Seattle Washington Building Expert Directory

After the Fire, Should Some Parts of Los Angeles Never Rebuild?

January 28, 2025 — Akshat Rathi - Bloomberg
The fires in and around Los Angeles are coming under control. The city’s mayor has already issued an executive order to speed up rebuilding. But equally catastrophic blazes are likely to strike again on a hotter planet, raising the question of whether some parts of the region should still be considered livable. It’s not an unthinkable notion. There have been a handful of attempts at systematically moving populations away from regions severely affected by climate change. This kind of “managed retreat” has typically been applied to risks from rising sea levels, with recent programs in the US involving relocating tribal populations in Alaska and Washington. But people affected by wildfires are only just starting to see efforts from governments to help them to move away from high-risk areas, including in LA county. A California program launched last year that offered up to $350,000 in loans to those affected by fires in 2018 and 2020 to shift to safer places fully allocated its funds within weeks. Read the court decision
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Reprinted courtesy of Akshat Rathi, Bloomberg

“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet

August 24, 2020 — Garret Murai - California Construction Law Blog
Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Latin America’s Biggest Corporate Crime Gets a Worthy Epic

January 04, 2021 — Mac Margolis - Bloomberg
As much as pouring cement and building towers, Brazilian construction dynasty Odebrecht was famed for its political panache. “I get down in the mud with the pigs but come out the other side clean in my white suit,” Norberto Odebrecht, founder of the legacy contractor, liked to boast back in the 1970s and 1980s. The catchphrase was shorthand for what became a patently Brazilian way of doing business – the art of buying influence and coming away unsoiled, or at least unincarcerated – among porcine politicians and bribe-truffling officials. In half a century and over three generations, the family firm from northeast Brazil grew into a multinational engineering colossus, hurling up grand public works from the Andes to Angola. Shady pacts with political grifters and bagmen were just part of the deal behind the build-up and seemingly nothing a little Brazilian bonhomie and contract skimming couldn’t tidy up. Until it didn’t. Read the court decision
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Reprinted courtesy of Mac Margolis, Bloomberg
Mr. Margolis may be contacted at mmargolis14@bloomberg.net

California Court Forces Insurer to Play Ball in COVID-19 Insurance Coverage Suit

December 13, 2022 — Latosha M. Ellis & Yosef Itkin - Hunton Insurance Recovery Blog
One of the threshold issues in COVID-19 insurance coverage cases that have been brought across the country is whether the policyholder’s allegations meet the applicable pleading standard in alleging that the virus caused physical loss or damage. In many cases, the courts have gotten it wrong, effectively holding policyholders to a higher standard than required. But recently, a California federal judge righted those wrongs by acknowledging the correct pleading standard in that case, which is whether the allegations state a plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The Court, here, correctly recognized that the policyholder, the Los Angeles Lakers, met that pleading standard when it alleged that the COVID-19 virus can cause physical loss or damage by physically altering property. In its complaint, the Los Angeles Lakers alleged that the virus physically altered its property by changing its chemical and physical property conditions, creating viral vectors that required remedial measures before the property was safe again. Los Angeles Lakers, Inc. v. Fed. Ins. Co., 591 F. Supp. 3d 672 (C.D. Cal. 2022), adhered to on reconsideration, 2022 WL 16571193 (C.D. Cal. Oct. 26, 2022). The Court agreed that these allegations by the Lakers adequately pled physical alteration to support a claim for property damage. The insurer requested reconsideration of the decision, and the Court emphatically affirmed its prior decision, explaining its rationale as follows: The Court lacks the scientific expertise necessary to conclude, based solely on the allegations in the FAC . . . that it is not plausible for the Lakers’ property to have been physically altered by the Virus, which the Lakers adequately alleged. Consequently, the Court, in the March 17 Order, concluded that the Lakers’ theory was plausible. Whether the Lakers can actually prove its theory will be determined at summary judgment or trial. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Couple Claims Contractor’s Work Is Defective and Incomplete

