Seattle Washington Building Expert Directory

Appraisal Ordered After Carrier Finds Loss Even if Cause Disputed

April 04, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court ordered an appraisal when the parties differed on the amount of loss to the dwelling even when the carrier contended the dispute was over the cause of the loss. Khaleel v Amguard Ins. Co., No. 21 C 992, Memorandum Opinion and Order (N.D. Ill. Feb. 11, 2022). The order is here. Plaintiffs home was damaged by wind and hail. A claim was submitted to Amguard for damage to the roof. Amguard found there was hail damage to the soft metal vents on the roof and estimated repair costs to be $3,815.16. Amguard found no damage to the roof itself. Plaintiffs contended there was additional damage to the roof. Plaintiffs demanded an appraisal. Amguard rejected the appraisal demand, claiming that the damage to the roof was due to wear and tear, and therefore constituted an excluded cause under the Policy. Plaintiff filed suit. After Amguard answered, plaintiffs moved for judgment on the pleadings. 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

Revamp to Nationwide Permits Impacting Oil and Gas Pipeline, Utility and Telecom Line Work

March 29, 2021 — Alex P. Prochaska, Jones Walker LLP - ConsensusDocs
To avoid delay costs and penalties, contractors involved in pipeline and utilities construction maintenance, repair and removal need to understand how the 43 year old Nationwide Permit (NWP) regime has changed specific to the NWP 12 and what is now required for compliance. This change is important for contractors who construct, maintain, or repair pipelines that cross or impact waters of the United States, including wetlands. NWPs are a useful tool to streamline construction of a pipeline project, but it is important for contractors to know when certain terms and conditions still apply to the particular NWP and those that have been eliminated. On January 13, 2021, the United States Army Corps of Engineers (the Corps) published a final rule that reissued and modified twelve existing NWPs and issued four new NWPs that will take effect on March 15, 2021.1 The remaining 40 NWPs that were not reissued or modified under this rule will continue under the general conditions and definitions of the January 6, 2017 final rule. Read the court decision
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Reprinted courtesy of Alex P. Prochaska, Jones Walker LLP
Mr. Prochaska may be contacted at aprochaska@joneswalker.com

NYC Condo Skyscraper's Builder Wins a Round -- With a Catch

November 15, 2017 — Oshrat Carmiel - Bloomberg
The battle over whether an 800-foot condo tower planned for Manhattan’s East Side can be built to its full height took a step forward Wednesday -- with city officials saying both yes, and no. A years-long neighborhood lobbying effort to cap the height of new towers near the East 50s riverfront won an endorsement Wednesday from the planning commission, which agreed to rezone the area in a way that would make skyscraping condo towers impossible to build. But commissioners also voted to allow Sutton 58, the under-construction project that inspired the rezoning push, to be grandfathered in under the new law, and proceed as is. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg

Happy New Year from CDJ

January 04, 2018 — Laura Parsons – CDJ Staff
The CDJ staff has compiled a “Top 10” list of the articles published in 2017. These articles were the “most read” by our audience last year. These most read stories range from contemplating construction industry conundrums to a surprising increase of new home construction nationwide. As we kick off our first publication of 2018 we are excited to continue to bring you interesting and relevant content. We hope that you will continue to rely on CDJ for an insightful weekly summary of what is happening in the construction defect industry. Read the court decision
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Sixth Circuit Finds No Coverage for Property Damage Caused by Faulty Workmanship

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit affirmed the lower court's order granting summary judgment to the insurer who denied a defense for a construction defect claim. Steel Supply & Eng'g Co. v. Illinois Nat'. Ins. Co., 2015 U.S. App. LEXIS 14363 (6th Cir. Aug. 13, 2015). Steel Supply contracted with the Carmel Redevelopment Corporation to fabricate and erect steel for a construction project in Carmel, Indiana. After the steel was erected, an iron worker at the site discovered defects in the steel. Subsequent investigations revealed additional defects. Carmel filed suit against Steel Supply for breach of contract. The complaint alleged that a critical connection that Steel Supply designed was inadequate to handle the forces coming onto it. Carmel claimed that the immediate need to remediate the steel damaged Carmel directly, and that other contractors sought damages from Carmel for harm caused by the delays. 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

