Seattle Washington Building Expert Directory

A Relatively Small Exception to Fraud and Contract Don’t Mix

April 01, 2015 — Christopher G. Hill – Construction Law Musings
Remember all of my posts about how fraud and contract claims don’t usually play well in litigation? Well, as always with the law, there are exceptions. For instance, a well plead Virginia Consumer Protection Act claim will survive a dismissal challenge. A recent opinion out of the Alexandria division of the U. S. District Court for the Eastern District of Virginia sets out another exception, namely so called fraudulent inducement. In XL Specialty Ins. Co. v. Truland et al, the Court considered the question of whether both a tort and contract claim can coexist in the same lawsuit when the tort claim is based upon the information provided to the plaintiff when that information proves false. As the courts of Virginia have held for years, only certain information and statements made pre-contract can be the basis for a fraud claim in the face of a contractual duty to perform. One type of statement that is not properly the subject of a fraud in the inducement type claim is sales talk or opinion. Such sales talk (for example claiming that your company is the best for the job) is not the subject of a fraud claim because it is not meant to be relied upon and that such talk is an opinion about future performance, not a false statement of present fact or intent. Read the court decision
Read the full story...
Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

El Paso Increases Surety Bond Requirement on Contractors

April 25, 2011 — Beverley BevenFlorez CDJ STAFF

The city of El Paso has recently increased surety bonds required of contractors from $10,000 to $50,000, according to the El Paso Times. Proponents of the increase believe it was necessary to protect homeowners from fly-by-night builders, while opponents argue that the increase will have an adverse effect on an industry in that is already suffering due to the economic slowdown.

Arguments for and against the increase have been flooding the blogosphere with their views. Christian Dorobantescu on the Small Business Entrepreneur Blog claims that “only about 15% of the city’s 2,500 contractors had been able to secure a higher bond to remain eligible for work after the new requirements were announced.” However, insurance companies have a different take. “From a surety broker standpoint, most contractors will be able qualify for the bond; some will just have to pay higher premium rates to obtain it,” a recent post on the Surety1 blog argues.

While the increased bond may help homeowners deal with construction defect claims, it is not clear what effect it will have on builders in El Paso.

School Board Settles Construction Defect Suit

October 22, 2013 — CDJ STAFF
The Lafayette Parish School Board has settled a claim that water intrusion was caused by faulty design and construction. The board initially sued the contractor and the design firms, but under Louisiana law, the suit came too late to sue the contractor, so Ratcliff Construction was dropped from the suit. The two design firms, Corne-Lemaire Group, which did the architectural design for the school, and Beaullieu & Associates, which did the engineering, also sought to be removed from the suit due to the statute of limitations, but an appeals court concluded that the law at the time of construction did not allow this. Details of the settlement were not released. Tim Basden, the attorney for the school board acknowledged that “the principal problems were related to construction, but the lawsuit wasn’t filed timely.” According to Basden neither design firm conceded “liability or malpractice of any kind.” Read the court decision
Read the full story...
Reprinted courtesy of

Dot I’s and Cross T’s When It Comes to Construction Licensure Requirements

February 21, 2022 — David Adelstein - Florida Construction Legal Updates
It should serve as no surprise that making sure you are appropriately licensed is important. This includes complying with any state requirement that requires licensure, as well as complying with any local licensure requirement. Not doing so can result in the dispute centered on the lack of licensure, as opposed to leading facts relating to the substance of the dispute. In other words, you are dealing with a technicality that could have harsh implications. This lack of licensure issue recently played out in a dispute with a contractor and subcontractor in ABA Interior, Inc. v. The Owen Corp., 2022 WL 386103 (Fla. 4th DCA 2022), dealing with a local licensure requirement. In this case, a subcontractor was hired by the general contractor for a commercial project in Palm Beach County. The subcontract contained the standard provision that the subcontractor would comply with all federal, state, and local laws and ordinances. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

