SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Contracts and Fraud Don’t Mix (Even for Lawyers!)

August 24, 2020 — Christopher G. Hill - Construction Law Musings
In prior posts here at Construction Law Musings, I have discussed how fraud and contracts are often like oil and water. While there are exceptions, these exceptions are few and far between here in Virginia. The reason for the lack of a mix between these two types of claims is the so-called “source of duty” rule. The gist of this rule is that where the reason money is owed from one party to another (the source of the “duty to pay”) is based in the contract, Virginia courts will not allow a fraud claim. The rule was created so that all breaches of contract, claims that are at base a failure to fulfill a prior promise and could, therefore, be considered to be based on a prior “lie,” would not be expanded to turn into tort claims. This rule has been extended to claims that most average people (read, non-lawyers) would consider fraud because there was no intent to fulfill the contract at the time it was signed. Just so you don’t think that lawyers are exempt from this legal analysis, I point you to a recent case where a law firm sued a construction client of theirs for failure to pay legal fees. In EvansStarrett PLC v. Goode & Preferred General Contracting, the Fairfax County Circuit Court considered a motion by the Plaintiff law firm seeking to add a count of fraud to its breach of contract lawsuit. The Court considered the following facts. 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

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Real Estate & Construction News Roundup (5/1/24) – IMF’s Data on Housing, REITs Versus Private Real Estate, and Suburban Versus Urban Office Property Market

May 28, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, apartment sales fall for seventh straight quarter, raising real estate capital proves challenging, aspiring homeowners face strong obstacles, and more!

• Rent increases have softened across the U.S. over the last year, and the combination of high home prices, elevated mortgage rates and low housing inventory creates strong obstacles for aspiring homeowners. (Alex Gailey, Bankrate)
• The housing market is showing innovative efforts to combat the inventory crisis with initiatives including repurposing commercial properties into residential units. (Angel Smith, Yahoo)
• Apartment sales fell for the seventh straight quarter in Q1, dropping 25% year over year to $20.6 billion. (Leslie Shaver, Multifamily Dive)

Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Construction Safety Technologies – Videos

November 02, 2017 — Aarni Heiskanen - AEC Business
Smart hard hats, drone imaging, indoor positioning, and augmented reality are some of the technologies that can make construction sites safer. Construction remains one of the most dangerous industries. In the USA, one in ten construction workers are injured every year. According to ILO, there are at least 60,000 fatal accidents on construction sites around the world every year, one in every 10 minutes. Investments in safety will certainly pay off. Culture, behavior, and attitudes have a great impact on construction safety. Technology can help, but only if it is used properly and consistently. Here’s a collection of recent videos that explain and demonstrate how digital technology can advance construction safety. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

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A Word to the Wise about Construction Defects

October 10, 2013 — CDJ STAFF
A post on The Buckner Blog suggests that “construction defects” are the scariest words for architects, engineers, and contractors. With the possible outcomes of a damaged reputation and astronomical costs, it’s not a surprise. Further, builders are using techniques that “have yet to be tested in real application over time.” As a result, “whoever has the deepest pockets or the most to lose becomes the primary target.” While a commercial general liability policy might pay for damage caused by a construction defect, the post notes that “it does not, however, cover the costs to remedy your work.” That cost could be “greater than the actual property damages incurred.” The post recommends a combination of transferring risk and risk control In transferring risk, the builder uses “indemnification and hold harmless agreements as well as inditional insured requirements in their construction contracts.” They advise to “request coverage as an additional insured on a primary basis.” And then there’s risk control. “Work only with architects, engineers and contactors who have good reputations and a track record of performance. Don’t cut corners.” By some careful planning, builders might “sleep better at night.” Read the court decision
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Reprinted courtesy of

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California’s One-Action Rule May Apply to Federal Lenders

June 09, 2016 — Anthony J. Carucci – Snell & Wilmer Real Estate Litigation Blog
California’s one-action rule provides that “[t]here can be but one form of action for the recovery of any debt or the enforcement of any right secured by mortgage upon real property or an estate for years therein . . . .” Cal. Code Civ. Proc. § 726(a). In other words, the one-action rule prescribes that the only process for recovery of a debt secured by a mortgage or deed of trust is to foreclose on the lien. The rule aims to prevent a multiplicity of actions and vexatious litigation, and to force a beneficiary to look to all of the security as the primary fund for payment of a debt before looking to the trustor’s other assets. Read the court decision
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Reprinted courtesy of Anthony J. Carucci, Snell & Wilmer
Mr. Carucci may be contacted at acarucci@swlaw.com

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Two New Developments in Sanatoga, Pennsylvania

October 22, 2013 — CDJ STAFF
The final touches are being put on two developments in Sanatoga, Pennsylvania. Southview, the larger of the two, comprises 35 single-family homes. Brookside comprises 16 single-family homes. During the next 18 months, the developers of the two communities will be responsible for the community improvements. If, after 18 months, these pass inspection, the township’s engineering firm will recommend that Sanatoga take responsibility for upkeep. Read the court decision
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Reprinted courtesy of

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Ahlers & Cressman’s Top 10 Construction Industry Contract Provisions

July 02, 2014 — Beverley BevenFlorez-CDJ STAFF
James R. Lynch of Ahlers & Cressman, PLLC, has published the first two parts of the four-part “Top 10 Construction Contract Provisions” series: “As a powerful mechanism to control contract risk, increase predictability, and reduce the cost and complexity of potential disputes, we frequently recommend that our clients’ contracts include a mutual waiver of consequential damages.” The first part “explains the significance of such a clause and the risk a contractor assumes without it,” while the second part discusses “the various categories of damages flowing from a breach of contract and conclude[s] with examples of how parties can limit these damages to reflect their agreed allocation of risk.” Read the full story, Part 1... Read the full story, Part 2... Read the court decision
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Hudson Tunnel Plan Shows Sign of Life as U.S. Speeds Review

April 19, 2021 — Elise Young - Bloomberg
The U.S. Transportation Department has committed to finishing an environmental review for a new Hudson River rail tunnel, after a three-year delay helped prevent the groundbreaking of one of the nation’s most urgently needed infrastructure projects. The evaluation of the new commuter link between New Jersey and New York City will be finished by May 28, according to an update to the federal government’s online permitting dashboard. If the study is cleared, the $11.6 billion Gateway project could potentially qualify for partial federal funding. Transportation Secretary Pete Buttigieg last month told lawmakers that the tunnel is among President Joe Biden’s priorities. Biden on Wednesday introduced a $2 trillion infrastructure plan, fed by a tax increase on the wealthy, that he called a “once-in-a-generation investment in America.” The proposal calls for rebuilt bridges and highways, a shift to cleaner energy and boosts for mass transit. Read the court decision
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Reprinted courtesy of Elise Young, Bloomberg

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