Seattle Washington Building Expert Directory

Default Should Never Be An Option

June 19, 2023 — Christopher G. Hill - Construction Law Musings
Every time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate. One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment. 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

Fungi, Wet Rot, Dry Rot and "Virus": One of These Things is Not Like the Other

November 02, 2020 — Hugh D. Hughes - Saxe Doernberger & Vita
The Hartford’s so-called virus exclusion in its commercial property forms is getting a workout, and policyholders now have an argument that may help their cases move past the pleadings stage. A U.S. District Court in Florida has deemed the exclusion ambiguous and denied an insurer’s motion to dismiss.1 The exclusion applies to “presence, growth, proliferation, spread, or any activity of ’fungi’, wet rot, dry rot, bacteria or virus.”2 The Court held that the parties did not necessarily intend to exclude a pandemic. In Urogynecology, the plaintiff sought coverage for the loss of the usefulness and functionality of its business location due to the Florida Governor’s shutdown order. The policy contained a 'fungi', wet rot, dry rot, bacteria, or virus” exclusion.3 The carrier moved to dismiss, and the plaintiff argued that the exclusion only applied if COVID-19 was present on-site, which was not the case. The Court addressed none of the issues regarding direct physical loss and instead decided the motion on the fungi exclusion. The Court held the exclusion ambiguous because the exclusion of virus “does not logically align with the grouping of the virus exclusion with other pollutants such that the Policy necessarily anticipated and intended to deny coverage for these kinds of business losses.”5 In addition, the Court stated that pollution case law was not on point because “none of the cases dealt with the unique circumstances of the effect COVID-19 has had on our society – a distinction this Court considers significant.” Read the court decision
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Reprinted courtesy of Hugh D. Hughes, Saxe Doernberger & Vita
Mr. Hughes may be contacted at hdh@sdvlaw.com

Haight’s 2020 San Diego Super Lawyers and Rising Stars

July 06, 2020 — Haight Brown & Bonesteel LLP
Haight congratulates partners Michael Parme and Arezoo Jamshidi who were selected to the 2020 San Diego Super Lawyers Rising Stars list. Each year no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor. Haight Brown & Bonesteel LLP Read the full story... Read the court decision
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You Can Now Build a Multi-Million Dollar Home via Your iPad

January 07, 2015 — Sara Pepitone – Bloomberg
There are apps for real estate sales, apps for paint color, apps for arranging furniture, and apps for making the best use of natural light. But until now, there was no app for that most fundamental process of homesteading: creating a new one from scratch. In the coming weeks Al Hamra Real Estate Development will unveil its all-inclusive Home Builder app. All you need is an iPad and five million UAE Dirham ($1.36 million), to start. Swipe and spend has never been so elite. Designed by A++ Architecture Design and Communication, Home Builder starts with property acquisition and ends with finishes and furnishings. Well, to be precise, it ends with a form sent to a sales person to calculate a price to purchase. This means less time and fewer people and permits in your way, plus a more gratifying (literal) hands-on experience in the process. Read the court decision
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Reprinted courtesy of Sara Pepitone, Bloomberg

Insurance Policies Broadly Defining “Suits” May Prompt an Insurer’s Duty to Defend and Indemnify During the Chapter 558 Pre-Suit Notice Process

May 30, 2018 — Daniel Garcia - Gordon & Rees Construction Law Blog
In Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Company, No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), the Florida Supreme Court addressed whether the notice and repair process set forth in chapter 558, Florida Statutes, constitutes a “suit” within the meaning of a commercial liability policy issued by Crum & Forster Specialty Insurance Company (“C&F”) to Altman Contractors, Inc. (“Altman”). The Court found that because the chapter 558 pre-suit process is an “alternative dispute resolution proceeding” as included in the definition of “suit” in the policy by C&F to Altman, C&F had a duty to defend Altman during the chapter 558 process, prior to the filing of a formal lawsuit. Chapter 558, titled “Construction Defects,” sets forth procedural requirements before a claimant may file a construction defect action. It requires a claimant to serve a written notice of claim on the applicable contractor, subcontractor, supplier, and/or design professional prior to filing a construction defect lawsuit. The legislature intended for Chapter 558 to be an alternative dispute resolution mechanism in certain construction defect matters allowing an opportunity to resolve the claim without further legal process. Read the court decision
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Reprinted courtesy of Daniel Garcia, Gordon & Rees Scully Mansukhani
Mr. Garcia may be contacted at daniel.garcia@grsm.com

Energy Company Covered for Business Interruption Losses Caused by Fire and Resulting in Town-Ordered Shutdown

February 15, 2021 — David G. Jordan - Saxe Doernberger & Vita, P.C.
In the case of NextSun Energy Littleton, LLC v. Acadia Ins. Co., the United States District Court of Massachusetts held that once direct physical damage from a covered peril causes a covered business interruption loss, any increase in the duration of such business interruption, due to the enforcement of an ordinance or law, extends the coverage period provided for lost income. The Court further held that a policy exclusion for business interruption due to the enforcement of any ordinance or law not in force at the time of the loss only applies when the ordinance or law itself, not the enforcement action that it authorizes, was not in force at the time of the loss. The case involved a solar panel company, NextSun Energy Littleton (NextSun), that operated solar panel arrays providing electricity to the town of Littleton, Massachusetts. Due to a fire, 88 of the solar panels were damaged, and the Town immediately issued a “red-tag” order halting all energy-generating activity pending a safety inspection. The plaintiff purchased insurance for its panels along with “Energy Generating Income” (EGI) coverage, from the defendant, Acadia Ins. Co. (Acadia). The EGI policy covered “direct physical loss or damage” to “renewable energy generating equipment” and also covered the actual loss of surplus power income incurred during the interruption period. However, it excluded interruption of energy-generating income “caused by the enforcement of any ordinance, law, or decree … not in force at the time of loss.” Read the court decision
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Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita
Mr. Jordan may be contacted at DJordan@sdvlaw.com

Remediation Work Caused by Installation of Defective Tiles Not Covered

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court applied California law to find there was no coverage when the subcontractor was sued for broken tiles on a project. Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015). The subcontractor installed stone floor tiles at the project. The developer discovered fractures in some of the tiles. The fractured tiles were removed and replaced. This remediation process required the removal and replacement of portions of drywall and concrete subfloor installed by other subcontractors. The developer sued the subcontractor, who tendered the defense to its insurer. The insurer denied coverage and filed for a declaratory judgment that there was no coverage for the floor tile fracture claims. 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

CA Supreme Court: Right to Repair Act (SB 800) is the Exclusive Remedy for Residential Construction Defect Claims – So Now What?

January 31, 2018 — Steven M. Cvitanovic & Omar Parra - Publications & Insights
A torrent of alerts have been flooding e-mail inboxes regarding the California Supreme Court’s decision in McMillin v. Superior Court, to reverse the Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) case, but with little discussion about the practical effects of the ruling. This alert will discuss how this ruling affects litigation of SB 800 Claims and Builders. Background on Liberty Mutual Case In 2002, the California Legislature enacted comprehensive construction defect litigation reform referred to as the Right to Repair Act (the “Act”). Among other things, the Act establishes standards for residential dwellings, and creates a prelitigation process that allows builders an opportunity to cure the construction defects before being sued. Since its enactment, however, the Act’s application has been up for debate. Most notably, in Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013), the California Court of Appeal for the Fourth District held the Act was the exclusive remedy only in instances where the defects caused only economic loss, and that homeowners could pursue other remedies in situations where the defects caused actual property damage or personal injuries. Reprinted courtesy of Steve Cvitanovic, Haight Brown & Bonesteel LLP and Omar Parra, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Parra may be contacted at oparra@hbblaw.com Read the court decision
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