SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Review of Recent Contractors State License Board Changes

February 27, 2023 — Alexander Moore - Kahana Feld
California’s Contractors State License Board (CSLB) was established in 1929 to protect California residents through licensing and regulating contractors working in the state. Today, the CSLB licenses approximately 290,000 contractors, utilizing forty-four different classifications. Each licensing classification specifies the type of contracting work permitted by that classification. The CSLB website (www.cslb.ca.gov) contains a wealth of information for contractors and non-contractor consumers alike. Consumers can use the website’s features to check the history and business information of contractors, searching via license number, business name, or individual name. License applicants can use the website for instructions and forms for the application process. Contractors can use the website for renewals, regulations, and various resources. One the CSLB’s most important roles is assisting contractors with keeping track of the multitude of state regulations, and periodic changes thereto, that apply to those in the construction trades. The CSLB posts periodic Industry Bulletins which provide helpful guidance and reminders of important construction topics. At year end, the CSLB issues a bulletin to update licensees of the changes to California Law that will become effective on the first of January in the coming year. Below are four of the more interesting and impactful statutory changes. Read the court decision
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Reprinted courtesy of Alexander Moore, Kahana Feld
Mr. Moore may be contacted at amoore@kahanafeld.com

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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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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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Requesting an Allocation Between Covered and Non-Covered Damages? [Do] Think Twice, It’s [Not Always] All Right.

October 12, 2020 — Todd Likman - Colorado Construction Litigation
As is often the case in construction defect and other insurance defense litigation, a plaintiff’s claims for relief typically encompass both covered and uncovered damages. Obviously, it is in the insured’s best interests to have as many damages covered by insurance as possible. From the insurer’s perspective and against the backdrop of owing duty of good faith and fair dealing to its insureds, however, it is generally better to have an allocation of covered vs. non-covered damages. This places the insurer, insured, and insurance retained defense counsel in a difficult position. A recent opinion from U.S. District Court for the District of Colorado, Rockhill Ins. Co. v. CFI-Global Fisheries Mgmt, Civil Action No. 1:16-CV-02760-RM-MJW, 2020 U.S. Dist. LEXIS 35209 (D. Colo. Mar. 2, 2020), sheds light on the issue, even though some may feel it only further muddies already murky waters. Rockhill involved review of an arbitration proceeding that property-owner, Heirloom I, LLC (“Heirloom”) filed against CFI-Global Fisheries Management (“CFI”). Rockhill Insurance Company (“Rockhill Insurance”) was asked to defend the arbitration as CFI’s professional and general liability insurer. At issue in the arbitration was Heirloom’s claim that CFI defectively designed and constructed a fisheries enhancement that was destroyed by natural processes four times in three years. Read the court decision
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Reprinted courtesy of Todd Likman, Higgins, Hopkins, McLain & Roswell
Mr. Likman may be contacted at likman@hhmrlaw.com

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The Leaning Tower of San Francisco

January 24, 2018 — Dave Suggs - CDJ STAFF
The Millennium Tower located at 301 Mission Street in San Francisco, California opened in 2009 and is fifty-eight stories high. It is comprised of expensive apartments with price tags in the millions. “Yet for all its curb appeal, the building has, quite literally one fundamental problem: it’s sinking into mud and tilting towards its neighbors” reports John Wetheim of CBS News in the 60 Minutes segment about the condition of the tower “San Francisco’s Leaning Tower of Lawsuits.” In the Tower’s basement along columns that protrude from the foundation of the building there are stress gauges lining the walls illustrating cracks with slow growth which is cause for concern. The tower is tilting a total of 14 inches toward the northwest and has sunk 17 inches so far. Petar Marinkovic, an engineer for the European Space Agency estimates that the tower is sinking 1.5 to 2 inches per year. Jerry Cauthen, a local engineer, weighs in on what he believes is the cause of the sinking and leaning; it was built from concrete instead of steel. “Concrete is often cheaper. And it’s just as good, but it is a lot heavier. And so you got to design your foundation and your sub-surface to support that higher weight.” A local geotechnical engineer, Larry Karp agrees stating that the foundation of a building of this size and weight should be on solid rock (bedrock). The Millennium Tower is sitting on layers debris from the 1906 earthquake, a gold rush landfill, as well as clay, mud, and sand. There over 20 parties involved in the Millennium Tower lawsuits so far. Solutions to “fix” the tower’s issues range from removing 20 stories from the top of the building to perpetually freezing the ground beneath the building. There are also ongoing mediation talks to determine the feasibility of drilling down to bedrock under a building where a thousand residents are still upstairs. Read the court decision
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While You Were Getting Worked Up Over Oil Prices, This Just Happened to Solar

