SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Coverage for Faulty Workmanship Denied

June 29, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The court found there was no coverage for the insureds' alleged negligent failure to construct a building. Evanston Ins. Co. v. DCM Contracting, 2020 U.S. Dist. LEXIS 63977 (N.D. Ga. Feb. 28, 2020). Turning Point Church sued DCM Contracting for faulty workmanship on a construction project. Turning Point sent a demand letter to DCM on August 18, 2017 and filed suit in December. Evanston did not receive notice of Turning Point's claims and the lawsuit until May 15, 2018. Evanston filed suit for a declaratory judgment and moved for summary judgment. The court first considered the late notice. The policy required notice "as soon as practicable" DCM was also required to provide copies of demands, notices, or legal papers to Evanston. Here, DCM did not give notice to Evanston until nine months after receipt of Turning Point's demand. A phone communication with DCM's agent between August 2017 and May 2018 was insufficient. DCM provided no documents, including the summons and complaint, to the agent. DCM waited five months to forward the underlying lawsuit. This was a breach of the policy. 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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Texas exclusions j(5) and j(6).

April 27, 2011 — CDCoverage.com

In Evanston Ins. Co. v. D&L Masonry of Lubbock, Inc., No. 07-10-00358-CV (Tex. Ct. App. April 18, 2011), insured masonry subcontractor D&L sued its CGL insurer Evanston to recover costs incurred by D&L for the replacement of window frames damaged by D&L while performing masonry work adjacent to the window frames. The trial court granted summary judgment for D&L.



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Reprinted courtesy of CDCoverage.com

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Ensuing Loss Provision Found Ambiguous

April 25, 2012 — Tred R. Eyerly - Insurance Law Hawaii

After the insurer denied coverage in a homeowner’s policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous.Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).



After purchasing a home from the sellers, the insureds noticed problems with the deck of the home. Massive cracking appeared, causing lifting and leaking on the deck and water running through the exterior foundation wall into the home. There was also damage to the roof and crawlspace.



The insureds had a homeowner’s policy with American Family, which covered accidental direct physical loss to property described in the policy unless the loss was excluded. They requested coverage for "conditions, defects and damages." American Family denied coverage because wear and tear, as well as damage to foundations, floors and roofs were excluded. The policy did provide coverage, however, for "any resulting loss to property described . . . above, not excluded or excepted in this policy.



When coverage was denied, the insureds sued American Family.



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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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Earthquake Hits Mid-Atlantic Region; No Immediate Damage Reports

November 30, 2017 — The Associated Press (Randall Chase) - Bloomberg
Dover, Del. (AP) -- An earthquake has jolted the Mid-Atlantic region of the East Coast, but there are no immediate reports of damage or injuries. The U.S. Geological Survey says the 4.1 magnitude quake struck just after 4:45 p.m. Thursday, and was centered about 6 miles (10 kilometers) east-northeast of Dover, Delaware. It was felt as far away as Baltimore. Read the court decision
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Reprinted courtesy of The Associated Press (Randall Chase), Bloomberg

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Lien Attaches To Landlord’s Interest When Landlord Is Party To Tenant Improvement Construction Contract

January 03, 2022 — David Adelstein - Florida Construction Legal Updates
If you are a landlord / lessor, then you want to maximize the protections afforded to you under Florida’s Lien Law in Florida Statute s. 713.10. These protections are designed to protect your property from liens for improvements performed by your tenant / lessee. The intent is that if you comply with s. 713.10, then a tenant improvement contractor’s recourse is against the leasehold interest, and NOT against the interest of the real property (or your interest as the landlord / lessor). Needless to say, it is imperative that a landlord / lessor make efforts to comply with this section when a tenant is performing tenant improvements, even when the landlord is contributing money to those improvements. Section 713.10 provides in material part:

(1) Except as provided in s. 713.12, a lien under this part shall extend to, and only to, the right, title, and interest of the person who contracts for the improvement as such right, title, and interest exists at the commencement of the improvement or is thereafter acquired in the real property. When an improvement is made by a lessee in accordance with an agreement between such lessee and her or his lessor, the lien shall extend also to the interest of such lessor.

