SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Stadium Intended for the 2010 World Cup Still Not Ready

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
Four years after the HM Pitje Stadium in Pretoria, South Africa was expected to open, the stadium, which was meant to be used during the 2010 World Cup, remains closed. IOL News reported that upgrades began in 2006, “[b]ut since then there have been delays and problems with construction which may see the stands having to be rebuilt.” One of the defects that prevented the stadium from being used for the World Cup was that the slope of the main pavilion was too steep. City of Tshwane spokesman Selby Bokaba told IOL News: “Upgrading of the stadium will take approximately two calendar years, with the completion date reliant on the approval and budget availability.” Read the court decision
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The Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

March 17, 2011 — Shaun McParland Baldwin

The Court of Appeals of Indiana recently addressed the “Montrose” language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged. The insuring agreement requires that “bodily injury or “property damage” be caused by an occurrence and that the “bodily injury or “property damage” occur during the policy period. The Montrose language adds that the insurance applies only if, prior to the policy period, no insured knew that the “bodily injury or “property damage” had occurred in whole or in part. Significantly, it also states that any “bodily injury” or “property damage” which occurs during the policy period and was not, prior to the policy period known to have occurred, includes a continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.



In Grange Mutual Cas. Co. v. West Bend Mut. Ins. Co., No. 29D04-0706-PL-1112 (Ct. App. IN March 15, 2011), http://www.ai.org/judiciary/opinions/pdf/03151109ehf.pdf, Sullivan was the General Contractor for a school construction project. Its subcontractor, McCurdy, installed the storm drain pipes. One of the storm pipes was fractured in 2005 while McCurdy was doing its installation work. More than a year later, the school experienced significant water damage due to flooding. It was later discovered that the flooding was due to the fractured storm drain. Sullivanrsquo;s insurer paid $146,403 for the water damage. That insurer brought a subrogation claim against McCurdy and its two insurers: West Bend and Grange. West Bend had issued CGL coverage to McCurdy while the construction was ongoing, including the date in which the storm pipe was fractured. Grange issued CGL coverage to McCurdy at the time of the flooding. Those two carriers jointly settled the subrogation claim and then litigated which insurer actually owed coverage for the loss. Significantly, the loss that was paid included only damages from the flooding, not any damages for the cost of repairing the pipe.



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Reprinted courtesy of Shaun McParland Baldwin of Tressler LLP. Ms Baldwin can be contacted at sbaldwin@tresslerllp.com

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Coverage For Advertising Injury Barred by Prior Publication Exclusion

July 01, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Ninth Circuit held that a claim for advertising injury was properly denied under the prior publication exclusion. Street Surfing, LLC v. Great Am. E&S Ins. Co., 2014 U.S. App. LEXIS 10737 (9th Cir. June 10, 2014). Street Surfing began selling a two-wheeled, inline skateboard called the "Wave" in December 2004. By 2007, Street Surfing also sold and advertised accessories for the Wave, such as "Lime Green Street Surfing Wheels for The Wave," and the "New Ultimate Street Surfer Wheel Set." Rhyn Noll, who owned the registered trademark "Streetsurfer," sued Street Surfing in June 2008, claiming trademark infringement, unfair competition and unfair trade practices. Street Surfing had known that Noll owned the "Streetsurfer" trademark since early 2005. In September 2008, Street Surfing submitted a claim for coverage to Great American and tendered Noll's complaint. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Leftover Equipment and Materials When a Contractor Is Abruptly Terminated

November 06, 2023 — Brian Perlberg - ConsensusDocs
Termination for cause is costly and adversarial and has been covered in this article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract. Under ConsensusDocs, a constructor must give its permission to use any equipment or supplies left at the worksite, such as a crane.[i] Moreover, the owner must indemnify the constructor for using their equipment. This makes sense because even if a constructor were appropriately terminated for cause, using their equipment and materials they no longer possess or control unfairly creates additional liability exposure. At a minimum, the owner should take on the risk of using the equipment and materials since they benefit from such use. Read the court decision
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Reprinted courtesy of Brian Perlberg, ConsensusDocs Coalition
Mr. Perlberg may be contacted at bperlberg@ConsensusDocs.org

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Pennsylvania: Searching Questions Ahead of Oral Argument in Domtar

