Seattle Washington Building Expert Directory

Comparative Breach of Contract – The New Benefit of the Bargain in Construction?

October 26, 2020 — Steven Hoffman - Florida Construction Law News
Ask most Florida Construction Law practitioners, and you will likely hear that liability may not be apportioned in “pure” breach of contract cases via the Comparative Fault Act, section 768.81, Florida Statutes (the “Act”). If a material breach is a “substantial factor” in causing damages, the breaching party must answer for all damages that were reasonably contemplated by the parties when they formed the contract. Claimants argue that matters of contract should be governed strictly by the agreement, and risk can be controlled by negotiated terms, including waivers and limitations. Defendants complain that construction projects are collaborative, multi-party affairs, and strict application of contract principles leads to harsh results for relatively minor comparative fault for the same or overlapping damages. The notion of apportioning purely economic loss contract damages based on comparative fault is not new. Since April 2006, Florida has been a “pure” comparative fault jurisdiction with limited exceptions. Prior to the amendment, tort liability for non-economic damages was purely comparative, but liability for economic damages was typically a combination of joint and several liability with an additional exposure based on comparative fault. Read the court decision
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Reprinted courtesy of Steven Hoffman, Cole, Scott & Kissane
Mr. Hoffman may be contacted at Steven.Hoffman@csklegal.com

Is Arbitration Always the Answer?

April 20, 2016 — Christopher G. Hill – Construction Law Musings
After a long (for me) hiatus due to Spring Break with my wonderful family followed by a crazy last two weeks for both personal and business reasons, I’m back and ready to muse again. This week’s “musings” concern a topic that arises often in construction contracts and construction dispute resolution. The topic? Arbitration. Why does this come up often? Because in many form contracts such as the AIA documents, as well as in many construction contracts that are more specifically tailored, mandatory arbitration is at least a choice if not the only method of dispute resolution. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Seventh Circuit Confirms Additional Insured's Coverage for Alleged Construction Defects

August 10, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Seventh Circuit held that the underlying complaint alleged an occurrence by asserting that the painting subcontractor was negligent in causing damage to the building. Westfield Ins. Co. v. Nat'l Decorating Serv., Inc., 2017 U.S. App. LEXIS 12516 (7th Cir. July 13, 2017). McHugh Construction, the general contractor for construction of a 24 story condominium building in Chicago, retained National Decorating Service, Inc. as a subcontractor to perform all of the painting work. This meant National Decorating would paint the exterior of the building with a protective coating that was a waterproof sealant. After completion, the building's board of managers sued McHugh, National Decorating, and others for damages resulting from faulty workmanship. The third amended complaint alleged: (1) significant cracking of the exterior concrete walls, interior walls, and ceilings; (2) significant leakage through the exterior concrete walls, balconies, and windows; (3) defects to the common elements of the building; and (4) damage to the interior ceilings, floors, interior painting, drywall, and furniture in the units. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Connecticut Crumbling Concrete Cases Not Covered Under "Collapse" Provision in Homeowner's Policy

July 01, 2019 — Kerianne E. Kane - Saxe Doernberger & Vita, P.C.
What do you do when your house falls out from underneath you? Over the last few years, homeowners in northeastern Connecticut have been suing their insurers for denying coverage for claims based on deteriorating foundations in their homes. The lawsuits, which have come to be known as the “crumbling concrete cases,” stem from the use of faulty concrete to pour foundations of approximately 35,000 homes built during the 1980s and 1990s. In order to save their homes, thousands of homeowners have been left with no other choice but to lift their homes off the crumbling foundations, tear out the defective concrete and replace it. The process typically costs between $150,000 to $350,000 per home, and homeowner’s insurers are refusing to cover the costs. As a result, dozens of lawsuits have been filed by Connecticut homeowners in both state and federal court. Of those cases, three related lawsuits against Allstate Insurance Company were the first to make it to the federal appellate level.1 The Second Circuit Court of Appeals was tasked with deciding one common issue: whether the “collapse” provision in the Allstate homeowner’s policy affords coverage for gradually deteriorating basement walls that remain standing. The Allstate policies at issue were “all-risk” policies, meaning they covered “sudden and accidental direct physical losses” to residential properties. While “collapse” losses were generally excluded, the policies did provide coverage for a limited class of “sudden and accidental” collapses, including those caused by “hidden decay,” and/or “defective methods or materials used in construction, repair or renovations.” Covered collapses did not include instances of “settling, cracking, shrinking, bulging or expansion.” Read the court decision
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Reprinted courtesy of Kerianne E. Kane, Saxe Doernberger & Vita, P.C.
Ms. Kane may be contacted at kek@sdvlaw.com

Estimate Tops $5.5B for Cost of Rebuilding After Maui Fires

August 21, 2023 — James Leggate - Engineering News-Record
Rebuilding after wildfires on the island of Maui in Hawaii could cost more than $5.5 billion, according to a preliminary assessment prepared by the University of Hawaii Pacific Disaster Center and local officials. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Rainwater Collecting on Rooftop is not Subject to Policy's Flood Sublimits

October 15, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Responding to a certified question from the First Circuit, the Supreme Judicial Court of Massachusetts determined that rainwater collecting on the insureds' rooftop and causing interior damage was not "flood" as defined in the policy and subject to sublimits. Zurich Am. Ins. Co. v. Medical Properties Trust, Inc., 2024 Mass. LEXIS ___ (Mass. July 23, 2024). A severe thunderstorm caused heavy rain and strong winds which damaged a hospital. The hospital was owned by Medical Properties Trust, Inc. (MPT) and leased to Steward Health Care System LLC (Steward). Ground water accumulated and flooded the basement. Rainwater also accumulated on the hospital's parapet roofs and on the second-story courtyard, and eventually seeped through the parapet roofs and courtyard to the hospital's upper floors, causing damage to the building and property within. 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

Contractor Sues Supplier over Defective Products

June 28, 2011 — CDJ STAFF

Fast Track Specialties has sued RJF International after needing to remove wall protection units at Methodist West Houston Hospital, according to an article in the Houston Chronicle. Fast Track claims that contractors had to disconnect gas, water, and electric from the area to facilitate removal of corner guards, handrails, and crash guards from the hospital. This cost the contractor more than $135,000.

Fast Track is claiming that RJD International has committed breach of contract, breach of warranty, and negligent representation.

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First Quarter Gains in Housing Affordability

May 20, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the National Association of Home Builders’ (NAHB) Eye on Housing, the combination of low interest rates and home prices has provided a “solid boost in nationwide affordability in the first quarter of 2015.” Furthermore, “66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800.” Syracuse, New York remained the U.S.’s most affordable major housing market, while the San Francisco-San Mateo-Redwood City, California region was the nation’s least affordable major housing market. All five of the least affordable small housing markets were in California. Read the court decision
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