Seattle Washington Building Expert Directory

Real Case, Real Lessons: Understanding Builders’ Risk Insurance Limits

August 12, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In the recent case of 5333 Mattress King LLC v. Hanover Insurance Company, the United States District Court for the District of Colorado provided significant insights into the limits of builders’ risk insurance policies. Mattress King LLC, a warehouse owner, faced a substantial loss when a subcontractor drove a crane over and damaged the warehouse’s concrete floor slab during construction. Despite having a builders’ risk insurance policy with Hanover Insurance Company, coverage was denied, leading to litigation. Applicable Policy Provisions The policy in question was a Commercial Marine/Commercial Lines Builders’ Risk insurance policy. Builders’ risk insurance is designed to cover direct physical loss to covered property during construction unless the loss is excluded or limited by the policy. Key exclusions of the policy at issue included losses caused by faulty, inadequate, or defective:

Planning, zoning, surveying, or development
Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction
Materials used in construction or renovation
Maintenance of the covered property

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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Construction Law Alert: Appellate Court Rules General Contractors Can Contractually Subordinate Mechanics Lien Rights

November 26, 2014 — Steven M. Cvitanovic, Jessica M. Lassere Ryland, & Colin T. Murphy - Haight Brown & Bonesteel LLP
In Moorefield Construction, Inc. v. Intervest-Mortgage Investment Co., 230 Cal. App. 4th 146 (4th Dist. 2014), a California appellate court upheld an agreement executed by a general contractor which subordinated its mechanic’s lien to a construction lender’s deed of trust. In 2006, developer DBN Parkside LLC ("DBN") purchased land in San Jacinto, California (the "property") to build a medical complex (the "project"). DBN hired Moorefield Construction, Inc. (“Moorefield”) to act as general contractor and sought funding for the project from Intervest-Mortgage Investment Company (“Intervest”). Prior to the recordation of the construction loan, and unbeknownst to Intervest, Moorefield cleared and grubbed the project site. Pursuant to the construction loan agreement, Intervest required DBN to assign its rights and remedies under the construction contract to Intervest. Under its construction contract, Moorefield agreed to subordinate its lien rights to the construction loan. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Steven M. Cvitanovic, Jessica M. Lassere Ryland and Colin T. Murphy Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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U.S. Homeownership Rate Falls to Lowest Since Early 1995

October 29, 2014 — Prashant Gopal – Bloomberg
The homeownership rate in the U.S. fell to the lowest in more than 19 years as the market shifted toward renting and tight credit blocked some potential buyers. The share of Americans who own their homes was 64.4 percent in the third quarter, down from 64.7 percent in the previous three months, the Census Bureau said in a report today. The rate was at the lowest level since the first quarter of 1995. Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29 percent in September for the third straight month, compared with about 40 percent historically, according to the National Association of Realtors said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Lien Claimant’s Right to Execute against Bond Upheld in Court of Appeals

February 10, 2012 — Douglas Reiser, Builders Council Blog

Stonewood v. Infinity Homes is a simple construction dispute over a matter of about $9,000.00. But sometimes these tiny little disputes turn into expensive legal battles over mere procedural quivering. In Stonewood, a small subcontractor won a big victory yesterday when the Divison 1 Court of Appeals upheld its judgment against a lien release bond posted by an owner.

Infinity Homes contracted with Stonewood Design to lay tile in one of its customer’s homes. Stonewood did the work, but Infinity withheld roughly $9,000.00 of the contract sums for what it alleged were trade damages left on the tile. The two parties were unable to come to an agreement over payment and Stonewood proceeded with a lien under RCW 60.04. It then filed an action to enforce the lien against the homeowner, Infinity and its bonding company.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Skilled Labor Shortage Implications for Construction Companies

July 15, 2019 — Tony James & Keith Maciejewski - Construction Executive
The construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue. What’s causing the labor gap? There are two underlying trends driving this phenomenon:

More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.