October 29, 2014 — Tom Randall – Bloomberg
Every time fossil fuels get cheaper, people lose interest in solar deployment. That may be about to change. After years of struggling against cheap natural gas prices and variable subsidies, solar electricity is on track to be as cheap or cheaper than average electricity-bill prices in 47 U.S. states -- in 2016, according to a Deutsche Bank report published this week. That’s assuming the U.S. maintains its 30 percent tax credit on system costs, which is set to expire that same year. Even if the tax credit drops to 10 percent, solar will soon reach price parity with conventional electricity in well over half the nation: 36 states. Gone are the days when solar panels were an exotic plaything of Earth-loving rich people. Solar is becoming mainstream, and prices will continue to drop as the technology improves and financing becomes more affordable, according to the report. Read the court decision
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Reprinted courtesy of Tom Randall, Bloomberg
Mr. Randall may be contacted at trandall6@bloomberg.net

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Modular Homes Test Energy Efficiency Standards

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
The Systems Building Research Alliance (SBRA) will be putting three different energy standards to the test, according to Big Builder. Clayton Homes has been selected to build three modular homes, which will be used in a 15-month energy performance test conducted by Southern Energy Homes (SEHomes). Each home will comply with a different standard: “one complies with the U.S. Department of Housing and Urban Development’s (HUD) thermal standards, one is an Energy Star-qualified home and one meets the DOE requirements for the Challenge Home Program, also known as a DOE Zero Energy Ready Home.” Testing is expected to be completed July 2015. Read the court decision
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Endorsements Preclude Coverage for Alleged Faulty Workmanship

December 30, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The court found coverage for alleged faulty workmanship was barred by the Combination Construction Related Endorsement and Roofing Endorsement. Evanston Ins. Co. v. A&S Roofing, 2019 U.S. Dist. LEXIS 142828 (W.D. Okla. Aug. 22, 2019). In 2010, A&S entered into a subcontract with the contractor to replace roofs on three buildings owned by Oklahoma Property Investors (OPI). Eagle was a subcontractor of A&S that installed the roofing. After the roofs were replaced, OPI filed suit against A&S, alleging that A&S provided 15-year warranties for the roofing work performed on the three buildings and that A&S breached each warranty by performing the work in a poor manner, resulting in failures to each of the roofs. OPI sought monetary relief including damages to its properties, of its tenants, and costs of repairs to its properties. A&S's insurer, Evanston, denied coverage. Evanston pointed to the"legally obligated to pay" language of the CGL policy and argued coverage only extended to tort-based claims. Evanston argued the OPI lawsuit did not allege any tort claims, only warranty claims arising from contract. Second, Evanston contended the alleged "poor craftsmanship" giving rise to the claims in the OPI lawsuit that did not constitute an "occurrence" under the policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Want a Fair Chance at a Government Contract? Think Again

July 13, 2017 — Duane Craig - Construction Informer
If you’ve ever missed out on a government contract, part of the reason might have been because entrenched government contractors gained competitive advantages by under-paying their workers. The Fair Pay & Safe Workplaces executive order was nullified by Congress this year and much of the reporting by the business press presented just one side of the story. Here’s another perspective. When awarding federal contracts the government is supposed to consider each contractor’s compliance with labor laws related to pay, health and safety. But, there is a huge problem with enforcement on a government contract, according to Senator Elizabeth Warren and other observers.

• Some federal contractors frequently underpay their workers violating wage and hour laws. More than 300,000 workers were cheated out of pay while working under federal contracts in the last decade. There were 12,000 companies working on federal contracts that were doing the cheating.
• 692 federal contractors significantly violated federal labor laws, and then repeated the behavior, over and over. The repeat offenders receive millions in taxpayer dollars as they violated safety and health standards. Those violations caused a wide range of physical harm to workers. Dozens of workers died, and countless numbers were exposed to chemicals that cause long term health problems.

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Reprinted courtesy of Duane Craig, Construction Informer
Mr. Craig may be contacted at dtcraig@constructioninformer.com

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