Seattle Washington Building Expert Directory

Illinois Court Determines Insurer Must Defend Property Damage Caused by Faulty Workmanship

July 11, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The Illinois Court of Appeals determined the insurer must defend allegations of property damage arising from faulty workmanship. Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Unpub. LEXIS 1443 (Ill. Ct. App. June, 20, 2011).

Larsen was a subcontractor for Weather-Tite in a condominium building. Weather-Tite installed windows on the project and hired Larsen to apply sealant to the windows. The windows subsequently leaked and caused water damage within the complex.

The homeowner’s association sued Weather-Tite for breach of express and implied warranties. Weather-Tite filed a third-party complaint against Larsen, seeking contribution and alleging that Larsen was in breach of contract by failing to add Weather-Tite as an additional insured under Larsen’s CGL policy.

Both Weather-Tite and Larsen tendered to Larsen’s insurer. Both tenders were denied because the insurer contended the complaints alleged only construction defects, and not “property damage” or an “occurrence” within the terms of the policy.

The insurer filed suit for a declaratory judgment. The trial court granted the insurer’s motion as to Weather-Tite, but granted Larsen’s cross-motion for summary judgment.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Real Property Alert: Recording Notice of Default as Trustee Before Being Formally Made the Trustee Does Not Make Foreclosure Sale Void

February 18, 2015 — Krsto Mijanovic and Annette F. Mijanovic – Haight Brown & Bonesteel LLP
In Ram, et al. v. OneWest Bank, FSB, et al. (filed 2/6/15, No. A139055), the California Court of Appeal held that a nonjudicial foreclosure sale is not void merely because the notice of default was recorded by an entity who had not yet been substituted as trustee. The court also held that because the sale was voidable, rather than void, the plaintiffs were required to allege an ability and willingness to tender their debt in addition to alleging that they were prejudiced by the irregularity in the foreclosure process. Plaintiffs were borrowers who purchased a home subject to a deed of trust. After they defaulted on their loan, nonjudicial foreclosure proceedings were initiated, and the beneficiary of the deed of trust, OneWest Bank, FSB ("OneWest"), purchased the property at the foreclosure sale. Plaintiffs sued OneWest and other entities for wrongful foreclosure, alleging that the sale was void because the entity identified as the trustee on the notice of default, Aztec Foreclosure Corporation ("Aztec"), had not been formally substituted as trustee until after the notice of default was recorded. The trial court sustained OneWest's demurrer and plaintiff appealed. Reprinted courtesy of Krsto Mijanovic, Haight Brown & Bonesteel LLP and Annette F. Mijanovic, Haight Brown & Bonesteel LLP Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com Ms. Mijanovic may be contacted at amijanovic@hbblaw.com Read the court decision
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Study Finds Mansion Tax Reduced Sales in New York and New Jersey

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
A study by two Columbia University economists demonstrated that “the extra 1% ‘mansion’ tax New York state and New Jersey impose on home sales above $1 million actually reduce[d] the number of total real estate transactions, in addition” it pushed “home sales that might have taken place for above $1 million to below that threshold,” Forbes reported. The “mansion” tax only occurs when the residential sale is above $1 million, “meaning a buyer who pays $999,999 for a house, condo or coop would owe no mansion tax.” The study showed a “dramatic” gap “in sales of homes for between $1 million and $1,040,000 (with more sales missing in that range than bunched just below $1 million).” The economists’ concluded that “the mansion tax causes an ‘unraveling’ effect, actually disrupting some sales of properties that would otherwise have taken place.” Read the court decision
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Critical Updates in Builders Risk Claim Recovery: Staying Ahead of the "Satisfactory State" Argument and Getting the Most Out of LEG 3

December 11, 2023 — Gregory D. Podolak & Cheryl L. Kozdrey - Saxe Doernberger & Vita, P.C.
Builders risk claims routinely involve complicated and aggressive debate about the interplay between covered physical loss and uncovered faulty work. However, denials on this front have recently experienced a noticeable uptick in frequency, creativity, and aggressiveness. The insurer arguments concentrate in two key areas with a common theme – that any damage associated with a construction defect is not covered:

Defective construction does not qualify as a “physical” loss to trigger the insuring agreement; and
Any natural results of defective construction are excluded as faulty workmanship, even with favorable LEG 3 or similar language.

