Seattle Washington Building Expert Directory

If a Defect Occurs During Construction, Is It an "Occurrence?"

February 12, 2024 — Brendan J. Witry - The Dispute Resolver
Establishing insurance coverage for construction defects is almost as important as establishing liability in the underlying construction defect litigation itself. The risk to the defendant contractor of defending a construction claim can place significant burdens on a contractor’s operations and an uninsured judgment might even put the contractor out of business. For owners, suing a contractor for construction defects can become academic if there is no prospect of insurance coverage; obtaining a $1 million judgment against a contractor with limited assets would be a pyrrhic victory. Commercial General Liability (CGL) carriers are obligated to defend claims that potentially fall within the coverage granted by the policy.[1] When presented with a claim, CGL insurers typically have three options: (1) assume the defense without reservation; (2) assume the defense asserting defenses to coverage, and depending on the state, reserving the right to recover defense costs if it later determines there is no duty to defend; or (3) deny the claim outright and seek a declaratory judgment holding that the insurer has no duty to defend or indemnify. An insurer may deny the claim outright and not seek a declaratory judgment, but does so at its peril because it can expose the insurer to significant liability if the insured later shows the insurer in fact had a duty to defend. Read the court decision
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Reprinted courtesy of Brendan J. