Seattle Washington Building Expert Directory

Application of Set-Off When a Defendant Settles in Multiparty Construction Dispute

January 05, 2017 — David Adelstein – Florida Construction Legal Updates
The defense of set-off is an important defense in construction disputes, particularly multiparty disputes. For more information on this defense, please check out this article as it explains the application of set-off in civil disputes in detail. The issue of set-off will come up in a multiparty dispute when a plaintiff settles with one or more of the defendants. The remaining defendant(s) wants the benefit of that settlement to set-off and reduce any judgment against it. An example of this scenario can be found in Escadote I Corp. v. Ocean Three Limited Partnership, 42 Fla. L. Weekly D23a (Fla. 3d DCA 2016). In this case, an owner of a condominium unit sued the condominium association, the developer, and the general contractor for water intrusion and mold infestation. The claim against the condominium association was the only claim that entitled the owner to attorney’s fees pursuant to its lawsuit (thus, attorney’s fees were isolated to only that claim against the association). During trial, the owner settled with the association. In entering a settlement, the owner smartly allocated the settlement amount such that $500 was allocated to its principal damages and $374,500 was allocated to its attorney’s fees. The owner then obtained a jury verdict against the contractor and developer for approximately $2M, jointly and severally, and the contractor and developer wanted the entire $375,000 settlement amount with the association to be set-off from the $2M verdict. The trial court set-off the entire $375,000 from the jury verdict when entering judgment. The appellate court reversed. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dma@katzbarron.com

Sochi Construction Unlikely to be Completed by End of Olympic Games

February 11, 2014 — Beverley BevenFlorez-CDJ STAFF
As journalists and visitors descended upon Sochi, Russia for this winter’s Olympic Games, they reported “used linen, improper toilets, poor wiring, unclean water and loose fixtures” using the Twitter hash tag @SochiProblems, according to The International Business Times. Furthermore, it is doubtful that the construction work “in and around Sochi” will be completed by February 23rd—the official end of the games. The International Business Times article features photographs of various unfinished construction sites including an apartment building, hotels, a sports store, and other buildings. The Olympic opening ceremony took place on February 7th. Read the court decision
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Indictments Issued in Las Vegas HOA Scam

January 22, 2013 — CDJ STAFF
A federal grand jury has indicted eleven individuals involved in the Las Vegas homeowners association scam. Leon Benzer, Keith Gregory, and Barry Levinson were all indicted for their roles in the scam, where conspirators took over homeowners associations in order to profit from construction defect suits. According to the Las Vegas Review Journal, all eleven were charged with conspiracy to commit mail and wire fraud. Mr. Levinson's license to practice law has been suspended due to an investigation that he misappropriated client funds. Mr. Benzer has been described as the "mastermind" of the scam. Twenty-eight defendants have plead guilty, with all but one agreeing to cooperate with investigators. The report quotes William C. Woerner, the acting special agent in charge of the FBI in Las Vegas, as saying that "today's indictment demonstrates the continued commitment of the FBI and its law enforcement partners to identify and root out public corruption at all levels." Read the court decision
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Contractor Entitled to Defense for Alleged Faulty Workmanship of Subcontractor

February 10, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Applying Nevada law, the Federal District Court in Florida found that the general contractor was entitled to a defense of claims based upon alleged faulty workmanship of a subcontractor. KB Home Jacksonville LLC v. Liberty Mutual Fire Ins. Co, 2019 U.S. Dist. LEXIS 151235 (M.D. Fla. Sept 5, 2019). KB Home completed six residential developments utilizing various subcontractors. One subcontractor was Florida State Plastering, LLC (FSP) for installing stucco. Eighty-eight complaints against KB Home implicated FSP's stucco work. Plaintiffs alleged that the stucco subcontractor's work suffered from construction defects, causing damages not only to the exterior stucco, but also the underling wire lath, paper backing, house wrap, wood sheathing, interior walls, interior floors and other property. Ironshore insured FSP under a CGL policy. KB Home was an additional insured for liability for property damage caused by "your work." KB Home was also insured under its own CGL policy with Liberty Mutual. Both insurers refused to defend. 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

Testimony from Insureds' Expert Limited By Motion In Limine

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court considered the scope of testimony to be offered by the insureds' expert regarding a policy written for sanitation districts. Binghamton-Johnson City Joint Sewage Bd. v. Am. Alternative Ins. Corp., 2015 U.S. Dist. LEXIS 112210 (N.D. N.Y. Aug. 25, 2015). The city of Binghamton and the city's Sewage Board sued American Alternative Insurance Corporation (AAIC) for coverage for a collapsed wall. AAIC sought the limit to testimony of the insureds' expert, Paul B. Nielander, through a motion in limine. AAIC argued that Nielander was not qualified as an expert in interpreting insurance policies. His knowledge and experience was limited to insurance practices in other states and the words contained in policies other than AAIC policies. He had no experience with (i) negotiating, drafting, or performing under an AAIC policy, (ii) handling claims or interpreting policies written in New York State, or (iii) drafting policies or otherwise participating in what he conceded was a "niche market" of providing insurance to sanitation districts. Further, Neilander was not qualified to offer expert analysis of when the structural failure of the wall occurred because he had no training or experience as an engineer. 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

Florida Enacts Sweeping Tort Reform Legislation, Raising Barriers to Insurance Coverage Claims

April 18, 2023 — Walter J. Andrews, Andrea DeField & Jae Lynn Huckaba - Hunton Insurance Recovery Blog
As discussed in a recent client alert, on March 24, 2023, Florida Governor Ron DeSantis signed House Bill (HB) 837 into law, making it more difficult and costly for insurance policyholders of all sizes to sue insurers for bad faith by eliminating fee-shifting for most policyholders and requiring something “more than” negligence for bad faith claims. HB 837’s Impact on Insurance Coverage Claims: HB 837 is another in a series of reform legislation recently passed in Florida that significantly impacts policyholders’ ability to hold their insurers accountable for the wrongful failure to pay benefits due under the insurance contract. Recent efforts include last year’s repeal of the one-way fee-shifting statute for claims brought under residential and commercial property insurance policies. Previously, the fee-shifting statute allowed policyholders to recover attorneys’ fees from their insurers when the policyholder prevailed in a coverage action. HB 837 repeals Section 627.428 of the Florida Statutes entirely, extending the repeal of the one-way fee-shifting statute to all types of insurance coverage disputes—not just those under residential and commercial property insurance policies. Reprinted courtesy of Walter J. Andrews, Hunton Andrews Kurth, Andrea DeField, Hunton Andrews Kurth and Jae Lynn Huckaba, Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Ms. DeField may be contacted at adefield@HuntonAK.com Ms. Huckaba may be contacted at jhuckaba@HuntonAK.com Read the court decision
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Supreme Court of Wisconsin Applies Pro Rata Allocation Based on Policy Limits to Co-Insurance Dispute

February 18, 2019 — Brian Margolies - TLSS Insurance Law Blog
In its recent decision in Steadfast Insurance Company v. Greenwich Insurance Company, 2019 WL 323702 (Wis. Jan. 25, 2019), the Supreme Court of Wisconsin addressed the issue of contribution rights as among co-insurers. Steadfast and Greenwich issued pollution liability policies to different entities that performed sewer-related services for the Milwaukee Metropolitan Sewerage District (MMSD) at different times. MMSD sought coverage under both policies in connection with underlying claims involving pollution-related loss. Both insurers agreed that MMSD qualified as an additional insured under their respective policies, but Greenwich took the position that its coverage was excess over the coverage afforded under the Steadfast policy, at least for defense purposes, and that as such, it had no defense obligation. Read the court decision
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Reprinted courtesy of Brian Margolies, Traub Lieberman
Mr. Margolies may be contacted at bmargolies@tlsslaw.com

A Murder in Honduras Reveals the Dark Side of Clean Energy

October 12, 2020 — Monte Reel - Bloomberg
Berta Cáceres campaigned to stop a renewable energy project, and the long fight turned her into one of Central America’s most prominent environmentalists. She won a prestigious international prize known as the “Green Nobel” for protecting a river, using some of the award money to purchase a modest bungalow in La Esperanza, her hometown in central Honduras. Her activism is also what brought three gunmen to her back door. The men broke into her kitchen around 11:30 p.m. on March 2, 2016. Cáceres heard a noise and called out from her bedroom: “Who’s out there?” Within seconds, a gunman entered her room and shot her dead. Read the court decision
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Reprinted courtesy of Monte Reel, Bloomberg

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