Seattle Washington Building Expert Directory

AAA Revises Construction Industry Arbitration Rules and Mediation Procedures

July 22, 2024 — Patrick McKnight - The Dispute Resolver
The American Arbitration Association (AAA) recently revised its Construction Industry Arbitration Rules and Mediation Procedures (“the Rules”). Several notable changes went into effect March 1, 2024, involving the scope of confidentiality, regular and fast track procedures, and updates to certain monetary thresholds. I. Revisions to Regular Track Procedures Rule 45: Confidentiality For the first time, confidentiality is now the default standard. Under Rule 45(a), arbitrators must keep all matters confidential unless otherwise required by law, court order or the agreement of the parties. Rule 45(b) allows a mediator to issue confidentiality orders and “take measures for protecting trade secrets and confidential information.” Rule 7: Consolidation and Joinder Under the new provisions, consolidation and joinder requests must be filed before confirmation of the Merits Arbitrator’s appointment. This language eliminates a previous option that allowed confirmation up to 90 days after filing of such requests. A failure to timely respond to a joinder request will result in a waiver of objections. Now, a party must establish both good cause and prejudice for a successful joinder request after confirmation of the arbitrator. Read the court decision
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Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

Insured's Lack of Knowledge of Tenant's Growing Marijuana Means Coverage Afforded for Fire Loss

August 17, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeals reversed the trial court's grant of summary judgment to the insurer regarding a claim for fire loss. Mosley v. Pacific Sec. Ins, Co., 2020 Cal. App LEXIS (Cal. Ct. App, May 26, 2020). The Mosleys rented their property to Pedro Lopez. Six months later, the property was damaged by fire. Lopez had tapped a main power line into the attic to power his energy-intensive marijuana growing operation. The illegal power line caused the fire. Pacific Specialty Insurance Company (PSIC) insured the property under an HO-3 Standard Homeowners policy. Paragraph E of the policy provided,

The growing of plants; or
The manufacture, production, operation or processing of chemical, biological, animal or plant materials.

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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Do You Really Want Mandatory Arbitration in Your Construction Contract?

June 25, 2019 — Christopher G. Hill - Construction Law Musings
If you are in construction, you have likley run across (or even drafted) a dispute resolution provision into your construction contract. If you’ve been building for any length of time, you’ve read dispute resolution provisions containing mandatory arbitration clauses. These clauses can be found in the AIA documents and in many of the contracts that I review for my clients in my role as construction lawyer and counselor. More often than not, these arbitration clauses require arbitration (read “private court”) and refer to one of several sets of rules, though most likely the American Arbitration Association (“AAA”) Construction Industry rules. In Virginia, as in most of the United States, these clauses are read liberally and enforced by courts except in limited cases such as waiver. The main justification for requiring arbitration over litigation is to avoid the fees and expense of the litigation process. In the right circumstances, arbitration does just that. With a carefully drafted arbitration clauses and with the right case that requires expertise in construction that a judge does not have (they have to liten to all manner of disputes so are necessarily generalists), arbitration can and should be a streamlined and less expensive version of litigation. However, in my time as a construction attorney, I have more often run into situations where the arbitration process is at least equally expensive and frankly not much more streamlined. The additional administrative burden coupled with the possibility of paying for at least half of the hourly charges of one to three arbitrators is often not worth the additional expertise of those arbitrators. Many construction claims simply come down to non-payment and whether the work was performed properly. In my opinion, the fine judges in the Commonwealth of Virginia are more than capable of hearing this evidence and making a ruling. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

California’s Prompt Payment Laws: Just Because an Owner Has Changed Course Doesn’t Mean It’s Changed Course on Previous Payments

April 20, 2016 — Garret Murai – California Construction Law Blog
We’ve written before about California’s prompt payment laws which are designed to help contractors get paid in a timely and orderly fashion, which is always nice, right? California’s prompt payment laws require that project owners pay their direct contractors, who are in turn required to pay their subcontractors who are in turn required to pay their sub-subcontractors and so on within certain statutorily set deadlines, or be subject to prompt payment penalties nearly as high as the interest you pay on your credit cards. 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