October 08, 2014 — Robert Caplan – White and Williams LLP
If you have been following our coverage of Liberty Mutual Insurance Company v. Domtar Paper Co., you will recall that the Supreme Court of Pennsylvania decided on May 29, 2014 to hear the subrogated insurer’s appeal,1 despite the Superior Court’s holding against the subrogated insurer—based primarily on its own defective case law2 —and its denial of reargument, presumably due to the insurer’s briefing follies.3 The parties in Domtar, as well as numerous amici curiae (friends of the court),4 have submitted their respective briefs over the last few months, and the Supreme Court has scheduled oral argument to take place on October 8, 2014 in Pittsburgh, Pa. The Court has framed the issue as: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”5 There are three possible outcomes in Domtar. The first (and easiest) possible outcome for the Supreme Court would be to punt to the Pennsylvania General Assembly for a decision on the issue. Workers’ compensation legislation, perhaps more than any other type of legislation, “creates a highly structured balancing of competing interests.”6 It is basic civics that the legislature has a “superior ability to examine social policy issues and determine legal standards so as to balance competing concerns.”7 Read the court decision
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Reprinted courtesy of Robert Caplan, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com

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First Circuit Rejects Insurer’s “Insupportable” Duty-to-Cooperate Defense in Arson Coverage Suit

October 24, 2023 — Geoffrey B. Fehling & Yaniel Abreu - Hunton Insurance Recovery Blog
In Philadelphia Indemnity Insurance Co. v. BAS Holding Corp., the Court of Appeals for the First Circuit rejected an insurer’s “insupportable” defense that the insured company had breached its duty to cooperate by refusing the insurer’s request for an examination under oath of the company’s president. The decision is a reminder that, while examinations under oath can be effective tools to allow the insurer to properly investigate a claim, an insured’s duty to cooperate is not boundless and does not demand attendance at examinations that are not reasonably requested. Background BAS Holding involves the destruction of a landmark building in Boston by an arsonist. The owner, BAS Holding Corporation, submitted an insurance claim to its property insurer to recover insurance proceeds for the damage to the building. The insurer investigated the claim to determine whether the damage to the building was covered and issued a reservation of rights letter suggesting that the policy may not provide coverage for the fire. As part of its investigation, the insurer requested an examination under oath as a condition to coverage under the policy, which led to BAS presenting the property’s operations coordinator for an interview. Shortly after examining the operations coordinator, the insurer sought another examination of BAS’s president and owner, as well as five other employees. In response, BAS questioned whether the additional examinations were “reasonably required” and said that it would consider the requests if the insurer could explain why they were necessary. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Extreme Weather Events Show Why the Construction Supply Chain Needs a Risk-Management Transformation

July 24, 2023 — Brad Barth - Construction Executive
A perfect storm of recent extreme weather events has exposed the fragility of North America’s construction supply chains amid an increasingly fluctuating, fast-changing risk landscape. Supply chains that were already reeling from resurgent demand for raw materials coming out of the pandemic have been further disrupted by major storms such as recent tornados in Arkansas and Mississippi. Such events can have a ripple effect across many distinct supply lines as exemplified when the 2021 Texas freeze caused railroad closures and knocked out both petrochemical and semiconductor plants, causing shortages that affected construction and many other industries. The wide-ranging reverberations from these events demonstrate how stakeholders across all stages of capital projects increasingly share common vulnerabilities. Crucially, the way in which disruption from extreme weather events has caused project delays and cost overruns shows how time, cost and scope are increasingly interlinked and equally vulnerable to systemic risks. Traditional project-management methods where risks are not collectively managed and mitigated by all stakeholders are becoming increasingly inadequate, as risks to cost, time and scope are often considered in isolation. The domino effect of supply-chain disruption across capital projects similarly shows the inadequacy of project-management models where suppliers are not afforded a key stake in the project (or sometimes even a seat at the planning table). This traditional model cannot adapt to sudden, systemic risks that disrupt multiple suppliers and ripple out across all stakeholders, deliverables and project-management metrics. Reprinted courtesy of Brad Barth, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Obama Says Keystone Decision May Be Announced in Weeks or Months

March 05, 2015 — Justin Sink – Bloomberg
(Bloomberg) -- President Barack Obama said a decision on whether to approve the Keystone XL pipeline is possible in weeks or months. The president told Reuters in an interview Monday that the decision definitely “will happen before the end of my administration.” Asked to be specific, he said, “Weeks or months.” Read the court decision
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Reprinted courtesy of Justin Sink, Bloomberg
Mr. Sink may be contacted at jsink1@bloomberg.net

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