Seattle Washington Building Expert Directory

Connecticut Court Holds Unresolved Coverage Issues Makes Appraisal Premature

July 18, 2018 — Michael S. Levine, Lorelie S. Masters & Geoffrey B. Fehling – Hunton Insurance Recovery Law Blog
A Connecticut court recently denied a motion to compel appraisal of a claim for coverage of a commercial property damage claim, holding that, where the insurance policy at issue provides for appraisal of disputes related to the value or quantum or a loss suffered—not the rights and liabilities of the parties under the policy—appraisal is premature. The decision relied on law that equates insurance appraisal to arbitration and follows a number of decisions holding that parties cannot expand the scope of appraisal clauses to resolve questions of coverage or liability where, as in this case, those issues are not supported by the applicable policy language. Reprinted courtesy of Hunton Andrews Kurth attorneys Michael S. Levine, Lorelie S. Masters and Geoffrey B. Fehling Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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No Coverage Under Exclusions For Wind and Water Damage

March 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Mississippi Supreme Court affirmed the granting of summary judgment to the insurer that there was no coverage under the all risk policy for loss caused by wind and water. Porter v. Grand Casino of Miss., Inc., 2016 Miss. LEXIS 3 (Miss. Jan. 7, 2016). Cherri Porter's home was destroyed during Hurricane Katrina. The destruction occurred when the barge operated by Grand Casino of Mississippi came loose from its moorings and collided with her home. 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

Reminder: Pay if Paid Not All Encompassing (but Could it be?)

December 09, 2019 — Christopher G. Hill - Construction Law Musings
On numerous occasions, I have discussed the need to be careful with so called “pay if paid” clauses in construction contracts. While such clauses are enforceable in Virginia (when phrased correctly), there are exceptions and limitations (for instance in the Miller Act context). One such exception (that I frankly would have thought to be obvious) is that such clauses do not protect a general contractor from paying all subcontractors. Such a clause only protects a general contractor from payment to those subs for whose work the general contractor has not been paid. In other words, if a general contractor has been paid by an owner for a particular subcontractors work, it cannot use the pay if paid clause to deny payment even in the event that other subcontractors were deficient in their work or the owner has failed to pay the general contractor in full. In Precision Contractors Inc. v. Masterbuilt Companies Inc. (PDF) the Fairfax, VA Circuit Court reiterated this principal stating that nothing in the contract suggests that either party to the lawsuit had any intention to shift the risk of non-payment by the owner or non-performance of other subcontractors to the plaintiff (Precision). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction on the Rise in Washington Town

June 16, 2011 — CDJ STAFF

The Kitsap Sun reports that Gig Harbor, a town in the area near Tacoma, Washington, has had a 60% increase in building permit applications as compared to 2010. May, 2011 had as many permits issued for single-family residences in Gig Harbor as were issued for all of 2010. Additionally, a Safeway shopping center on Point Fosdick is described by Dick Bower, Gig Harbor Building and Fire Safety Director, as “a huge project and it’s going to bring in quite a bit of revenue.” He called the increase in building “economic recovery at the grassroots level.”

Bower said that the building officials in other towns have also seen upswings in construction. He anticipates more activity in the future.

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The Big Three: The 9th Circuit Joins The 6th Circuit and 7th Circuit in Holding That Sanctions For Bad-Faith Litigation Tactics Can Only Be Awarded Against Individual Lawyers and Not Law Firms

September 03, 2015 — Christopher B. Lloyd & Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Law v. Wells Fargo Bank, N.A. (2015 S.O.S. 13–56099 – filed August 27, 2015), the Ninth Circuit joined the shortlist of Circuit Courts to hold that sanctions for bad-faith litigation tactics under 28 U.S.C. section 1927 can only be sought against individual attorneys and not law firms. Section 1927 authorizes sanctions against “[a]ny attorney or other person admitted to conduct cases in any court of the United States … who so multiplies the proceedings in any case unreasonably and vexatiously….” On behalf of the client, an attorney with Kaass Law filed a complaint against ten different defendants, including Wells Fargo Bank, which moved to dismiss under F.R.C.P. Rule 12(b)(6). Rather than responding to the motion to dismiss, plaintiff filed a motion to amend the initial complaint; Wells Fargo Bank filed a notice of non-opposition. Reprinted courtesy of Christopher B. Lloyd, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr.Lloyd may be contacted at clloyd@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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Rhode Island Affirms The Principle That Sureties Must be Provided Notice of Default Before They Can be Held Liable for Principal’s Default

August 21, 2023 — Dennis Cavanaugh & Tasnuva Islam - Construction Law Zone
Most bond forms in use today, including the standard form AIA A312-2010, contain express condition precedents that trigger a surety’s obligations under the bond. Under a performance bond, the bond obligee is required to provide formal notice to the surety that the principal has materially defaulted and that the surety must begin to perform under the terms of the bond. This principle is grounded in the idea that the surety should have an opportunity to address the default and investigate the claim so as to mitigate its own liability. Failure to provide sufficient notice will discharge the surety of its obligations under the bond. Reprinted courtesy of Dennis Cavanaugh, Robinson & Cole LLP and Tasnuva Islam, Robinson & Cole LLP Mr. Cavanaugh may be contacted at dcavanaugh@rc.com Ms. Islam may be contacted at tislam@rc.com Read the court decision
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PCL Sues Big Bank for $30M in Claimed NJ Mall Unpaid Work

July 16, 2023 — Mary B. Powers - Engineering News-Record
Denver-based PCL Construction Services sued JPMorgan Chase Bank in federal court earlier this month for $30 million in claimed unpaid work and interest related to construction of a $5-billion northern New Jersey mall and entertainment center that also faces other financial challenges since its COVID-19-impacted opening in 2019. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Workarounds for Workers' Comp Immunity: How to Obtain Additional Insured Coverage when the Named Insured is Immune from Suit

May 25, 2020 — Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
Construction is an inherently risky business, fraught with the potential for human error. Despite best efforts to ensure safety, accidents involving construction workers are common, with consequences ranging from your run-of-the-mill trip and fall to much more serious and debilitating injuries. A worker who is injured on the job generally receives workers’ compensation benefits through their employer. Most states have enacted statutes stating that this is the exclusive remedy available from the employer, effectively making employers immune against civil lawsuits that might otherwise be brought by their injured employees. However, workers’ compensation benefits do not always fully compensate the employee for their injuries. In the construction industry, this often leads to lawsuits against upstream parties, such as a general contractor or project owner. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com

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