Seattle Washington Building Expert Directory

ICE Said to Seek Mortgage Role Through Talks With Data Service

August 06, 2014 — Matthew Leising, Jesse Hamilton and Jody Shenn – Bloomberg
Intercontinental Exchange Inc. (ICE), best known for energy trading and its control of the New York Stock Exchange, is engaged in negotiations that would give it a foothold in the $9.4 trillion U.S. mortgage market. ICE is in early stage talks to form a partnership with Mortgage Electronic Registration Systems Inc., which documents the ownership and resale of about half of U.S. home loans, according to a person familiar with the matter, who asked to not be identified because the discussions are private. The Atlanta-based exchange owner has been gauging demand for derivatives that enable investors to bet on defaults by U.S. homeowners, Bloomberg News reported in May. ICE, which earns most of its revenue by owning one of the world’s largest derivatives markets, has recently expanded into new businesses such as equity trading with its 2013 purchase of NYSE Euronext and the administration of interest-rate benchmarks. Mr. Leising may be contacted at mleising@bloomberg.net; Mr. Hamilton may be contacted at jhamilton33@bloomberg.net; Ms. Shenn may be contacted at jshenn@bloomberg.net Read the court decision
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Reprinted courtesy of Matthew Leising, Jesse Hamilton and Jody Shenn, Bloomberg

Be Careful With Construction Fraud Allegations

April 06, 2016 — Christopher G. Hill – Construction Law Musings
Here at Construction Law Musings we have discussed the intersection of contracts, construction and fraud on several occasions. We’ve even discussed how such fraud can bleed over from the civil to the criminal. Recently, the Virginia Supreme Court weighed in again on the question of construction fraud and criminal allegations. In O’Connor v. Tice, the Court discussed a malicious prosecution action brought by a contractor against owners of a commercial building. In O’Connor, the owners and the contractor got into a disagreement over alleged damage to the roof of the owners’ building and who was responsible. In response to this disagreement, the owners contacted the local sheriff’s office, accusing the contractor of construction fraud, and then wrote a “15 day letter” to the contractor outlining the criminal consequences should he fail to pay the damages sought in the owners civil lawsuit. Subsequently, a criminal warrant was issued against the contractor based solely upon the word of the owners. This last occurred at the insistence of the owners (who did not inform the sheriff’s deputy or the Commonwealth Attorney that they’d had this conversation or that the contractor had partially performed) after they discussed the matter with the contractor’s attorney and were informed that any claim that they may have had was civil in nature. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Construction Law Musings
Mr. Hill may be contacted at chrisghill@constructionlawva.com

The Choice Is Yours – Or Is It? Anti-Choice-of-Laws Statutes Applicable to Construction Contracts

October 03, 2022 — Tiffany Raush & Tanya McGill - ConsensusDocs
During contract negotiations and review, the parties make choices about what risks they are willing to accept and at what cost. But one often overlooked choice—the choice of law applicable to the contract—can undermine carefully negotiated construction contracts and expose contractors to risks they never intended to accept. Choice-of-law provisions are standard provisions in most contracts. These provisions allow the parties to the contract to decide which state’s laws will apply to their contract. Often, choice-of-law in the construction contract is the law of the state where the project is located and there will be no issue. But, if the project is located in an unfamiliar, the owner or prime contractor may prefer the laws of the state where the owner or prime contractor is primarily located over the laws of the state where the project is located. Generally, most states will enforce the parties’ choice of law in a contract. But that may not be the case for construction contracts. States like Texas, California, New York, Florida, Louisiana, and others may prohibit parties from agreeing to the application of another state’s law for construction projects in their states. Reprinted courtesy of Tiffany Raush, Jones Walker LLP (ConsensusDocs) and Tanya McGill, University of Mississippi School of Law Student, 2023 Graduate (ConsensusDocs) Ms. Raush may be contacted at traush@joneswalker.com Read the court decision
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Force Majeure Recommendations

August 15, 2022 — Denise Motta - Gordon & Rees Construction Law Blog
This Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by a force majeure event. Contract Protection Tips: A force majeure event is defined as an unforeseeable circumstance that prevents someone from fulfilling a contract. Because many events arising on a construction project could be arguably unforeseen, it is imperative that the contract contain a Force Majeure provision. Examine all contracts for the applicable Force Majeure provision. Look for a clause like this:

§ 8.3.3 Any failure or omission by Owner or Contractor in performance of its obligation shall not be deemed a breach or create any liability for damages or other relief (other than additional time) if it arises from any cause beyond the reasonable control of such party, including, without limitation, acts of God, floods, fire, explosions, storms, earthquakes, acts of public enemy, war, terrorism, rebellion, insurrection, riot, sabotage, invasion, epidemic, quarantine, strikes, lockouts, labor disputes or other industrial disturbances, or any order or action by any governmental agency, or causes of similar nature.

