Supreme Court of Washington State Upholds SFAA Position on Spearin Doctrine
September 13, 2021 —
Peter Roth – The Surety & Fidelity Association of AmericaSeptember 9, 2021 (WASHINGTON, DC) –
The Surety & Fidelity Association of America (SFAA) commends the decision of The Supreme Court of The State of Washington to reverse the lower court ruling in the case of Lake Hills Investments, LLC vs. Rushforth Construction Co. As argued by SFAA, the Supreme Court found the contractor should not be responsible for damage caused by the defective design provided by the owner even where the contractor was responsible for certain defective work. In addition, the contractor is not completely barred from asserting this defense if the defects were caused by a combination of deficient performance by the contractor and deficient design, and proportional liability should be determined.
The SFAA, along with the National Electrical Contractors Association Puget Sound Chapter (NECA), Mechanical Contractors Association of Western Washington (MCAWW) and SMACNA-Western Washington (SMACNA), issued an Amici Curiae in support of Petitioner AP Rushforth Construction Co., Inc. d/b/a AP Rushforth, and Adolfson & Peterson, Inc.’s (collectively “AP”) Petition for Discretionary Review. In the brief they argued the Court should grant the Petition because the decision by the lower court is contrary to precedent of limiting a contractor’s liability when the owner’s defective plans and specifications caused the defective work, and upsets settled expectations of allocation of risk and liability between contractors, owners and architects (among others) on construction projects. This allocation of risk and the principle of limiting the contractor’s liability for defective work based on defective plans and specifications is long settled doctrine in Washington State and throughout the country, a doctrine based on the US Supreme Court’s landmark decision in U.S. vs. Spearin more than 100 years ago.
The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org
Read the court decisionRead the full story...Reprinted courtesy of
Peter Roth, SFAAMr. Roth may be contacted at
proth@surety.org
Leftover Equipment and Materials When a Contractor Is Abruptly Terminated
November 06, 2023 —
Brian Perlberg - ConsensusDocsTermination for cause is costly and adversarial and has been covered in this
article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract.
Under
ConsensusDocs, a constructor must give its permission to use any equipment or supplies left at the worksite, such as a crane.
[i] Moreover, the owner must indemnify the constructor for using their equipment. This makes sense because even if a constructor were appropriately terminated for cause, using their equipment and materials they no longer possess or control unfairly creates additional liability exposure. At a minimum, the owner should take on the risk of using the equipment and materials since they benefit from such use.
Read the court decisionRead the full story...Reprinted courtesy of
Brian Perlberg, ConsensusDocs CoalitionMr. Perlberg may be contacted at
bperlberg@ConsensusDocs.org
Congratulations to BWB&O’s Newport Beach Team for Prevailing on a Highly Contested Motion to Quash!
January 08, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Newport Partners Tyler Offenhauser and Jonathan Cothran, and Associate Anisha Kohli, who recently prevailed on behalf of BWB&O’s client before the Orange County Superior Court on a highly contested Motion to Quash Service based on Plaintiff’s failure to timely file and serve a DOE Amendment, naming our client.
BWB&O’s client was the owner of a building where Plaintiff, a licensed electrician, was electrocuted while performing an upgrade to the building’s electrical infrastructure. Plaintiff’s original lawsuit named only the building’s tenant, who was also represented by BWB&O. BWB&O was successful earlier this year on a Motion for Summary Judgment under the Privette Doctrine and won judgment on behalf of the client/tenant. While that MSJ was pending, Plaintiff surreptitiously added the building’s owner to the suit with a DOE Amendment, after several months earlier learning the owner and then tenant were entities operated by the same individual. However, Plaintiff never informed counsel or any other party of the filing. Moreover, after the MSJ was granted, Plaintiff then waited several more months to serve the building’s owner.
Read the court decisionRead the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
New York Court Discusses Evidentiary Standards for Policy Rescission Based on Material Misrepresentation
August 10, 2020 —
Robert S. Nobel - Traub LiebermanOn July 27, 2020, in the case of Mt. Hawley Ins. Co. v. AKI Renovations Group, Inc., (Sup. Ct. NY Co. 2020), Index No. 159421/2017 (unpublished), the trial court issued an Order granting summary judgment permitting rescission of a CGL policy based upon material misrepresentations in a policy application. The insured submitted an application in which it failed to disclose its demolition operations despite specific questions seeking this information. Mt. Hawley issued a primary and excess policy for the period of December 29, 2016 to December 29, 2017 (collectively, the policy).
Subsequently, the insured sought coverage for a claim in which it was alleged that the insured was acting as a general contractor for demolition of a three-story building when the plaintiff was injured. The insurer advised the defendants that it was rescinding the policy ab initio, and also returned defendants’ premium in its entirety. The insurer asserted that it would not have issued the policy had defendants disclosed their demolition operations, then filed the coverage action seeking a judicial declaration ratifying its rescission of the policy.
