SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Increasing Trend of Caps in Construction Contracts and Negotiating Them

November 27, 2023 — Jarred Trauth - ConsensusDocs
Risks are inherent in every construction project and all parties involved face them: owners, designers, general contractors/builders, subcontractors, suppliers…. Equitably allocating such risks is one of the most important and most negotiated areas of any construction related contract. Limitations of liability provisions are key to risk allocation. These provisions include no damage for delay provisions and caps on delay damages, warranty limitations and exclusions, indemnity limitations, and consequential damage waivers. Another, and the focus of this article, is a liability cap fixing the total amount of damages for which a party may be liable under the contract (the “Liability Cap”). Liability Caps have become more and more common in construction and construction related contracts, including major component supply agreements and design agreements. This article will discuss Liability Caps generally and considerations of an owner or contractor negotiating them, including carve-outs (i.e. exceptions) to them. Read the court decision
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Reprinted courtesy of Jarred Trauth, Jones Walker LLP
Mr. Trauth may be contacted at jtrauth@joneswalker.com

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Nevada Assembly Passes Construction Defect Bill

October 30, 2013 — CDJ STAFF
The Nevada Speaker says that AB401 gives contractors what they want, but a contractors’ group has asked a Senate committee to kill the bill. Supporters of AB 401 say that it clarifies what qualifies as a construction defect and shortens the statute of limitations. Read the court decision
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Understanding Lien Waivers

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
Zlien on their Construction Payment Blog explained how to read a lien waiver. According to Zlien, “Lien waivers are meant to function as a sort of receipt – if a party is paid a certain amount that party waives his or her right to claim a lien for that amount. “ The blog post breaks down the types of lien waivers, including Conditional Waivers, Unconditional Waivers, Final Payment, and Progress Payment. Once the type of waiver has been identified, Zlien suggests checking the length: “Because the party signing the lien waiver may feel obligated to sign whatever document is presented in order to get paid, unscrupulous or oblivious parties may attempt to use the lien waiver as a legal positioning tool and cram all sorts of other language into the lien waiver that really has no legitimate right or reason to be there.” Zlien recommends that if the document is long or confusing to consult an attorney. Read the court decision
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Construction Contract Provisions that Should Pique Your Interest

September 30, 2019 — Christopher G. Hill - Construction Law Musings
Construction contracts are a big part of my legal practice and the drumbeat here at Construction Law Musings. Why? Because not only does your construction contract set the expectations and “rules of the game” for a construction project, it will be read strictly and literally by the Virginia courts should there be a dispute. For these reasons, construction professionals need to be alert for the language in certain key clauses in a construction contract to assure that these clauses are as balanced as possible and also well understood. Here are my “Top Five”:

1. “Pay if Paid”- These clauses are almost always in the subcontracts between a general contractor and a subcontractor and are enforceable in Virginia if drafted correctly and under the proper circumstances.
2. Change Orders- Whether work is subject to a change order and the required payment for any changed work are often a key source of contention (read legal fees). A properly drafted and followed change order provision can help avoid much of this contention.
3. Indemnity- Much has been made in recent years about indemnity provisions and their enforceability. All parties in the construction payment chain can and should be aware of how to best draft their indemnity provisions to make them enforceable. Failure to do so can be catastrophic.

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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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Ohio Court of Appeals: Absolute Pollution Exclusion Bars Coverage For Workplace Coal-Tar Pitch Exposure Claims

January 24, 2018 — White and Williams LLP
On December 28, 2017, the Ohio Court of Appeals (Eighth District) held in GrafTech International, Ltd., et al. v. Pacific Employers Ins. Co., et al., No. 105258 that coverage for alleged injurious exposures to coal tar pitch was barred by a liability insurance policy’s absolute pollution exclusion. Applying Ohio law, the court concluded that Pacific Employers had no duty to defend GrafTech or pay defense costs in connection with claims by dozens of workers at Alcoa smelting plants that they were exposed to hazardous substances in GrafTech products supplied to Alcoa as early as 1942. Read the court decision
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Reprinted courtesy of White and Williams

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Illinois Court Determines Insurer Must Defend Negligent Misrepresentation Claim

December 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Although the insureds disclosed flooding problems in the basement, the buyers purchased their home. USAA Cas. Ins. Co. v. McInerney, 2011 Ill. App. LEXIS 1130 (Ill Ct. App. Oct. 31, 2011). In a supplemental disclosure, the insureds reported that during heavy rains light seepage occurred in the basement.

After moving in, the buyers experienced significant water infiltration and flooding in the basement. The buyers and their children also began to experience mold-related illnesses.

The buyers sued for rescission of the contract or, in the alternative, damages. They alleged breach of contract, fraudulent misrepresentation and negligent misrepresentation. In the claim for negligent misrepresentation, the buyers alleged that the insureds carelessly omitted the fact that there were material defects in the basement and foundation when they should have known of such defects.

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

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Arbitration Denied: Third Appellate District Holds Arbitration Clause Procedurally and Substantively Unconscionable

February 15, 2021 — Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & Bonesteel
In Cabatit v Sunnova Energy Corporation, the Third Appellate District held that an arbitration clause in a solar power lease agreement was unenforceable because it was procedurally and substantively unconscionable. In Cabatit, Mr. and Ms. Cabitat entered into a solar power lease agreement (the “Agreement”) with Sunnova Energy Corporation (“Sunnova”). Ms. Cabitat, who signed the agreement, speaks English but does not understand complicated or technical terms. The salesperson scrolled through the agreement language and Ms. Cabatit initialed where the salesperson indicated, even though she did not understand most of what he was saying. The salesperson did not explain anything about the arbitration clause nor did he provide Ms. Cabatit with a copy of the Agreement. Reprinted courtesy of Stephen M. Tye, Haight Brown & Bonesteel and Lawrence S. Zucker II, Haight Brown & Bonesteel Mr. Tye may be contacted at stye@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Governor Brown Signs Legislation Aimed at Curbing ADA Accessibility Abuses in California

June 02, 2016 — Garret Murai – California Construction Law Blog
This past week Governor Jerry Brown signed Senate Bill 269. The new law is the latest attempt to curb lawsuits brought under the Americans with Disabilities Act of 1990 (“ADA”) and related states laws which many businesses and governmental entities have called unfair and predatory. Others, have used more colorful descriptions. The ADA Debate At the heart of the debate is a small but growing number of ADA plaintiffs who regularly sue businesses and governmental entities alleging that their properties do not provide equal access to disabled individuals. These ADA plaintiffs and their attorneys, including other members of the disabled community, argue that these lawsuits improve access to places of public accommodation by disabled individuals, are permitted under the law, and that the businesses and government agencies they sue can’t be heard to complain since the ADA has been on the books for over twenty-five years. 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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