SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Housing Starts Surge 23% in Comeback for Canadian Builders

July 15, 2019 — Theophilos Argitis - Bloomberg
Canadian housing starts unexpectedly surged in April, in another sign of recovery for the nation’s battered real estate market. Builders started work on an annualized 235,460 units last month, the highest level in 10 months and up 23 percent from 191,981 units in March, the Canada Mortgage and Housing Corp. reported Wednesday. The gain was driven by new multi-unit construction in Toronto and Vancouver. Read the court decision
Read the full story...
Reprinted courtesy of Theophilos Argitis, Bloomberg

---

New Stormwater Climate Change Tool

February 26, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder magazine reported that the Environmental Protection Agency (EPA) has released a Climate Adjustment Tool that “allows engineers and planners to evaluate the performance of water infrastructure while considering future climate change projections, such as more frequent high-intensity storms and changes in evaporation rates of seasonal precipitation, to determine the benefits of resiliency decisions to reduce local economic burden and protect communities.” The tool is part of President Obama’s Climate Action Plan Virtual Climate Resilience Toolkit. “Climate change means increased risks to our health, our economy, and our environment,” says EPA Administrator Gina McCarthy, as quoted by Builder. “But with the president’s Climate Action Plan, the agency is taking action to advance science-based technology, such as the addition of the Climate Adjustment Tool, to help state and local planners combat the impacts of climate change, especially significant economic burden from severe weather, and protect communities through sustainability and resiliency measures.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Colorado’s Federal District Court Finds Carriers Have Joint and Several Defense Duties

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
An issue that has plagued builders in Colorado construction defect litigation is the difficulty of getting additional insured carriers to fully participate in the builder’s defense, oftentimes leaving the builder to fund its own defense during the course of the litigation. Many additional insurers offer a variety of positions regarding why they will not pay for fees and costs during the course of a lawsuit. Some insurers argue that, until after trial, it is impossible to determine its proper share of the defense, and therefore cannot make any payments until the liability is determined as to all of the potentially contributing policies. (This is often referred to as the “defense follows indemnity” approach.) Others may make an opening contribution to defense fees and costs, but fall silent as fees and costs accumulate. In such an event, the builder may be forced to fund all or part of its own defense, while the uncooperative additional insured carrier waits for the end of the lawsuit or is faced with other legal action before it makes other contributions. Recent orders in two, currently ongoing, U.S. District Court cases provide clarity on the duty to defend in Colorado, holding that multiple insurers’ duty to defend is joint and several. The insured does not have to go without a defense while the various insurers argue amongst themselves as to which insurer pays what share. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

Do Not Pass Go! Duty to Defend in a Professional Services Agreement (law note)

April 03, 2019 — Melissa Dewey Brumback - Construction Law in North Carolina
Recently a client asked me to review a contract for his Firm. The Owner, who had prepared the draft, had inserted a rather stringent “duty to defend” clause. As I told my client, a duty to defend clause is not a good idea for a couple of reasons. First, if you agree to provide a defense, what that means is that you are footing the bill for the Owner if the Owner is sued by another party. Think about that for a minute. You are paying legal fees for someone else’s legal defense. You may or may not be able to direct the litigation or have a say in who is hired. Can you say open check book? Secondly, and more importantly, the duty to defend is almost never insurable. What that means is that your professional liability carrier will not be footing the bill—your Firm will be doing it. This is not a case of adding the Owner as an additional insured, so do not confuse the two. Agreeing to a duty to defend is an extremely burdensome, and potentially costly, mistake. Read the court decision
Read the full story...
Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
Ms. Brumback may be contacted at mbrumback@rl-law.com

---

Vertical vs. Horizontal Exhaustion – California Supreme Court Issues Ruling Favorable to Policyholders