Signed, Sealed and (Almost) Delivered: EU Council Authorizes Signing of U.S. – EU Bilateral Insurance Agreement

August 02, 2017 — Stella Szantova Giordano - Saxe Doernberger & Vita, P.C.
On July 14, 2017, the Trump administration released a statement indicating that the United States intends to sign the U.S. – EU bilateral insurance agreement. The announcement came several weeks after the Council of the European Union adopted a decision authorizing the signing of this agreement. The agreement attempts to “level the playing field for U.S. insurers and reinsurers operating in the EU.”[1] This U.S. – EU bilateral agreement is a direct response to EU’s January 2016 enactment of Solvency II. Solvency II is a legislative program implemented in all twenty-eight Member States, aimed at codifying EU insurance regulations in an attempt to protect policy holders and to incentivize risk management. We previously wrote about this comprehensive program of insurer regulatory requirements here. Read the court decision
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Reprinted courtesy of Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.
Mr. Giordano may be contacted at ssg@sdvlaw.com

Sarah P. Long Expands Insurance Coverage Team at Payne & Fears

March 19, 2024 — Payne & Fears LLP
Sarah P. Long has joined Payne & Fears LLP as a Partner in the firm’s Insurance Coverage and Litigation Group. Sarah has represented clients in all aspects of insurance coverage and litigation and also focus on construction defect claims and litigation. Before joining Payne & Fears, Sarah was a partner at Koeller, Nebeker, Carlson, Haluck, LLP, where she represented many of the nation’s builders in construction defect actions and bad faith insurance coverage disputes for 17 years. Known for her dependability, efficiency, and creative problem-solving, Sarah always strives to secure the best results for her clients in the most efficient manner. “We are excited to welcome Sarah to P&F as we continue to expand and add depth to our Insurance Litigation Group. I have known Sarah in a professional and personal capacity for more than 16 years. She is well respected by clients and peers in the legal profession. She is a bright, efficient, and innovative attorney and a wonderful person,” said Sarah Odia, the group’s co-chair. Read the court decision
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Reprinted courtesy of Payne & Fears LLP

Insurer's Late Notice Defense Fails on Summary Judgment

December 13, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion for summary judgment to dismiss the claim because the insurer did not provide notice "as soon as practicable" was denied. Vintage Hospitality Group LLC v. Nat'l Trust Ins. Co., 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021). Vintage owned hotels, one of which was struck by a severe hailstorm on July 21, 2018. Vintage was not aware of roof damage until two months after the storm, and did not make the connection between the hailstorm and roof damage until February 2020, when it reported the damage to National. The claim was denied because it was not reported "as soon as practicable" as required by the policy. Vintage sued and National moved for summary judgment. Vintage did not notice the leaks until September 2018. The focus was on fixing the leaks, and connection to the hailstorm did not register. The leaks persisted over the next year and a half. A construction company was called in to evaluate the leaking roof. The construction company advised that the roof had experienced previous hail damage which was causing the leaks. At this point, Vintage connected the damage to the hailstorm. A claim was promptly submitted to National, which denied the claim. 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

Construction Law Alert: Concrete Supplier Botches Concrete Mix, Gets Thrashed By Court of Appeal for Trying to Blame Third Party

January 21, 2015 — Steven M. Cvitanovic and Whitney L. Stefko – Haight Brown & Bonesteel LLP
On January 8, 2015, the Second Appellate district affirmed judgment of the lower court in State Ready Mix Inc. v. Moffatt & Nichol, and barred a concrete supplier from blaming a third party consultant for the concrete supplier's failure to deliver concrete that met project specifications. In 2012, Major Engineering Marine, Inc. was hired by a project manager to construct a harbor pier in the Channel Islands Harbor. Major hired State Ready Mix, Inc. to supply the concrete for the project. State wrote and submitted a concrete mix design and, at the request of Major, civil engineer Moffatt & Nichol reviewed and approved State's mix design at no charge. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Whitney L. Stefko, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES