Seattle Washington Building Expert Directory

Duty to Defend Requires Payments Under Policy's Supplemental Payments Provision

February 16, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The California Court of Appeal determined there was no duty to indemnify and the insured had to reimburse the insurer's contribution to a settlement. Nevertheless, there was a duty to defend, meaning the insured did not have to reimburse amounts it was entitled to under the supplemental payments provision. Navigators Specialty Ins. Co. v. Moorefield Constr., 2016 Cal. App. LEXIS 1132 (Cal. Ct. App. Dec. 27, 2016). Moorefield was the general contractor for a shopping center project to be developed by DBO Development No. 28 (DBO). The project included the construction of a 30,055-square-foot building to by used as a Best Buy store. In January 2002, DBO entered a 15-year lease with Best Buy. 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

Defenses Raised Three-Years Too Late Estop Insurer’s Coverage Denial

February 21, 2022 — Michael S. Levine & Yaniel Abreu - Hunton Insurance Recovery Blog
Liability insurance typically affords broad defense coverage. But insurers sometimes reserve their right to challenge the insured’s right to a defense, or even outright terminate the defense. When this occurs after the insurer has been in exclusive control of the defense, some courts recognize that the consequences can be catastrophic for the insured defendant. Insurers, therefore, may be estopped from denying coverage where doing so will prejudice the insured. This is exactly what transpired in RLI Ins. Co. v. AST Engineering Corp., No. 20-214 (2d Cir. Jan. 12, 2022), where the Second Circuit affirmed the district court’s decision that an insurer’s attempt to withdraw the defense it had provided to its insured for three years would prejudice the insured. In AST Engineering, RLI sought a declaration that it did not have to defend the insured, AST, in two underlying cases in which AST was sued as a third-party defendant. The underlying cases concerned a construction project in New York City for which AST provided engineering drawings on October 28, 2012. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Confidence Among U.S. Homebuilders Declines to Eight-Month Low

March 19, 2015 — Bloomberg News
(Bloomberg) -- Confidence among U.S. homebuilders unexpectedly fell in March to an eight-month low as prospective buyers were in little rush to shop for properties ahead of the busier spring selling season. The National Association of Home Builders/Wells Fargo sentiment gauge dropped to 53 from 55 in February, figures from the Washington-based group showed Monday. The median forecast in a Bloomberg survey called for a gain to 56. Sales of single-family homes declined to a five-month low and builder optimism about the outlook failed to improve, the report also showed. Low mortgage rates and job creation may help spur homebuyer interest in coming months. Read the court decision
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Reprinted courtesy of Bloomberg News
Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net

Nevada Legislature Burns Insurers' Rights to Offer Eroding Limits

August 28, 2023 — William S. Bennett - Saxe Doernberger & Vita, P.C.
Nevada’s legislature recently passed a groundbreaking law imposing two prohibitions on insurers. First, the law prohibits insurers from issuing or renewing any liability insurance policy with an “eroding limits” provision. While the first section of the law will have the most immediate effects, the statute goes further, generally prohibiting insurers from limiting the availability of coverage for the costs of defense, legal costs and fees, and other claim expenses. This second section leaves a great deal to interpretation, with the potential to massively expand policyholder rights, and may throw the traditional structure of liability insurance policies into question. Nevada Statute §679a provides as follows: Notwithstanding any other provision of law, an insurer, including, without limitation, an insurer listed in NRS 679A.160, shall not issue or renew a policy of liability insurance that contains a provision that:

Reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims; or
Otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims.

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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at WBennett@sdvlaw.com

Construction Spending Highest Since April 2009

October 25, 2013 — CDJ STAFF
The Commerce Department has announced that construction spending has increased by 0.6 percent, but that modest gain puts it at the highest it has been in four and a half years. The last time construction spending was this high was April 2009. The rise in construction spending is due to increases in both public and private construction project. Public construction was up, despite a decrease in spending by the federal government. Private residential construction is at a five-year high. Read the court decision
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Claims for Breach of Express Indemnity Clauses Subject to 10-Year Statute of Limitations

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Thomas G. Cronin of Gordon & Rees LLP (published in Association of Corporate Counsel), “[i]n 15th Place Condominium Association v. South Campus Development Team LLC, the Appellate Court for the First District of Illinois held that a claim for breach of an express indemnity clause within a construction agreement was subject to the 10-year statute of limitations for written contracts instead of the four-year statute of limitations for construction claims.” In 2008, the condo association sued the developer alleging “it had discovered latent design and construction defects in the condominium towers. In 2011, the developer filed a third-party complaint against the general contractor alleging breach of express indemnity.” While the general contractor prevailed in the first trial, the appellate court reversed the decision, “concluding that the nature of the developer’s express indemnity claim against the general contractor related to the failure to indemnify rather than to a construction-related activity.” Read the court decision
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The Law of Patent v Latent Defects

March 19, 2015 — Beverley BevenFlorez-CDJ STAFF
Candice B. Macario of Gordon & Rees LLP analyzed the case Delon Hampton & Associates, Chartered v. The Superior Court of Los Angeles, and stated that “[i]n his case, a design professional successfully challenged a construction defect lawsuit brought against them, on the basis that the defect complained of was open and obvious and the County had ran out of time to bring their action.” Macario recommended “as lawsuits are filed close to the ten year statute of repose, one area to explore in a single issue case is if you can eliminate a cause of action based on patent defects. Moreover, in multi-issue cases for several construction defects, parties should always be aware of analyzing whether issues can be identified as patent and perhaps used as a tool in negotiations, settlement discussions or pre-trial motions.” Read the court decision
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Join: Computer Science Meets Construction

August 20, 2018 — Aarni Heiskanen - AEC Business
Increasingly, projects need to be optimized to create the most value for their clients and users. With the fragmented nature of project teams, decisions can be lost, communication sporadic, and information disjointed. In addition, the rapid pace of innovation means that it’s difficult – if not impossible – for architects and engineers to be aware of all the latest construction products and materials. It is these problems that inspired the creation of Join. Join is a smart platform that helps project teams collaborate more efficiently and effectively, whether as part of a project optimization process or throughout the entire project lifecycle. The platform connects construction teams, pulls together different types of project information, and integrates manufacturing into construction. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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