Seattle Washington Building Expert Directory

Despite Misapplying California Law, Federal Court Acknowledges Virus May Cause Physical Alteration to Property

October 26, 2020 — Scott P. DeVries, Michael S. Levine & Michael L. Huggins - Hunton Insurance Recovery Blog
On August 28, Judge Stephen V. Wilson of the Central District of California, entered the latest ruling in the ongoing saga of the COVID-19 business interruption coverage dispute between celebrity plaintiff’s attorney Mark Geragos and Insurer Travelers. The case, 10E, LLC v. The Travelers Indemnity Co. of Connecticut, was filed in state court. Travelers removed to federal court, where Geragos sought remand and Travelers moved to dismiss. Judge Wilson denied remand and granted the Motion to Dismiss, finding plaintiff did not satisfactorily allege the actual presence of COVID-19 on insured property or physical damage to its property. This holding is inconsistent with long standing principles of California insurance law and appears to improperly enhance the minimal pleading threshold under Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (To survive a motion to dismiss, a complaint need only allege a claim “that is plausible on its face.”). After rejecting Geragos’ attempt to have the case remanded based on a finding that Geragos had fraudulently joined a defendant to avoid removal, the Judge proceeded to the Motion to Dismiss which raised three issues: (1) the effect of the Virus Exclusion in the Travelers’ Policy, (2) whether plaintiff failed to allege that the governmental orders prohibited access to its property, and (3) whether plaintiff could “‘plausibly allege that it suffered ‘direct physical loss or damage to property’ as required for civil authority coverage.’” Rather than address the effect of the exclusion, which would be the narrowest issue (this exclusion is not present in all policies), the Court proceeded directly to the third issue, which has the broadest potential application. Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Michael L. Huggins, Hunton Andrews Kurth Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Huggins may be contacted at mhuggins@HuntonAK.com Read the court decision
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Green Buildings Could Lead to Liabilities

March 28, 2012 — CDJ STAFF

Attempts to build “green,” reducing energy costs and increasing the use of sustainable building materials, may lead to more lawsuits, according to a report issued by the British Columbia Construction Association. The report warned those who were going to build green look into the implications. The report looked at the result of green building practices and requirements adopted in the United States.

The report warns that “the use of novel, less harmful building material or new construction techniques may give rise to liability due to: contractor inexperience with installation; lack of long-term evaluation of green materials; lack of understanding of how new building materials may impact existing traditional building systems; or warranties provided unintentionally about the durability or effectiveness of unproven materials or techniques.”

Manley McLachlan, president of the BCAA noted that they are aware of “legal action around the performance of the buildings,” noting that while fast-growing trees help toward LEED certification, their wood is more prone to mold. He also felt that low-VOC paints needed more testing to prove their durability as exterior finishes.

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Seattle Council May Take a New Look at Micro-Housing

April 15, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Puget Sound Business Journal, “there’s remorse at [Seattle, Washington’s] City Hall over last year’s controversial decision to make it more onerous and costly to build ultra-affordable micro-housing.” City Council President Tim Burgess stated that the council “may ‘very well’ take up the micro-housing issue again as it works with Mayor Ed Murray on a long-term program to develop more housing.” This comes after Murray “announced a goal of building and preserving 50,000 housing units over the next 10 years.” Read the court decision
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Commercial Real Estate Brokerages in an Uncertain Russian Market

March 28, 2022 — Cait Horner & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law Blog
Several commercial real estate firms have joined the growing list of companies temporarily suspending – or outright terminating – property and facility management operations in Russia amid economic sanctions and mounting international pressure. CBRE is the latest to make such a move, discontinuing its Russian leasing, investment and property management operations and denouncing Russia’s invasion of Ukraine in a statement issued March 7th. Other major players, including Savills, Knight Frank, and Colliers, have already suspended operations in the country, citing similar concern for international sanctions and the humanitarian impact of the invasion. Colliers is going even further to suspend operations in Belarus as well. Recently, global real estate service giant JLL switched course, issuing a formal statement that “with great sadness,” it will begin the process of separating from its domestic operations in Russia, though not commenting on whether the separation will be temporary or permanent. This is a significant change from just earlier this month , where, when asked about pulling operations from the country, JLL stated it would stay abreast of the situation abroad and continue to ensure the safety of its people and clients. Now that CBRE and Dallas-based JLL have joined the list, Houston-based powerhouse Hines appears to be continuing its “wait and see” approach. Hines currently owns Russian assets valued at $2.9 billion, nearly 2 percent of its entire $160 billion asset portfolio, and its property management portfolio manages more than 243 million square feet worldwide. While other firms have temporarily suspended current operations, Hines has gone so far as to say it will avoid servicing any future investments in the country, though it did similarly condemn Russia’s actions. With JLL’s recent decision , if Hines does take a stronger stance, it will likely happen soon. Reprinted courtesy of Cait Horner, Pillsbury and Adam J. Weaver, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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Recommendations for Property Owners After A Hurricane: Submit a Claim

