SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

“Incidental” Versus “Direct” Third Party Beneficiaries Under Insurance Policies in Which a Party is Not an Additional Insured

April 18, 2023 — Garret Murai - California Construction Law Blog
As they say, when it rains, it pours. Indemnity and insurance are the “Big Two” when it comes to risk avoidance on construction projects. The next case, LaBarbera v. Security National Security Company, 86 Cal.App.5th 1329 (2022), involves both. It’s an interesting case, which I think could have gone either way, involving claims by a higher-tiered party that they were a third party beneficiary under an insurance policy in which they were not named as an additional insured. The LaBarbera Case The Indemnity Provision and Insurance Policy In June 1016, Chris LaBarbera hired Richard Knight doing business as Knight Construction to remodel his house in Carmichael, California. The construction contract included an indemnity provision which provided that Knight would defend and indemnify LaBarbera from all claims arising out the remodeling work except for claims arising from LaBarbera’s sole negligence and willful misconduct. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

---

"Abrupt Falling Down of Building or Part of Building" as Definition of Collapse Found Ambiguous

October 23, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court predicted the California Supreme Court would find the definition of collapse, calling for the abrupt falling down or caving in of a building or part of a building, to be ambiguous. Hoban v. Nova Cas. Co., 2018 U.S. Dist. LEXIS 139116 (N.D. Cal. Aug. 15, 2018). The insureds' bowling center had two roof trusses that helped support the roof. The truss failures caused the building ceiling, overhead monitors, and disco ball to drop approximately six to ten inches, and also caused ceiling tiles and a layer of insulation to fall from the ceiling. A general contractor, named Tom Powers, and the county building inspector inspected the damage. The building inspector immediately ordered the business closed until necessary repairs could be completed. Powers was hired to shore up the roof support system to prevent a complete collapse. Thereafter, the insureds were able to re-open the bowling alley. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Patriarch Partners Decision Confirms Government Subpoenas May Constitute a “Claim” Under D&O Policy; Warns Policyholders to Think Broadly When Representing Facts and Circumstances to Insurers

January 08, 2019 — Michael S. Levine, Sergio F. Oehninger, & Joshua S. Paster - Hunton Andrews Kurth
The Second Circuit recently confirmed in Patriarch Partners, LLC v. Axis Insurance Co. that a warranty letter accompanying the policyholder’s insurance application barred coverage for a lengthy SEC investigation, which ripened into a “Claim” prior to the policy’s inception date. The opinion left intact the lower court’s finding that the SEC subpoena constituted a “demand for non-monetary relief” and thus qualified as a “Claim” under the directors and officers (D&O) insurance policy. Reprinted courtesy of Hunton Andrews Kurth attorneys Michael S. Levine, Sergio F. Oehninger and Joshua S. Paster Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Paster may be contacted at jpaster@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Beyond the Disneyland Resort: World Class Shopping Experiences

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
If you don’t want to venture far from the Disneyland Resort, consider heading to the Outlets at Orange. Formerly known as the Block of Orange, this open air shopping center features outlet stores such as Neiman Marcus Last Call, Nordstrom Rack, and Sax Fifth Avenue’s Off Fifth, as well as an AMC movie theater, restaurants, Lucky Strike Bowling Alley, and Dave and Buster’s. For another local option, head to the Brea Mall, where you can find department stores such as Macy’s and Nordstrom’s and a host of other stores like Apple, Guess, and Tommy Bahama. For a more exclusive shopping experience, travel to south Orange County's Fashion Island of Newport Beach. Their department stores include Bloomingdale’s, Macy’s, Neiman Marcus’s, and Nordstroms, and the shopping center also contains many boutique shops and eateries. Read the court decision
Read the full story...
Reprinted courtesy of

