SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Liability Insurer’s Duty To Defend Insured Is Broader Than Its Duty To Indemnify

June 03, 2019 — David Adelstein - Florida Construction Legal Updates
When it comes to liability insurance, an insurer’s duty to defend its insured from a third-party claim is much broader than its duty to indemnify. This broad duty to defend an insured is very important and, as an insured, you need to know this. “A liability insurer’s obligation, with respect to its duty to defend, is not determined by the insured’s actual liability but rather by whether the alleged basis of the action against the insurer falls within the policy’s coverage.” Advanced Systems, Inc. v. Gotham Ins. Co., 44 Fla. L. Weekly D996b (Fla. 3d DCA 2019) (internal quotation omitted). This means: Even where the complaint alleges facts partially within and partially outside the coverage of a policy, the insurer is nonetheless obligated to defend the entire suit, even if the facts later demonstrate that no coverage actually exists. And, the insurer must defend even if the allegations in the complaint are factually incorrect or meritless. As such, an insurer is obligated to defend a claim even if it is uncertain whether coverage exists under the policy. Furthermore, once a court finds that there is a duty to defend, the duty will continue even though it is ultimately determined that the alleged cause of action is groundless and no liability is found within the policy provisions defining coverage. Advanced Systems, supra(internal citations and quotations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Insurer's Motion in Limine to Dismiss Case for Lack of Expert Denied

June 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court denied the insurer's motion in limine seeking to dismiss the insureds' complaint due to the absence of expert testimony. Fabozzi v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 74069 (E.D. N.Y. May 30, 2014). During the policy period, the insureds noticed their house had serious structural problems, including cracks in the walls and floors that were pitched toward the rear of the house. The insureds had to move from their house. When they submitted a claim, it was denied by Lexington because the losses were caused by "wear and tear, deterioration, earth movement, settlement, shrinking, bulging or expansion of the property leading to cracking of structural components." The insureds sued. Lexington filed a motion in limine to preclude the testimony of the insureds' expert and to dismiss the complaint for inability to offer prima facie proof of a covered loss absent such expert testimony. 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

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Contractors Set to Implement Air Quality Upgrades for Healthier Buildings

April 12, 2021 — Nate Echtenkamp - Construction Executive
As people spend more time in offices, stores and other buildings, and colder weather forces many outdoor activities to be held indoors during the COVID-19 pandemic, construction contractors are increasingly being asked by building owners and operators to provide various mitigation strategies to improve indoor air quality to help occupants avoid being exposed to lingering airborne viral particles. Lowering the concentration of SARS-CoV-2 and other pathogens in enclosed public spaces is of the utmost importance nowadays given that Americans, on average, spend nearly 90% of their time indoors, according to the EPA. It’s fairly common knowledge that the best way to avoid infection is to follow guidelines issued by the Centers for Disease Control and Prevention that include:

• wearing masks or other face coverings;
• frequent hand-washing;
• physical distancing of at least six feet; and
• deep-cleaning procedures.

Reprinted courtesy of Nate Echtenkamp, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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De-escalating The Impact of Price Escalation

August 10, 2021 — Brian C. Padove - ConsensusDocs
What happens when construction material prices abruptly rise by 15%, 35%, 50%? Moreover, what happens to a construction project when such volatility occurs? While there is no definite answer, delays in procuring such materials and associated cost overruns will likely impact the construction project. The last 15 months contractors have had to work through extraordinary construction material price increases, such as a 90% price increase for lumber from April 2020 to April 2021. While there is no statistic quantifying the impact these increases have had on the construction industry, the increases surely have had an influence, whether it has been through lost profits, delays, or damage to contractors’ otherwise strong reputation for timely performance. Considerations Prior To Contract Execution The first way to mitigate price escalation is identifying materials most susceptible to price volatility during the bidding process and then having an open discussion with upstream parties regarding the potential price volatility. Additionally, the bid may also include either (1) an allowance for the materials providing additional funds, if necessary, should the material price increase, or (2) a shortened timeframe in which the bid is open, which would lessen the time in which a price shift may occur. Read the court decision
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Reprinted courtesy of Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP
Mr. Padove may be contacted at bpadove@watttieder.com

