SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Florida Federal Court Reinforces Principle That Precise Policy Language Is Required Before An Insurer Can Deny Coverage Based On An Exclusion

February 07, 2018 — Walter J. Andrews and Katherine Miller - Hunton Insurance Recovery Blog
A recent ruling by U.S. District Judge Paul Byron of the Middle District of Florida has made clear that the actual words used in an insurance contract matter. The court, in Mt. Hawley Insurance Co. v. Tactic Security Enforcement, Inc., No. 6:16-cv-01425 (M.D. FL. 2018), denied an insurance company’s motion for summary judgment attempting to rely on an exclusion to deny coverage to its policyholder. The policyholder, Que Rico La Casa Del Mofongo, operated a restaurant establishment in Orlando, Florida, and sought coverage for two negligence lawsuits filed against it for allegedly failing to prevent a shooting and another violent incident on its premises. Reprinted courtesy of Walter J. Andrews, Hunton & Williams and Katherine Miller, Hunton & Williams Mr. Andrews may be contacted at wandrews@hunton.com Ms. Miller may be contacted at kmiller@hunton.com Read the court decision
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Bridge Disaster - Italy’s Moment of Truth

September 10, 2018 — Flavia Krause-Jackson & Kathleen Hunter - Bloomberg
The tragedy of modern Italy, so beautiful yet so decrepit, can be told through its bridges. Italians love to point to the Romans as the first engineers – the country boasts some of the world’s oldest viaducts. It’s a source of national pride that blinded the nation to the reality of today, where decades of neglect led to a moment of reckoning. The collapse of the Morandi bridge in Genoa, leaving 43 dead, was followed by the usual mud-slinging, including within a tenuous ruling coalition and more importantly, to soul-searching. Meant to last 100 years, the bridge was hated more than loved – everyone who crossed it felt unsafe. Reprinted courtesy of Flavia Krause-Jackson, Bloomberg and Kathleen Hunter, Bloomberg Read the court decision
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Supreme Court of California Rules That Trial Court Lacking Subject Matter Jurisdiction May Properly Grant Anti-SLAPP Motion on That Basis, and Award Attorney’s Fees

January 19, 2017 — David W. Evans & Stephen J. Squillario - Haight Brown & Bonesteel LLP
In Barry v. The State Bar of California (No. S214058 – 1/5/2017), the California Supreme Court affirmed the trial court’s grant of the State Bar of California’s (“State Bar”) underlying anti-SLAPP motion (Code of Civil Procedure §425.16) on the grounds that plaintiff Patricia Barry (“Barry”), an attorney, had failed to show a probability of prevailing because, among other reasons, the court lacked subject matter jurisdiction over Barry’s claims. The Court confirmed that the absence of subject matter jurisdiction did not prevent a trial court from basing a decision to grant an anti-SLAPP motion on that ground, or to award the prevailing defendant its attorney’s fees. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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New Jersey Construction Worker Sentenced for Home Repair Fraud

October 22, 2013 — CDJ STAFF
Marcin Gradziel, who formerly worked for a construction company in Camden County, New Jersey, has been sentenced to seven years in state prison for insurance fraud. Mr. Gradziel admitted to creating fraudulent property damage claims, which he did for Precision Network Solutions, which did business as Precision Builders. Mr. Gradziel and others went through neighborhoods telling residents that their roofs or siding were damaged by hail and that they could get their homes repaired at no cost. Mr. Gradziel would then return to create damage before the inspectors arrived. Another employee, Dominik Sadowski, previously plead guilty, as did Precision Builders. The firm paid out $68,720 in restitution and is now out of business. Read the court decision
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National Infrastructure Leaders Visit Dallas' Able Pump Station to Tout Benefits of Water Infrastructure Investment

