Seattle Washington Building Expert Directory

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

September 01, 2016 — Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog
The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look. In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued. Reprinted courtesy of Michael Lindsay, Snell & Wilmer and Luke Mecklenburg, Snell & Wilmer Mr. Lindsay may be contacted at mlindsay@swlaw.com Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com Read the court decision
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San Francisco Airport’s Terminal 1 Aims Sky High

January 06, 2020 — Aileen Cho - Engineering News-Record
Each night, a prancing robotic dog roves the site of Terminal 1 at San Francisco International Airport (SFO), taking photographs of construction on the new terminal, which replaces a 1960s-era building with nearly 900,000 sq ft of state-of-the-art space. The $2.6-billion Harvey Milk terminal is the highlight of a $7.2-billion capital plan. “We are about halfway through,” says Geoff Neumayr, chief development officer for SFO. The program includes a 3,600-space parking garage, a consolidated office campus, a new hotel, a waste treatment plant, improvements to Terminal 2 and the international terminal, and a new on-airport train station. This summer the first nine gates opened at Terminal 1, with nine more slated to open next year and a completion date of 2023 with 25 total gates, including two that will accommodate Airbus A380s double-decker planes. Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story... Read the court decision
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In Review: SCOTUS Environmental and Administrative Decisions in the 2020 Term

August 10, 2021 — Anthony B. Cavender - Gravel2Gavel
Several decisions of interest were issued in the 2020 term, which stretched from October 2020 until early July 2021. This review will concentrate on environmental and administrative law cases. Texas v. New Mexico On December 14, 2020, the Court issued its ruling in an Original Action. Water is precious in the Pecos River Valley, and the distribution of water is governed by the Pecos River Compact. Here, Texas complained that New Mexico illegally was seeking delivery credits for evaporated water credits but the Court agreed that New Mexico was entitled to these credits under the provisions of the River Master’s Manual. Florida v. Georgia On April 1, 2021, in another waters right ruling on an Original Action filed in the Supreme Court, the Court rejected Florida’s claims that Georgia’s use of interstate waters harmed Florida’s businesses. Florida had to satisfy a heavy burden of proof, which it failed to do. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Insurer Not Required to Show Prejudice from an Insured’s Late Notice When the Parties Contract for a Specific Reporting Period

September 09, 2019 — Christopher Raney - Gordon & Rees Insurance Coverage Law Blog
The Fifth Circuit Court of Appeals recently affirmed an order granting summary judgment in favor of the Firm’s insurer client on an issue of first impression in Texas. The issue before the trial court was whether, under Texas law, an insurer is required to demonstrate prejudice resulting from an insured’s failure to comply with an agreed term set in an endorsement to the parties’ insurance contract establishing a specific time limit for an insured to give the insurer notice of a claim. The case involved alleged damage to an insured’s commercial property from a hailstorm. The insured did not report the alleged loss to its insurer until approximately 17 months after the date of loss. The insurer denied the claim based on a one-year notice requirement in a policy endorsement. The Texas Windstorm or Hail Loss Conditions Amendment Endorsement stated that:

In addition to your obligation to provide us with prompt notice of loss or damage, with respect to any claim where notice of the claim is reported to us more than one year after the reported date of loss or damage, this policy shall not provide coverage for such claims.

The insured sued the insurer in Houston federal court, alleging causes of action for breach of contract and violations of the Texas Insurance Code. The insured argued the insurer was required to show prejudice from the insured’s late notice; the insurer argued that a showing of prejudice was not required. The trial court recognized that this issue had not been decided by the Texas Supreme Court of the Fifth Circuit Court of Appeals. Read the court decision
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Reprinted courtesy of Christopher Raney, Gordon & Rees Scully Mansukhani
Mr. Raney may be contacted at craney@grsm.com

Key Economic & Geopolitical Themes To Monitor In 2024

January 16, 2024 — Global Insights Center Staff - The Hartford
Slowing US Economic Growth and Flattening Interest Rates Growth in the first half of 2023 averaged approximately 2.0%, driven mainly by private sector investments outside of the residential housing sector, government spending, and strong consumer demand. In 2024, The Hartford’s Global Insights Center is expecting investments and government spending to continue and may support growth in the year. However, consumer health may start to weaken due to elevated leverage, higher interest rates, and sticky inflation. Since the Federal Reserve began to increase interest rates, consumer activity and household finances have not been tremendously affected. However, as revolving interest rates (credit card loans) continue to reset that may change, especially since household savings rates fell below pre-pandemic levels and may affect consumer demand. Read the court decision
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Reprinted courtesy of Global Insights Center Staff, The Hartford

