Seattle Washington Building Expert Directory

Nevada Supreme Court Declares Subcontractor Not Required to Provide Pre-Litigation Notice to Supplier

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Traub Lieberman Straus & Shrewsberry LLP blog on Construction Law, even though the Nevada Revised Statutes Annotated (NRS) Chapter 40 requires a general contractor “to provide pre-litigation notice (followed by an opportunity to repair) to a subcontractor or supplier the general contractor believes to be responsible” for the issue prior to filing suit, the Nevada Supreme Court “determined that NRS Chapter 40 imposes no such requirement upon a subcontractor.” In Barrett v. Eighth Judicial District Court, “the court reasoned that ‘while the statutes’ and, indeed, chapter’s purpose is, in part, to allow defendants an initial opportunity to repair, the Legislature chose to carry out that purpose in the manner provided by the statutes, and [the Supreme Court] will not read into the statutes a notice requirement between a subcontractor and another subcontractor or supplier where none exist.’” Read the court decision
Read the full story...
Reprinted courtesy of

Design and Construction Defects Not a Breach of Contract

February 14, 2013 — CDJ STAFF
The California Court of Appeals tossed out a breach of contract award in Altman v. John Mourier Construction. The decision, which was issued on January 10, 2013, sent the construction defect case back to a lower court to calculate damages based on the conclusions of the appeals court. The case involved both design issues and construction issues. According to the plaintiffs’ expert, the design plans did not make the buildings sufficiently stiff to resist the wind, and that the framing was improperly constructed, further weakening the structures, and leading to the stucco cracking. Additionally, it was alleged that the roofs were improperly installed, leading to water intrusion. The contractor’s expert “agreed the roofs needed repair, but disputed what needed to be done to repair the roofs and the cost.” The jury rejected the plaintiffs’ claims of product liability and breach of warranty, but found in their favor on the claims of breach of contract and negligence. The plaintiffs were awarded differing amounts based on the jury’s conclusions about their particular properties. Both sides sought new trials. JMC, the contractor, claimed that the jury’s verdicts were “inconsistent in that the relieved JMC of liability for strict products liability and breach of warranty, but found JMC liable for breach of contract and negligence.” The plaintiffs “opposed the setoff motion on the ground that the jury heard evidence only of damages not covered by the settlements.” Both motions were denied. After this, the plaintiffs sought and received investigative costs as damages. JMC appealed this amended judgment. The appeals court rejected JMC’s claims that evidence was improperly excluded. JMC sought to introduce evidence concerning errors made by the stucco subcontractor. Earlier in the trial, JMC had insisted that the plaintiffs not be allowed to present evidence concerning the stucco, as that had been separately settled. When they wished to introduce it themselves, they noted that the settlement only precluded the plaintiffs from introducing stucco evidence, but the trial court did not find this persuasive, and the appeals court upheld the actions of the trial court. Nor did the appeals court find grounds for reversal based on claims that the jury saw excluded evidence, as JMC did not establish that the evidence went into the jury room. Further, this did not reach, according to the court, a “miscarriage of justice.” The court rejected two more of JMC’s arguments, concluding that the negligence award did not violate the economic loss rule. The court also noted that JMC failed to prove its contention that the plaintiffs were awarded damages for items that were covered in settlements with the subcontractors. The appeals court did accept JMC’s argument that the award for breach of contract was not supported by evidence. As the ruling notes, “plaintiffs did not submit the contracts into evidence or justify their absence; nor did plaintiffs provide any evidence regarding contract terms allegedly breached.” The court also did not allow the plaintiffs to claim the full amount of the investigative costs. Noting that the trial court had rational grounds for its decision, the appeals court noted that “the jury rejected most of the damages claimed by plaintiffs, and the trial court found that more than $86,000 of the costs itemized in plaintiffs’ invoices ‘appear questionable’ as ‘investigation’ costs/damages and appeared to the trial court to be litigation costs nonrecoverable under section 1033.5.” Read the court decision
Read the full story...
Reprinted courtesy of

Pennsylvania: Searching Questions Ahead of Oral Argument in Domtar

October 08, 2014 — Robert Caplan – White and Williams LLP
If you have been following our coverage of Liberty Mutual Insurance Company v. Domtar Paper Co., you will recall that the Supreme Court of Pennsylvania decided on May 29, 2014 to hear the subrogated insurer’s appeal,1 despite the Superior Court’s holding against the subrogated insurer—based primarily on its own defective case law2 —and its denial of reargument, presumably due to the insurer’s briefing follies.3 The parties in Domtar, as well as numerous amici curiae (friends of the court),4 have submitted their respective briefs over the last few months, and the Supreme Court has scheduled oral argument to take place on October 8, 2014 in Pittsburgh, Pa. The Court has framed the issue as: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”5 There are three possible outcomes in Domtar. The first (and easiest) possible outcome for the Supreme Court would be to punt to the Pennsylvania General Assembly for a decision on the issue. Workers’ compensation legislation, perhaps more than any other type of legislation, “creates a highly structured balancing of competing interests.”6 It is basic civics that the legislature has a “superior ability to examine social policy issues and determine legal standards so as to balance competing concerns.”7 Read the court decision
Read the full story...
Reprinted courtesy of Robert Caplan, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com