---

Homebuilders Offer Hope for U.K. Economy

August 20, 2014 — Mark Gilbert – Bloomberg
The two elements of the U.K. economy that the Bank of England currently finds most worrying are the overheating housing market and the paucity of wage growth. Earnings reports this week from two of the nation's biggest homebuilders make for cheery reading on both counts. Persimmon Plc, the U.K.'s largest homebuilder by market value, said today it completed 6,408 new homes in the first half of the year, a 28 percent increase from the year-earlier period. Bovis Homes Group, which mostly builds what it calls "traditional" family homes in the south of England outside London, said it sold 1,487 new homes in the first six months, a gain of 54 percent. "The government has told us that we need 230,000 new homes per annum, and far be it for us to disagree with that," Bovis Chief Executive Officer David Ritchie said on a conference call. He expects to build about 3,650 homes this year, and reckons that "5,000 to 6,000 homes per annum is a very sensible target for the business." Read the court decision
Read the full story...
Reprinted courtesy of Mark Gilbert, Bloomberg
Mr. Gilbert may be contacted at magilbert@bloomberg.net

---

Submitting Claims on Government Projects Can Be Tricky

March 19, 2015 — Craig Martin – Construction Contractor Advisor
The Federal Circuit Court of Appeals opinion in K-Con Building Systems, Inc. v. United States illustrates the difficulties a contractor may face when pursuing a claim before a Contracting Officer. After nearly 10 years of litigation, the court found that the contractor’s claim to the Contracting Officer did not contain enough detail to allow the claim to proceed. That’s a lot of time and resources wasted on a claim that was dead from the start. K-Con was awarded a $582,000 job to design and build a Coast Guard support building in Michigan. K-Con was unable to complete the project by the finish date and the Coast Guard assessed liquidated damages of $109,554. K-Con contested the assessment of liquidated damages by submitting a one paragraph letter asserting that it was not the sole cause of the alleged delays; that the government was at fault for the delay; and the liquidated damages were an impermissible penalty. The Contracting Officer ultimately denied K-Con’s claim and K-Con appealed to the Court of Claims. Read the court decision
Read the full story...
Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

---

SB 721 – California Multi-Family Buildings New Require Inspections of “EEEs”

December 19, 2018 — Brenda Radmacher - Gordon & Rees Construction Law Blog
Many in the construction industry and multi-family development field have been closely following Senate Bill 721, or the “Balcony Bill,” regarding new requirements for building owners associated with decks and balconies. After almost a dozen amendments, the “Balcony Bill” finally passed in the state legislature with an overwhelming majority and was signed into law September 17th, 2018, by Governor Jerry Brown. Balconies and decks, called “Exterior Elevated Elements” (“EEE”) in the statute, are common features in most multi-family buildings in California – where better to enjoy the California sun? However, many of the structures have proven to be problematic at best due to complex intersections of construction trades and design issues as well as limited understanding and effectuation of maintenance. Indeed, the “Balcony Bill” arose largely out of an outcry following the 2015 balcony collapse in Berkeley in 2015, which left six young people dead and another seven injured. Read the court decision
Read the full story...
Reprinted courtesy of Brenda Radmacher, Gordon & Rees Scully Mansukhani
Ms. Radmacher may be contacted at bradmacher@grsm.com

---

Lightstone Committing $2 Billion to Hotel Projects

February 26, 2015 — Nadja Brandt – Bloomberg
(Bloomberg) -- David Lichtenstein, whose real estate company owned Extended Stay Hotels when the chain went bankrupt, is committing $2 billion to developing and investing in lodging properties. Lightstone Group is choosing “top-branded” select-service properties, those with limited amenities, in proven U.S. markets for its projects, Lichtenstein said in an interview. As part of the strategy, Lightstone has teamed up with Marriott International Inc. to build five Moxy hotels in New York -- four in Manhattan and one in Brooklyn. The “micro” lodgings, with high-tech features and smaller-than-average rooms, are geared toward younger travelers. Read the court decision
Read the full story...
Reprinted courtesy of Nadja Brandt, Bloomberg
Ms. Brandt may be contacted at nbrandt@bloomberg.net

---