SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

UK Construction Output Rises Unexpectedly to Strongest Since May

March 27, 2023 — Lucy White - Bloomberg
UK construction industry output grew for the first time in two months in February, boosting hopes that the economy may avoid a prolonged recession. A rebound in commercial and civil engineering work helped to compensate for continued gloom in the housing market, where buying activity has been depressed by higher mortgage rates and the cost-of-living crisis. The closely-watched Construction Purchasing Managers’ Index from S&P Global and the Chartered Institute of Procurement and Supply jumped to 54.6 in February, up from 48.4 a month earlier and the highest since May 2022. It was the first time in three months that activity was above the crucial no-change level of 50. Economists had expected a decline. Read the court decision
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Reprinted courtesy of Lucy White, Bloomberg

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Fungi, Wet Rot, Dry Rot and "Virus": One of These Things is Not Like the Other

November 02, 2020 — Hugh D. Hughes - Saxe Doernberger & Vita
The Hartford’s so-called virus exclusion in its commercial property forms is getting a workout, and policyholders now have an argument that may help their cases move past the pleadings stage. A U.S. District Court in Florida has deemed the exclusion ambiguous and denied an insurer’s motion to dismiss.1 The exclusion applies to “presence, growth, proliferation, spread, or any activity of ’fungi’, wet rot, dry rot, bacteria or virus.”2 The Court held that the parties did not necessarily intend to exclude a pandemic. In Urogynecology, the plaintiff sought coverage for the loss of the usefulness and functionality of its business location due to the Florida Governor’s shutdown order. The policy contained a 'fungi', wet rot, dry rot, bacteria, or virus” exclusion.3 The carrier moved to dismiss, and the plaintiff argued that the exclusion only applied if COVID-19 was present on-site, which was not the case. The Court addressed none of the issues regarding direct physical loss and instead decided the motion on the fungi exclusion. The Court held the exclusion ambiguous because the exclusion of virus “does not logically align with the grouping of the virus exclusion with other pollutants such that the Policy necessarily anticipated and intended to deny coverage for these kinds of business losses.”5 In addition, the Court stated that pollution case law was not on point because “none of the cases dealt with the unique circumstances of the effect COVID-19 has had on our society – a distinction this Court considers significant.” Read the court decision
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Reprinted courtesy of Hugh D. Hughes, Saxe Doernberger & Vita
Mr. Hughes may be contacted at hdh@sdvlaw.com

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GAO Sustains Unsupported Past Performance Evaluation and Unequal Discussion Bid Protest

November 23, 2016 — Lindsay K. Taft – Ahlers & Cressman PLLC Construction Law Blog
Rotech Healthcare, Inc., a healthcare contractor, recently successfully protested the award of a home oxygen and durable medical equipment contract by the Department of Veterans Affairs to Lincare, Inc. based on an unsupported past performance evaluation and allegations of an unequal discussion. See GAO Protest File Number: File: B-413024 (August 17, 2016). The Request for Proposals (“RFP”) provided that award would be made on a “best value” basis to the offeror whose proposal was most favorable to the government[…] Read the court decision
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Reprinted courtesy of Lindsay K. Taft, Ahlers & Cressman PLLC Construction Law Blog
Ms. Taft may be contacted at ltaft@ac-lawyers.com

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Agreement Authorizing Party’s Own Engineer to Determine Substantial Compliance Found Binding on Adverse Party

August 30, 2021 — Garret Murai - California Construction Law Blog
When it comes to resolving construction disputes it’s a bit like the “31 Flavors” of Baskin Robins. There’s a flavor for nearly everyone. From mediation, to arbitration, to litigation, to dispute resolution boards (DRBs), to the architect as the “initial decision maker” under AIA contracts, parties and their counsel have developed numerous ways to resolve disputes on construction projects, including by expert review. But if you’re going to agree to a dispute resolution procedure, make sure it’s one you can live with, because if you don’t, it’s often going to be too late to go back to the proverbial drawing board as the parties in the next case discovered. The Coral Farms Case In December 2010, a mudslide impacted three properties in San Juan Capistrano, California. One of the properties was owned by Coral Farms, L.P., another by Paul and Susan Mikos, and the third by Thomas and Sonya Mahony. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Insurer Must Pay To Defend Product Defect Claims From Date Of Product Installation