Read the court decisionRead the full story...Reprinted courtesy of
Robert S. Nobel, Traub LiebermanMr. Nobel may be contacted at
rnobel@tlsslaw.com
Idaho Business Review Names VF Law Attorney Brittaney Bones Women of the Year Honoree
July 31, 2023 —
VF LawMeridian, Idaho: June 23, 2023 –
VF Law, a full-service law firm with offices across the Pacific Northwest and the Southwest, is pleased to announce that associate
Brittaney Bones has been recognized as an honoree for the 2023 Idaho Business Review Women of the Year Awards. The distinguished recognition celebrates 50 female leaders across Idaho who have made their mark while continuing to pave the path of leaders for the future.
When reviewing the applications, the judges considered excellence in leadership and a willingness to advance mentorship opportunities among the other considerations. In her work with the Community Associations Institute (CAI) Idaho, Bones currently serves as Vice Chair for the Legislative Action Committee. She monitors state legislation coming out of Boise. Accordingly, Bones seeks to educate lawmakers specifically on how pending legislation will affect the lives of people living and working throughout the Gem State. She also mentors students at the College of Idaho and has donated her time to the Rock Bottom Foundation, which provides meals to the unhoused.
Bones’s other accolades include an International Law Writing Award from Davis Wright Tremaine (DWT) for her 2020 article “Potential Solutions to Concerns over the Treatment of U.S. Investment in China: The Need for a U.S.-China Bilateral Investment Treaty.” She frequently speaks at CAI events, helping to prepare her fellow legal professionals for challenges in the field—and those yet to come.
About VF Law
VF Law is a full-service, multi-state law firm. At VF, we believe that experience and knowledge are crucial; that’s why every attorney on our staff maintains a high level of expertise to ensure client success. VF possesses unmatched experience in providing HOA guidance, planning for healthy buildings from the ground up, helping small businesses and corporations run smoothly, handling real estate transactions and disputes, creating wills and trusts, and more. Visit www.vf-law.com.
Read the court decisionRead the full story...Reprinted courtesy of
Nondelegable Duties
June 04, 2024 —
David Adelstein - Florida Construction Legal UpdatesHave you heard the expression “nondelegable duty”? The issue of a nondelegable duty comes into play when a party hires an independent contractor and the independent contractor commits negligence, primarily in the personal injury context. In other words, a plaintiff wants to hold a defendant liable for the injuries caused by the defendant’s independent contractor.
A nondelegable duty is one that “may be imposed by statute, contract, or the common law. In determining whether a duty is nondelegable, the question is whether the responsibility at issue is so important to the community that an employer should not be allowed to transfer it to a third party.” Garcia v. Southern Cleaning Service, Inc., 360 So.3d 1209, 1211 (Fla. 3d DCA 2023) (internal citation omitted).
When it comes to CONTRACTUAL duties:
[S]pecifically the principle that one who undertakes by contract to do for another a given thing cannot excuse himself to the other for a faulty performance by showing that he hired someone else to perform the task and that other person was the one at fault. In other words, where the contracting party makes it her or his duty to perform a task, that party cannot escape liability for the damage caused to the other contracting party by the negligence of independent contractors hired to carry out the task.
Gordon v. Sanders, 692 So.2d 939, 941 (Fla. 3d DCA 1997).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Safety Accusations Fly in Dispute Between New York Developer and Contractor
July 01, 2019 —
Richard Korman - Engineering News-RecordThe developer of a New York City high rise and the project's former prime contractor are trading unusually nasty safety related accusations in a dispute over the contractor's exit from the project. The contractor, New York City-based Pizzarotti, claims the settlement of the structure in soft soils creates hazards in future work that could send building components crashing to the streets. In reply, developer Fortis Property Group says the contractor’s uneven pace of work is to blame for what it sees as only slab misalignments that don’t compromise safety in any way.
Read the court decisionRead the full story...Reprinted courtesy of
Richard Korman, ENRMr. Korman may be contacted at
kormanr@enr.com
Texas School District Accepts Settlement Agreement in Construction Defect Case
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Pine Tree ISD Board of Trustees “voted to accept a mediated settlement agreement to end litigation concerning the District’s middle school and its construction issues,” according to KETK News. Pine Tree ISD, located in Longview, Texas, “sued a number of defendant companies for construction and design defects at that campus.”
The school district “will receive the total sum of $820,500,” which “will cover the District’s costs in remediating the campus to repair the construction problems, as well as implementing new systems designed to prevent future issues, both of which came out of the District’s general fund.”
Read the court decisionRead the full story...Reprinted courtesy of