Seattle Washington Building Expert Directory

Second Circuit Certifies Question Impacting "Bellefonte Rule"

December 15, 2016 — Ellen Burrows – White and Williams LLP
Calling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1] In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993). Read the court decision
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Reprinted courtesy of Ellen Burrows, White and Williams LLP
Ms. Burrows may be contacted at burrowse@whiteandwilliams.com

Recent Developments in Legislative Efforts To Combat Climate Change

October 30, 2023 — Dominick Weinkam & Robert B. Cimmino - ConsensusDocs
Governments across the United States have been increasingly integrating climate considerations into legislation affecting various sectors of the economy. The construction industry is no exception. Recent legislative developments at various levels of government are reshaping construction practices to mitigate the industries’ greenhouse gas emissions and vulnerability to climate-related risks. These developments include incentivizing eco-friendly construction projects, mandating stricter regulations to reduce carbon emissions, and enhancing building resilience to more severe weather events. Contractors must stay abreast of these developments to ensure compliance with new substantive and administrative requirements to remain competitive in a changing environment. Funding Greener Construction Projects: The Inflation Reduction Act The federal Inflation Reduction Act (IRA) enacted in August 2022 marked a significant milestone in the pursuit of greener construction. The IRA is widely considered to be the single largest investment into climate change in history, with potential ripple effects throughout the construction industry. The IRA allocates substantial funds for projects utilizing “low-carbon” materials, with an explicit focus on climate-conscious construction. This initiative aligns with the broader goal of curbing emissions from sectors like steel, concrete, and glass, which have been major contributors to the nation’s carbon footprint. Reprinted courtesy of Dominick Weinkam, Watt Tieder and Robert B. Cimmino, Watt Tieder Mr. Weinkam may be contacted at dweinkam@watttieder.com Mr. Cimmino may be contacted at rcimmino@watttieder.com Read the court decision
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Contractor Given a Wake-Up Call for Using a "Sham" RMO/RME

October 02, 2015 — Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLP
Two weeks ago we wrote about a disgorgement case winding its way through the courts where a contractor who let its license lapse after assigning its contract to a related but properly licensed entity was still facing disgorgement of the entire contract amount. Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393.) Now another disgorgement case, Jeff Tracy, Inc. v. City of Pico Rivera (Ct. of Appeal, 2nd App. District, Div. 2, B258563), shows the risk of not having a genuine RMO/RME. The consequences of disgorgement are potentially devastating and would certainly cause some contractors to go belly-up. The good news for the contractor in this particular case is that the Court of Appeal reversed the trial court. The bad news for the contractor is that damaging facts were revealed during the process of the court trial that will make a victory very difficult to pull off. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and David A. Harris, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Read the court decision
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Fall 2024 Legislative Update:

October 28, 2024 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Review of (a) RCW 60.30.010-020, (b) RCW 49.17.530, (c) RCW 19.95.020, (d) RCW 39.116.005, et seq., (e) RCW 36.70B.080, and (f) RCW 39.12.010 and .13 While much of the focus on the recent legislative updates has been on RCW 39.04.360, a number of other legislative changes may also have significant impacts on Washington’s construction industry. Six of these changes are summarized below. A. RCW 60.30.010 and .020 (SSB 6108) – Concerning Retainage on Private Construction, Effective June 6, 2024 Last year, ESSB 5528 imposed restrictions and obligations related to retainage and timing of final payment on private (non-public works) projects. It capped retainage at 5%, required prompt payment on final payments, and required owners to accept a retainage bond on private construction projects, excluding single-family residential construction less than 12 units. This year, SSB 6108 adds suppliers to the statutes (RCW 60.30.010 and 0.020) pertaining to retainage on private construction projects. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

Sometimes you Need to Consider the Coblentz Agreement

January 19, 2017 — David Adelstein – Florida Construction Legal Updates
Since insurance, particularly liability insurance, is such an important component when it comes a construction project, understanding certain nuances such as a Coblentz Agreement (a what kind of agreement agreement?!?—keep reading) becomes helpful. If there is a construction defect claim / lawsuit, the implicated parties (e.g., contractor, design professional, subcontractor, sub-consultants) are going to tender the claim / lawsuit to their respective liability insurer. This is what they should be doing – notifying the insurer so that the insurer can defend them from the claim / lawsuit and indemnify them from covered damages associated with the claim / lawsuit. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Housing Markets Continue to Improve

February 11, 2013 — CDJ STAFF
The National Association of Home Builders reports that for a sixth consecutive month there has been an increase in the number of housing markets that have shown improvement. The January report saw 242 improving markets, which in February grew to 259. The NAHB notes that there are now improving markets in every state, “suggesting that the housing recovery has substantial momentum.” Not all markets showed continued improvement. Three metropolitan areas were dropped from the list of improving markets, but another twenty were added. The NAHB has been tracking this data since September 2011, when there were only twelve improving markets through the whole country. Read the court decision
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Join: Computer Science Meets Construction

August 20, 2018 — Aarni Heiskanen - AEC Business
Increasingly, projects need to be optimized to create the most value for their clients and users. With the fragmented nature of project teams, decisions can be lost, communication sporadic, and information disjointed. In addition, the rapid pace of innovation means that it’s difficult – if not impossible – for architects and engineers to be aware of all the latest construction products and materials. It is these problems that inspired the creation of Join. Join is a smart platform that helps project teams collaborate more efficiently and effectively, whether as part of a project optimization process or throughout the entire project lifecycle. The platform connects construction teams, pulls together different types of project information, and integrates manufacturing into construction. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Immigrants' Legal Status Eyed Over Roles in New York Fake Injury Lawsuits

January 07, 2025 — Richard Korman - Engineering News-Record
Edison Fernando Pesantez Ramon says that early on the morning of Sept. 29, 2021, while working on a building renovation project on 96th Street in Manhattan, he tripped and fell badly on a staircase. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

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