SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Questions of Fact Regarding Collapse of Basement Walls Prevent Insurer's Motion for Summary Judgment

December 19, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for summary judgment on whether the policy covered the collapse of basement walls based upon factual issues presented. Sirois v. USAA Cas. Ins. Co., 2018 U.S. Dist. LEXIS 158508 (D. Conn. Sept. 18, 2018). The insureds' purchased their home in 2010. In December 2015, a crack in the basement wall was noticed. It was not thought to be a serious problem. But in 2016, the insured read an article about defective concrete problems affecting homeowners in Connecticut. An inspector, Dean Soucy, was hired. He found faults and cracks in the foundation walls. Thereafter, a claim was submitted to USAA under homeowners' policies issued over the years to the insureds. USAA denied coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld

August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018). Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall. The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Insurer Not Entitled to Summary Judgment on Construction Defect Claims

February 10, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The insurer unsuccessfully moved for summary judgment, contending it had no obligation to defend two related underlying construction defect cases. Amerisure Ins. Co. v. R.L.Lantana Boatyard, Ltd., 2012 U.S. Dist. LEXIS 2466 (S.D. Fla. Jan. 9, 2012).



An engineering report noted design construction defects and deficiencies in visible, physical improvements at The Moorings at Lantana Condominium. In two lawsuits, The Moorings sued the developer, R.L. Lantana Boatyard ("RLLB"), and the contractor, Current Builders of Florida.



Current Builders was insured by Amerisure. RLLB was named as an additional insured under the Amerisure policy.

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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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Design Professionals Owe a Duty of Care to Homeowners

July 09, 2014 — Stephen A. Sunseri - Gatzke Dillon & Ballance LLP
Today, the California Supreme Court, in Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (Jul. 3, 2014, S208173) __Cal.4th__ [2014 WL 2988058], held that architects owe a duty of care to future homeowners of residential buildings, particularly if they act as principal architects on a project, and are not subordinate to any other design professional. Until now, design professionals were rarely held liable, if at all, for third-party claims for design deficiencies. In Beacon, architectural and engineering firms provided sole design services for The Beacon residential condominium project, a 595 unit project located in San Francisco. The condominiums were initially leased after construction, but were eventually sold to individual owners. The design firms claimed their role was limited to only providing design recommendations to the project's owner, who ultimately controlled and directed which design elements to construct. Not long after completion of the project, the homeowners' association sued the design firms (among others) for construction defects and damages related to alleged water infiltration, inadequate fire separations, structural cracks, and other purported safety hazards. The claims included allegations under SB 800 (the "Right to Repair Act," Civil Code §895, et seq.) and common law negligence theories. The design firms demurred to the complaint, which the trial court sustained. On appeal, however, the Court of Appeal reversed the trial court's ruling, concluding that the design firms owed a duty of care to third parties. The Supreme Court affirmed. Historically, liability for deficient goods and services hinged on whether there is a contractual relationship between a buyer and seller. However, the Supreme Court recognized that in certain circumstances a contractual relationship is not required. In its ruling, the Supreme Court relied on fifty year old precedent, Biankanja v. Irving (1958) 49 Cal.2d 647. In Biankanja, the California Supreme Court outlined several factors to determine whether a duty of care is owed to non-contracting third parties. Although Biankanja analyzes many factors, emphasis was placed placed on whether a purported harm was foreseeable by a defendant's conduct and how close of a connection there is between that conduct and an injury. Here, the Court recognized that even though the design firms did not actually build the project, they did conduct weekly inspections, monitored contractor compliance, altered design elements when issues arose, and advised the owners of any nonconforming work. In applying the Biankanja factors to these circumstances, the Supreme Court determined the homeowners were intended beneficiaries of the design work and the design firms' primary role in the project bore a close connection to the alleged injuries. As a result, the Supreme Court held that the allegations in the complaint were sufficient and, if proven, establishes the defendants owed a duty of care to the homeowners' association. Interestingly, the Supreme Court sidestepped the issue of whether SB 800 was intended to exclusively capture design defects in its scope, even though the Court indicated it may. Nevertheless, the Supreme Court's ruling is significant. The case will affect how design professionals allocate risk on future residential projects, perhaps by raising design prices or insuring around the liability exposure. The likely outcome, however, is that design professionals are now targets in construction defect lawsuits. Read the court decision
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Reprinted courtesy of Stephen A. Sunseri, Gatzke Dillon & Ballance LLP
Mr. Sunseri may be contacted at ssunseri@gdandb.com

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Condominium's Agent Owes No Duty to Injured Apartment Owner

August 28, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the agent's motion to dismiss claims asserted by a condominium owner's claim for injuries due to a fire in his unit. Great Am. Allliance Ins. Co. v. Village Gardens Homeowners Association, 2023 U.S. Dist. LEXIS 102900 (C.D. Calif. June 12, 2023). Village Gardens' agent, Roy Palacios Insurance Company, obtained umbrella and excess policies from Great American for apartment buildings located on the property. In obtaining the policies, Village Gardens represented to Great American through Palacios that the property's roof, HVAC, plumbing and electrical systems had been updated. On Febaruary 16, 2019, the apartment in which Vicencio Flores resided caught fire, causing him to suffer severe burns. Flores alleged that the fire was caused by Village Gardens' "improper construction, use of poor construction materials and negligent maintenance of the property." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Approaches to Managing Job Site Inventory

January 04, 2018 — Jessica Stark - Construction Informer
Originally Published by CDJ on August 30, 2017 There is no question that organization on the job site can mean the difference between efficient performance and costly errors. A simple mistake can cost a company thousands, which is why details are carefully articulated and supervisors become better scrutinizers than magazine editors. But for some reason, many companies don’t consider managing job site inventory under this same attentive category, or perhaps they don’t know about the technology available to help them do it. For contractors, keeping track of every piece of material and equipment lowers losses and keeps crews busy. This is especially true for contractors in the trades who often have specialized equipment in inventory such as power supplies, HVAC “smart energy” components or inspection equipment. Once everything is accounted for, the possibility of loss is decreased and there’s a chance to evaluate the use of all materials and equipment. This can show the efficiency of allotted resources. Is there enough equipment on the site to get tasks completed? Is there a need for more? Less? Having excess equipment can sometimes prepare a crew for problem scenarios. But it can also mean the construction company is overpaying for unneeded resources. However, the only way to know is by effectively managing job site inventory. That includes all equipment and materials Read the court decision
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Reprinted courtesy of Jessica Stark, Construction Informer

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Michigan Lawmakers Pass $4.7B Infrastructure Spending Bill

April 11, 2022 — James Leggate - Engineering News-Record
Michigan lawmakers have passed legislation appropriating $4.7 billion for state infrastructure, including more than $1 billion for various water projects.About $750 million will go toward drinking water infrastructure such as projects to replace lead service lines or remove contaminants like PFA substances, potentially harmful chemicals used in industrial and consumer products that are have been found in water. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Traub Lieberman Partner Bradley T. Guldalian Wins Summary Judgment in Pinellas County Circuit Court

November 29, 2021 — Bradley T. Guldalian - Traub Lieberman
On September 20, 2021, Traub Lieberman Partner Bradley T. Guldalian secured summary judgment in Pinellas County Circuit Court in St. Petersburg, Florida, on behalf of a Homeowner who invited an acquaintance to his house to assist him with hanging a gutter on his roof. While he was assisting the Homeowner installing the gutter, the Plaintiff fell from a ladder and sustained a comminuted left intertrochanteric (hip) fracture. The Plaintiff was taken to the hospital, where he underwent open reduction, internal fixation of his left hip fracture. He was hospitalized for five days and released in wheelchair. He incurred more than $70,000 in medical bills and was confined to a wheelchair for two months. The Plaintiff filed a negligence action against the Homeowner alleging he improperly set up the ladder causing it to become unstable, thereby creating a dangerous condition on the premises which proximately caused his fall. The Plaintiff claimed the Homeowner breached the duty he owed the Plaintiff to provide safe and stable equipment for his use. After engaging in discovery, Mr. Guldalian moved for summary judgment arguing that because the Plaintiff could not explain in his deposition why he fell from the ladder, the Plaintiff could not establish—as a matter of law—the Homeowner was negligent, did anything, or failed to do something, that proximately caused his injury. In support of his argument, Mr. Guldalian submitted the affidavit of an investigator who inspected the ladder after the Plaintiff’s fall and found no defect in, on, or about the ladder, and affirmed that the area where the ladder was set up had no raised or defective areas which could have caused the ladder to become unstable. Read the court decision
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Reprinted courtesy of Bradley T. Guldalian, Traub Lieberman
Mr. Guldalian may be contacted at bguldalian@tlsslaw.com

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