Seattle Washington Building Expert Directory

Colorado’s Workers’ Compensation Act and the Construction Industry

June 20, 2022 — Jordan Kaplan - Colorado Construction Litigation
In general, issues relating to employment law occur in all industries. However, some issues are more likely to be raised in certain employment contexts. For example, office work environments tend to give rise to harassment and discrimination claims while wage and hour disputes and workplace safety claims are common in the oil and gas industry. In the construction industry, employers must be especially cognizant of discrimination and harassment claims, employee misclassification claims, workplace safety issues, and wage and hour claims. In the context of workers’ compensation claims, construction projects often create unusual situations due to the contractual relationships between the parties. Even relatively simple construction of a single-family residence involves several levels of contracting, including between the owner and general contractor, between the owner or general contractor and design team, between the general contractor and subcontractors, and between the prime subcontractors and lower tiered sub-subcontractors. In most circumstances, this would not be an issue. However, when an injured worker makes a workers’ compensation claim, the contractual relationships among the various entities involved in a project can have a significant impact on which party or parties could be liable for the injury. Read the court decision
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Reprinted courtesy of Jordan Kaplan, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Kaplan may be contacted at kaplan@hhmrlaw.com

California Court Forces Insurer to Play Ball in COVID-19 Insurance Coverage Suit

December 13, 2022 — Latosha M. Ellis & Yosef Itkin - Hunton Insurance Recovery Blog
One of the threshold issues in COVID-19 insurance coverage cases that have been brought across the country is whether the policyholder’s allegations meet the applicable pleading standard in alleging that the virus caused physical loss or damage. In many cases, the courts have gotten it wrong, effectively holding policyholders to a higher standard than required. But recently, a California federal judge righted those wrongs by acknowledging the correct pleading standard in that case, which is whether the allegations state a plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The Court, here, correctly recognized that the policyholder, the Los Angeles Lakers, met that pleading standard when it alleged that the COVID-19 virus can cause physical loss or damage by physically altering property. In its complaint, the Los Angeles Lakers alleged that the virus physically altered its property by changing its chemical and physical property conditions, creating viral vectors that required remedial measures before the property was safe again. Los Angeles Lakers, Inc. v. Fed. Ins. Co., 591 F. Supp. 3d 672 (C.D. Cal. 2022), adhered to on reconsideration, 2022 WL 16571193 (C.D. Cal. Oct. 26, 2022). The Court agreed that these allegations by the Lakers adequately pled physical alteration to support a claim for property damage. The insurer requested reconsideration of the decision, and the Court emphatically affirmed its prior decision, explaining its rationale as follows: The Court lacks the scientific expertise necessary to conclude, based solely on the allegations in the FAC . . . that it is not plausible for the Lakers’ property to have been physically altered by the Virus, which the Lakers adequately alleged. Consequently, the Court, in the March 17 Order, concluded that the Lakers’ theory was plausible. Whether the Lakers can actually prove its theory will be determined at summary judgment or trial. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Boilerplate Contract Language on Permits could cause Problems for Contractors

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Craig Martin on his blog Construction Contractor Advisor discusses the potential problems for a contractor that a “boilerplate contract” could cause: “A recent case revealed the problems a contractor had with permits when the contractor’s estimate contemplated an easy permitting process and compliance, but in actuality it was much, much more difficult.” Martin cites the case Bell/Heery v. United States, where a contractor discovered that the permit process would be much more time-consuming and expensive than originally planned. When Bell/Heery asked for additional funds to cover the additional costs, the “contracting officer rejected the request, finding that Bell/Heery had assumed the risk of the permitting process and it was liable for any costs associated with the permitting process and construction methods required by the permitting process.” “Bell/Heery appealed to the Court of Claims,” but lost the battle. The contractor had to absorb $7 million in costs to comply with the required permits. Read the court decision
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Construction Law Alert: A Specialty License May Not Be Required If Work Covered By Another License

March 07, 2011 — Steven M. Cvitanovic

Contractors should always be sure that they understand the licensing in any Subcontract or Prime Contract before entering into any agreement. However, on March 3, 2011, in the case of Pacific Casson & Shoring, Inc. v. Bernards Bros., Inc. 2011 Cal.App.Lexis 236, the Court of Appeal determined that if a specialty license is subsumed within another license, the specialty license may not be required.

