Seattle Washington Building Expert Directory

Lost Rental Income not a Construction Defect

November 27, 2013 — CDJ STAFF
A judge in Colorado has ruled that although the homeowner’s policy excluded construction defects from coverage, lost rental income and the cost of deck repair involved in fixing a defective drainage system were. Read the court decision
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Forcible Entry and Detainer Actions: Courts May Not Consider Tenant’s Hardship

December 08, 2016 — Erica Stutman – Snell & Wilmer Real Estate Litigation Blog
If you own property and a tenant wrongfully refuses to vacate the premises (for example when the lease expires or after proper written notice of termination), you may have a quick and easy remedy to have the tenant removed. Arizona’s forcible entry and detainer (FED) statute allows a person to bring a speedy, summary action to obtain an order that the person must leave the property immediately. See A.R.S. § 12-1171 – 1183. To allow for quick resolution, the only question a court may consider in a FED action is who has the right of possession of the property. A.R.S. § 12-1177(A) (“On the trial of an action of forcible entry or forcible detainer, the only issue shall be the right of actual possession and the merits of title shall not be inquired into.”). Counterclaims and cross-claims are not permitted in a FED action, and must be addressed in a separate civil action between the parties. If factual questions bear on the right of possession, they will also need to be resolved in a regular civil action. Read the court decision
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Reprinted courtesy of Erica Stutman, Snell & Wilmer
Ms. Stutman may be contacted at estutman@swlaw.com

The Risk of A Fixed Price Contract Is The Market

August 03, 2022 — David Adelstein - Florida Construction Legal Updates
When performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market shifts and that shift can have a negative ripple effect. In a recent case out of the Federal Circuit, U.S. Aeroteam, Inc. v. U.S., 2022 WL 243176 (Fed.Cir. 2022), this market risk played a role in a fixed price contract. Here, a contractor was hired by the federal government to produce ground support trailers. A key component of these trailers was a running gear. The contractor relied on a vendor for these running gears. Due to financial difficulties, the vendor had to raise its unit price for the running gears. Based on the increased price, the contractor elected to manufacture the running gears itself. The contractor asked the government if this was ok and the government approved the request. Once the contractor started manufacturing these running gears, it had an “awe” moment – the manufacturing costs were higher than anticipated. The contractor submitted a request for equitable adjustment which the government denied. The Contractor than sued the government raising three arguments to support its entitlement to additional costs: (1) constructive change; (2) cardinal change; and (3) commercial impracticability. The contractor lost on all arguments. It probably should have lost on all arguments. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New Jersey Supreme Court Hears Arguments on Coverage Gap Dispute

October 26, 2017 — Austin D. Moody - Saxe Doernberger & Vita, P.C.
On Tuesday, October 24, the New Jersey Supreme Court heard arguments in a 17-year-old battle over whether Honeywell International Inc. (Honeywell) will have to help cover the costs of asbestos-related injury suits that were filed against it after insurers began to universally exclude coverage for asbestos-related liabilities. The Court considered the arguments made by two excess insurers, St. Paul Fire and Marine Insurance Co. (St. Paul) and parent Travelers Casualty and Surety Co. (Travelers), that the Court should overturn a state appellate court’s ruling that Honeywell does not have to contribute to these costs. During the course of this case, Honeywell has sought coverage under more than 300 different policies, ultimately settling with all insurers except St. Paul and Travelers, who had issued a total of 10 excess policies to Honeywell’s predecessor, Bendix Corp. (Bendix) between 1968 and 1983. Honeywell has only sought coverage for claims made by individuals who allege that they were first exposed to asbestos prior to 1987. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

Evolving Climate Patterns and Extreme Weather Demand New Building Methods

May 22, 2023 — Annette Rubin - Construction Executive
Compared to the rest of the world, most buildings in the United States are relatively young. But most residential and commercial properties could use a makeover. Buildings constructed over twenty, fifty and one hundred years ago are, unsurprisingly, not as energy-efficient or as safe as new builds following modern methods—especially when considering the effects of climate change and more frequent extreme weather events on the integrity of that infrastructure. According to the National Association of Home Builders, over 90% of new homes built in the United States today are wood-framed. These homes are incapable of withstanding a tornado or hurricane, yet they are still being built directly in the path of storms. Even buildings constructed in some of the most earthquake-prone areas of the U.S. may contain design flaws that make them susceptible to damage because they are built using a non-ductile concrete method, which experts say has an inadequate configuration of steel reinforcing bars—making the building vulnerable when shaken. While this building method was banned for new construction, it is not yet required to retrofit older construction to improve safety and structural integrity. Reprinted courtesy of Annette Rubin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Appraisers May Determine Causation

January 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In a case of first impression, the Iowa Court of Appeals held that an appraisal may determine issues of causation. North Glenn Homeowners Association v. State Farm Fire & Cas. Co., 854 N.W. 2d 67 (Iowa Ct. App. 2014). On July 15, 2009, North Glenn Homeowners Association submitted a claim to State Farm for hail damage on the roof. The claim was paid. North Glenn did not repair all of the damage, instead deciding to use some of the money to make other repairs to the property. 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

Labor Intensive

May 10, 2022 — Neil Flynn - Construction Executive
In 2020, the United States saw a significant decrease in non-fatal workplace injuries, which dropped to 2.1 million from 2.8 million the year before. While the precise extent to which this reduction in workplace injuries is attributable to COVID-19 is unknown, the pandemic was undoubtedly a significant factor. It is also unclear to what extent the pandemic affected the number and rate of workplace incidents in 2021 or might continue to do so in 2022 and beyond. However, it is reasonable to expect that, as pandemic-related restrictions are removed and life returns to normal, the construction industry will revert to pre-pandemic employment levels and beyond. It is also reasonable to conclude that, once that level of recovery is attained, the number and rate of both fatal and non-fatal workplace incidents will increase substantially. Even with the significant reduction in the overall number of workplace injuries in 2020, the United States still saw nearly 8,000 construction workers miss at least one day of work due to an injury sustained on the job, according to the U.S. Bureau of Labor Statistics (BLS). And, despite construction accounting for just 6% of jobs, BLS reports that construction-related incidents account for 20% of workplace deaths, or three every day. This one-fifth share of workplace fatalities makes construction the third-deadliest industry in the United States. Reprinted courtesy of Neil Flynn, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Flynn may be contacted at nf@plattalaw.com

Contingent Business Interruption Claim Denied

April 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for contingent business interruption ("CBI") coverage was denied in Millennium Inorganic Chemicals Ltd. v. Nat. Union Fire Ins. Co. of Pittsburgh Pa., 2014 U.S. App. LEXIS 3096 (4th Cir. Feb. 20, 2014). Millenium processed titanium dioxide, a compound used for its white pigmentation, at its plant in Western Australia. Millennium purchased natural gas to process the titanium dioxide from Alinta Sales Pty Ltd., a natural gas supplier. Alinta purchased gas from Apache Corporation. Once Apache processed the natural gas, it was injected into a pipeline. The gas from Apache's facility was commingled with that obtained from other producers, resulting in a mix of gas in a single pipeline. Alinta had sole ownership of the gas once it entered the pipeline. Under Alinta's contract with Millennium, title to the gas passed to Millenium only at the time of delivery, i.e., when the gas left the pipeline and was delivered to Millennium's facility through a separate delivery line. Millennium had no contract or business relationship with Apache, and the contract it had with Alinta made no reference to Apache. An explosion occurred at Apache's facility causing its natural gas production to cease. As a result, Millennium's gas supply was curtailed, and it was force to shut down its operations for a number of months. 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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