SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Litigation Roundup: “Give a Little Extra …”

July 31, 2024 — Daniel Lund III - Lexology
Surplus lines insurers in Louisiana are considered by the state to be “an alternative type of property and casualty insurance coverage for consumers who cannot get coverage on the standard market … for specialty risk or high-risk situations….” As a quid pro quo for undertaking the exceptional risk, a surplus lines insurer argued to the United States Fifth Circuit Court of Appeals that an arbitration clause within its surplus line policy should be enforceable, notwithstanding a Louisiana statute applying to the insurance industry and prohibiting terms in insurance policies “delivered or issued for delivery” in Louisiana which have the effect of “[d]epriving the courts of this state of the jurisdiction or venue of action against the insurer.” La. R.S. 22:868. Historically in Louisiana, arbitration clauses have been understood to divest courts of jurisdiction, and, consequently, §22:868 has been held to memorialize an “anti-arbitration policy,” although the statute does not specifically mention arbitration. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Considering Stormwater Management

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Amanda Voss discusses stormwater and erosion control in a recent article published in Big Builder. “Stormwater and erosion control regulations are expanding their reach in the building industry,” Voss stated. “Now, even some remodeling programs have them.” Voss presented various ideas to assist builders with stormwater management. First, she says, to identify potential pollutants: “You’ve got to pay attention not just to what you bring on to a site, but also to what leaves it—think erosion control and existing sediment.” Factors to consider include “site topography,” “materials brought in and out,” and the “staging area.” Voss also suggested to “[m]ake sure that your stormwater strategy dovetails with a drainage plan,” and finally, to “[e]nlist the inspector as an ally.” Read the court decision
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Changing Course Midstream Did Not Work in River Dredging Project

December 10, 2015 — Craig Martin – Construction Contractor Advisor
A contractor learned a $12M lesson when it tried to change course on a Corps of Engineer river dredging project. The case also illustrates the importance of documenting problems on a project and providing notice of those problems to the owner. In Weston/Bean Joint Venture v U.S., Weston/Bean was awarded a Corps of Engineers project to provide maintenance dredging on the Miami River to a depth of 15 feet. The contract noted that the contractor may experience sediment, debris and rock, including soft to moderately hard limestone. The contractor encountered rocks early on in the project, but consistently submitted reports to the Corps of Engineers that nothing was experienced on the project that would lead to a change order or claim. And, for the first year of operations, the contractor made no claim for differing site conditions. Instead, the contractor terminated the subcontractor for not being able to process the rock uncovered during the dredging process. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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16 Wilke Fleury Attorneys Featured in Sacramento Magazine 2021 Top Lawyers!

September 20, 2021 — Wilke Fleury LLP
Congratulations to Wilke Fleury’s featured attorneys who made the Sacramento Magazine’s Top Lawyer List for 2021! The voting for Professional Research Services’ survey to determine the top attorneys in 2021 for Sacramento Magazine was open to all licensed attorneys in Sacramento, Calif. Attorneys were asked whom they would recommend among 56 legal specialties, other than themselves, in the Sacramento area. Each attorney was allowed to recommend up to three colleagues in each given legal specialty. Once the online nominations were complete, each nominee was carefully evaluated on the basis of the survey results, the legitimacy of their license, and their current standing with the State Bar of California. Attorneys who received the highest number of votes in each specialty are reflected in the following list. – Sacramento Magazine

Featured Attorneys:
• Kathryne E. Baldwin – Insurance
• Adriana C. Cervantes – Medical Malpractice
• Heather M. Claus – Health Care
• Aaron R. Claxton – Health Care
• Daniel L. Egan – Bankruptcy and Creditor/Debtor
• Daniel J. Foster – Litigation Insurance
• David A. Frenznick – Litigation Construction
• George Guthrie – Construction
• Neal C. Lutterman – Medical Malpractice
• Stephen K. Marmaduke – Business/Corporate
• Gene E. Pendergast Jr. – Estate Planning & Probate
• Michael G. Polis – Health Care
• Matthew W. Powell – Business Litigation
• Trevor Stapleton – Estate Planning & Probate
• Steve Williamson – Bankruptcy and Creditor/Debtor

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Reprinted courtesy of Wilke Fleury LLP

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No Coverage Under Ensuing Loss Provision

September 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The cost of removing and replacing cracked flanges to prevent future leakage was not covered as an ensuing loss under a builder’s risk policy in RK Mechanical, Inc. v. Travelers Prop. Casualty Co. of Am., 2011 U.S. Dist. LEXIS 83958 (D. Colo. Aug. 1, 2011).