Neither of these arguments should impede access to coverage in the majority of scenarios. To ensure as much, it is incumbent on the savvy policyholder to understand the insurer tactics, be prepared to spot them early, and have thoughtful counter positions at the ready to address them decisively. Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and Cheryl L. Kozdrey, Saxe Doernberger & Vita, P.C. Mr. Podolak may be contacted at GPodolak@sdvlaw.com Ms. Kozdrey may be contacted at CKozdrey@sdvlaw.com Read the court decision
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Canada Housing Surprises Again With July Starts Increase

August 13, 2014 — Greg Quinn – Bloomberg
Canada’s housing starts beat economist predictions for a fourth straight month in July, led by the most single-family home projects in almost two years. The pace of work on new homes rose 0.7 percent to a seasonally adjusted annual pace of 200,098 units, the fastest since October, from a revised 198,665 in June, Ottawa-based Canada Mortgage & Housing Corp. reported today. Economists forecast a decline to 193,000, according to the median of 18 responses in a Bloomberg News survey. Most economists and the central bank have predicted that rising prices and near-record debt loads would curb demand for housing. Instead, home resales, prices and starts have climbed after a tough winter, as mortgage rates remain near record lows. Read the court decision
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Reprinted courtesy of Greg Quinn, Bloomberg
Mr. Quinn may be contacted at gquinn1@bloomberg.net

Las Vegas, Back From the Bust, Revives Dead Projects

June 11, 2014 — Brian Louis – Bloomberg
For almost five years, the desert plot at the western edge of the Las Vegas valley was home to hulking steel skeletons -- ghostly ruins of a construction project halted by the recession. Now the 106-acre (43-hectare) site bustles with hundreds of workers building the first phase of Downtown Summerlin, an office, entertainment and retail complex that’s scheduled to open in October. Howard Hughes Corp. (HHC) revived the development last year after the previous owner, General Growth Properties Inc., shut it down in 2008. The commercial real estate market in Las Vegas, littered with vacant buildings and abandoned construction sites by overreaching developers during the U.S. property crash, is coming back to life as the local economy improves and tourists return to the nation’s gambling capital. Blackstone Group LP’s deal to buy the Cosmopolitan resort and Genting Bhd. (GENT)’s proposed resurrection of an abandoned project on Las Vegas Boulevard are further signs of investor confidence in the nascent recovery. Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

Rich NYC Suburbs Fight Housing Plan They Say Will ‘Destroy’ Them

May 15, 2023 — Laura Nahmias & Skylar Woodhouse - Bloomberg
One town calls it a “power grab” that “will force Long Island to become the sixth borough of New York City.” Another warns it will “destroy” life as they know it. A third calls it “radical, unprecedented and a drastic departure” from how localities have governed themselves for decades. Across the state, but especially around the wealthy suburbs of New York City and Long Island, politicians and residents are sounding the alarm about Governor Kathy Hochul’s plan to address a housing crisis. To some policy experts and supporters, it’s the most politically ambitious program of its type in years, a rare act of courage in Albany, where incrementalism is king. Others see it as the policy equivalent of an extinction-level event and a bizarrely self-defeating move from a governor who risks permanently alienating the suburban voters she’ll need to win reelection in three years. Reprinted courtesy of Laura Nahmias, Bloomberg and Skylar Woodhouse, Bloomberg Read the court decision
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Another Las Vegas Tower at the Center of Construction Defect Claims

November 07, 2012 — CDJ STAFF
Accusations are coming from both sides over construction defects at a Las Vegas tower, only this time, it’s not the Harmon Towers, it’s Hilton Grand Vacations, which is part of the Planet Hollywood Resort. The project was originally dubbed PH Towers Westgate, and it was developed by Westgate Resorts, which is suing the contractor, Tutor-Saliba for $10 million over late completion and construction defects. Among the defects Westgate is claiming are cracked floor tiles in the valet lobby and cracks and delamination of the pool deck. Tutor-Saliba argues that the failure of the valet lobby floor is due to Westgate specifying only 1/16th inch-wide grouting, instead of the specified ¼ inch, and Westgate’s refusal to allow expansion joints on the pool deck has lead to problems there. Westgate’s attorney, Robert Schumacher, attributes the problems to “shoddy construction practices.” According to the article in the Las Vegas Review Journal, plans were only 60 percent complete when construction began, leading to “thousands of change orders.” Despite not meeting an August completion deadline, Tutor-Saliba is claiming it is owed a $1.5 million bonus nevertheless. Read the court decision
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