Seattle Washington Building Expert Directory

Iowa Court Holds Defective Work Performed by Insured's Subcontractor Constitutes an "Occurrence"

July 28, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Iowa Supreme Court held that property damage caused by a subcontractor's defective work was an "occurrence." Nat'l Sur. Corp. v. Westlake Invs., LLC, 2016 Iowa LEXIS 71 (Iowa June 10, 2016). In 2002, the insureds, the developers and general contractor, began construction on an apartment complex. While the complex was still under construction, it was purchased by Westlake Investments, LLC. During construction, numerous problems surfaced, including visible water penetration issues in several buildings. In February 2008, Westlake sued the insureds, seeking to recover lost profits, repair costs, and other damages under tort and contract theories. Arch Insurance Group defended under the primary policy. A settlement was eventually reached whereby a consent judgment for $15,600,000 was entered against the insureds and in favor of Westlake. Arch contributed its policy limits of $1,000,000 to the settlement. Other third party defendants contributed $1,737,500, leaving $12,762,500 of the judgment unsatisfied. The insureds assigned rights under their excess policy with National Surety Corporation (NSC) to Westlake. NSC's policy was a following-form policy. 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

Apple to Open Steve Jobs-Inspired Ring-Shaped Campus in April

February 23, 2017 — Adam Satariano - Bloomberg
Apple Inc. co-founder Steve Jobs’ last public event in 2011 was a city council meeting in Cupertino, California, where he presented plans for a sprawling new campus with a spaceship-shaped building and tree-filled park. Apple announced Wednesday that it will begin moving employees into the 2.9 million-square-foot facility in April. Apple said a new 1,000-seat auditorium at the facility will be named the Steve Jobs Theater in honor of its co-founder, who died four months after his city council presentation and would have turned 62 on Feb. 24. As with many large-scale construction projects, Apple faced budget overruns and delays. The building cost an estimated $5 billion (though Apple has never said how much), and the opening date had initially been set for 2015. Read the court decision
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Reprinted courtesy of Adam Satariano, Bloomberg
Mr. Satariano may be followed on Twitter @satariano

D.R. Horton Profit Beats Estimates as Home Sales Jumped

January 28, 2015 — John Gittelsohn and Prashant Gopal – Bloomberg
(Bloomberg) -- D.R. Horton Inc., the largest U.S. homebuilder by revenue, reported fiscal first-quarter earnings that beat estimates as sales jumped. The shares rose the most since October. Net income was $142.5 million, or 39 cents a share, for the three months ended Dec. 31, compared with $123.2 million, or 36 cents, a year earlier, the Fort Worth, Texas-based company said Monday in a statement. The average of 14 analyst estimates was 35 cents a share, according to data compiled by Bloomberg. Results for the quarter included $6 million in inventory and land option charges, according to the statement. Reprinted courtesy of Bloomberg reporters Prashant Gopal and John Gittelsohn Mr. Gittlesohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Is the Obsession With Recordable Injury Rates a Deadly Safety Distraction?

May 16, 2022 — Richard Korman - Engineering News-Record
On the first morning of 2021, laborer Mason Mack Harris, 25, reported for work that would have qualified for extra holiday pay. On that New Year’s Day, the onsite manager for his employer, Midwest Demolition Co., assigned Harris and a workmate to complete demolition of a 9-ft-high concrete balcony slab at a children’s home renovation project in Lincoln, Neb. According to U.S. Labor Dept. records, they used a concrete saw since neighbors had complained about jackhammer noise from earlier work. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Eight Ways to Protect a Construction Company Before a Claim Is Filed

November 04, 2019 — Mary Bacon - Construction Executive
Claims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers. TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED

Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.

Reprinted courtesy of Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Bacon may be contacted at mbacon@spencerfane.com

Real Estate & Construction News Roundup (1/24/24) – Long-Term Housing Issues in Hawaii, Underperforming REITs, and Growth in a Subset of the Hotel Sector

February 19, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, commercial real estate’s relationship with technology, towns and cities across the country prevent dollar stores from opening, empty offices and other commercial buildings are reused for housing, and more!

Between 1988 and September 2023, the hotel room supply in the select service and extended stay hotel sector has increased by 60% greater than full-service hotel room supply growth. (Michele Laufik, Hotel Dive)
With high mortgage rates and home prices, would-be buyers are understandably looking for deals — even if they need to move to a different city, state or region to find them. (Ana Teresa Solá, CNBC)
Roughly 60 towns and cities have made changes to their zoning laws since 2018 to prevent dollar stores from opening within their limits. (Alex Bitter, Business Insider)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Performance Bond Primer: Need to Knows and Need to Dos

February 01, 2022 — Rafael Boza - Gravel2Gavel Construction & Real Estate Law Blog
If you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other sister bonds, constitute a basic tool to be able to work in construction. However, how much do you really know about this tool? Who in your organization knows how to use it? Are you relying on your insurance broker to procure the bonds? Can your broker competently review the terms of the bond? Are you, as a contractor, relying on the surety to explain and determine what you need for the project—a fox guarding the hen house? To understand how a performance bond works and how to effectively tailor it to your needs, we need to understand the basics. What is a performance bond? Who are the parties to a performance bond? What does performance bond not do? What should be covered under a performance bond? How does a performance bond fit in a company’s overall risk management processes? A clear understanding of these and other basic topics will facilitate operations and reduce the risk of claims. Read the court decision
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Reprinted courtesy of Rafael Boza, Pillsbury
Mr. Boza may be contacted at rafael.boza@pillsburylaw.com

Lake Charles Tower’s Window Damage Perplexes Engineers

October 05, 2020 — Autumn Cafiero Giusti - Engineering News-Record
When Hurricane Laura came onshore Aug. 27 as a Category 4 hurricane with sustained winds of 150 mph, it shattered windows on nearly every level of the 22-story Capital One Tower in the Lake Charles, La., business district. The glass damage is perplexing to engineers who study wind dynamics and window performance. Reprinted courtesy of Autumn Cafiero Giusti, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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