How You Plead Allegations to Trigger Liability Insurer’s Duties Is Critical

November 01, 2021 — David Adelstein - Florida Construction Legal Updates
How you plead allegations in your lawsuit to trigger duties of a liability insurance carrier is a critical consideration. If the complaint is not pled appropriately, it can result in the carrier NOT owing a duty to defend its insured, which is the party(ies) you are suing. If there is no duty to defend, there will be no duty to indemnify the insured to cover your damages. For this reason, in a number of circumstances, this is NOT what you want because you want to trigger insurance coverage and potential proceeds to be paid by a carrier to cover your damages. There are times when you are confronted with a case that just is not a good insurance coverage case. This may result in you coming up with creative arguments to maximize insurance coverage. Even in these times, you want to plead the complaint to best maximize coverage under the creative arguments you have developed. An example of not pleading allegations in a complaint to trigger an insurer’s duties can be found in the Eleventh Circuit Court of Appeal’s decision in Tricon Development of Brevard, Inc. v. Nautilus Insurance Co., 2021 WL 4129373 (11th Cir. 2021). This case involved a general contractor constructing condominiums. The general contractor hired a subcontractor to fabricate and install metal railings. The subcontractor had a commercial general liability (CGL) policy that named the general contractor as an additional insured with respect to liability for property damage “caused in whole or in part” by the subcontractor’s direct or vicarious acts or omissions. (This is a good additional insured endorsement.) Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Collaborating or Competing with Construction Tech Startups

November 15, 2017 — Aarni Heiskanen - AEC Business
I recently interviewed 20 experts and thought leaders about real estate and construction technology and innovation. Many of the interviewees talked about collaboration with startups and how to make the most of it. There’s a growing interest in construction technology. Construction tech firms have garnered $10 billion in investment funding from 2011 through early 2017, according to McKinsey & Company. AngelList, a startup and investor website, currently features over 13,000 companies with “construction” as a keyword. Read the court decision
Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

Mediation Confidentiality Bars Malpractice Claim but for How Long?

April 01, 2015 — Jennifer K. Saunders – Haight Brown & Bonesteel LLP
The California Court of Appeal yesterday upheld application of the mediation confidentiality statutes to bar a malpractice action which was based on the attorneys’ actions during mediation. John Amis vs. Greenberg Traurig LLP, et al. (3/18/15) Court of Appeal, Second Appellate District, No. B248447. Inferences about the attorneys’ conduct during mediation were also determined to be unusable in an attempt to circumvent the privilege. Plaintiff, John Amis, filed an action against his former attorneys, Greenberg Traurig, alleging they were negligent by “causing” him to execute a settlement agreement during a two-day mediation which converted a corporate obligation into a personal obligation. The causes of action included breach of fiduciary duty, malpractice and breach of a conflict waiver, in support of which Amis alleged that the attorneys failed to advise him of the risk involved in entering into the settlement agreement, “drafted, structured and caused it to be executed” during mediation and breached a conflict waiver by failing to negotiate a settlement that provided him with financial security. During plaintiff’s deposition he admitted that all of the advice he had received in connection with the settlement agreement occurred during mediation and that all the damages incurred were from his execution of that agreement during mediation. Greenberg Traurig filed a motion for summary judgment based upon plaintiff’s deposition admissions and argued that since the mediation confidentiality statutes barred each side from presenting testimony as to what occurred during mediation, the plaintiff could not establish the elements of his claims and they could not defend against those allegations. The trial court agreed with the defense, granting summary judgment. Read the court decision
Read the full story...
Reprinted courtesy of Jennifer K. Saunders, Haight Brown & Bonesteel LLP
Ms. Saunders may be contacted at jsaunders@hbblaw.com

What You Need to Know About Additional Insured Endorsements

August 30, 2017 — Gary Barrera - California Construction Law Blog
A well-drafted insurance clause is an integral part of a construction contract because it sets forth a subcontractor’s obligations to add the general contractor to its policies of insurance as an additional insured and identifies the manner by which the general contractor will qualify as an additional insured. In a typical construction contract, the general contractor will be an additional insured via a scheduled endorsement or a blanket endorsement. Scheduled Endorsements A scheduled endorsement contains a “schedule” in which the person or organization that is named in the schedule is added to the policy as an additional insured. The following scheduled endorsements are commonly used in construction contracts. Read the court decision
Read the full story...
Reprinted courtesy of Gary Barrera, Wendel Rosen Black & Dean LLP
Mr. Barrera may be contacted at gbarrera@wendel.com

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES