SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Coverage for Construction Defects Barred by Business Risk Exclusions

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Although the court determined there was an occurrence, coverage was excluded by the business risk exclusions.  See Cont’l W. Ins. Co. v. Shay Constr. Co., 2011 U.S. Dist. LEXIS 82839 (D. Colo. July 28, 2011).

White was the general contractor on the project. White had three subcontracts with Shay to provide framing, siding, and related work on the project. Shay was insured under a CGL policy issued by Continental Western.

Two of Shay’s subcontractors furnished materials, labor and equipment to Shay. These subcontractors filed suit in state court alleging they had not been compensated for the work and materials. White and Shay were named as defendants. White cross claimed against Shay, alleging Shay had breached its obligations under the subcontracts. Several allegations sounded in contract. Other allegations, however, contended Shay had performed defective work and had damaged the work of other trades in correcting deficiencies in its own performance.

Shay sought coverage under Continental Western’s policy. Continental Western filed suit for a declaratory judgment and moved for summary judgment.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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NY Attorney General to Propose Bill Requiring Climate Adaptation for Utilities

May 21, 2014 — Gerald B. Silverman – Bloomberg
Bloomberg BNA — New York Attorney General Eric T. Schneiderman (D) has proposed legislation to require that New York's electricity and gas utilities assess their vulnerability to the impacts of climate change and prepare a plan for adapting to severe weather. Schneiderman May 19 said the proposed legislation would build on a February decision by the state Public Service Commission (PSC), which approved a plan by Consolidated Edison to spend $1 billion over the next four years for storm hardening and resiliency projects. A spokeswoman for the attorney general told Bloomberg BNA that he is working with members of the Legislature to have the bill formally introduced. The PSC decision also required that all New York utilities integrate the potential impacts of climate change into their system planning and construction forecasts and budgets. Read the court decision
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Reprinted courtesy of Gerald B. Silverman, Bloomberg

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Traub Lieberman Partner Colleen Hastie Wins Summary Judgment in Favor of Sub-Contracted Electrical Company

February 14, 2023 — Colleen E. Hastie - Traub Lieberman
In a case brought before the New York State Supreme Court, Kings County, Plaintiff alleged injury while performing work at a commercial premises in Brooklyn when he rolled his ankle on a jackhammered/chopped cellar floor slab while carrying a metal pipe from the main floor to the cellar on the subject premises. The property was owned by New York City entities, who were listed as Defendants in the underlying suit. A Construction Company was hired as the general contractor and construction manager for the work, who hired the Electrical Contractor to perform the main electrical fit out for the subject premises. The Electrical Contractor then hired Traub Lieberman’s client, the Electrical Subcontractor, to work on cellar-level conduit, cabling, backboxes, and lighting control systems. The Electrical Contractor, as Second Third-Party Plaintiff, brought suit against the Electrical Subcontractor, as Second Third-Party Defendant, for damages related to the underlying suit. Read the court decision
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Reprinted courtesy of Colleen E. Hastie, Traub Lieberman
Ms. Hastie may be contacted at chastie@tlsslaw.com

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Ninth Circuit Resolves Federal-State Court Split Regarding Whether 'Latent' Defects Discovered After Duration of Warranty Period are Actionable under California's Lemon Law Statute

December 17, 2015 — Laura C. Williams & R. Bryan Martin – Haight Brown & Bonesteel LLP
In Daniel v. Ford Motor Company (filed 12/02/15), the Ninth Circuit resolved a federal and state court split on the issue of whether consumers can sustain a breach of implied warranty claim under California’s Song Beverly Consumer Warranty Act (aka the “lemon law” statute) for “latent” defects discovered after the warranty period has expired. Answering this question in the affirmative, the Ninth Circuit followed the holding in the California state appellate decision of Mexia v. Rinker Boat Co. 95 Cal.Rptr.3d 285 (2009), which definitively determined there is nothing in California’s lemon law that requires a consumer to discover a latent defect during the duration of the warranty. The underlying class action lawsuit was brought in federal district court by purchasers of Ford Focus vehicles. The plaintiffs alleged Ford was aware of, but failed to disclose, a rear suspension defect in the Focus that resulted in premature tire wear which can cause decreased vehicle control, catastrophic tire failure and drifting on wet or snowy roads. The plaintiffs alleged a number of claims including violations of California’s Song Beverly Consumer Warranty Act and Magnuson Moss Warranty Act. Ford successfully moved for summary judgment on all claims prompting an appeal. Reprinted courtesy of Laura C. Williams, Haight Brown & Bonesteel LLP and R. Bryan Martin, Haight Brown & Bonesteel LLP Ms. Williams may be contacted at lwilliams@hbblaw.com Mr. Martin may be contacted at bmartin@hbblaw.com Read the court decision
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No Bad Faith in Insurer's Denial of Collapse Claim

July 15, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Tenth Circuit affirmed the district court's grant of summary judgment to the insurer on the insured's claims for collapse and bad faith. Christopher M. Wolpert Saddletree Holding, LLC v. Evanston Ins. Co., 2024 U.S. App. LEXIS 10377 (10th Cir. April 30, 2024). On May 7, 2019, Saddletree filed a claim with Evanston for damages sustained to its building which was used as a community events center. After a winter of heavy snowfall, Saddletree discovered that the building's steel support columns had buckled two or more inches and the roof had deflected downward approximately six inches. Evanston retained an engineer to inspect the building. The engineer determined that the damage was the result of the building's inadequate "design and/or construction." Evanston disclaimed coverage under the policy's exclusion for damage caused by "hidden or latent defects" or "any quality in property that causes it to damage or destroy itself." 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

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Exploring the Future of Robotic Construction with Dr. Thomas Bock

November 06, 2023 — Aarni Heiskanen - AEC Business
In this episode of the AEC Business podcast, host Aarni Heiskanen interviews Dr. Thomas Bock, a renowned expert in construction robotics. With 45 years of experience in the field and multiple books on the topic, Thomas shares his insights and expertise. Tune in to learn more about his professional journey and the advancements in construction robotics. An unconventional professional journey Thomas’s journey in construction robotics began when he built his own house as a student. The labor-intensive process led him to explore the potential of robotics in construction. He studied civil engineering and architecture simultaneously, gaining a multidisciplinary understanding of the field. His interest in robotics grew when he saw the first welding robot at a Daimler-Benz factory in Stuttgart. This encounter sparked his curiosity and led him to question why robots couldn’t be used for assembling walls and buildings. The Illinois Institute of Technology (IIT) in Chicago was one of Thomas’s destinations during his journey. There he studied under professors who had worked on iconic architectural projects. He also learned about Japanese companies like Toyota and Sekisui, which were producing houses using innovative methods. Intrigued by these advancements, Thomas secured a scholarship to study in Japan, where he discovered that the country was ahead of what he had known in the United States. 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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Subsidence Exclusion Bars Coverage for Damage Caused by Landslide

May 23, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Ninth Circuit affirmed the district court's order granting summary judgment to the insurer who denied coverage based upon the policy's subsidence exclusion. Atain Spec. Ins. Co. v. JKT Associates, 2022 U.S. App. LEXIS 6351 (9th Cir. March 11, 2022). JKT was hired by Lora Eichner Blanusa in 2011 to perform landscape and hardscape work at her house. After selling the house to Richard Meese, a catastrophic landslide occurred in 2019. Portions of the rear of the property slid downhill by 15 feet. Meese sued JKG and others. The owner of an adjacent property, Kristi Synek, filed a separate action against JKT and others. JKT tendered both suits to Atain, who defended under a reservation of rights. Atain filed a coverage action in federal district court regarding both underlying suits. The district court granted summary judgment to Atain, ruling there was no duty to defend or to indemnify. 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

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Terminating Notice of Commencement Without Contractor’s Final Payment Affidavit

October 23, 2018 — David Adelstein - Florida Construction Legal Updates
Prior to construction work being performed on your property, a Notice of Commencement should be recorded. Among other things, construction liens will relate back in time to an effective Notice of Commencement (meaning it has not expired). For this reason, lenders or others will want the Notice of Commencement to be terminated when the job is complete by recording in the official records a Notice of Termination of the Notice of Commencement. There is a statutory procedure to terminate a Notice of Commencement pursuant to Florida Statute 713.132. Frequently, a clerk will want the Notice of Termination of the Notice of Commencement to be accompanied with a Contractor’s Final Payment Affidavit because 713.132 says, in material part:

(2) An owner has the right to rely on a contractor’s affidavit given under s. 713.06(3)(d), except with respect to lienors who have already given notice, in connection with the execution, swearing to, and recording of a notice of termination. However, the notice of termination must be accompanied by the contractor’s affidavit.

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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