December 04, 2013 — CDJ STAFF
William and Prudence Dziatkowicz have sued Vince Bruno Construction, LLC over a house they contracted to have built in Weirton, West Virginia. According to the Dziatkowiczes, they contracted with Mr. Bruno and his self-named company to build a house, for which they would pay $248,250. The couple claims that Vince Bruno construction never completed work on the house, eventually abandoning the project. Further, they allege that the work done is defective, including improper installation of floor beams, and a failure to properly protect the project from weather. Additionally, the couple contends that the contractor failed to pay a lumber company, leading to a lawsuit against the Dziatkowiczes and a lien on their house. The Dziatkowiczes are suing Vince Bruno Construction for more than $355,000 in damages. Read the court decision
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Massachusetts Business Court Addresses Defense Cost Allocation and Non-Cumulation Provisions in Long-Tail Context

March 06, 2022 — Eric B. Hermanson & Austin D. Moody - White and Williams
A business court in Massachusetts has weighed in on two key issues affecting allocation of insurance coverage for long-tail liabilities in Massachusetts. Specifically, in Crosby Valve LLC et al. v. OneBeacon America Insurance Company, et al.,[1] involving asbestos bodily injury claims, Judge Kenneth Salinger of the Suffolk County Business Litigation Session addressed:

whether defense costs in long-tail cases were subject to the same pro rata allocation scheme the Supreme Judicial Court (SJC) adopted to govern successively triggered insurers' indemnity obligations in Boston Gas Company v. Century Indemnity Company;[2] and
whether “non-cumulation” provisions, like those addressed by the New York Court of Appeals in Matter of Viking Pump,[3] were consistent with this pro rata allocation methodology.

As to the first issue — i.e., allocation of defense costs — Judge Salinger declined to follow Boston Gas, and found the SJC’s holding in that case was limited to an insurers’ indemnity obligations. The SJC in Boston Gas had focused on the language of the policy insuring agreement, saying “[t]his policy applies to ... property damage ... which occurs anywhere during the policy period.” The SJC had also pointed to the policy definition of “occurrence” as “an accident, including injurious exposure to conditions, which results, during the policy period, in property damage neither expected nor intended from the standpoint of the insured.”[4] Reprinted courtesy of Eric B. Hermanson, White and Williams LLP and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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White and Williams Announces Lawyer Promotions

May 25, 2020 — White and Williams LLP
White and Williams is pleased to announce the election of Vincent Barbera and James Burger to the partnership. The firm has also promoted Victoria Fuller, Phyllis Ingram, William Johnston, Eric Porter, Gus Sara, Jenifer Scarcella, Lian Skaf and Brett Tishler from associate to counsel. The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including education, finance, financial lines, insurance coverage, labor and employment, litigation, real estate, and subrogation. These accomplished lawyers have earned this advancement based on their contributions to the firm and their practices. “We are pleased to elect these two lawyers to the partnership and promote eight exceptional associates to counsel. The group demonstrates the legal talent and breadth of services White and Williams offers clients,” said Patti Santelle, Managing Partner of the firm. “The contributions of these lawyers have enhanced the growth and reputation of our firm and reflect our deep commitment to clients. We look forward to their continued success.” Read the court decision
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Reprinted courtesy of White and Williams LLP

Two More Lawsuits Filed Over COVID-19 Business Interruption Losses

April 13, 2020 — Michael S. Levine - Hunton Andrews Kurth
Two more lawsuits were filed yesterday concerning business interruption losses resulting from the COVID-19 pandemic. The plaintiffs, the Chickasaw and Choctaw nations, filed their lawsuits, copies of which can be found here and here, in Oklahoma state court against a litany of property insurers, led by AIG. The lawsuits seek an order that any financial losses suffered by the nations’ casinos, restaurants and other businesses as a result of the coronavirus pandemic are covered by the nations’ insurance policies. According to the complaints:

On or about March of 2020, the United States of America became infected by COVID 19 resulting in a pandemic. As a result of this pandemic and infection, the Nation’s Property sustained direct physical loss or damage and will continue to sustain direct physical loss or damage covered by the policies, including but not limited to business interruption, extra expense, interruption by civil authority, limitations on ingress and egress, and expenses to reduce loss. As a direct result of this pandemic and infection, the Nation’s Property has been damaged, as described above, and cannot be used for its intended purpose.

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Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com

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