Sustainability Puts Down Roots in Real Estate

January 27, 2020 — Stephanie Amaru - Gravel2Gavel Construction & Real Estate Law Blog
Sustainability has evolved from a passing trend or niche preference into an undeniable, growing driver of the real estate market. This is particularly true as millennials comprise an increasing proportion of the workforce, home-buying population, and individuals influencing the future of real estate development in the United States. If anything illustrates the significance of younger generations’ increasing interest in sustainability, it is the Global Climate Strike that drew participation of many thousands of young people, with 2,500 events scheduled in over 150 countries. In New York City, 1.1 million public school students were excused from school to join the strike in an event planned to precede the UN Summit, which itself was intended to push countries toward a commitment to faster transition to renewable energy and stricter climate targets. While both policymakers and citizens of previous generations have been split on their willingness to address global climate change with urgency, younger generations are feeling a stronger sense of responsibility for curbing the world’s trajectory towards a climate catastrophe, which will be inherited by them and their children. This has manifested in action that promotes awareness of and political action with respect to these issues—such as the Global Climate Strike—as well as evolving habits and preferences in both consumer goods and real estate. Greener Space In recent years, real estate developers have recognized that there is a market for “greener” developments that reduce annual expenditures on buildings, whether it be through small spaces requiring less electricity and promoting energy efficiency, or through renewable energy options such as solar photovoltaic power. Some real estate developers have chosen to install these options themselves, while others seek out sustainable financing options to cover the costs of renewable energy. If installing renewable energy is too costly, real estate developers will seek out more cost-effective locations for their brick-and-mortar operations. Read the court decision
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Reprinted courtesy of Stephanie Amaru, Pillsbury
Ms. Amaru may be contacted at stephanie.amaru@pillsburylaw.com

Green Construction Trends Contractors Can Expect in 2019

May 01, 2019 — Emily Folk - Construction Executive
The construction industry has come a long way since it was started building homes out of logs and sticks. Modern homes and buildings are marvels of engineering filled with wood, concrete and steel—much of which could be recycled if the building were ever torn down. Green construction is a growing field that will continue to expand in the coming year. What green construction trends can we expect to see in the coming year? Augmented and Virtual Reality Augmented reality (AR) is growing more popular every year for games and entertainment, but it also has some applications in green construction. AR and virtual reality (VR) programs, either through a headset or on a smartphone, can be used to improve collaboration between companies, allowing each company to see a virtual overlay of their stage of the project. For green and eco-friendly construction, it can be used to show how a finished product will look on undeveloped land, making it easier to judge the ecological impact of the project. The use of AR and VR in green construction is still in its infancy, though we will likely start to see more of it in 2019. Reprinted courtesy of Emily Folk, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Restrictions On Out-Of-State Real Estate Brokers Being Challenged In Nevada

April 10, 2019 — Aaron D. Lovaas - Newmeyer & Dillion LLP
For years, the Nevada Real Estate Division (“NRED”) and its sub-entity, the Nevada Real Estate Commission (“NREC”), have been tasked with administering the licensing procedures applicable to real estate professionals in Nevada, as well as enforcement of the regulations governing business practices, advertising, commissions, license maintenance, and a host of other dayto-day parameters within which the profession operates. Within the past five years, however, the NREC has tasked itself with the publicly stated goal of “protecting” Nevada real estate licensees and the commissions they earn from out-of-state real estate professionals seeking to do business in the Silver State. While efforts to preserve local real estate opportunities for local brokers might seem sound, an international brokerage firm is challenging the foundation of that structure. If they win, the outcome could have huge implications on the real estate industry in Nevada. Businesses, here’s a breakdown of the existing structure and what the challenge is all about. The Existing Regulatory Structure Through amending their own regulations, the NRED and NREC have created a regulatory structure that:

Prohibits any non-Nevada licensed real estate broker from representing any seller (Nevada based or non-Nevada based) of any Nevada real estate;
Prohibits any non-Nevada licensed real estate broker from representing any Nevada resident in the purchase of Nevada real estate; and
Allows non-Nevada licensed real estate brokers to represent non-Nevada purchasers of Nevada real estate only if the out-of-state broker formally affiliates (and therefore shares commissions with) a resident Nevada-licensed broker.

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Reprinted courtesy of Aaron D. Lovaas, Newmeyer & Dillion LLP
Mr. Lovaas may be contacted at aaron.lovaas@ndlf.com

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