SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Statute of Limitations and Bad Faith Claims: Factors to Consider

May 16, 2022 — Anastasiya Collins - Saxe Doernberger & Vita
How much time do our clients have to bring a bad faith action against an insurer? Although we are not frequently asked this question, it is one that we constantly analyze before asserting a bad faith claim. To answer this question, we look to the statute of limitations, which is a law passed by a state legislative body that sets the maximum amount of time for a party to bring a claim based upon a particular cause of action. For policyholders, knowing which statute of limitations applies to their bad faith claim is critical because it indicates whether it is possible to initiate legal proceedings. In addition, it determines the amount in damages available in case of a successful resolution. Statute of Limitations in Breach of Contract vs. Tort Claims One key determinant of a statute of limitations for bad faith is whether the claim is brought as a tort or a breach of contract action. The consequence of framing bad faith as a tort is that a policyholder is not just limited to contract damages. The policyholder can also receive recourse for emotional distress, pain, suffering, punitive damages, attorney’s fees, and other damages that the court may consider appropriate. Unfortunately, however, not every jurisdiction allows plaintiffs to bring bad faith actions as tort claims. While, for example, courts in California, Colorado, and Connecticut allow bad faith claims sounding in tort, courts in jurisdictions such as Tennessee do not. Read the court decision
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Reprinted courtesy of Anastasiya Collins, Saxe Doernberger & Vita
Ms. Collins may be contacted at ACollins@sdvlaw.com

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Denver Passed the Inclusionary Housing Ordinance

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
ABC 7 reported that Denver, Colorado has passed a city ordinance that will require “developers building 30 or more units to offer 10 percent of them at a cheaper rate.” The Inclusionary Housing Ordinance is meant to increase the number of homes for “middle income earners.” "This city is really facing a housing crisis when it comes to affordability," Samaria Crews, deputy director of the Front Range Economic Strategy Center, told ABC 7. Builders can opt out of the ordinance by paying a fee, and a “new amendment would allow builders to build the low-income inventory off-site.” Read the court decision
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Traub Lieberman Attorneys Named to Hudson Valley Magazine’s 2022 Top Lawyers List

January 24, 2022 — Traub Lieberman
Traub Lieberman is pleased to announce that nine Partners from the Hawthorne, NY office have been named to the 2022 Hudson Valley Magazine Top Lawyers List. 2022 Hudson Valley Magazine’s Top Lawyers:

• Mario Castellitto – Construction
• Jonathan R. Harwood – Professional Malpractice (Non-Medical) – Defense
• Colleen E. Hastie – Construction
• Timothy G. McNamara – Product Liability
• Hillary J. Raimondi – Professional Malpractice (Non-Medical) – Defense
• Richard J. Rogers – Insurance
• Lisa M. Rolle – Professional Malpractice (Non-Medical) – Defense
• Stephen D. Straus – Product Liability
• Lisa L. Shrewsberry – Professional Malpractice (Non-Medical) – Defense

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Reprinted courtesy of Traub Lieberman

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Building the Secondary Market for Reclaimed Building Materials

August 30, 2021 — Christopher G. Hill - Construction Law Musings
For this week’s guest post Friday, Musings welcomes Mark Rabkin of Deconstruction Management, Inc., the first, dedicated, for-profit deconstruction management firm in the country. Based in Northeast Ohio, it through all stages of building removal from property acquisition to deconstruction to recycling and architectural salvage. With 10 years of professional experience as an independent risk advisor focusing on sustainable real estate and development, Mark counsels his clients on effective strategies to reduce hazards and mitigate losses. Mark oversees the marketing and administrative functions of Deconstruction Management, Inc. and is responsible for managing the architectural salvage and the upcycled material reuse and resale side of the business. Mark is a leader in the advocacy of sustainable building strategies both locally and nationally. Mark serves as the volunteer Director of Advocacy for the Northeast Ohio Chapter of the United States Green Building Council. He is also an active contributor on many of the chapter’s strategic implementation teams. Mark is a member of Entrepreneurs for Sustainability, the Council of Smaller Enterprises’ Sustainability Task Force and is an active participant in the Sustainable Cleveland 2019 Initiative. 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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Can Your Small Business Afford to Risk the Imminent Threat of a Cyber Incident?