May 11, 2020 — Alan Packer & James Hultz - Newmeyer Dillion
For years, when faced with damage or injury spanning several policy periods, excess general liability insurers have argued that all potentially applicable underlying policies must be exhausted before the excess drops down to provide coverage (“horizontal exhaustion”). Insureds, on the other hand, insist that they are entitled to immediately access an excess policy for any given policy year, if that year’s underlying policy has exhausted (“vertical exhaustion”). Vertical exhaustion not only enables insureds to directly tap into the excess insurance for which they paid substantial premiums, but also enables the insured to moderate risk given that different lower level policies might (1) be needed for other claims, (2) have larger self-insured retentions, or (3) have other less favorable coverage provisions. Allowing an insured to proceed via vertical exhaustion would also eliminate the heavy administrative and logistical burden that could result from having to pursue and exhaust all underlying coverage on multi-year claims. In Montrose Chemical Corp. v. Superior Court, 2020 WL 1671560 (April 6, 2020), the California Supreme Court has come down in favor of policyholders and vertical exhaustion. The Montrose case involved contamination that allegedly occurred between 1947 and 1982 and different liability insurance towers (comprised of primary and excess layers) for each year. The insured, Montrose, maintained a tower of insurance coverage, year by year, and faced claims asserting damage that spanned several decades. Montrose sought coverage from excess insurers under a vertical exhaustion approach. Not surprisingly, Montrose’s excess insurers insisted that horizontal exclusion was required and that Montrose was required to exhausted all other policies with lower attachment points in every single involved policy period. The California Supreme Court ruled in Montrose’s favor, holding that the insured may insist upon full coverage from an excess insurer once the layer directly below it has exhausted. The Court reasoned that the burden of spreading the loss among insurers is one that is appropriately borne by insurers, not insureds. Reprinted courtesy of Alan H. Packer, Newmeyer Dillion and James S. Hultz, Newmeyer Dillion Mr. Packer may be contacted at alan.packer@ndlf.com Mr. Hultz may be contacted at james.hultz@ndlf.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Going Digital in 2019: The Latest Technology for a Bright Future in Construction

February 18, 2019 — Jim Romeo - Construction Executive
The spectrum of technology available to today’s contractors is wide and deep. This techno-ecosystem will change just about every operational tick and tock needed to build world-class projects—from where and how people work to what equipment they use and how they record payments. “Generally speaking, the use of technology in construction is surging, particularly in the past three to five years,” says Chris Amato, principal and national advisory leader for the Chicago-based management consultancy Grant Thornton. “It’s becoming the cost of doing business; every player, at some point or another, is going to need to embrace it to some degree. The key questions are where to start, where to invest and how to minimize risk.” Reprinted courtesy of Jim Romeo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
Read the full story...
Reprinted courtesy of

---

Not So Fast, My Friend: Pacing and Concurrent Delay

April 25, 2022 — William E. Underwood - ConsensusDocs
When critical path activities are delayed by the owner (or another party), contractors will sometimes “pace,” or slow down, other activities to match the owner-caused delay. After all, why should the contractor hurry up and wait? But paced activities can often appear as concurrent delays on a project’s overall schedule. And all too often, contractors fail to contemporaneously document their efforts to pace work. Not only can this create avoidable disputes with owners and other contractors, but it can also create future roadblocks to the recovery of delay damages. This article examines the interplay between pacing and concurrent delay[1] and what contractors should do to minimize risk and preserve their rights to obtain more than a simple time extension for project delays. Pacing versus Concurrent Delay As a basic matter, most contracts allocate responsibility/liability for a schedule delay to the party that caused the delay. For example, if an owner is contractually required to provide equipment for a contractor to install, then the owner likely bears responsibility for any delays caused if the equipment is delivered late. If, however, the contractor was also behind schedule on other activities during this time and the project would have been delayed regardless of the owner’s late deliveries, then the delay is probably concurrent. And the contractor will generally be entitled to only an extension of time, and no other monetary relief. Read the court decision
Read the full story...
Reprinted courtesy of William E. Underwood, Jones Walker LLP (ConsensusDocs)
Mr. Underwood may be contacted at wunderwood@joneswalker.com

---

First-Time Homebuyers Make Biggest Share of Deals in 17 Years

February 22, 2018 — Prashant Gopal – Bloomberg
Millennials are playing homeownership catch-up. First-time buyers rushed into the market last year, making 38 percent of all U.S. single-family home purchases, the biggest share since 2000, data released Thursday by Genworth Mortgage Insurance show. The 2.07 million new or existing homes bought by first-timers was 7 percent more than in 2016, according to the insurer, part of Genworth Financial Inc. Read the court decision
Read the full story...
Reprinted courtesy of Prashant Gopal, Bloomberg

---