Seattle Washington Building Expert Directory

New York Court Grants Insured's Motion to Dismiss Construction Defect Case and Awards Fees to Insured

February 05, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The New York Supreme Court granted the insured's motion to dismiss the insurer's complaint seeking relief on its duty to indemnity and awarded fees to the insured. Utica Mut. Ins. Co. v. Crystal Curtain Wall Sys. Corp., 2023 N.Y. Misc. LEXIS 22368 (N.Y. Sup. Ct. Nov. 27, 2023). The case arose from a construction-related property damage action. Crystal entered a subcontract with the general contractor to design and install window and curtain systems in mixed residential and commercial buildings. When unit owners took possession, water infiltration during a rainstorm caused property damage and moldy conditions. The unit owners sued asserting claims against Crystal for the cost of repair or replacement of the allegedly defective curtain wall, damage to unit owners' personal property, diminution in value of the units, and delay damages consisting of increasing interest and carrying costs. 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

Unlicensed Contractors Nabbed in Sting Operation

September 09, 2011 — CDJ STAFF

The California State License Board charged sixteen people in the Fresno area with accepting contracting jobs without licenses. The Statewide Investigative Fraud Team of the CSLB set up a sting operation at a home in Clovis, California seeking bids on tree service, painting, and general contracting services. Those who bid for jobs at more than $500 are required under California law to be licensed. Unlicensed contractors can only work on jobs with a cost to the homeowner of less than $500 and must inform the homeowner that they are not licensed.

In addition to citing contractors for not possessing appropriate licenses, the CSLB also cited contractors for failure to carry workers compensation insurance and illegal advertising. Further, California law limits down payments to the lesser of ten percent or $1,000. Two contractors were cited for requesting excessive down payments.

One contractor, an unlicensed tree service contractor, had been cited previously in a sting operation. He failed to show up for his court date.

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Home Prices Expected to Increase All Over the U.S.

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
According to a survey of the National Association of Realtors (as quoted by the Housing Wire), home prices are expected “to increase in all states and the District of Columbia over the next 12 months, with most of the heavy growth in Florida, Texas, and California, among other states.” The highest expected price growth was “in states with low inventory levels, strong cash sales, and strong growth sectors (e.g., technology, oil).” Read the court decision
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Evaluating Construction Trends From 2023 and Forecasting For 2024

February 12, 2024 — Jason Feld & Dominic Donato - Kahana Feld
As we begin 2024, it is informative to evaluate what transpired in 2023 in the construction industry, and especially the use of construction technology. 2023 ushered in a variety of newly implemented construction technologies including 3D printed entire houses, improved wearables that detect all aspects of the construction worker from location to temperature to heart rate, increased use of modular construction for entire apartments, hotels, and condominium projects, and eco-friendly and conservation minded technologies to minimize carbon footprint, water preservation and sustainable construction methods, to name a few. 2023 also identified some significant issues in the construction industry. First and foremost, the labor shortages and hiring of skilled and qualified workers continued to be an issue resulting in increased delays, construction accidents, and project mismanagement. The skyrocketing interest rates, decline in commercial/office projects, supply chain issues, material price fluctuation and increase changes in scope of projects all negatively impacted the construction industry in 2023. There is also the demand for renewable and infrastructure projects put strain on construction resources as the projects became “mega” with larger and more complex construction leading to multi-party, high dollar, and more complex claims. Finally, there is a growing trend of construction claims and litigation being financed by third party litigation funding sources for personal/bodily injury claims and construction defect claims. Reprinted courtesy of Jason Feld, Kahana Feld and Dominic Donato, Kahana Feld Mr. Feld may be contacted at jfeld@kahanafeld.com Mr. Donato may be contacted at ddonato@kahanafeld.com Read the court decision
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High Court Case Review Frees Jailed Buffalo Billions Contractor CEO

August 22, 2022 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
Hidden amid the U.S. Supreme Court's flurry of high-profile rulings that ended its current term—such as overturning Roe v. Wade and scaling back federal regulation of greenhouse gas emissions—was a less-noticed decision to take a case next year that could change the fortunes of a convicted New York contractor who was serving a federal prison term for bid-rigging. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Surveys: Hundreds of Design Professionals See Big COVID-19 Business Impacts

April 27, 2020 — Bruce Buckley & Debra K. Rubin - Engineering News-Record
As more states, counties and cities call on non-essential businesses to shut down to help ease the effects of the coronavirus pandemic, design professionals already see major workload impacts from the economic slowdown, according to three new association surveys of members and one of CEOs by a financial consulting firm. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Insurer Has No Obligation to Cover Arbitration Award in Construction Defect Case

May 22, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court determined there was no coverage for an adverse arbitration decision suffered by the insured in a construction defect case. Am. Fire and Cas. Co. v. Unforgettable Coatings, Inc., 2023 U.S. Dist. LEXIS 64846 (D. Nev. April 13, 2023). Unforgettable contracted with Muirfield Village Homeowner's Association for painting and related services. Following completion of the project, Muirfield alleged that Unforgettable's work was defective and filed suit. The parties agreed to arbitration. The arbitrator found that Unforgettable breached the contract and its implied warranty. Damages were awarded to Muirfield. American Fire and Casualty Company (AFCC) was Unforgettable's insurer and defended Unforgettable at the arbitration. AFCC sued for a declaration that it had no obligation to indemnify Unforgettable for the damages awarded. Unforgettable and Murifiled counterclaimed, alleging that AFCC breached the policy by not covering the award, as well as a variety of extracontractual claims related to the investigation process. AFCC moved for judgment on the pleadings. The motion was granted with leave to amend. 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

Terminating A Subcontractor Or Sub-Tier Contractor—Not So Fast—Read Your Contract!

May 24, 2018 — John P. Ahlers - Ahlers Cressman & Sleight PLLC Blog
Every few months I receive a call from a general contractor or subcontractor who has just terminated a subcontractor or sub-tier contractor for non-performance and is “checking in with me to see if there are any liability issues.” After the termination has taken place, if the termination is wrongful, there are serious legal consequences. Calling your lawyer after the fact will not cure missteps in the termination process. Termination for non-performance is a common term in most contract documents. As courts interpret contracts, however, the right to earn revenue from a contract is a substantial interest, and courts generally “abhor” forfeitures (termination) of that right. In other words, the courts will strictly determine whether the terminating party to a contract has complied with the termination process to the letter. A recent example from Connecticut is instructive in this regard. [1] The general contractor on a large hospital project in Connecticut terminated its electrical subcontractor, hired others to finish the electrical subcontractor’s work, and then sued the electrical subcontractor for $26 million. The electrical subcontractor countersued the general contractor for $3.6 million of work that it had completed at the time of the termination which had not been paid for. The subcontractor claimed that due to the many changes that had occurred on the project, it stopped work because the changes altered the contract to the point that it was no longer the same contract. The subcontractor walked off the project and the general contractor then terminated the subcontractor and re-procured the work from other subcontractors. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

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