January 31, 2018 — Michael S. Levine & Brittany M. Davidson - Insurance Recovery Blog
An Iowa federal court recently ruled that an insurer must pay its policyholder’s defense costs from the date of installation of the allegedly faulty product, even though the underlying suits failed to allege when damage purportedly occurred. The ruling opens the door under each of the policyholder’s successive liability policies from 2000 to 2008, allowing the policyholder to recover millions of dollars in defense costs. The policyholder sought summary judgment concerning the date(s) on which the insurer’s defense obligation was triggered by fourteen of the fifteen claims asserted against it. The policyholder argued that the duty attached from the moment property damage potentially occurred, meaning the time when the underlying claimant installed or potentially could have installed the windows at issue in the underlying claims. The policyholder cited to the following evidence to support its claim: actual dates of installation (where available), dates of delivery, purchase or manufacture of the windows; and policy period referenced in the insurer’s claims notes as being potentially implicated by the claim. Reprinted courtesy of Michael S. Levine, Hunton & Williams and Brittany M. Davidson, Hunton & Williams Mr. Levine may be contacted at mlevine@hunton.com Ms. Davidson may be contacted at davidsonb@hunton.com Read the court decision
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Adaptive Reuse: Creative Reimagining of Former Office Space to Address Differing Demands

March 27, 2023 — Cait Horner, Allan C. Van Vliet & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law Blog
Empty office buildings downtown. A housing shortage in almost every major market. Is there a way to address both issues at once by converting historic but underutilized office buildings into apartments and condos in city centers? It’s an idea that has been discussed, and in some cities, implemented in recent years. But while the idea seems simple enough—repurpose existing office space for residential and mixed-use projects—there are some real challenges limiting the feasibility of large-scale office to residential conversion. The commercial real estate market is facing an uncertain future. Even as some companies have started requiring that their workers return to the office, many continue to operate under their hybrid or fully remote working models, which companies may commit to permanently. And while some big cities have seen office occupancy levels increase in the past few months (CBRE notes that Austin and Houston both saw occupancy levels above 60% in January, up around 25% from 2022 levels), the ongoing impact of COVID-19 and uncertainty in the global financial markets are keeping many office buildings empty in major cities around the country. Those tenants who are returning to the office are focusing their search for office space on high-quality, sustainable, amenity-filled spaces to entice workers to return to the office. This flight to quality leaves some older and, in many cases, architecturally relevant, office buildings behind. As a result, there are growing opportunities for the potential adaptive reuse of these existing underutilized structures. Reprinted courtesy of Cait Horner, Pillsbury, Allan C. Van Vliet, Pillsbury and Adam J. Weaver, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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Construction Law Alert: Appellate Court Lets Broad General Release Stand in SB 800 Case

February 26, 2015 — Steven M. Cvitanovic and Colin T. Murphy – Haight Brown & Bonesteel LLP
Under California's SB 800 "Right to Repair Act," a builder may obtain a "reasonable release" to resolve a construction defect claim in exchange for a cash payment. So, what's a "reasonable release" under SB 800? This question was answered by the Second Appellate District in the case of Belasco v. Wells (filed 2/17/2015, No. B254525). Plaintiff David Belasco ("Plaintiff") purchased a newly constructed residence in 2004 from the builder defendant Gary Loren Wells ("Wells"). In 2006, Plaintiff filed a complaint against Wells with the Contractors' State License Board (the "Board") regarding certain alleged construction defects. The parties settled the 2006 action through written agreement that required Wells to pay Plaintiff $25,000 in consideration for Plaintiff executing a release and a Civil Code §1524 waiver of all known or unknown claims. In 2012, Plaintiff filed a subsequent action against Wells and Wells’ surety, American Contractors Indemnity Company ("American Contractors") (collectively "Defendants"), alleging a defect in the roof that was discovered by Plaintiff in 2011. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Colin T. Murphy, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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Why Metro Atlanta Is the Poster Child for the US Housing Crisis

January 04, 2023 — Brentin Mock - Bloomberg
Last year, the Federal Reserve declared that not one of the 13 counties that make up metro Atlanta qualified as an affordable housing market. In many places, monthly housing costs consume more than 40% of homeowners’ incomes, well beyond the 30% threshold that the Federal Reserve uses to monitor market affordability. Accelerating housing prices have been the narrative for virtually every major US metro lately, but Atlanta is somewhat “paradigmatic” of the trend, according to Georgia State University urban studies professor Dan Immergluck. Since arriving in Atlanta in 2005, Immergluck has been tracking and documenting the direction of metro Atlanta’s housing conditions, focusing on segregation and gentrification patterns. His new book, Red Hot City: Housing, Race and Exclusion in 21st-Century Atlanta, released in October, is the culmination of much of that scholarship. What Red Hot City reveals is that while exorbitant house prices are typically the result of market forces, Atlanta can blame a lot of its own policy decisions over the last 20 years, particularly as it pertains to large civic projects like the BeltLine and Centennial Yards, a massive new development planned for south downtown Atlanta. Read the court decision
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Reprinted courtesy of Brentin Mock, Bloomberg

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