Seattle Washington Building Expert Directory

Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.

January 31, 2018 — Sean Minahan – Construction Contract Advisor
According to a quick Google search the term “holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client. Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently, leaving our client holding the bag. Read the court decision
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Reprinted courtesy of Sean Minaham, Lamson, Dugan and Murrary, LLP
Mr. Minahan may be contacted at sminahan@ldmlaw.com

Pennsylvania’s Supreme Court Limits The Scope Of A Builder’s Implied Warranty Of Habitability

September 10, 2014 — Edward A. Jaeger, Jr. and William L. Doerler – White and Williams LLP
In Conway v. Cutler Group, Inc., -- A.3d --, 2014 WL 4064261 (Pa.), the Supreme Court of Pennsylvania addressed the question of whether a subsequent home buyer can recover from a home builder pursuant to the builder’s implied warranty of habitability, a warranty that protects those who purchase a newly constructed home from latent defects. Concluding that a builder’s warranty of habitability is grounded in contract, the Court held that a subsequent purchaser of a previously inhabited home cannot recover damages from a builder-vendor based on the builder-vendor’s breach of the implied warranty of habitability. The Court’s decision leaves unanswered the question of whether a purchaser who is also the first user-purchaser of a new home can pursue a breach of warranty action against a builder with whom the purchaser is not in privity of contract. In Conway, the Cutler Group, Inc. (Cutler) sold a new home to Davey and Holly Fields. The Fields subsequently sold the home to Michael and Deborah Conway. After the Conways discovered water infiltration problems in their home, they filed a one-count complaint against Cutler, alleging that Cutler breached its implied warranty of habitability. In response to the Conways’ complaint, Cutler filed preliminary objections, arguing that the warranty of habitability extends from the builder only to the first purchaser of a newly constructed home. The trial court sustained Cutler’s preliminary objections based on the lack of contractual privity between the parties and the Conways appealed the trial court’s decision. On appeal, the Superior Court reversed, stating that the implied warranty of habitability is based on public policy considerations and exists independently of any representations by the builder, and even in the absence of an express contract between the builder and the purchaser. Cutler appealed the Superior Court’s decision to the Supreme Court. To address the question of whether the implied warranty of habitability extends to a subsequent purchaser of a used residence, the Court discussed the history of the implied warranty of habitability in Pennsylvania. As stated by the Court, the Court adopted the implied warranty of habitability in the context of new home sales to reject the traditional doctrine of caveat emptor (buyer beware) because the purchaser of a new home justifiably relies on the skill of the developer. Thus, as between the builder-vendor and the buyer, the builder should bear the risk that the home he builds is habitable and functional. In adopting the doctrine, the Court noted that the doctrine is rooted in the existence of a contract – an agreement of sale – between the builder-vendor and the buyer. Reprinted courtesy of Edward A. Jaeger, Jr., White and Williams LLP and William L. Doerler, White and Williams LLP Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com; Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com Read the court decision
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2015-2016 California Labor & Employment Laws Affecting Construction Industry

October 28, 2015 — Steven M. Cvitanovic, David A. Harris, & Kristen Lee Price – Haight Brown & Bonesteel LLP
Earlier this month, California Governor Jerry Brown signed dozens of bills that affect employers. Many of these bills have special significance to the construction industry. Here is a brief review: Assembly Bill 219 – Prevailing Wages for Concrete Delivery on Public Projects AB 219 continues California’s aggressive expansion of prevailing wages. This bill expands the definition of “public works” for purposes of state prevailing wage law to include the hauling or delivery of ready-mixed concrete for a public works project. Previously, delivery drivers hired by a material supplier were exempted from the prevailing wage. Before AB 219, labor law made a distinction between “suppliers” and “contractors.” Thus, ready-mixed concrete was held to be a finished product, and treated differently from a product that was assembled on site. The new law eliminates this distinction. Reprinted courtesy of Haight Brown & Bonesteel attorneys Steven M. Cvitanovic, David A. Harris and Kristen Lee Price Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Ms. Price may be contacted at kprice@hbblaw.com Read the court decision
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Renee Zellweger Selling Connecticut Country Home

August 06, 2014 — Emily Heffter – Bloomberg
You had me at seven fireplaces (and a bread oven). Actress Renee Zellweger’s Connecticut country home, on the market for $1.6 million, is hardly roughing it. The luxury farmhouse, built in 1770 and updated in 2004, is a stylish and luxurious country getaway. Set on 38 acres overlooking the Quinebaug River in rural Pomfret Center, the retreat at 96 Cotton Rd is 3,463 square feet with a top-of-the-line kitchen, a bread oven in the family room and a swimming pool. Read the court decision
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Reprinted courtesy of Emily Heffter, Zillow