November 28, 2018 — Jeffrey M. Dennis & Heather H. Whitehead – Newmeyer & Dillion LLP
Cybersecurity incidents are occurring on a daily basis and at an increasingly growing rate. Yet, many small businesses still have not obtained adequate (or any) cyber insurance to address these risks and the costly impacts to the business that will result. In a recent study completed by the Insurance Information Institute1, only about a third of all small businesses polled responded that they have cyber insurance in place, with 70% of respondents replying that they have no plans to purchase a cyber insurance policy in the next 12 months. Most of the businesses indicated that they do not believe they have any need for cyber insurance, yet almost half of those same companies stated they are unprepared to handle cyber threats. A main reason for not purchasing cyber insurance was a lack of understanding about this type of insurance and coverages available. The Risks for Small Businesses These statistics are alarming considering that the average cost of a cyber-related loss for a small business has increased 250% in the past two years, and now totals $188,400. In determining whether insurance coverage should be purchased, companies typically assess the perceived risks to the company, the likelihood of such risks occurring, as well as any costs or expenses that may result. For example, most companies regularly obtain a property policy to cover a fire or other casualty that may damage its business location even though such an event is unlikely or unexpected. Yet, cyber incidents are just as likely, if not more likely to occur, and the impacts to a company in the event of an incident are far worse. Many incidents result in a complete suspension of the daily operations of the company for several days or longer. In addition to financial loss, companies may face the following as a result of a cyber incident:

• Theft, breach or loss of information and data;
• Damage to the company's reputation, brand or image; and
• Regulatory, governance and legal issues.
• How Cyber Insurance can Help

Cyber insurance policies can be obtained to address the losses related to a data breach and may include costs for investigating a breach, notifying people affected by a breach of personally identifiable information, managing the potential damage to reputation and other crisis-management expenses, recovering lost or corrupted data, and related legal expenses. More importantly, well-drafted policies can afford coverage for business interruption losses; i.e. those expenses and lost revenue resulting from a breached system and a company's inability to continue its usual operations. Coverage may also be obtained for "cyber extortion", which covers costs resulting from an extortion event such as ransomware or fraudulent wire transfers. It is important to keep in mind that cyber insurance is only one component to consider when developing and implementing an overall risk management strategy to prevent cyber incidents. However, taking into account the exposure to a company if and when a cyber incident occurs, it is highly advisable to have this coverage in place. 1Insurance Information Institute, "Small business, big risk: Lack of cyber insurance is a serious threat," October 2018. Jeff Dennis is the head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com. Heather Whitehead is a Partner in the firm's Privacy & Data Security practice. Heather also practices insurance coverage matters for commercial, retail, industrial, mixed-use, multi-family and residential projects. For more information on how Heather can help, contact her at heather.whitehead@ndlf.com. Read the court decision
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Real Estate & Construction News Round-Up 04/13/22

April 25, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Phishing schemes target the mortgage industry, housing prices rise in Europe as Ukrainian refugees flee from their home country, the SEC announces new climate change regulations that will impact commercial real estate, and more.

• The Federal Reserve aims to rein in one of the biggest drivers of runaway inflation: the U.S. housing market. (Lance Lambert, Fortune)
• Late last month, the SEC announced that publicly traded organizations would soon need to disclose their climate change risks and exposure, causing a shake up in the real estate industry. (Hiten Samtani, The Real Deal)
• As the purpose of in-person office work continues to be questioned, the return to office debate causes challenges for occupier services, a backbone of commercial real estate. (Patrick Sisson, Bisnow)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Mitigate Construction Risk Through Use of Contingency

April 26, 2021 — Laurie A. Stanziale - Construction Executive
Mitigation of risk and costs in a construction project are always priorities for owners. In some contracts, in particular, Guaranteed Maximum Price contracts, some of those monetary risks are shifted to the contractor. Contingency is important because it allows for money to be in the budget for the unexpected and to keep the project moving, which benefits everyone. WHAT IS CONTINGENCY? Contingency is an amount of money built into the contractor’s price to complete the project to address unforeseen (although sometimes very common) costs that arise. This sum of money is generally referred to as the contractor’s contingency. The amount of the contingency is a balance struck between having money on hand to address the unexpected while also not unnecessarily tying up money that could otherwise be used for the project. Contingency is typically 5-10% of the hard costs. However, how the money is actually allocated during the project is not always well thought out, which can be the source of problems during the project. The contractor’s contingency is not to be confused with an owner’s contingency (or reserve) which is outside of the contractor’s budget and generally used for owner driven changes to the project, such as changes to scope, design and schedule. Reprinted courtesy of Laurie A. Stanziale, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Default Should Never Be An Option

June 19, 2023 — Christopher G. Hill - Construction Law Musings
Every time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate. One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment. 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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