SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Connecticut Court Holds Unresolved Coverage Issues Makes Appraisal Premature

July 18, 2018 — Michael S. Levine, Lorelie S. Masters & Geoffrey B. Fehling – Hunton Insurance Recovery Law Blog
A Connecticut court recently denied a motion to compel appraisal of a claim for coverage of a commercial property damage claim, holding that, where the insurance policy at issue provides for appraisal of disputes related to the value or quantum or a loss suffered—not the rights and liabilities of the parties under the policy—appraisal is premature. The decision relied on law that equates insurance appraisal to arbitration and follows a number of decisions holding that parties cannot expand the scope of appraisal clauses to resolve questions of coverage or liability where, as in this case, those issues are not supported by the applicable policy language. Reprinted courtesy of Hunton Andrews Kurth attorneys Michael S. Levine, Lorelie S. Masters and Geoffrey B. Fehling Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Motion to Dismiss Insurer's Counterclaim for Construction Defects Is Granted

June 29, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insured's motion to dismiss the insurer's counterclaim arising out of construction defects. Centrex Homes v. Zurich Specialties London Limited, et al., 2017 U.S. Dist. LEXIS 77212 (D. Nev. May 19, 2017). Centrex, the general contractor, was sued by homeowners in a residential development known as Liberty Hill Estates. The suit alleged that defective work had been performed by Centrex's subcontractors, one of which was Valley Concrete Company, Inc. The insurer had issued a policy to Valley and Centrex was an additional insured. The insurer agreed to defend, but only paid a portion of the defense fees and costs because the policy only covered Centrex as to liability arising from Valley's work. The insurer refused to pay defense costs incurred prior to March 28, 2012 the date of notice of claims arising from Valley's work. Centrex then filed suit against the insurer alleging breach of contract and bad faith. The insurer filed a counterclaim seeking a declaration that it had no duty to defend. The insurer claimed that Centrex failed to cooperate by unilaterally switching counsel without prior notification to the insurer. This deprived the insurer of the right to control the defense and discharged the insurer's obligations under the policy. Centrex moved to dismiss the counterclaim. 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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London's Walkie Talkie Tower Voted Britain's Worst New Building

September 03, 2015 — Neil Callanan – Bloomberg
The skyscraper at 20 Fenchurch Street in the City of London, nicknamed the Walkie Talkie, is the worst new building in Britain, according to a panel assembled by Building Design magazine. The 37-story tower, designed by Rafael Vinoly, was made famous two years ago when a beam of light reflected from the building melted parts of a Jaguar sports car. The problem has since been remedied by developers Land Securities Group Plc and Canary Wharf Group Plc. It is a challenge finding anyone who has something positive to say about this building,” Thomas Lane, editor of the magazine for architects, said in a statement on Thursday. “Londoners now have to suffer views of this bloated carbuncle crashing into London’s historic skyline like an unwelcome guest at a party from miles away.” Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg

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GA Federal Court Holds That Jury, Not Judge, Generally Must Decide Whether Notice Was Given “As Soon as Practicable” Under First-Party Property Damage Policies

November 01, 2021 — Edward M. Koch & Lynndon K. Groff - White and Williams
Insurance policies covering first-party property damage often require insureds to notify insurers of a loss “as soon as practicable.” Where an insured may or may not have given notice “as soon as practicable,” the issue arises as to who should determine whether the insured complied with this requirement: the judge or the jury? On October 6, 2021, the United States District Court for the Middle District of Georgia addressed this issue in Vintage Hospitality Group LLC v. National Trust Insurance Company, Case No. 3:20-cv-90-CDL, 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021). In Vintage Hospitality, a July 2018 hailstorm damaged the roof of a hotel owned by the policyholder. The policyholder did not discover leaks from the hotel roof until two months later, in September 2018. The policyholder, not realizing that the hailstorm had caused the leaks, unsuccessfully attempted to repair the leaks. Eventually, in February 2020—19 months after the hailstorm and 17 months after the policyholder discovered the leaks—the policyholder hired a construction company to evaluate the roof. It was not until then that the policyholder learned that the hotel had sustained hail damage from the July 2018 storm. The policyholder notified its July 2018 first-party property damage insurer a few days later. Reprinted courtesy of Edward M. Koch, White and Williams and Lynndon K. Groff, White and Williams Mr. Koch may be contacted at koche@whiteandwilliams.com Mr. Groff may be contacted at groffl@whiteandwilliams.com Read the court decision
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Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