ALERT: COVID-19 / Coronavirus-Related Ransomware and Phishing Attacks

April 13, 2020 — Christopher E. Ballod & Sean B. Hoar - Digital Insights Lewis Brisbois' Data Privacy & Cybersecurity Blog
As with other events that attract societal attention – whether it be an international sporting event like the Olympics or a natural disaster like the Australian bush fires - criminals often utilize the events to exploit consumers’ fears and, in turn, compromise the cybersecurity of businesses nationwide. With the advent of the Coronavirus, criminals have begun to take advantage of what consumers expect to receive via email to conduct phishing attacks. Criminals are also expected to take advantage of millions of vulnerable remote connections from employee home networks to their corporate networks. According to Proofpoint Inc., a cybersecurity firm, the use of sophisticated Coronavirus-related “phishing” strategies has been on the rise since January, with new malicious email campaigns surfacing each day. These emails, which appear to come from legitimate organizations, contain content such as advice on combatting the Coronavirus, phony invoices for purchases of face masks and medical supplies, advertisements for products that allegedly treat the illness, and phony alerts from the World Health Organization (WHO) or Centers for Disease Control and Prevention (CDC). When the email recipients open these messages, they unknowingly release malware, which allows the attacker to gain access to their personal information and to compromise the security of their employers’ networks. The recent emergence of Coronavirus-related “phishing” schemes demonstrates that businesses must remain vigilant. Employees and their employers are particularly vulnerable now, in light of the novel nature of the Coronavirus, the paucity of information concerning the illness, and the rapid and significant manner in which it is spreading. Individuals are thirsty for information and advice, and are eager to take any action necessary to protect themselves and their families. Reprinted courtesy of Christopher E. Ballod, Lewis Brisbois and Sean B. Hoar, Lewis Brisbois Mr. Ballod may be contacted at Christopher.Ballod@lewisbrisbois.com Mr. Hoar may be contacted at Sean.Hoar@lewisbrisbois.com Read the court decision
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Insured’s Bad Faith Insurance Claim Evaporates Before its Eyes

August 03, 2020 — Garret Murai - California Construction Law Blog
Sometimes it’s right there before your eyes. Then, poof, it’s gone. This was the experience of one insured, who brought a bad faith insurance denial claim against his insurer thinking that the facts were in his favor, only to discover they were not. The 501 E .51st Street Case The Water Main Break and AGI’s Report The owner of a 10-unit apartment building built in 1963, 501 East 51st Street, Long Beach-10 LLC (just rolls off the tongue doesn’t it?), filed a bad faith action against its insurer Kookmin Best Insurance Co., Ltd., after it denied 501 East’s insurance tender following a water main break that caused the building’s foundation to subside. The water main break occurred sometimes between December 31, 2015 and January 2, 2016 next to the southwest side of the building. 501 East tendered its insurance claim to Kookmin on March 8, 2016, and in April 2016, presented a report prepared by American Geotechnical, Inc. (“AGI”) concerning damage to the building. According to the report prepared by AGI, AGI conducted a “limited geotechnical investigation” to “evaluate site conditions relating to the reported building distress following a waterline breach near the south end of the building.” The scope of AGI’s investigation was limited to “observation, photo documentation of the site conditions, [and[ floor-level survey of the interior of the first level units.” AGI’s investigation did not involve any subsurface investigation or soil testing. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Mitigating the Consequences of Labor Unrest on Construction Projects

February 14, 2023 — Cameron Lukas, Alan Winkler & Gregory Begg - ConsensusDocs
Until this past year, we have enjoyed an era of relative labor stability. It’s true, however, that labor unrest frequently coincides with inflationary pressure on prices, something that we are currently experiencing. The recent nationwide rail workers strike was averted only through the extraordinary intervention of the federal government. More recently, thousands of academic workers in the University of California system went on strike. Underscoring this development was a November 2022 New York Times article reporting that polls showed the highest level of support for organized labor since the 1960s. The same article also quoted a professor of labor relations warning that the current economy presents a high potential for strikes. This recalls the sixties and seventies when increased costs due to inflation led to a multitude of strikes. The construction industry has been historically strike-prone with approximately 22% of all strikes during the 1960s involving construction projects, contrasted with the fact that construction workers themselves accounted for only roughly 5% of the nation’s nonagricultural labor force. Incredibly, in 1969 alone, a record number of nearly 1,000 construction strikes occurred nationwide with 20 million worker days lost, more than five times the lost working time of the rest of the economy.[1] Reprinted courtesy of Cameron Lukas, Peckar & Abramson, P.C, Alan Winkler, Peckar & Abramson, P.C and Gregory Begg, Peckar & Abramson, P.C Mr. Lukas may be contacted at clukas@pecklaw.com Mr. Winkler may be contacted at awinkler@pecklaw.com Mr. Begg may be contacted at gbegg@pecklaw.com Read the court decision
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Which Cities have the Most Affordable Homes?

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder analyzed U.S. cities with populations of half a million or more and then filtered further with cities that have a “median new home closing price under $250,000, a first mortgage rate below 4 percent for new homes, and a median new home price per square foot below $125.” Topping the list was El Paso, Texas with the lowest median price ($168,600). Fifth on the list was San Antonio-New Braunfels, Texas with a median price of $230,400. Read the court decision
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