Seattle Washington Building Expert Directory

Contractor Entitled to Continued Defense Against Allegations of Faulty Construction

November 01, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The U.S. District Court found that the contractor was entitled to a defense in the underlying state court action. Pa. Nat'l Mut. Cas. Ins. Co. v. Zonko Builders, 2021 U.S. Dist. LEXIS 168855 (D. Del. Sept. 7, 2021). Zonko was the general contractor for building the Salt Meadows Townhomes Condominium. This included supervising subcontractors in the installation of siding, house wrap, and flashing in five buildings between 2005 and 2007. In 2016, Salt Meadows and its individual members ("Association") found property damage in the condominiums. The Association sued Zonko in state court, alleged that resulting damages included drywall damage in ceilings or walls, flooring and carpet, water damage around window trim, rot on window frames, incorrect flashing around roofs and windows, possible ridge vent leaks, and possible foundation issues. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Steven L. Heisdorffer Joins Higgins, Hopkins, McLain & Roswell

March 27, 2019 — Steve Heisdorffer - Colorado Construction Litigation
Higgins, Hopkins, McLain & Roswell is pleased to announce that Steve Heisdorffer has joined the firm as Special Counsel. Steve joins the firm after having been a partner at Godin & Baity, LLC for the last twenty-five years. Mr. Heisdorffer represents construction professionals in construction defect disputes and advises them regarding risk mitigation and transfer. Mr. Heisdorffer is an experienced trial lawyer that has tried commercial disputes and construction defect cases in arbitration forums and courts over the last 28 years. In addition, he has successfully represented large and small companies in commercial disputes, including computer software performance and intellectual property disputes, taking several to trial. Steve has also acted as a counselor to technology companies. Steve has expertise drafting and negotiating development agreements, distributor agreements, license agreements, and service agreements for his technology clients. Mr. Heisdorffer graduated with high honors from both the University of Northern Iowa and University of Iowa, College of Law and is an AV ® Preeminent™ Peer Review Rated attorney by Martindale-Hubbell and has presented to a variety of trade groups including technology, construction, and insurance industries. Read the court decision
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Reprinted courtesy of Steve Heisdorffer, Higgins, Hopkins, McLain & Roswell
Mr. Heisdorffer may be contacted at heisdorffer@hhmrlaw.com

CGL, Builders Risk Coverage and Exclusions When Construction Defects Cause Property Damage

May 17, 2021 — Jeffrey Cavignac - Construction Executive
Direct damage to property under construction caused by faulty or defective work or defective materials has been a coverage issue for decades. Two specific policies, the Commercial General Liability for the contractors building the structure and the Builders Risk Policy on the project both are sources of potential coverage. A CGL policy protects the named insured (the contractor in this case) from third party liability arising out of the insured’s operations that results in either bodily injury or property damage. Damage to property caused by poor workmanship or defective materials would qualify as property damage. To understand how the CGL policy might respond to claims such as these, it is necessary to evaluate several exclusions in the CGL policy. CGL policies cover “property damage,” defined as physical injury to tangible property, including loss of use of such property, and loss of use of tangible property that has not been physically injured. 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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Montana Supreme Court: Insurer Not Bound by Insured's Settlement

December 02, 2019 — K. Alexandra Byrd - Saxe Doernberger & Vita, P.C.
In Draggin’ Y Cattle Co., Inc. v. Junkermier, et al.1 the Montana Supreme Court held that where an insurer defends its insured and the insured subsequently settles the claims without an insurer’s participation, a court may approve the settlement as between the underlying plaintiff and underlying defendant, but the settlement will not be presumed reasonable as to the insurer. Therefore, an insurer who defends its insured cannot be bound by a stipulated settlement that the insurer did not expressly consent to. The case involved Draggin’ Y Cattle Company (the “Cattle Company”), a ranching and cattle business that utilized the services of an accounting firm, Junkermier, Clark, Campanella, Stevens, P.C. (“Junkermier”), to structure the sale of real property to take advantage of favorable tax treatment. It was discovered that Junkermier’s employee misinformed the Cattle Company’s owners of the tax consequences of the sale. The Cattle Company’s owners subsequently filed suit against Junkermier and its employee and alleged nearly $12,000,000 in damages due to the error. Junkermier’s insurer, New York Marine, provided a defense for Junkermier and its employee. The Cattle Company’s owners offered to settle the claims against Junkermier and its employee for $2,000,000, the policy limit of the New York Marine policy. New York Marine refused to give its consent or tender the policy’s limit. Subsequently, Junkermier, its employee, and the Cattle Company entered into their own settlement agreement for $10,000,000. The settlement was contingent upon a reasonableness hearing to approve the stipulated agreement. Read the court decision
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Reprinted courtesy of K. Alexandra Byrd, Saxe Doernberger & Vita, P.C.
Ms. Byrd may be contacted by kab@sdvlaw.com