The insured, RK Mechanical Inc., was a subcontractor hired to install plumbing for a residential construction project. RK was an additional insured on the general contractor’s policy with Travelers. RK installed approximately 170 CPVC flanges on the project. Subsequently, two of the flanges cracked, allowing water to overflow and causing water damage to the project. Travelers was notified of the flange failure and resulting water damage.

RK subsequently removed and replaced the two cracked flanges and began water remediation. Travelers paid for the cost of the water damage due to the cracked flanges.

RK then examined all of the flanges installed in the project and discovered many were cracked and/or showed signs of potential failure. RK removed and replaced the cracked flanges. RK tendered a claim and demand for indemnity to Travelers for these repair costs. Travelers denied the claim. RK then sued for breach of contract and declaratory relief. The parties filed cross motions for summary judgment.

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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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Mountain States Super Lawyers 2019 Recognizes 21 Nevada Snell & Wilmer Attorneys

June 18, 2019 — Snell & Wilmer
Snell & Wilmer is pleased to announce that 21 attorneys from the Nevada offices have been selected for inclusion in the 2019 Mountain States Super Lawyers publication. Of those 21, 12 were recognized as Mountain States Rising Stars. Patrick Byrne was also named to the Top 100 list of attorneys for the Mountain States region. Super Lawyers, part of Thomson Reuters, is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes independent research, peer nominations and peer evaluations. Read the court decision
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Reprinted courtesy of Snell & Wilmer

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Understand Agreements in Hold Harmless and Indemnity Provisions

June 06, 2022 — Jeffrey Cavignac - Construction Executive
One of the most important provisions in a construction contract is the indemnity provision. An indemnity provision, which usually includes a requirement to hold harmless and defend another party, is included in nearly all construction contracts. Generally speaking, the upstream party (a general contractor or owner, for example) is attempting to shift risk to a downstream party (the general contractor or a subcontractor). In simple terms, subject to certain parameters, the downstream party is agreeing to be responsible for the upstream parties’ mistakes. DEFINING INDEMNIFICATION Insurance brokers focused on development and construction businesses get asked frequently: “If we sign this, are we insured?” It would be great if this could be answered “yes” or “no,” but life is rarely that straightforward. To understand whether a specific indemnification is insurable, we have to drill down on the actual provision. Let’s look at a typical indemnification below:

“To the fullest extent permitted by law the Contractor shall indemnify, defend and hold harmless the owner, architect, architect’s consultants and agents and employees of any of them from and against any claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work whether caused in whole or in part by the contractor, a subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable.”

Reprinted courtesy of Jeffrey Cavignac, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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San Diego’s NFL Stadium Dream Counts on Munis for Chargers’ Home

June 10, 2015 — James Nash and Darrell Preston – Bloomberg
San Diego, still dealing with the legacy of a pension crisis that led politicians to consider bankruptcy a decade ago, may throw taxpayer money behind municipal bonds for a football-stadium bidding war. The city and the National Football League’s Chargers are negotiating on a proposed $1.3 billion coliseum to keep the team from leaving for Los Angeles. A plan backed by a city panel would have San Diego pay $121 million of the new stadium’s debt, even though it still owes $52 million for the Chargers’ current home. San Diego County would chip in, too. The quest to keep the team has triggered a debate over whether to finance professional football as the city deals with $2 billion of deferred maintenance brought about in part by mounting pension costs. The city’s retirement system has a shortfall just as large, which led voters three years ago to approve reducing benefits for city workers. Reprinted courtesy of James Nash, Bloomberg and Darrell Preston, Bloomberg Read the court decision
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