SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Floors Collapse at Russian University in St. Petersburg

February 27, 2019 — The Associated Press - Bloomberg
St. Petersburg, Russia (AP) -- Part of the roof and several floors of university building in Russia's second-largest city collapsed Saturday, but officials say there were no casualties. The Emergencies Ministry said the collapse at the Saint Petersburg National Research University of Information Technologies, Mechanics and Optics took place as construction work was underway. An investigation into criminal violation of construction safety has been opened. Read the court decision
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Reprinted courtesy of The Associated Press, Bloomberg

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Insurer Has Duty to Defend Despite Construction Defects

January 06, 2012 — CDJ STAFF

In a case the judge attributed to “shoddy masonry work,” the US District Court of Illinois has rendered a decision in AMCO Insurance Company v. Northern Heritage Builders. Northern Heritage built a home in Chicago for Michael McGrath (who joined Northern Heritage as a defendant). According to the decision, “seven months after he moved into the house, McGrath noticed water coming in the house and warped millwork.” This was attributed to porous block, installed by the mason with Northern Heritage’s knowledge.

McGrath sued National Heritage for both the damage to his house and its contents. The court rejected his claim for the contents. For the damages to his house, he was awarded $601,570.50 in damages. He also sued his homeowner’s insurance carrier for damages not covered in his suit against National Heritage. There he was awarded $1,130,680.16.

AMCO informed National Heritage that it had neither duty to defend nor duty to indemnify. The judge considered whether AMCO had a duty to defend. Under Illinois law, “damage to a construction project resulting from construction defects is not an ‘accident’ or ‘occurrence’ because it represents the natural and ordinary consequence of faulty construction.” However, it is noted that while if the defects lead only to damage to the project itself, there is no occurrence, “if the building owner asserts damages to other property besides the construction itself, there is an ‘occurrence’ and ‘property damage.’” The judge further noted that were construction defects an occurrence, “shoddy work” would be rewarded by double pay, once by the homeowner and a second time by the insurer. Judge Kendall concluded that as McGrath had alleged damage to the contents of his house, AMCO had a duty to defend National Heritage.

She then looked at the issue of whether AMCO had a duty to indemnify. Should they pay the $601,570.50? Judge Kendall noted that “the duty to indemnify is narrower than the duty to defend.” The key point here was that once McGrath’s insurance carrier covered him for the damage to the contents of his house, “AMCO’s duty to defend ended.” Once McGrath “only sought damages for the natural consequences of faulty workmanship” there was no occurrence, hence nothing for AMCO to cover.

Judge Kendall granted a summary dismissal of AMCO’s claim that they had no duty to defend while upholding their claim that they had no duty to indemnify.

Read the court’s decision…

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Who is a “Contractor” as Used in “Unlicensed Contractor”?

June 08, 2020 — Taylor Orgeron - Autry, Hall & Cook, LLP
A recent Georgia Court of Appeals case established a rule concerning the effect of an unlicensed contractor failing to disclose that he is unlicensed. In Fleetwood v. Lucas,[1] the contractor was hired by the homeowners to perform renovations on two homes. One of the projects went over budget, and the homeowners failed to pay the remaining balances on both projects. Following their failure to pay, the contractor sued the homeowners for breach of contract, and the jury delivered a verdict in his favor. The homeowners appealed on the grounds that the contractor was barred from bringing suit because the contractor did not have a license to perform the work. Generally, if a contractor does not have a residential or general contractor’s license but performs work when a license is required, the contract is unenforceable. O.C.G.A. § 43-41-17(b). However, under O.C.G.A. § 43-41-17(g), a contractor may perform repair work without a license if the contractor discloses that he does not have a license, and the work does not affect the structural integrity of the project. In this case, the contractor failed to disclose that he did not have a license. Read the court decision
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Reprinted courtesy of Taylor Orgeron, Autry, Hall & Cook, LLP
Mr. Orgeron may be contacted at orgeron@ahclaw.com

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New Iowa Law Revises Construction Defects Statute of Repose

September 07, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Starting July 1st of this year, Iowa homeowners now have only ten years to file a claim against the builder instead of the fifteen years that was allowed previously, reported WZAD 8 News. Furthermore, commercial property owners will only have eight years to file their suits. Scott Webster, Vice President of the Quad Cities Builders and Re-modelers Association, told WZAD 8 News that insurance companies played a part in the change: “[I]nsurance companies were saying, Iowa is at such a long period of time for any kind of defect, that may be hard to prove whether the builder even did it or the homeowner modified the house.” However, Tom Miller, Iowa Attorney General, disagreed with the change in policy: “We think that it’s unfair to consumers, the defects in buildings and commercial buildings too, can show up very easily between eight and fifteen years out.” Read the court decision
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How Many New Home Starts are from Teardowns?