November 07, 2022 — Matthew DeVries - Best Practices Construction Law
This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And that’s precisely what many lenders say on distressed projects when the owner fails to make final payment and the contractor looks to the bank for funding: “We have no money for you contractor!” In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of the construction loan agreements with the owner. The project involved a $13m construction loan between the lender and the owner to renovate a hotel. The owner and contractor entered into an AIA Contract for the construction management services. During construction the contractor would submit payment applications to the lender, who would review and approve the invoices for payment. The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract. Read the court decision
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Reprinted courtesy of Matthew DeVries, Burr & Forman LLP
Mr. DeVries may be contacted at mdevries@burr.com

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New York vs. Miami: The $50 Million Penthouse Battle From Zaha Hadid

October 28, 2015 — James Tarmy – Bloomberg
The Anglo-Iraqi starchitect Zaha Hadid has designed just two residential buildings in the U.S., one in New York (520 West 28th Street in the Chelsea Gallery District next to the High Line) and one in Miami (One Thousand Museum, next to PAMM and overlooking Biscayne Bay). Both have yet to be completed and both, as it happens, have penthouses priced in the region of $50 million. Two trophy properties by a Pritzker Prize-winning architect and two almost identical price tags? (The Miami penthouse clocks in at a mere $49 million, the New York penthouse an even $50 million.) It’s practically begging for a head-to-head comparison. Read the court decision
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Reprinted courtesy of James Tarmy, Bloomberg

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California Court of Appeal Adopts Horizontal Exhaustion Rule

June 28, 2013 — Tred Eyerly, Insurance Law Hawaii
In a long running suit regarding thousands of asbestos bodily injury claims brought against Kaiser Cement and Gypsum Corporation, the California appellate court held that the excess carrier's indemnity obligation did not attach until all collectible primary policies were exhausted. Kaiser Cement and Gypsum Corp. v. Ins. Co. of the State of Pennsylvania, 215 Cal. App.4th 210 (Cal. Ct. App. April 8, 2013). Kaiser manufactured a variety of asbestos-containing products from 1944 through the 1970's. Truck Insurance Company provided primary insurance to Kaiser from 1964 to 1983, through four CGL policies covering 19 annual policy periods. The policy in effect from 1974 to 1981 contained a $500,000 "per occurrence" liability limit. Kaiser was insured by three other primary carriers between 1947 and 1987. ICSOP issued a first layer excess policy to Kaiser from 1974 through 1976. Kaiser tendered numerous claims for bodily injury to Truck. By October 2004, Truck's indemnity payments exceeded $50 million and included at least 39 claims that resulted in payments in excess of $500,000. For claims alleging bodily injury in 1974, Kaiser selected Truck's 1974 policy to respond to each of the claims. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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Contractor Beware: Design-Build Firms Must Review Washington’s Licensing Requirements

October 16, 2018 — John Krawczyk - Ahlers Cressman & Sleight PLLC
Design-build contracting is a method of project delivery where the contractor provides both architectural/design and building services to the owner. Yet rarely do firms perform both design and building work in equal measure. Rather, in many instances, firms perform the vast majority of their work on the building side while advertising and providing design services for smaller projects using in-house architects. Regardless of the volume of design-build contracting a firm performs, any firms practicing this method of project delivery must be aware of Washington State’s registration requirement under RCW 18.08.420(1), and specifically the condition that a “designated architect” must serve as a partner, manager or director of the firm’s governing structure. Read the court decision
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Reprinted courtesy of John Krawczyk, Ahlers Cressman & Sleight PLLC
Mr. Krawczyk may be contacted at john.krawczyk@acslawyers.com

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