Bernards entered into a subcontract with Pacific to excavate, backfill, grade and provide geotechnical design parameters for a hospital. The Prime Contract required the bidder to maintain a Class C-12 specialty earthwork license. However, Pacific only held a Class A general engineering license which it turns out was suspended during the performance of the work. Pacific sued Bernards for nonpayment of $544,567, but the lawsuit was dismissed because the trial court found that Pacific (1) lacked a C-12 license, and (2) Pacific’s Class A license was suspended for failure to pay an unrelated judgment. Pacific was also ordered to disgorge $206,437 in prior payments.

The Court of Appeal reversed and remanded. The Court of Appeal agreed with Pacific and held that a C-12 specialty license was not required despite the Prime Contract. The Court of Appeal found that the C-12 specialty license would have been “superfluous” since it was fully encompassed within the Class A requirements. However, the Court of Appeal also remanded the case for further

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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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Construction Attorneys Get an AI Assist in Document Crunch

May 20, 2024 — Jeff Yoders - Engineering News-Record
Artificial intelligence is often touted as a gamechanger for construction processes, and Document Crunch, a company co-founded by a longtime construction attorney, is already changing up one key area: construction contracts. Reprinted courtesy of Jeff Yoders, Engineering News-Record Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Henkels & McCoy Pays $1M in Federal Overtime-Pay Case

July 19, 2021 — Tom Ichniowski - Engineering News-Record
In a consent judgment in a federal labor case, major specialty contractor Henkels & McCoy Inc. has paid about $1.1 million in back pay and damages for allegedly not paying required overtime wages to 362 current and former workers in five states, the U.S. Dept. of Labor says. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Condominium Association Responsibility to Resolve Construction Defect Claims

July 23, 2014 — Nicholas D. Cowie – Maryland Condo Construction Defect Law Blog
The Maryland Court of Special Appeals recently issued an opinion in Greenstein v. Council of Unit Owners of Avalon Court Six Condominium Inc. finding that an association can be sued by its unit owner members if it fails to take timely legal action against a developer. In that case, the association was aware of construction defects, but failed to take action to preserve its claim and then filed a lawsuit against the developer too late, after the statute of limitations expired. As a result, the suit against the developer was dismissed and the association was forced to assess its unit owner members for the $1 million in repair costs. Some of the unit owners then sued their association, seeking to recover the cost of their assessments on the ground that the association was negligent in failing to pursue a timely legal action against the developer. On appeal, the court was asked to decide whether state law permits owners to sue their condominium association for negligently failing to sue a developer for common element construction defects. The court, in an unpublished opinion, found that an association could be held liable to its members. The court said: “The duty to maintain, repair and replace the common elements together with the exclusive right to initiate litigation regarding the common elements [which was stated in a provision of the association’s bylaws] creates a concomitant obligation on the part of the [association] to pursue recovery from [the developer] on behalf of [the unit owners] for damage to the common elements caused by [the developer’s] negligence, breach of contract or violation of any applicable law.” Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Maryland Condo Construction Defect Law Blog
Mr. Cowie may be contacted at ndc@cowiemott.com

My Employees Could Have COVID-19. What Now?

March 23, 2020 — Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi & Sarah J. Odia - Payne & Fears
Updated Guidance as of March 19, 2020. You are concerned about potentially sick employees in the workplace. One employee is off work sick for a couple of days, and then wants to return to work. Another plans to return to work after a week of travel. Another appears to be sick at work. They are coughing, sneezing, and appear to be short of breath. You are concerned they may have COVID-19. What can you do? You're not the only one concerned -- your other employees are, too. Your public-facing employees want to wear masks to protect themselves. One employee tells you he doesn’t want to touch anything that others in the office have touched. What are your obligations to these employees? Below, we address questions relating to keeping employees safe from COVID-19 in the workplace without violating the Americans with Disabilities Act (ADA) or employee privacy laws. Can I require an employee returning from days away from work due to illness to report the symptoms the employee was experiencing that kept him/her out of work? Short answer: yes, so long as the questions are limited to whether the employee has had flu-like symptoms. Though the ADA prohibits asking employees questions related to an employee disability, COVID-19 (like the seasonal flu) likely does not rise to the level of a disability, so asking an employee about flu-like (or COVID-19-like) symptoms is unlikely to elicit information related to a disability. The Equal Employment Opportunity Commission (EEOC) has taken the position that an employer may ask if an employee is experiencing flu-like symptoms if the employee reports being ill during a pandemic. Reprinted courtesy of Payne & Fears attorneys Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi and Sarah J. Odia Ms. Patton may be contacted at arp@paynefears.com Ms. Narvid may be contacted at ln@paynefears.com Mr. Matthew may be contacted at mcl@paynefears.com Mr. Robert may be contacted at rtm@paynefears.com Ms. Odia may be contacted at sjo@paynefears.com Read the court decision
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