Reprinted courtesy of Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Slip and Fall Claim from Standing Water in Parking Garage

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
In Metairie, Louisiana, Paul Unkauf filed a lawsuit after he allegedly “slipped and fell on standing water in the parking garage,” located at Heritage Plaza, according to the Louisiana Record. The defendants, Stewart Development LLC, Stirling Properties LLC, Platinum Parking LLC and First Financial Company, are “accused of permitting standing water to dampen the pathway leading to the elevator bank, failing to dry the pathway, failing to warn of the hazard, failing to properly inspect the area in question, failing to provide a safe means of exit and entrance, being careless and negligent under the circumstances, failing to properly identify and correct defects in design and failing to properly supervise and train employees,” reports the Louisiana Record. Unkauf is seeking an “unspecified amount in damages” for “medical expenses, physical pain, loss of function, mental anguish, emotional distress, loss of enjoyment of life and permanent partial disability.” Read the court decision
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California Supreme Court Endorses City Authority to Adopt Inclusionary Housing Ordinance

August 04, 2015 — Garret Murai – California Construction Law Blog
The following post was written by my partner Neal Parish on the California Supreme Court’s recent (and surprising) new decision which eases the way for local governments to adopt inclusionary housing ordinances, to the chagrin of residential housing developers. On June 15, 2015, in a decision that came as a surprise to many observers, the California Supreme Court unanimously rejected a challenge to San Jose’s inclusionary housing ordinance which had been filed by the California Building Industry Association (CBIA) and supported by the Pacific Legal Foundation. The Court disagreed with CBIA’s position, which claimed that jurisdictions must first show a nexus between new market-rate residential development and the need for affordable housing before adopting any inclusionary housing requirement. The Court instead held that in adopting an inclusionary housing ordinance the City needs to simply demonstrate a real and substantial relationship between the ordinance and the public interest, and further held that the ordinance did not represent a taking of developers’ property interests. 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

New Jersey Supreme Court Holding Impacts Allocation of Damages in Cases Involving Successive Tortfeasors

March 28, 2022 — Thomas Regan & Karley Kamaris - Lewis Brisbois
Newark, N.J. (March 21, 2022) - Late in 2021, the Supreme Court of New Jersey addressed the issue of allocating damages in personal injury cases in which the plaintiff asserts claims against successive tortfeasors, such as medical malpractice in the treatment of a slip and fall injury caused by negligence. The decision in Glassman v. Friedel, 249 N.J. 199 (2021) overruled and replaced the long-held principles established in Ciluffo v. Middlesex General Hospital, 146 N.J. Super. 478 (App. Div. 1977) regarding successive liability. Ciluffo held that, when an initial tortfeasor settles before trial, the non-settling defendants in a successive tort were entitled to a pro tanto credit for the settlement amount against any damages assessed against them. The Superior Court of New Jersey Appellate Division in 2020, and the Supreme Court of New Jersey last year, abandoned that framework for one more consistent with statutory contribution law in the Garden State. In Glassman v. Friedel, 465 N.J. Super. 436 (App. Div. 2020), the Appellate Division held that the application of the principles in Ciluffo in a negligence case has no support in modern jurisprudence, thus limiting its application. It rejected the holding in Ciluffo in light of the state legislature’s enactment of the Comparative Negligence Act, which requires juries to apportion damages between successive events and apportion fault among the parties responsible for each event. The appellate division went on to hold that a non-settling, successive tortfeasor may present proofs at trial as to the negligence of the settling tortfeasor, and that the burden of proof as to the initial tortfeasor’s negligence being the proximate cause of the second causative event indeed lies on the non-settling defendant. In sum, the appellate division in Glassman established steps the jury can use to determine successive tortfeasor liability, but largely treated it as one, attenuated incident. Reprinted courtesy of Thomas Regan, Lewis Brisbois and Karley Kamaris, Lewis Brisbois Mr. Regan may be contacted at Thomas.Regan@lewisbrisbois.com Ms. Kamaris may be contacted at Karley.Kamaris@lewisbrisbois.com Read the court decision
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