NIBS Consultative Council Issues Moving Forward Report on Healthy Buildings

July 25, 2021 — National Institute of Building Sciences
(WASHINGTON, DC, July 13, 2021) – The National Institute of Building Sciences Consultative Council has issued its 2020 Moving Forward Report, looking closely at the importance of healthy buildings. The report examines how buildings can protect and promote public health, providing recommendations for President Biden and policymakers on three components of healthy buildings: indoor environmental quality, the importance of design in promoting health, and promoting knowledge transfer between building owners and public health officials. “Ensuring that the spaces where we live and work are healthy and safe for continued occupancy is critical to overcoming the pandemic,” said Lakisha A. Woods, CAE, President and CEO of NIBS. “This is a fundamental pillar of public health and community resilience. The concept of healthy buildings goes well beyond continual sanitation of a building’s indoor environment to eliminate pathogens.” About NIBS National Institute of Building Sciences brings together labor and consumer interests, government representatives, regulatory agencies, and members of the building industry to identify and resolve problems and potential problems around the construction of housing and commercial buildings. NIBS is a nonprofit, non-governmental organization. It was established by Congress in 1974. For more information, visit nibs.org or follow @bldgsciences on Twitter and Facebook. Read the court decision
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Updates to the CEQA Guidelines Have Been Finalized

February 06, 2019 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The California Natural Resources Agency (CNRA) recently posted final adopted text for amendments to the CEQA Guidelines. The result of over five years of development efforts by the Governor’s Office of Planning & Research and CNRA, the amendments are the most comprehensive update to the CEQA Guidelines since 1998. In “Natural Resources Agency Finalizes Updates to the CEQA Guidelines,” Pillsbury environmental attorneys Norman F. Carlin, Kevin Ashe and Eric Moorman explore the wide range of issues covered in the amendments, including the new Vehicle-Miles-Traveled (VMT) methodology for analyzing transportation impacts; use of regulatory standards as significance thresholds; environmental baselines; and numerous procedural and technical improvements. Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Builder’s Risk Coverage—Construction Defects

August 20, 2019 — Brian Hearst - Construction Executive
This is the second of three articles bringing clarity to the complex and challenging course of construction exposures and providing solutions for mitigating risk through builder’s risk insurance coverage. Part I, Builder’s Risk Coverage – Language Matters, addressed a select few critical exposures to projects under the course of construction. Part II addresses how a standard builder’s risk policy may respond to a loss arising from defective construction and alternative insurance market offerings that can help with specific costs associated with construction defect loss. Coverage for Loss Ensuing from Faulty Workmanship Part I tackled the standard builder’s risk exclusion that applies to losses arising from faulty materials or workmanship. Traditionally, carriers do not have an appetite for covering a contractor’s failure to perform their work properly. There is one exception, which is coverage is available for ensuing loss – or the resulting damage to other property from faulty workmanship. If the excluded cause of loss (i.e., faulty workmanship) causes resultant damage, the builder’s risk policy will cover the damages to the extent the peril of fire is covered. The ensuing loss exception limits the faulty work exclusion to costs directly related to repairing or replacing the faulty work. For example, suppose faulty wiring work leads to a fire which damages part of a structure under construction. The faulty workmanship exclusion would apply to the actual faulty wiring work, but if fire is a covered peril under the policy (this is nearly always the case), the policy would respond to the structure’s fire damage. Reprinted courtesy of Brian Hearst, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Hearst may be contacted at Brian.Hearst@lockton.com

Union THUGS Plead Guilty

October 15, 2014 — Craig Martin – Construction Contractor Advisor
Some time ago, I wrote about union THUGS (The Helpful Union Guys) that tormented merit shops to force contractors to use union labor on projects. The THUGS set fire to equipment, beat contractors with baseball bats, and picketed apartment complexes where contractors lived. Recently two of the ten union members plead guilty to arson-related charges, including two counts of maliciously damaging property by means of fire, extortion, and RICO conspiracy charges. 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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