April 15, 2015 — Beverley BevenFlorez-CDJ STAFF
In a NAHB/Wells Fargo Housing Market Index survey, builders were asked “Of the homes you started in 2014, approximately what share were on a site where a previous structure, or evidence of a previous structure, was present before you started?” According to the NAHB, the surveyors reported that “[o]n average, weighted by starts, […] just under five percent of their starts were teardowns according to the survey’s criterion.” When compared to census data, it equates to 31,800 single-family teardown starts in 2014. Read the court decision
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Water Bond Would Authorize $7.5 Billion for California Water Supply Infrastructure Projects

October 29, 2014 — Garret Murai – California Construction Law Blog
When California voters cast their votes on November 4, 2014 they will decide the fate of a $7.5 billion water bond proposal – Proposition 1 – which would authorize $7.12 billion in new general obligation bonds and reallocate $425 million in previously authorized but unissued bonds for water supply infrastructure projects. Proposition 1 – The Water Quality, Supply and Infrastructure Improvement Act of 2014 If you live in California you know that the state is in the midst of its third straight year of drought. And it’s no ordinary drought. According to some, it’s the severest drought on record, as nearly the entire state experiences “severe” to “exceptional” drought conditions across its counties. The California Water Resources Board has implemented emergency water conservation regulations including hefty fines for those who don’t comply and even Governor Brown has allowed the grounds of the State Capitol to go brown to underscore the severity of the situation. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

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One Shot to Get It Right: Navigating the COVID-19 Vaccine in the Workplace

January 18, 2021 — Natale DiNatale, Stephen W. Aronson, Britt-Marie K. Cole-Johnson, Emily A. Zaklukiewicz, Kayla N. West & Abby M. Warren - Construction Executive
The Food and Drug Administration has granted Emergency Use Authorization for Pfizer and Moderna’s COVID-19 vaccines. As COVID-19 cases continue to rise, employers across all industries may be considering whether to adopt a vaccination policy requiring vaccination as a condition of working and/or accessing the workplace or jobsite. The FDA’s recent authorization of the COVID-19 vaccine raises several legal and practical issues that employers may wish to consider as they prepare for widespread distribution and availability of the vaccine in 2021. Mandating the COVID-19 Vaccine in the Workplace The Equal Employment Opportunity Commission recently issued guidance suggesting that employers may mandate that employees receive the COVID-19 vaccination, subject to certain limitations. The EEOC has taken the position that administration of the COVID-19 vaccine does not implicate the Americans with Disabilities Act (ADA) because administration of the vaccine is not a medical examination. Under the EEOC’s guidance, employers, regardless of the industry, may require that employees receive the COVID-19 vaccine without having to justify that the mandate is job related and consistent with business necessity. Beyond that, construction employers should be aware of numerous issues and risks associated with mandatory vaccine policies. Reprinted courtesy of Natale DiNatale, Stephen W. Aronson, Britt-Marie K. Cole-Johnson, Emily A. Zaklukiewicz, Kayla N. West & Abby M. Warren of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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New Standard Addresses Wind Turbine Construction Safety Requirements and Identifies Hazards

October 09, 2018 — Christopher Daniels - Construction Executive
American Society of Safety Professionals’ industry consensus standard, ANSI/ASSP A10.21 – 2018 Safety Requirements for Safe Construction and Demolition of Wind Generation/Turbine Facilities, is the first standard to identify and address hazards specific to wind turbine construction. It includes nearly a dozen appendices that provide additional consideration and guidance for hazards that vary between projects, turbines and geographical areas. The new A10.21 standard starts by requiring a site hazard identification prior to construction commencing. It establishes the general contractor as the responsible party for site hazard identification assessment. This is because the general contractor is usually one of the first entities on site able to assess the various challenges/concerns such as: geography, utilities, environmental, etc. This assessment is usually done by driving the project site and identifying GPS coordinates of specific challenges. Reprinted courtesy of Christopher Daniels, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Daniels may be contacted at chris.daniels@mortenson.com

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