021 Utah Lexis 144, arose out of a suit filed by homeowners Kim and Nancy Hayes (the Hayeses). The Hayeses’ home was part of the Quail Hollow subdivision in Layton, Utah, which was developed by K.C. Halls Construction, Inc. (K.C. Halls). Prior to construction, K.C. Halls contracted with Intermountain GeoEnvironmental Services, Inc. (IGES) for a geotechnical report of the planned development to comply with the requirements of Layton City. The report found that “the subject site is suitable for the proposed construction” and made recommendations to ensure foundational integrity for future construction. The Hayeses ultimately purchased a lot from an agent for K.C. Halls and hired Bob Stevenson (Stevenson) to construct the home. About 14 months after the completion of construction, the Hayeses noticed cracking in their foundation walls. Read the court decision
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Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

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Traub Lieberman Partner Greg Pennington and Associate Kevin Sullivan Win Summary Judgment Dismissing Homeowner’s Claim that Presented an Issue of First Impression in New Jersey

December 02, 2019 — Gregory S. Pennington & Kevin Sullivan - Traub Lieberman
On July 12, 2019, Traub Lieberman Straus & Shrewsberry LLP’s Gregory S. Pennington and Kevin Sullivan secured summary judgment dismissing a homeowner’s claim for damaged flooring. The claim at issue arose from the homeowners’ attempt to discard their refrigerator. In the process of removing the refrigerator, the homeowners scratched their kitchen and dining room floors. The homeowners made a claim under their homeowners policy for the cost to repair and replace the damaged flooring. Their homeowners’ insurer denied their claim based on a policy exclusion barring coverage for damage consisting of or caused by marring and scratching. When their insurer denied coverage, the homeowners filed suit in the New Jersey Superior Court, Law Division in Bergen County. The case presented the issue of first impression in New Jersey of whether a homeowner’s self-inflicted, but accidental damaging of its own floors was barred by the homeowner’s policy’s marring or scratching exclusion. Greg and Kevin successfully argued that the exclusion applied to bar coverage. Reprinted courtesy of Gregory S. Pennington, Traub Lieberman and Kevin Sullivan, Traub Lieberman Mr. Pennington may be contacted at gpennington@tlsslaw.com Mr. Sullivan may be contacted at ksullivan@tlsslaw.com Read the court decision
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Reprinted courtesy of

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Cameron Pledges to Double Starter Homes to Boost Supply

March 05, 2015 — Svenja O’Donnell – Bloomberg
(Bloomberg) -- Prime Minister David Cameron pledged to double the number of homes built for first-time buyers by the end of the next parliamentary term in a bid to tackle Britain’s housing shortage. In a speech in Colchester, Essex, on Monday setting out the final part of his Tory party’s six-point campaign platform for the May 7 election, Cameron said 200,000 properties will be built by 2020 under his starter-homes plan. Prices of the homes, only available to first-time buyers under the age of 40, will be capped at 450,000 pounds ($692,000) in London and 250,000 pounds outside the capital. Reduced planning constraints will make it easier for developers to cut building costs, allowing the homes to be sold at a 20 percent discount. Read the court decision
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Reprinted courtesy of Svenja O’Donnell, Bloomberg
Ms. O’Donnell may be contacted at sodonnell@bloomberg.net

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Minnesota Supreme Court Dismisses Vikings Stadium Funding Lawsuit

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
The Minnesota Supreme Court dismissed the lawsuit that had alleged that funding for the new Vikings stadium was unconstitutional, according to KARE. "We were so hopeful the courts would deal with this expeditiously and they did," said Michele Kelm-Helgen, chair of the Minnesota Sports Facilities Authority told KARE. "And they would be definitive in their result and they were." Doug Mann, former Minneapolis mayoral candidate, had been the one to file the lawsuit. Mann told KARE 11 that “the courts made their ‘political stance loud and clear’ and said he did not know if he would pursue any other legal action. But he maintained his position the stadium funding wasn't legally vetted.” Minnesota Vikings spokesperson Lester Bagley declared, “This was the last remaining hurdle that we see in front of us. We are pleased with the Supreme Court's and Court of Appeals' action,” KARE reported. Read the court decision
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Ninth Circuit Finds No Coverage for Construction Defects Under California Law

April 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Ninth Circuit, applying California law, affirmed the district court's decision finding there was no coverage for construction defects. Archer W. Contractors v. Nat'l Union Fire Ins. Co., 2017 U.S. App. LEXIS 3796 (9th Cir. March 2, 2017). Archer Western Contractors (AWC) was the general contractor for the San Diego County Water Authority's emergency water storage project. The pump house and turbine generators suffered property damage. The damage flowed from AWC's allegedly defective work on the property. After settling a construction defect lawsuit brought against it by the Water Authority, AWC filed this case against National Union for failing to indemnity portions of the settlement agreement. Read the court decision
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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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Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

December 11, 2018 — Timothy Carroll - White and Williams LLP
Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship. Read the court decision
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Reprinted courtesy of Timothy Carroll, White and Williams LLP
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com

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Sales of New U.S. Homes Fell in February to Five-Month Low

March 26, 2014 — Shobhana Chandra – Bloomberg
Purchases of new homes in the U.S. fell in February to the lowest level in five months, a sign the industry may take time to pick up after inclement weather damped demand earlier in the year. Sales declined 3.3 percent to a 440,000 annualized pace, following a 455,000 rate in the prior month that was the strongest in a year, figures from the Commerce Department showed today in Washington. The median forecast of 77 economists surveyed by Bloomberg called for 445,000. Unusually frigid temperatures added to restraints including rising mortgage rates, higher property values, and a lack of supply that kept prospective buyers away from the market for new and existing properties. Bigger gains in employment and consumer sentiment would help spur the recovery in homebuilding, sustaining its contribution to economic growth and boosting earnings at companies such as Lennar Corp. and KB Home. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg
Ms. Chandra may be contacted at schandra1@bloomberg.net

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Banks Loosening U.S. Mortgage Standards: Chart of the Day

August 13, 2014 — Jody Shenn – Bloomberg
Perhaps more U.S. banks than at any time in two decades are making it easier to qualify for a mortgage. The CHART OF THE DAY shows the net share of banks telling the Federal Reserve that they’re tightening standards in the home-loan market. In the central bank’s July survey of senior loan officers released last week, the net percentage for prime mortgages was negative 18.3 percent, by far the most loosening since it started asking the question by loan-quality category in 2007. It was also greater than the highest net share of banks easing in “all” mortgages in the 1990s or 2000s. Still, lenders have a long way to go before they unwind the restrictions they imposed in the wake of the global financial crisis that risky home loans helped to create. The current trend is mainly about “small tweaks around the edges,” according to JPMorgan Chase & Co. mortgage-bond analysts. Read the court decision
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Reprinted courtesy of Jody Shenn, Bloomberg
Ms. Shenn may be contacted at jshenn@bloomberg.net

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