October 04, 2021 — Kelly A. Johnson, Stephanie A. Giagnorio & Gregory D. Podolak - Saxe Doernberger & Vita, P.C.
If you suffered damage as a result of a hurricane, you should submit a claim under any insurance policy you have that might apply. This includes:

Flood insurance
Homeowner’s insurance
Renter’s insurance
Condo insurance
Auto insurance

Steps for Handling Your Hurricane Insurance Claim

Submit Your Claim. As soon as possible, provide a written notice of claim to your insurer according to the notice provision of your policy. Keep a copy for your records. If you don’t have a copy of your policy, call the insurance company, ask them how to submit your claim, and request a copy of your policy.

Reprinted courtesy of Kelly A. Johnson, Saxe Doernberger & Vita, Stephanie A. Giagnorio, Saxe Doernberger & Vita and Gregory D. Podolak, Saxe Doernberger & Vita Ms. Johnson may be contacted at KJohnson@sdvlaw.com Ms. Giagnorio may be contacted at SGiagnorio@sdvlaw.com Mr. Podolak may be contacted at GPodolak@sdvlaw.com Read the court decision
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Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause

July 11, 2018 — Shannon M. Warren - The Subrogation Strategist
In recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to work versus non-work property. The distinction between work and non-work property has been commonly litigated and remains a hotly debated topic when handling subrogation claims involving construction defects. In Liberty Mutual Fire Ins. Co. v. Fowlkes Plumbing, 2018 U.S. Dist. LEXIS 23515 (February 12, 2018), a fire consumed the entire insured risk when one of the defendants was performing window restoration services. Subsequently, the insured’s subrogated insurer filed suit against several defendants involved in the construction project at issue. In response to the defendants’ motion for summary judgment, the District Court for the Northern District of Mississippi considered whether the waiver of subrogation clause in AIA contract form A201-2007 precluded the subrogated insurer from recovering damages from the defendants. The court held that the waiver of subrogation provision contained in AIA document A201-2007 barred the insurer from recovering for damages to the work itself, but did not apply to non-work property. Read the court decision
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Reprinted courtesy of Shannon M. Warren, White and Williams LLP
Ms. Warren may be contacted at warrens@whiteandwilliams.com

Indemnity: What You Don’t Know Can Hurt You!

September 19, 2022 — Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocs
Risk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations. This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.[1] Reprinted courtesy of Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and Bill Shaughnessy, Jones Walker LLP (ConsensusDocs) Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com Read the court decision
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Domingo Tan Receives Prestigious Ollie Award: Excellence in Construction Defect Community

May 28, 2024 — Wood Smith Henning & Berman
(Anaheim, CA.) - Wood Smith Henning & Berman is thrilled to announce that Domingo Tan, a partner in the Los Angeles office, has been awarded the prestigious Jerrold S. Oliver Award of Excellence. Fondly known as the "Ollie", this esteemed accolade is presented annually to a standout professional in the construction defect community who has demonstrated exceptional contributions and unwavering dedication to the field. The exciting announcement of Tan's victory took place during the 30th Anniversary of the West Coast Casualty Construction Defect Seminar in Anaheim. Widely recognized as the nation's largest conference for professionals handling construction defect matters, the event drew a remarkable gathering of general counsel, risk managers, claim professionals, and attorneys who actively participated in the nomination and voting process. The Ollie award pays tribute to the late Judge Jerrold S. Oliver, a highly respected legal professional renowned for his groundbreaking work in alternate dispute resolution methods for construction defect disputes. It celebrates individuals who embody the values of loyalty, commitment, and trust within the industry. Read the court decision
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Reprinted courtesy of Wood Smith Henning & Berman

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