SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors

September 23, 2024 — Gus Sara - The Subrogation Strategist
In Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its insurer’s rights to subrogation against subcontractors when it agreed to waive subrogation against the general contractor. The court ultimately decided that the unambiguous language of the subrogation waiver in the development agreement between the parties did not extend to subcontractors. The court also held that the tenant’s requirement that subcontracts include a subrogation waiver did not, in this case, impose a project-wide waiver on all parties. The court, however, found that the requirement that the subcontracts include a similar, but not identical, waiver provision rendered the subcontract’s waiver clauses ambiguous and remanded the case to the lower court to determine if the parties to the development agreement – i.e., Duke Baltimore LLC (“Duke”) and Amazon.com.dedc, LLC (“Amazon”) – intended that the waiver clause in the subcontracts covered claims against subcontractors. This case involved roof and structural damage to a warehouse in Baltimore, Maryland that Duke owned. In March 2014, Amazon entered into a development agreement with Duke for the construction of the warehouse. Amazon also agreed to subsequently lease the warehouse from Duke. Although Amazon essentially owned and/or developed the project, the development agreement identified Duke as “Landlord” and Amazon as “Tenant.” Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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The National Building Museum’s A-Mazing Showpiece

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
The “massive maze” designed by the Bjarke Ingels Group (BIG) is now open at the National Building Museum in Washington D.C., reported Architect Magazine. The roughly 60-foot square maze reaches about 18 feet, but the “walls slope in toward the center, allowing visitors to see more of the maze as they move through it.” When you reach the center, you get a complete overview of the maze. Read the court decision
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Claims for Bad Faith and Punitive Damages Survive Insurer's Motion for Summary Judgment

August 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for partial summary judgment seeking to dismiss claims for bad faith and for punitive damages. Van Der Weide v. Cincinnati Ins. Co., 2017 U.S. Dist. LEXIS 101735 (N.D. Iowa June 30, 2017). The homeowner sued the insured general contractor after water was found leaking into the home, causing significant water damage. Cincinnati rejected the general contractor's tender and denied any duty to defend, contending that the alleged defects were discovered after Cincinnati's policy period had ended. Cincinnati was advised that two experts for the insured would testify that the property damage occurred due to construction defects and that the damage began shortly after completion of the home. Cincinnati still refused to defend. 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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I’m Sorry, So Sorry: Legal Implications of Apologies and Admissions of Fault for Delaware Healthcare Professionals

March 12, 2015 — John D. Balaguer and Christine Kane – White and Williams LLP
In July 1960, Brenda Lee had the number one hit song in America. The 15-year-old singer belted her heart out as she expressed her apologies singing: I'm sorry, so sorry That I was such a fool I didn't know Love could be so cruel Oh-oh-oh-oh-oh-oh-oh-yes You tell me mistakes Are part of being young But that don't right The wrong that's been done Views vary about whether a healthcare professional should convey an apology to a patient or patient’s family when treatment does not go as expected. The fear is that these words will be misconstrued as an admission of error that could make a negligence claim more likely, or at least make the claim, if it comes, harder to defend. In Delaware, the law provides some level of protection to such communications, but as a recent case illustrates, that protection is not absolute because the relevant statute makes an important distinction between an expression of apology, sympathy or condolence, and an admission of fault. So, if you are going to apologize, you are well advised to choose your words carefully. Reprinted courtesy of John D. Balaguer, White and Williams LLP and Christine Kane, White and Williams LLP Mr. Balaguer may be contacted at balaguerj@whiteandwilliams.com Ms. Kane may be contacted at kanec@whiteandwilliams.com Read the court decision
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North Miami Beach Rejects as Incomplete 2nd Engineering Inspection Report From Evacuated Condo

July 25, 2021 — Richard Korman - Engineering News-Record
North Miami Beach has rejected a new engineering inspection report provided by the Crestview Towers condominium association, keeping about 300 evacuated residents from returning to their apartments and raising new questions about engineering inspection reports in the aftermath of the Champlain Towers South collapse. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Contractors Should Be Optimistic that the Best Value Tradeoff Process Will Be Employed by Civilian Agencies

September 10, 2018 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel
In The Fiscal Year 2019 NDAA Imposes Government-Wide Limitations on the Use of Lowest-Price Technically Acceptable Procurements, Pillsbury attorneys Dick Oliver and Aaron Ralph are optimistic that contractors will soon have additional legal authority to demonstrate to civilian agencies that a best value tradeoff process should be employed.

• Congress’ trend of limiting the use of the much-derided lowest price, technically acceptable (LPTA) procurement process continues.

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

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Revel Closing Shows Gambling Is No Sure Thing for Renewal

September 03, 2014 — Christopher Palmeri – Bloomberg
The Revel Casino Hotel was envisioned as a playground for Wall Streeters who hated flying to Las Vegas. Instead, it’s become a money pit for the banks and money managers who spearheaded the New Jersey project, and the losses will keep coming even after closing today. The Atlantic City resort, built at a cost of $2.4 billion, ceased operations after two bankruptcies and a 10-month search for a buyer. Barring a sale, the new owners may be Wells Fargo & Co. and JPMorgan Chase & Co., which provided $125 million in court-approved funding. Previous backers also included Capital Group Cos., the third-largest manager of U.S. mutual funds, and Morgan Stanley, the original investor. The resort fell prey to poor timing, bad design and a misreading of the local market. The Revel saga shows what can go wrong when bankers stray from what they know, according to Charles Geisst, a professor of finance at Manhattan College in New York and author of the book “Wall Street: A History.” Read the court decision
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Reprinted courtesy of Christopher Palmeri, Bloomberg
Mr. Palmeri may be contacted at cpalmeri1@bloomberg.net

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Contractor’s Unwritten Contractual Claim Denied by Sovereign Immunity; Mandamus Does Not Help

September 22, 2016 — David R. Cook Jr. – AHHC Construction Law Blog
In a very well-reasoned opinion, the Supreme Court of Georgia upheld the denial of a contractor’s unwritten-contract claim against a county based on sovereign immunity. Based on an alleged oral contract, Contractor built a sewer pumping station for the County in exchange for an interest in the station’s pumping capacity. When the County denied Contractor’s demand for an interest, he filed suit. As noted in many prior posts, the Georgia constitution reaffirms sovereign immunity of the state – which the courts interpret to include counties. One common exception in the public works area is the Constitution’s “ex contractu clause,” which waives sovereign immunity for claims based on written contracts. Of course, a precondition to the waiver of sovereign immunity is the existence of a written contract – which Contractor did not have. Applying these rules, the court affirmed the denial of Contractor’s claims based on contract and quasi contract. In the absence of a written contract, there can be no contractual claim against the County. The same rule applies for quasi-contractual claims. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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