SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Contractors Struggle with Cash & Difficult Payment Terms, Could Benefit From Legal Advice, According to New Survey

December 30, 2019 — Christopher G. Hill - Construction Law Musings
Guest Post Friday is back with a post from my pal Scott Wolfe. Scott is the founder and CEO of Levelset, which is used by thousands of contractors to make payments fast and easy. Scott, previously a construction attorney himself, founded Levelset to even the $1 trillion construction playing field, and is on a mission to make payments less stressful for contractors and suppliers across the globe. Getting paid in construction is slow, hard, and stressful, according to a survey conducted by Levelset & TSheets by Quickbooks that polled over 500 construction professionals. Half of the contractors surveyed complained that they did not get paid on time, which caused serious cash flow issues that negatively impacted their customer relationships and frequently forced them to dip into personal savings and lines of credit to keep their business afloat. View the 2019 Construction Payment Report here. Unfortunately, since the construction industry’s slow payment problems are well-documented, this sad reality isn’t too surprising. The findings, though, do demonstrate a massive cash crunch for the 1.5 million+ contractors in the United States, and underscores the importance of having legal help and counsel from a construction lawyer before, during, and after jobs. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Insurer Beware: Failure to Defend Ends with Hefty Verdict

June 01, 2011 — Douglas Reiser, Builders Council Blog

Served with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.



Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.



But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict



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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Energy Efficiency Ratings Aren’t Actually Predicting Energy Efficiency

February 07, 2022 — Ryan Hesketh - Bloomberg
There’s a secret dogging British buildings with some of the most coveted environmental ratings: On paper they’re green, but scratch the surface and they’re red hot. Buildings that have received the highest rating in the U.K. — an A Energy Performance Certificate — use more energy than some of their peers rated C, D, E or even F. This disparity between how buildings are designed and what their actual emissions are is widespread in the U.K., according to recent findings from the Better Buildings Partnership, which analyzed 2020 self-reported energy data provided for more than 1,100 commercial properties. It found that commercial buildings regularly use more energy than their sterling eco-friendly labels would suggest. In fact, the analysis finds, the ratings are so far off that the median energy intensity for all B-rated buildings is higher than for C-rated buildings. Read the court decision
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Reprinted courtesy of Ryan Hesketh, Bloomberg

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Texas Supreme Court Holds Anadarko’s $100M Deepwater Horizon Defense Costs Are Not Subject To Joint Venture Liability Limits

February 27, 2019 — Sergio F. Oehninger & Michael S. Levine - Hunton Andrews Kurth
Reversing a Texas Court of Appeals decision that allowed Anadarko’s Lloyd’s of London excess insurers to escape coverage for more than $100 million in defense costs incurred in connection with claims from the Deepwater Horizon well blowout, the Supreme Court of Texas held that the insurers’ obligations to pay defense costs under an “energy package” liability policy are not capped by a joint venture coverage limit for “liability” insured. Anadarko Petroleum Corp. et al. v. Houston Casualty Co. et al., No. 16-1013 (Tex. Jan. 25, 2019). While the Lloyd’s of London insurers had agreed to pay Anadarko $37.5 million for damages, they declined to cover $100 million-plus in defense fees, arguing that both Anadarko’s liability and defense expenses are subject to the $37.5 million joint venture limit for “liability” insured. Anadarko asserted that only amounts paid as damages to third parties are subject to that limit. Defense costs, however, are not amounts paid as damages to a third party and, thus, are not a “liability.” Those amounts, therefore, are not subject to the joint venture limit and are instead subject to the policy’s $150 million coverage limit. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Michael S. Levine, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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Subcontractor Not Liable for Defending Contractor in Construction Defect Case

February 10, 2012 — CDJ STAFF

The California Court of Appeals has ruled on January 9, 2012 in Hensel Phelps Construction Company v. Urata & Sons Cement, upholding the judgment of the lower court.



Hensel Phelps was the general contractor for a high-rise in Sacramento. They were sued by the owners of the building after problems were discovered in the concrete slabs of the building’s parking garage. Instead of welded steel wire mesh, the slabs had been constructed with fiber mesh. Hensel Phelps filed a cross-complaint against Urata Cement, the subcontractor that had performed the cement work. Urata refused to defend Hensel Phelps. The owners’ case was subsequently dismissed due to the statute of limitations.



Although the original case was over, Hensel Phelps continued in their claims against Urata. “Urata argued that a handwritten interlineation required Hensel Phelps to prove Urata was at fault for the injury alleged in the building owners’ complaint before Urata was obliged to defend Hensel Phelps in that action.”



The lower court concluded that Urata would have been obligated to defend Hensel Phelps if the owners’ lawsuit had alleged that the damage was due to the subcontractor’s work or if evidence at trial established this. The lower court found neither of these true. Instead, the use of the fiber mesh was a design issue and “that decision was outside the scope of the subcontractor’s work.”



During the trial, Hensel Phelps conceded that Urata was not at fault. The appeals court could find no reading of the contract that would cause Urata to be obligated to defend Hensel Phelps, calling Hensel Phelps’s reading of the contact as “grammatically infeasible.”



Judges Nicholson, Raye, and Butz upheld the decision of the lower court and awarded costs on appeal to Urata.

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Ensuing Loss Provision Does Not Salvage Coverage

December 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Water intrusion caused by a construction defect was not covered under the all risk policy’s ensuing loss provision. See Friedberg v. Chubb & Son, Inc., 2011 U.S. Dist. LEXIS 123582 (D. Minn. Oct. 25, 2011).

Extensive water damage was discovered in the insureds’ home when a small hole in the exterior wall was being repaired. Chubb’s adjuster and an expert found water intrusion causing rot, mold, and damage to the home’s wood framing and insulation. Chubb denied coverage because water intruded through the roof and wall, resulting in gradual deterioration. The insureds filed suit.

The policy excluded coverage for construction defects, but insured "ensuing covered loss unless another exclusion applies."

The court agreed there was a prima facie case for coverage because the home suffered a physical loss.

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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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Structural Problems May Cause Year-Long Delay Opening New Orleans School

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Uptown Messenger, structural issues found at Audubon Charter School’s Broadway campus in New Orleans, Louisiana, will require “selective demolition” and “could delay students’ return by as much as a full year.” Late September of last year, “officials discovered that some of the steel supports around the stair towers were not level—some of the steel beams lean out several inches, so that the floors are not parallel.” Discovering the problem will require some demolition, according to Chris Young of Blitch Knevel architects as quoted in the Uptown Messenger: “…we’re going to have to tear down a lot of this construction to expose that steel frame to make sure that every steel beam is straight and true and not deformed.” Read the court decision
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Candis Jones Named to Atlanta Magazine’s 2022 “Atlanta 500” List

February 14, 2022 — Candis Jones - Lewis Brisbois Newsroom
Atlanta, Ga. (February 11, 2022) - Atlanta Partner Candis R. Jones has been named to Atlanta Magazine’s 2022 “Atlanta 500” list of the most powerful business leaders in Atlanta. This is the second year in a row she has received this recognition. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionary by, for example, leading programs for their communities or creating opportunities for employees. Read the court decision
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Reprinted courtesy of Candis Jones, Lewis Brisbois
Ms. Jones may be contacted at Candis.Jones@lewisbrisbois.com

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