September 25, 2023 — American Society of Civil Engineers
DALLAS, TX. — An award-winning pump station in south downtown Dallas that protects residents from the Trinity River today was showcased by the national Engineering and Public Works Roadshow as an example of how infrastructure investment can improve the resilience of a community, protect residents, and encourage economic growth. The Able Pump Station in downtown Dallas, Texas won awards from both the American Council of Engineering Companies and the American Society of Civil Engineers since its completion in 2019 and has been credited with providing 100-year flood protection to approximately three square miles of high-profile land that was historically vulnerable to severe flooding events from the Trinity River. The Engineering and Public Works Roadshow is a joint project of the American Council of Engineering Companies (ACEC), the American Public Works Association (APWA), and the American Society of Civil Engineers (ASCE). The properties adjacent to the previous Able sump complex had experienced frequent flooding. The sump complex included nine separate and interconnected ponds that store stormwater, as well as two existing pump stations, constructed in the 1930s and 1950s, with a combined capacity of 220,000 gallons per minute. To help prevent the loss of life as a result of flooding, the City of Dallas hired HDR to design the new Able Pump Station, which increases the pumping capacity nearly fourfold, to 875,000 gallons per minute. It also lowers the 100-year flood elevation from 399.0 to a design elevation of 392.5 feet. As the federal government continues to implement this monumental legislation, the second year of the Bipartisan Infrastructure Law will not be fully realized without an expanded and robust workforce. It is imperative that students nationwide are educated on the rewarding careers of civil engineering and public works so that these professions have the necessary staffing to complete transformative projects. Read the court decision
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Why Do Construction Companies Fail?

February 14, 2023 — The Hartford Staff - The Hartford Insights
If a construction company takes on a lot of work, it’s a good thing, right? Not exactly. In fact, overextension is one of the primary reasons why contractors fail. And it’s something that contractors should consider as a priority for their risk management plan. Of the 43,277 construction businesses that started in March 2011, only 37.6% of companies survived 10 years later.1 “The construction industry has a high rate of failure,” explains Tim Holicky, senior executive underwriter in The Hartford’s construction central bond team. “And more often than not, it’s because of too much work, rather than too little of it. The key to a contractor’s long-term survival is knowing when to say no.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

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No Concrete Answers on Whether Construction Defects Are Occurrences

February 14, 2013 — CDJ STAFF
Aaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.” Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences. Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction. Read the court decision
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Keep it Simple with Nunn-Agreements in Colorado

June 28, 2021 — Jean Meyer - Colorado Construction Litigation
On May 24, 2021, the Colorado Supreme Court published its decision in Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass'n.[1] There, the Colorado Supreme Court was tasked with answering whether an insurer, who is defending its insured under a reservation of rights, is entitled to intervene as of right under C.R.C.P. 24(a)(2) where the insured enters into a Nunn agreement with a third-party claimant, but rather than entering into a stipulated judgment, agrees with the third party to proceed via an uncontested trial to determine liability and damages. Interestingly, however, while the Court ultimately answered the above question in the negative, the real lesson from the Colorado Supreme Court’s decision is that Colorado litigants should not seek a trial court’s blessing as to liability and damages through non-adversarial proceedings when using Nunn-Agreements. Or, as articulated in Justice Carlos Samour’s vociferous dissenting opinion, Colorado litigants desiring to enter into a Nunn-Agreement should not proceed with a non-adversarial hearing, as doing so is “offensive to the dignity of the courts,” constitutes a “bogus,” “faux,” “sham” and “counterfeit” proceeding, and the hearing provides “zero benefit.” By way of background, the case arrived in front of the Colorado Supreme Court based on the following fact pattern. A homeowner association (Bolt Factory Lofts Owners Association, Inc.) (“Association”) brought construction defect claims against a variety of prime contractors and those contractors subsequently brought third-party construction defect claims against subcontractors. One of the prime contractors assigned their claims against a subcontractor by the name Sierra Glass Co., Inc. (“Sierra”) to the Association. The other claims between the additional parties settled. On the eve of trial involving only the Association’s assigned claims against Sierra, the Association made a settlement demand to Sierra for $1.9 million. Sierra asked its insurance carrier, Auto-Owners Insurance, Co. (“AOIC”), which had been defending Sierra under a reservation of rights letter, to settle the case for that amount, but AOIC refused. This prompted Sierra to enter into a “Nunn-Agreement” with the Association whereby the case would proceed to trial, Sierra would refrain from offering a defense at trial, the Association would not pursue any recovery against Sierra for the judgment, and Sierra would assign any insurance bad faith claims it may have had against AOIC to the Association. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

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