Seattle Washington Building Expert Directory

Construction Litigation Roundup: “Stop - In the Name of the Law!”

August 07, 2023 — Daniel Lund III - Lexology
In a 5-4 decision, the United States Supreme Court settled a split among the federal appellate circuits on whether appeal of a district court refusal to compel arbitration stays the underlying litigation in the district court. Having been denied relief by the district court on its motion to compel arbitration, plaintiff filed an interlocutory appeal to the Ninth Circuit under the Federal Arbitration Act, 9 U. S. C. §16(a), which authorizes an interlocutory appeal from the denial of a motion to compel arbitration. Plaintiff asked the district court to stay its proceedings pending resolution of the interlocutory appeal. The district court refused, and the Ninth Circuit also declined to stay the lower court proceedings pending appeal. Read the court decision
Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Dallas Home Being Built of Shipping Containers

October 22, 2013 — CDJ STAFF
Some people wonder what it is. Others think it’s an eyesore. A Dallas architect is constructing a home using shipping containers for the upper story. Matt Mooney is using fourteen in all, with seven running across the front of the building. Mr. Mooney intends to have glass doors at the front back. Most of the home’s living area will be constructed in the shipping containers. The bottom floor will be for storage and garage. Mr. Mooney says that “30 or 40 times a day” people are stopping to look at the house. He also said that the delivery of the shipping containers brought some attention. “People call these things shipping containers, but technically they are prefabricated steel modules.” Read the court decision
Read the full story...
Reprinted courtesy of

New Jersey Courts Speed Up Sandy Litigation

September 03, 2014 — Beverley BevenFlorez-CDJ STAFF
In order to deal with the thousand plus property damage cases related to Hurricane Sandy the “U.S. District Chief Judge Jerome Simandle of the District of New Jersey, who sits in Camden, N.J., issued a standing order dated Aug. 13 that, in effect, cuts in half the amount of time that arbitrators and mediators will have to hear disputes over coverage and issue rulings,” the New Jersey Law Journal reported. “John O’Brien, chief deputy of operations for New Jersey’s federal courts, said that, as of Wednesday, 1,240 Sandy-related lawsuits had been filed in New Jersey and that 1,051 of those cases are still pending,” according to the New Jersey Law Journal. “Sixty of those pending cases have been referred to mediation and another six have been sent to arbitration panels, according to O’Brien.” Read the court decision
Read the full story...
Reprinted courtesy of

Judge Tells DOL to Cork its Pistol as New Overtime Rule is Blocked

November 23, 2016 — Evelin Y. Bailey – California Construction Law Blog
Earlier this year we informed you that the federal Department of Labor intended to raise the minimum salary for individuals classified as executive, administrative, and professional (“white collar”) exempt employees. The result? About 4.2 million workers classified as exempt would become eligible for overtime pay on December 1, 2016, the effective date of the new rule. Businesses would need to pay $47,476 starting on December 1, 2016 to maintain the exempt status of workers. However, a combination of business groups and states sued to invalidate the regulation, requesting expedited and emergency injunctive relief. On November 22, 2016, a federal district court in Texas granted the emergency motion for a preliminary injunction barring the DOL from enforcing its new overtime rule. The injunction will remain until the resolution of this legal challenge to the rule. Read the court decision
Read the full story...
Reprinted courtesy of Evelin Y. Bailey, California Construction Law Blog
Ms. Bailey may be contacted at ebailey@wendel.com

Consequential Damages Flowing from Construction Defect Not Covered Under Florida Law

November 17, 2016 — Tred R. Eyerly -Insurance Law Hawaii
Interpreting Florida law, the United States District Court found there was no duty to defend a contractor against construction defect claims. Evanston Ins. Co. v. Dimmucci Dev. Corp. of Ponce Inlet, Inc., 2016 U.S. Dist. LEXIS 123678 (M.D. Fla. Sept 13, 2016). The insured built condominiums and townhomes. It held three successive CGL policies issued by Evanston. The "your work" exclusion in the policies barred coverage as follows:

"Property Damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.

The insured constructed the Towers Grande Condominium. In 2012 the Towers Grande Condominium Association, Inc. initiated the underlying action alleging that the insured's failure to construct the Towers Grande properly resulted in building defects and deficiencies. Damage to the roof, generator exhaust pipe, and HVAC system was alleged. Further, water intrusion and decking/structural issues were claimed. In addition to the construction defects, the Association also alleged that the insured's faulty work led to additional damages. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Citigroup Reaches $1.13 Billion Pact Over Mortgage Bonds

April 09, 2014 — Dakin Campbell – Bloomberg
Citigroup Inc. (C) agreed to pay $1.13 billion to settle claims from mortgage-bond investors as it seeks to curb liabilities tied to the financial crisis. It took a $100 million first-quarter charge. The 68 securitization trusts covered by the settlement issued a combined $59.4 billion in mortgage-backed securities from 2005 to 2008, the New York-based bank said yesterday in a statement. The agreement covers 18 investors represented by Gibbs & Bruns LLP and trustees have until June 30 to accept the deal, the law firm said in a separate statement. The accord must be approved by the Federal Housing Finance Agency. Citigroup, the third-biggest U.S. bank, is resolving a portion of liabilities tied to mortgages it packaged and sold to investors in the run-up to the 2008 crisis. JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), the two largest U.S. lenders, previously agreed to multibillion-dollar settlements with Gibbs & Bruns clients. Read the court decision
Read the full story...
Reprinted courtesy of Dakin Campbell, Bloomberg
Mr. Campbell may be contacted at dcampbell27@bloomberg.net

Substitutions On a Construction Project — A Specification Writer Responds

July 03, 2022 — Melissa Dewey Brumback - Construction Law in North Carolina
In response to the post about Substitute Materials on a construction project, Phil Kabza explains how his company, SpecGuy, handles tracking of all such materials on a project. Phil writes: Excellent and important topic, about which there is much confusion among design professionals and contractors. We try to maintain definitions for:

Pre-bid requests for prior approval of proposed comparable products where products are named in the specifications
True pre-bid substitution requests that present an alternate type of product from that specified (ie., not “comparable” but perhaps suitable)

Read the court decision

Read the full story...

Melissa Dewey Brumback, Ragsdale Liggett

mbrumback@rl-law.com