Seattle Washington Building Expert Directory

Sustainability Is an Ever-Increasing Issue in Development

November 21, 2022 — Scott L. Baker - Los Angeles Litigation Blog
Businesses must be open to change. It is essential to survive in the business world, regardless of the industry. This goes hand-in-hand with the necessity to change along with consumer needs and values as well. With the increasing emphasis on sustainability across industries, many businesses have had to make their processes and products more environmentally friendly. However, in terms of real estate construction, there are some challenges. SUSTAINABILITY IN NEW CONSTRUCTION IS NOW A MATTER OF LAW – NOT JUST A PREFERENCE The push to become greener comes from many fronts. Property owners, potential buyers and even lawmakers all expect the real estate industry to go greener. For example, homeowners and businesses often want their properties to meet their personal values of sustainability. Read the court decision
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Reprinted courtesy of Scott L. Baker, Baker & Associates
Mr. Baker may be contacted at slb@bakerslaw.com

Cal/OSHA ETS: Newest Version Effective Today

January 17, 2022 — Amy R. Patton, Matthew C. Lewis & Rana Ayazi - Payne & Fears
The newest version of the Cal/OSHA ETS goes into effect today, Jan. 14, 2022, and will expire on April 15, 2022. A redline of the recently expired Cal/OSHA ETS and the newest Cal/OSHA ETS is available HERE. The newest Cal/OSHA ETS, which was drafted prior to Dec. 16, 2021, is already partially out-of-date based on the California Department of Public Heath’s Guidance For the Use of Masks (released Jan. 5, 2022) and the CDPH’s Guidance for Local Health Jurisdictions on Isolation and Quarantine of the General Public (released Jan. 8, 2022); these changes have been addressed in the Cal/OSHA ETS FAQs. With all of these changes occurring (not to mention all of the litigation surrounding the now-stayed federal OSHA ETS), California employers are asking: How do I comply with the current Cal/OSHA ETS and the updated CDPH Guidance? Here are the key points to ensure you are in compliance:

New Shorter Isolation and Quarantine Periods

Day 0: First day of symptoms or the day a positive test specimen was collected. Begin isolation.
Day 1: First full day after symptoms developed or positive test specimen was collected.
Day 5: Recommended day to take COVID-19 test.

Reprinted courtesy of Amy R. Patton, Payne & Fears, Matthew C. Lewis, Payne & Fears and Rana Ayazi, Payne & Fears Ms. Patton may be contacted at arp@paynefears.com Mr. Lewis may be contacted at mcl@paynefears.com Ms. Ayazi may be contacted at ra@paynefears.com Read the court decision
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Ninth Circuit Court Weighs In On Insurance Coverage For COVID-19 Business Interruption Losses

October 11, 2021 — Rondi J. Walsh - Newmeyer Dillion
On October 1, 2021, the Ninth Circuit Court of Appeals ruled on a trio of cases involving COVID-19 business interruption losses, in a series of written opinions with results favoring the insurers. Despite the slate of wins for insurers in this round of cases, these rulings are limited to cases where policyholders either did not allege the presence of COVID-19 on their premises causing “physical alteration” of the property itself, or had a virus exclusion in their policy, or both. This leaves room for future cases potentially ruling in favor of coverage where the insureds allege the presence of coronavirus on the premises, and that there was a detrimental physical alteration of the property as a result. To date, the Ninth Circuit has not ruled on such a situation. RULING 1: Mudpie v. Travelers Casualty Insurance Co. of America The Ninth Circuit first considered a proposed class action brought by a children’s store operator, Mudpie. Mudpie sought business income and extra expense coverage from Travelers after California and local authorities issued shutdown orders impacting Mudpie’s operations due to COVID-19. (Mudpie, Inc. v. Travelers Casualty Insurance Company of America, Case No. 20-16858, --- F.4th --- (9th Cir. Oct. 1, 2021).) Travelers denied coverage, asserting that the claim did not involve “direct physical loss of or damage to” property “caused by or resulting from a covered Cause of Loss.” Travelers also denied coverage under language excluding “loss or damage caused by or resulting from any virus…that induces…physical distress, illness or disease.” Applying California law, the trial court agreed with Travelers on both accounts. Read the court decision
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Reprinted courtesy of Rondi J. Walsh, Newmeyer Dillion
Ms. Walsh may be contacted at rondi.walsh@ndlf.com

NY Appellate Court Holds Common Interest Privilege Applies to Parties to a Merger

January 07, 2015 — Jay Shapiro, Lori S. Smith and Brittney Edwards – White and Williams LLP
The common interest privilege is a doctrine that operates to maintain the confidentiality of communications between parties and counsel that have aligned interests. It is designed to encourage the free flow of information between these parties, and has historically been utilized primarily in the context of litigation. However, in Ambac Assurance Corp., et al. v. Countrywide Home Loans, Inc., et al., the New York Supreme Court, Appellate Division, First Department recently expanded the common interest privilege by holding that it is applicable in transactional contexts. 2014 WL 6803006, No. 651612/10 (1st Dep’t 2014). The Ambac court defined the common interest doctrine as “a limited exception to waiver of the attorney-client privilege” when a third party is present during a communication between an attorney and his or her client. The doctrine shields such communications from disclosure when they are (1) protected by the attorney client privilege and (2) “made for the purpose of furthering a legal interest or strategy common to the parties.” Until Ambac, New York courts touched on, but never squarely addressed, whether a third requirement must be satisfied before the common interest doctrine can be invoked: “that the communication must affect pending or reasonably anticipated litigation.” The Ambac court addressed and rejected this purported third requirement while reversing the decision of the trial court which found that defendant Bank of America failed “to cite any New York case that applied the common-interest doctrine outside of either joint-representation of two parties by one attorney, or where parties reasonably anticipated litigation.” Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Jay Shapiro, Lori S. Smith and Brittney Edwards Mr. Shapiro may be contacted at shapiroj@whiteandwilliams.com Ms. Smith may be contacted at smithl@whiteandwilliams.com Ms. Edwards may be contacted at edwardsb@whiteandwilliams.com Read the court decision
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Construction Professionals Could Face More Liability Exposure Following California Appellate Ruling

December 17, 2024 — Jamison Rayfield & Brian Slome - Lewis Brisbois
San Diego/San Francisco, Calif. - The California Court of Appeal recently reversed a summary judgment ruling in favor of a geotechnical engineering firm that had conducted a brief inspection of a residential construction project's footing trench for $360. The case arose when homeowner Cheryl Lynch experienced significant property damage after her home's foundation failed and the structure began subsiding into a slope. Lynch sued Peter & Associates for professional negligence and nuisance, despite having no direct contractual relationship with the firm, which had been hired by her contractor to perform the geotechnical inspection. The court distinguished this case from Bily v. Arthur Young & Co. (1992) 3 Cal.4th 370, which had limited auditors' professional duty to third parties, noting that Bily dealt with purely economic damages, whereas Lynch involved physical property damage, making Bily's policy concerns about unlimited liability inapplicable. The court emphasized that construction professional negligence cases, particularly those involving residential property damage, warrant a different analysis than cases involving economic loss. Reprinted courtesy of Jamison Rayfield, Lewis Brisbois and Brian Slome, Lewis Brisbois Mr. Rayfield may be contacted at Jamison.Rayfield@lewisbrisbois.com Mr. Slome may be contacted at Brian.Slome@lewisbrisbois.com Read the court decision
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Georgia Coal-to-Solar Pivot Shows the Way on Climate Regs

July 02, 2014 — Mark Drajem and Margaret Newkirk – Bloomberg
Georgia small-business owner Julian Smith keeps hearing that the Obama administration’s latest climate regulations will drive up local electric bills. He doesn’t believe the prediction, but he isn’t arguing: The fears are doing wonders for his solar-panel installation company. “My phone is blowing up with new customers,” Smith, owner of SolarSmith LLC of Savannah, said in an interview. “It turns out that if you tell everybody the amount they will spend on electricity will skyrocket, they will believe you.” In Smith’s home state, as in the rest of the nation, businesses and consumers are struggling to size up competing claims about the Environmental Protection Agency’s plan to cut carbon pollution from power plants, released June 2. The proposed regulations are among the most sweeping and complex in the EPA’s history, promising to revamp the way electricity has been generated and distributed for a century. Mr. Drajem may be contacted at mdrajem@bloomberg.net; Ms. Newkirk may be contacted at mnewkirk@bloomberg.net Read the court decision
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Reprinted courtesy of Mark Drajem and Margaret Newkirk, Bloomberg

Contractors Liable For Their Subcontractor’s Failure To Pay Its Employees’ Wages And Benefits

November 01, 2022 — Edward O. Pacer & David J. Scriven-Young - ConsensusDocs
Recently, Illinois Governor J.B. Pritzker signed two House Bills that amend the Illinois Wage Payment & Collections Act, 820 ILCS 115 et. seq. (“Wage Act”), to provide greater protection for individuals working in the construction trades against wage theft in a defined class of projects. Pursuant to this new law, every general contractor, construction manager, or “primary contractor,” working on the projects included in the Bill’s purview will be liable for wages that have not been paid by a subcontractor or lower-tier subcontractor on any contract entered into after July 1, 2022, together with unpaid fringe benefits plus attorneys’ fees and costs that are incurred by the employee in bringing an action under the Wage Act. This new wage theft law follows several other states that have considered and passed similar legislation. These amendments to the Wage Act apply to a primary contractor engaged in “erection, construction, alteration, or repair of a building structure, or other private work.” However, there are important limitations to the amendment’s applicability. The amendment does not apply to projects under contract with state or local government, or to general contractors that are parties to a collective bargaining agreement on a project where the work is being performed. Additionally, the amendment does not apply to primary contractors who are doing work with a value of less than $20,000, or work that involves only the altering or repairing of an existing single-family dwelling or single residential unit in a multi-unit building. Reprinted courtesy of Edward O. Pacer, Peckar & Abramson, P.C. (ConsensusDocs) and David J. Scriven-Young, Peckar & Abramson, P.C. (ConsensusDocs) Mr. Pacer may be contacted at epacer@pecklaw.com Mr. Scriven-Young may be contacted at dscriven-young@pecklaw.com Read the court decision
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New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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