(2)(a) When the lease expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any such improvements of such provision or provisions in the lease, and the knowing or willful failure of the lessee to provide such notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.

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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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Do You Have A Florida’s Deceptive And Unfair Trade Practices Act Claim

April 27, 2020 — David Adelstein - Florida Construction Legal Updates
In previous articles, I discussed Florida’s Deceptive and Unfair Trade Practices Act referred to as “FDUTPA”…but, it has been awhile. (For more information on FDUTPA, check here and here.) Now is as good of a time as any to discuss it again because FDUTPA provides a private cause of action and, perhaps, there may be a consideration as to whether such claim can be (or is) properly asserted in the context of your circumstances. FDUTPA is a statutory scheme designed, “To protect the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive or unfair acts or practices in the conduct of any trade or commerce.” Fla. Stat. s. 501.201(2). In doing so, FDUTPA authorizes three avenues of legal recourse against an offending party: “(1) declaratory relief; (2) injunctive relief; and (3) [monetary] damages.” Webber v. Bactes Imaging Solutions, Inc., 45 Fla. L. Weekly D125a (Fla. 2d DCA 2020);Fla. Stat. s. 501.211. “An unfair practice is ‘one that “offends established public policy” and one that is ‘immoral, unethical, oppressive, unscrupulous or substantially injurious to consumers.’” Webber, supra, (citation 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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Welcome to SubTropolis: The Massive Business Complex Buried Under Kansas City

February 05, 2015 — Patrick Clark – Bloomberg
The underground industrial park known as SubTroplis opened for business in 1964 in an excavated mine below Kansas City, Mo., attracting tenants with the lure of lower energy costs and cheap rents. The walls, carved out of 270-million-year-old limestone deposits, help keep humidity low and temperatures at a constant 68 degrees, eliminating the need for air conditioning or heating. Tenants have reported saving as much as 70 percent on their energy bills, says Ora Reynolds, president of SubTropolis landlord Hunt Midwest. Rents run about $2.25 per square foot, about half the going rate on the surface. "It's also a question of sustainability," says Joe Paris, vice president at Paris Brothers, a specialty foods packager that employs about 200 workers underground. In addition to Paris Brothers, 51 tenants have rented nearly 6 million square feet of space. Others include LightEdge Solutions, a cloud computing company that uses the mild climate to help cool servers, and an underground archive that contains the original film reels to Gone with the Wind and Wizard of Oz. Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

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Additional Insured Not Entitled to Coverage for Post-Completion Defects

December 21, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The general contractor, an additional insured on the subcontractor's policy, was not entitled to coverage for construction defect claims that arose after completion of the project. Weitz Co. v. Acuity, 2016 U.S. Dist. LEXIS 150433 (S.D. Ohio Oct. 31, 2016). Weitz was the general contractor hired by Twin Lakes for construction of a residential community. One of the subcontractors, Miter Masonry, was insured by Acuity under a CGL policy. Work on the project began in 2002 and was substantially completed in 2005. In 2011, Twin Lakes notified Weitz that there were moisture infiltration issues at the project that may be related to work during the project. Twin Lakes filed a Demand for Arbitration against Weitz on November 30, 2012. Twin Lakes alleged that the defects included the building wrap, windows, doors, wood trim, aluminum wrap, vinyl siding, flashing and brick veneer not being installed in accordance with contract documents and/or industry standards. The arbitration panel awarded damages to Twin Lakes in the amount of $2,775,771.86. The panel found that Weitz breached sections of the contract which caused moisture intrusion and damage to all the units. The panel ultimately held that Weitz could recover from the subcontractors 100% of the $2,775,771.86 awarded. Acuity's insured, Miter Masonry, was determined to be 4% at fault for the damages. 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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