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Reprinted courtesy of Denise Motta, Gordon Rees Scully Mansukhani, LLP
Ms. Motta may be contacted at dmotta@grsm.com

Hawaii Appellate Court Finds Duty to Defend Group Builders Case

May 10, 2013 — Tred Eyerly
On May 19, 2010, the Hawaii Intermediate Court of Appeals determined construction defect claims did not constitute an occurrence under a CGL policy.Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010) ("Group Builders I"). The appeal in Group Builders I, however, only addressed the duty to indemnify. The ICA has now issued a second decision (unpublished), holding that there is was duty to defend Group Builders on the construction defect claims under Hawaii law, based upon the policy language and the allegations in the underlying complaint. Group Builders, Inc. v. Admiral Ins. Co., 2013 Haw.App. LEXIS 207 (Haw. Ct. App. April 15, 2013). The underlying suit involved allegations by Hilton Hotels Corp. that Group Builders, a subcontractor working on an addition to the hotel, was responsible for mold found after completion of the project. Hilton alleged that the "design, construction, installation, and/or selection of the . . . building exterior wall finish . . . did not provide an adequate air and/or moisture barriers." The counts alleged against Group Builders included breach of contract and negligence. Read the court decision
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Reprinted courtesy of Tred Eyerly
Mr. Eyerly can be contacted at te@hawaiilawyer.com

Complying With Data Breach Regulations in the Construction Industry

November 24, 2019 — Ryan Bilbrey - Construction Executive
Recent data breach incidents—like the massive Capital One cyberattack, where a former employee accessed more than 100 million customer accounts and credit card applications—have left many users questioning how safe their information really is in the hands of companies. There is reason to be concerned. More than 4.1 billion records were exposed in nearly 4,000 data breaches reported in the first half of 2019 alone, according to the 2019 MidYear QuickView Data Breach Report. Construction companies are not immune. As the industry becomes more reliant on technology—using augmented reality, Building Information Modeling and drones on construction sites, for example—construction companies are becoming greater targets for hackers looking to gain a financial or strategic advantage. Instead of assuming a company will never experience a breach (or rather, denying that it will ever happen), it’s important to be aware of possible threats and establish data breach response policies to minimize potentially catastrophic fallout. Reprinted courtesy of Ryan Bilbrey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Bilbrey may be contacted at rbilbrey@biaprotect.com

Federal Interpleader Dealing with Competing Claims over Undisputed Payable to Subcontractor

September 28, 2017 — David Adelstein - Florida Construction Legal Updates
What do you do if you are holding undisputed money owed to a subcontractor? Well, you make an effort to pay it or tender it! Right? I am never a fan of a client holding undisputed sums without a legitimate contractual basis. There are circumstances, however, where the effort to pay an undisputed payable is not so easy. In fact, it is challenging, as in the below case example where the subcontractor filed for an Assignment for the Benefit of Creditors (referred to as an “ABC”). An ABC, in a nutshell, allows an insolvent entity to file an insolvency action in state court governed by state law and choose its assignee (versus a federal bankruptcy action governed by federal law where a trustee is appointed). One major difference is that there is no automatic stay in an ABC as there is in a federal bankruptcy action. Thus, the insolvent entity can still be sued, but, while that entity is in an ABC, there are many creditors that will not be able to enforce a judgment. (See Florida Statute Ch. 727). Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Admissibility of Expert Opinions in Insurance Bad Faith Trials

November 04, 2019 — David M. McLain – Colorado Construction Litigation
In 2010, Hansen Construction was sued for construction defects and was defended by three separate insurance carriers pursuant to various primary CGL insurance policies.[i] One of Hansen’s primary carriers, Maxum Indemnity Company, issued two primary policies, one from 2006-2007 and one from 2007-2008. Everest National Insurance Company issued a single excess liability policy for the 2007-2008 policy year, and which was to drop down and provide additional coverage should the 2007-2008 Maxum policy become exhausted. In November 2010, Maxum denied coverage under its 2007-2008 primarily policy but agreed to defend under the 2006-2007 primarily policy. When Maxum denied coverage under its 2007-2008 primary policy, Everest National Insurance denied under its excess liability policy. In 2016, pursuant to a settlement agreement between Hansen Construction and Maxum, Maxum retroactively reallocated funds it owed to Hansen Construction from the 2006-2007 Maxum primary policy to the 2007-2008 Maxum primary policy, which became exhausted by the payment. Thereafter, Hansen Construction demanded coverage from Everest National, which continued to deny the claim. Hansen Construction then sued Everest National for, among other things, bad faith breach of contract. In the bad faith action, both parties retained experts to testify at trial regarding insurance industry standards of care and whether Everest National’s conduct in handling Hansen Construction’s claim was reasonable. Both parties sought to strike the other’s expert testimony as improper and inadmissible under Federal Rule of Evidence 702. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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