Contractor Sues License Board

June 30, 2011 — CDJ STAFF

Judge Kendall J. Newman of the US District Court handed down a decision on June 24 on the case of Kent v California Department of Consumer Affairs. Mr. Kent, appearing as his own counsel, had brought the suit against the California Department of Consumer Affairs and the Contractors State Licensing Board after he was arrested in a sting operation and, as the plaintiff put it, “was absurdly arrested and uncooperatively detained for a time longer than necessary or allowed by law under the false pretense of contracting with out a license.” Mr. Kent’s alleged that Rick Lopez, one of the defendants, formed him to read allow from the California Business and Professions Code. He said he was later handcuffed and placed in an uncomfortable chair, “enduring physical pain and emotional agony.”

Although Kent was given a Notice to Appear, he alleged that a further defendant, Stuart Rind, “closed the plaintiff’s case marked citation A7773 without giving written notice to anyone.” As a result, the Placer County District Attorney’s Office had no record of his Notice to Appear.

Kent alleged that subsequently his firm was essentially shut down for two years and that he was prevented from “legally contracting or selling services for any other contractor or qualifying for any other licensed capacity governed by the CSLB.” After this, the CSLB suspended the license for his firm, DSI Construction. He was assessed a $1,500 fine, after which he claims he sent a letter to the CSLB demanding money damages. The judge noted that the letter was not included in the plaintiff’s Ninth Amended Complaint.

Judge Kendall recommended that the plaintiff’s Complaints be dismissed, although he did allow that sixth, and perhaps the eighth and ninth, could be amended with a tenth amended complaint.

Read the court’s decision…

Read the court decision
Read the full story...
Reprinted courtesy of

Can a Home Builder Disclaim Implied Warranties of Workmanship and Habitability?

August 30, 2021 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Zambrano v. M & RC II LLC, 2021 WL 3204491 (7/29/2021), the Court of Appeals addressed the question whether a home builder’s attempt to disclaim implied warranties of workmanship and habitability was effective. In that case, the buyer initialed the builder’s prominent disclaimer of all implied warranties, including implied warranties of habitability and workmanship. After the purchase, the buyer sued the builder, claiming construction defects. The builder moved for summary judgment, seeking enforcement of the disclaimer of warranties. The trial court granted the builder’s motion for summary judgment, thereby enforcing the disclaimers. The buyer appealed. The Court of Appeals addressed the question whether – as a matter of public policy – the implied warranties of workmanship and habitability were waivable. The Court of Appeals started the analysis by noting that the Arizona Supreme Court had, in a 1979 case, judicially eliminated the caveat emptor rule for newly built homes. The court further noted the long history of cases detailing the public policy favoring the implied warranties. But the court also noted the competing public policy of allowing parties to freely contract; explaining that the usual and most important function of the courts is to maintain and enforce contracts rather than allowing parties to escape their contractual obligations on the pretext of public policy. Read the court decision
Read the full story...
Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

Union Handbilling: When, Where, and Why it is Legal

November 06, 2018 — Wally Zimolong - Supplemental Conditions
A few days ago, IBEW Local 98 began began protesting a restaurant owned by professional football player Jahri Evans. The organizers are accusing Evans of violating local construction wage standards and are advertising their dispute with “handbills.” What are handbills? Walking down Fremont Street in Las Vegas is impossible without one or several characters putting a small business card with “questionable” adult entertainment advertisements in your hand. Some will slap papers to your chest, leaving you no choice but to grab the flyers. On a different level, this action occurs on a regular basis by union member. But instead of shady characters pushing questionable entertainment, it is union representatives pushing a dispute with a local employer over working conditions. However, in either case the practice is known as i as handbilling. Read the court decision
Read the full story...
Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages

April 28, 2014 — John Gittelsohn and Prashant Gopal – Bloomberg
After a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up. Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals. The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating. Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
Read the full story...
Reprinted courtesy of John Gittelsohn and Prashant Gopal, Bloomberg

Rising Construction Disputes Require Improved Legal Finance

November 15, 2022 — Apoorva Patel - Construction Executive
Construction disputes are famously high stakes, and the industry is currently experiencing an uptick in the value and number of disputes resulting from contractual obligations and third-party or force majeure incidents. While this is not entirely surprising given COVID-19’s disruption of global markets and supply chains, the numbers are noteworthy. For example, in 2020 alone, the International Chamber of Commerce (ICC)—the leading institution for construction disputes, partly because its clauses feature in many FIDIC standard form contracts—registered 194 construction arbitrations, and construction disputes now comprise over 20% of the ICC caseload. In addition to the damage to business outcomes that the underlying disputes may present, parties can quickly spend many millions on legal fees and expenses, as well as technical experts and consultants, if and when those disputes progress through the courts or arbitration. According to Norton Rose’s 2020 Global Construction Disputes Report, the average construction dispute value rose sharply from $30.7 million in 2019 to $54.26 million in 2020. Reprinted courtesy of Apoorva Patel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
Read the full story...
Reprinted courtesy of

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES