Oregon Construction Firm Sued for Construction Defects
July 31, 2013 —
CDJ STAFFHome Forward, the housing authority in Multnomah County, Oregon, is suing Tom Walsh & Company over allegations of construction defects in low-income housing projects the firm built for the county. Walsh’s firm was hired about ten years ago to construct apartments in Portland and adjacent Gresham. But the housing authority claims that the buildings are suffering water damage.
The authority requested that Tom Walsh & Company repair the problems. Walsh claimed that the problems were not due to construction defects, but to the agency’s failure to maintain the properties.
Home Forward has gone forward with lawsuits of a combined $3.8 million. If the case goes to trial, according to Walsh, it will be only the second time for him in 50 years of business.
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Supreme Court of Washington State Upholds SFAA Position on Spearin Doctrine
September 13, 2021 —
Peter Roth – The Surety & Fidelity Association of AmericaSeptember 9, 2021 (WASHINGTON, DC) –
The Surety & Fidelity Association of America (SFAA) commends the decision of The Supreme Court of The State of Washington to reverse the lower court ruling in the case of Lake Hills Investments, LLC vs. Rushforth Construction Co. As argued by SFAA, the Supreme Court found the contractor should not be responsible for damage caused by the defective design provided by the owner even where the contractor was responsible for certain defective work. In addition, the contractor is not completely barred from asserting this defense if the defects were caused by a combination of deficient performance by the contractor and deficient design, and proportional liability should be determined.
The SFAA, along with the National Electrical Contractors Association Puget Sound Chapter (NECA), Mechanical Contractors Association of Western Washington (MCAWW) and SMACNA-Western Washington (SMACNA), issued an Amici Curiae in support of Petitioner AP Rushforth Construction Co., Inc. d/b/a AP Rushforth, and Adolfson & Peterson, Inc.’s (collectively “AP”) Petition for Discretionary Review. In the brief they argued the Court should grant the Petition because the decision by the lower court is contrary to precedent of limiting a contractor’s liability when the owner’s defective plans and specifications caused the defective work, and upsets settled expectations of allocation of risk and liability between contractors, owners and architects (among others) on construction projects. This allocation of risk and the principle of limiting the contractor’s liability for defective work based on defective plans and specifications is long settled doctrine in Washington State and throughout the country, a doctrine based on the US Supreme Court’s landmark decision in U.S. vs. Spearin more than 100 years ago.
The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org
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Peter Roth, SFAAMr. Roth may be contacted at
proth@surety.org
Washington High Court Holds Insurers Bound by Representations in Agent’s Certificates of Insurance
March 16, 2020 —
Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery BlogIn responding to a certified question from the Ninth Circuit in T-Mobile USA Inc. v. Selective Insurance Company of America, the Washington Supreme Court has held that an insurer is bound by representations regarding a party’s additional insured status contained in a certificate of insurance issued by the insurer’s authorized agent, even where the certificate contains language disclaiming any effect on coverage. To hold otherwise, the court noted, would render meaningless representations made on the insurer’s behalf and enable the insurer to mislead parties without consequence.
The certified question and ruling stem from T-Mobile USA’s appeal of the district court’s summary judgment ruling in favor of Selective Insurance Company on T-Mobile USA’s breach of contract and declaratory judgment claims. Selective issued the insurance policy at issue to a contractor of T-Mobile Northeast, LLC, a wholly owned subsidiary of T-Mobile USA. Through endorsement, the policy extended “additional insured” status to T-Mobile NE because the contract between T-Mobile NE and the insured required that T-Mobile NE be added as an additional insured. Additional insured status was not, however, extended to T-Mobile USA, as T-Mobile USA had not entered a written contract with the insured.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Michelle M. Spatz, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Spatz may be contacted at mspatz@HuntonAK.com
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Orchestrating Bias: Arbitrator’s Undisclosed Membership in Philharmonic Group with Pauly Shore’s Attorney Not Grounds to Reverse Award in Real Estate Dispute
June 21, 2017 —
Lyndsey Torp - Snell & Wilmer Real Estate Litigation BlogThe California court of appeal recently issued an unpublished decision in Knispel v. Shore, 2017 WL 2492535, affirming a judgment confirming an arbitration award in a real estate dispute involving Pauly Shore. The court of appeal held that the arbitrator’s failure to disclose her membership in the Los Angeles Lawyers Philharmonic Group with the attorney representing Pauly was not grounds to overturn the judgment.
The underlying arbitration involved a dispute between Michael Scott Shore, on the one hand, and his brother, Pauly, among others, on the other hand, regarding certain residential property located on Sunset Boulevard near The Comedy Store in West Hollywood (owned and operated by their mother, Mitzi Shore). The parties agreed to arbitrate their dispute before Judge Aviva K. Bobb (Ret.) of the Alternative Resolution Center. Judge Bobb issued an award in favor of Pauly, and he petitioned the trial court to affirm the award. Michael opposed, contending the arbitrator failed to disclose that she and Pauly’s attorney had both been members of the Lawyers Philharmonic, for which they had been practicing and performing together since November 2010.
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Lyndsey Torp, Snell & WilmerMs. Torp may be contacted at
ltorp@swlaw.com
Courts Will Not Second-Guess Public Entities When it Comes to Design Immunity
May 13, 2024 —
Garret Murai - California Construction Law BlogIt was a bizarre confluence of events. Jorgen Stufkosky was driving on SR-154 in Santa Ynez, California. Martha Aguayo was driving on the same highway ahead of Stufkosky when she struck a deer causing it to fly across the centerline into traffic from the opposite direction. The deer struck a SUV causing its driver to lose control. The driver of the SUV crossed the same centerline where he collided head on with Stufkosky, killing him.
Stufkosky’s children later sued the California Department of Transportation in the case Stufkosky v. California Department of Transportation, 97 Cal.App.5th 492 (2023), alleging that their father’s death was due to Caltrans’ negligent design of SR-153, inadequate number of deer crossing signs, and its high posted speed limit.
While in the trial court, Caltrans filed a motion for summary judgment on the ground that Caltrans was immune from liability under Government Code section 830.6, the so called “design immunity” statute.
The trial court agreed and the Stufloskys appealed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
ASCE Statement on Passing of Senator Dianne Feinstein
October 02, 2023 —
Maria Lehman, President – American Society of Civil EngineersRESTON, Va. – ASCE joins Capitol Hill and the infrastructure community in mourning the loss of Senator Dianne Feinstein (D-CA). At 90 years old, Sen. Feinstein was the longest-tenured female senator in U.S. politics and an immensely influential voice in the U.S. Senate and her home state of California. A true pioneer in U.S. politics, Sen. Feinstein was the first female mayor of San Francisco and one of the first women elected to the U.S. Senate from California.
During her three decades in the Senate, Sen. Feinstein was a staunch advocate for issues impacting the engineering profession and strongly supported the recent passage of the bipartisan Infrastructure Investment and Jobs Act (IIJA). Sen. Feinstein was a champion for legislation to mitigate the impacts of climate change, a strong supporter of bills to improve drinking water for disadvantaged communities, and, in recent years, served as ASCE's key champion for both the reauthorization of the National Dam Safety Program and the 21st Century Dams Act.
Sen. Feinstein consistently sought middle ground on issues that were pertinent to all Americans, a rare and admirable trait in our increasingly divisive political climate. ASCE will remember Sen. Feinstein for all that she accomplished on behalf of our nation's infrastructure, and we look forward to continuing her fight to ensure our infrastructure systems can withstand the impacts of increasingly severe weather events. Our deepest sympathies go out to her family.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Avoid the Headache – Submit the Sworn Proof of Loss to Property Insurer
September 28, 2020 —
David Adelstein - Florida Construction Legal UpdatesProperty insurance policies (first party insurance policies) contain post-loss obligations that an insured must (and should) comply with otherwise they risk forfeiting insurance coverage. One post-loss obligation is the insurer’s right to request the insured to submit a sworn proof of loss. Not complying with a post-loss obligation such as submitting a sworn proof of loss can lead to unnecessary headaches for the insured. Most of the times the headache can be avoided. Even with a sworn proof of loss, there is a way to disclaim the finality of damages and amounts included by couching information as estimates or by affirming that the final and complete loss is still unknown while you work with an adjuster to quantify the loss. The point is, ignoring the obligation altogether will result in a headache that you will have to deal with down the road because the property insurer will use it against you and is a headache that is easily avoidable. And, it will result in an added burden to you, as the insured, to demonstrate the failure to comply did not actually cause any prejudice to the insurer.
By way of example, in Prem v. Universal Property & Casualty Ins. Co., 45 Fla. L. Weekly D2044a (Fla. 3d DCA 2020), the insured notified their property insurer of a plumbing leak in the bathroom. The insurer requested for the insured to submit a sworn proof of loss per the terms of the insured’s property insurance policy. The insurer follow-up with its request for a sworn proof of loss on a few occasions. None was provided and the insured filed a lawsuit without ever furnishing a sworn proof of loss. The insurer moved for summary judgment due the insured’s failure to comply with the post-loss obligations, specifically by not submitting a sworn proof of loss, and the trial court granted the insurer’s motion. Even at the time of the summary judgment hearing, the insured still did not submit a sworn proof of loss.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Points on Negotiating Construction Claims
December 30, 2013 —
CDJ STAFFEugene Heady of Smith Currie and Hancock offers some pointers on the effective negotiation of construction claims. He notes that “claims and disputes in the construction industry are commonplace,” but that “settlement usually comes after much pain, suffering, and expense.” He offers nine points to consider when negotiating construction claims.
His first two points are to develop a claim position and then document that claim. He says that “the facts underlying the claim should be nonnegotiable.” The documentation “suggests to your opponent that you have done your homework and are serious about the pursuit of your claim.” He also notes that you need to understand the strengths and weaknesses of your position.
On the other side, you need to “understand your opponent’s positions,” and also “your opponent’s strengths.” He points out that “an appreciation for what is truly important to your opponent is the starting point for the development of creative solutions to the dispute.
Further, bargaining should be done in good faith, negotiation should be done on the merits, and you are well advised to “choose a seasoned and skilful negotiator. “A prolonged and expensive legal battle is not likely to change the outcome,” he warns.
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