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Deadline for Hurricane Ian Disaster Recovery Applications Announced

October 17, 2022 — Lewis Brisbois
Washington, D.C. (October 11, 2022) - On Friday, October 7, 2022, the Florida Division of Emergency Management (FDEM) announced that applications for the Federal Emergency Management Agency’s (FEMA) Public Assistance Grant Program are due by October 29, 2022. FEMA provides disaster recovery assistance to eligible individuals, families, governments, and private non-profit entities. However, the process for recovering costs is complicated, and FEMA has broad discretion to determine whether applicants and their expenses are eligible. All too often, failure to understand FEMA regulations or submit sufficient documentation results in FEMA denying applicants’ claims, leaving individuals, local governments, and non-profits to bear the full cost of recovery. While ensuring successful recovery through the FEMA grant program can be challenging, clients can increase their likelihood of success when preparing the initial application and documentation by enlisting experienced legal counsel who understand the FEMA process and regulations. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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Do Municipal Gas Bans Slow the Clean Hydrogen Transition in Real Estate?

June 06, 2022 — Sidney L. Fowler, Robert G. Howard & Emily Huang - Gravel2Gavel Construction & Real Estate Law Blog
Clean hydrogen has the potential to play a significant role in the energy transition by serving as a carbon-free form of energy storage and heat production. In real estate, hydrogen could provide heating, replace or supplement natural gas in many applications, or store excess rooftop solar power. The United Kingdom, United States and Japan are all homes to pilot projects attempting to scale out hydrogen for use in communities. As we have discussed previously, many cities have recently passed ordinances banning the inclusion of natural gas infrastructure in new commercial and residential buildings. These bans can create headaches for real estate developers and inject uncertainty into development plans. Reprinted courtesy of Sidney L. Fowler, Pillsbury, Robert G. Howard, Pillsbury and Emily Huang, Pillsbury Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com Mr. Howard may be contacted at robert.howard@pillsburylaw.com Ms. Huang may be contacted at emily.huang@pillsburylaw.com Read the court decision
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Montana Federal Court Holds that an Interior Department’s Federal Advisory Committee Was Improperly Reestablished

December 09, 2019 — Anthony B. Cavender - Gravel2Gavel
On August 13, 2019, in a case that may have an impact on the leasing of federal lands for energy development in the future, the U.S. District Court for the Missoula, Montana Division, issued a ruling in the case of Western Organization of Resource Councils v. Bernhardt, which involves the application of the Federal Advisory Committee Act (FACA) to the Department of the Interior’s Royalty Policy Committee. This advisory committee, initially established in 1995 to provide advice to the Secretary on issues related to the leasing of federal and Indian lands for energy and mineral resources production, is subject to the provisions of FACA, codified at 5 U.S.C. app. Sections 1-16. The plaintiffs challenged the operations of this advisory committee, which was reestablished for two years beginning in 2017, because it allegedly “acts in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal.” More specifically, the plaintiffs alleged that this advisory committee violated FACA because: (a) it was not properly established as provided in the implementing GSA rules (which are located at 41 CFR Section 102-3); (b) did not provide public notice of its meetings and publicly disseminate its materials; (c) ensure that its membership was fairly balanced; and (d) failed to exercise independent judgment without inappropriate influences from special interests. 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

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Vallagio v. Metropolitan Homes: The Colorado Court of Appeals’ Decision Protecting a Declarant’s Right to Arbitration in Construction Defect Cases

May 20, 2015 — David M. McLain – Colorado Construction Litigation
On May 7th, the Colorado Court of Appeals issued its much anticipated ruling in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al., 2015COA65 (Colo. App. May 7, 2015). By way of background, the Vallagio at Inverness Residential Condominiums were developed by Metro Inverness, LLC, which also served as the declarant for its homeowners association. Metropolitan Homes was Metro Inverness’ manager and the general contractor on the project. Greg Krause and Peter Kudla served as declarant-appointed members of the Association’s board during the period of declarant control. When it set up the Association, Metro Inverness included within the Association’s declaration a mandatory arbitration provision specifically for construction defect claims. This provision stated that it “shall not ever be amended without the written consent of Declarant and without regard to whether Declarant owns any portion of the Real Estate at the time of the amendment.” Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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