Improperly Installed Flanges Are Impaired Property

February 16, 2016 — Tred R. Eyerly – Insurance Law Hawaii
Answering certified questions from the Fifth Circuit, the Texas Supreme Court found there was no coverage for flanges that leaked after installation. U. S. Metals, Inc. v. Liberty Mutual Group, Inc., 2015 Texas LEXIS 1081 (Dec. 4, 2015). U. S. Metals sold Exxon 350 custom-made, stainless steel, weld-neck flanges for use in refineries. Testing after installation showed the flanges leaked and did not meet industry standards. Exxon decided to replace the flanges to avoid risk of fire and explosion. For each flange, this involved stripping the temperature coating and insulation, cutting the flange out of the pipe, removing the gaskets, grinding the pipe surfaces smooth for re-welding, replacing the flange and gaskets, welding the new flange to the pipes, and replacing the temperature coating and insulation. The replacement process delayed operation of the diesel units for several weeks. Exxon sued U.S. Metal for over $6 million as the cost of replacing the flanges and $16 million as damages for lost use of the diesel units during the process. U.S. Metals settled with Exxon for $2.2 million and then sought indemnification from its liability insurer, Liberty Mutual. 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

The Burden of Betterment

February 23, 2017 — Ryan M. Charlson, Esq. - Florida Construction Law News
The concept of betterment has long been used by defendants in cases involving defective design or construction to limit the damages awarded to a plaintiff.[1] The theory behind betterment is that: “if in [the] course of making repairs [an] owner adopts a more expensive design, recovery should be limited to what would have been the reasonable cost of repair according to original design.”[2] Betterment is often raised as an affirmative defense, requiring a defendant to prove that the plaintiff has received a good or service that is superior to that for which the plaintiff originally contracted. A recent South Florida case seems, at first blush, to suggest the burden of establishing the value of betterments may fall to the plaintiff, although a closer reading indicates the decision is likely to have limited applicability. In Magnum Construction Management Corp. v. The City of Miami Beach, the Third District Court of Appeal was asked to review the damages award to the City for construction defects associated with the redesign and improvement of a park.[3] The completed project contained landscaping deficiencies, along with other “minor defects” in the playground’s construction.[4] After a unilateral audit, and without providing the contractor its contractually required opportunity to cure the defects, the City “removed, redesigned, and replaced the playground in its entirety.”[5] It did so despite no recommendation by the City’s own expert to perform such work.[6] During the bench trial, the “only measure of damages provided by the City was the costs associated with the planning, permitting, and construction of a park that is fundamentally different from the one it contracted with [the contractor] to build.”[7] Read the court decision
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Reprinted courtesy of Ryan M. Charlson, Cole, Scott & Kissane, P.A.
Mr. Charlson may be contacted at ryan.charlson@csklegal.com

Coverage Denied for Faulty Blasting and Improper Fill

October 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court found coverage was properly denied based on the subcontractor's failure to follow contract specifications in blasting at the job site. Westfield Ins. Co. v. Carpenter Reclamation, Inc., 2014 U.S. Dist. LEXIS 130752 (S.D. W. Va. Sept. 18, 2014). Carpenter was hired by the Board of Education (BOE) to perform preliminary site clearing, demolition, rock excavation, and establishment of sub-grade for a building. Carpenter was to excavate to 3.5 feet below the floor subgrade so that plumbing and other utilities could be installed. Carpenter, however, blasted to depths deeper than required, including some areas that were up to nine feet. The BOE sued, alleging over-blasting and having to pay the cost of remediating the problem, along with breach of contract issues. 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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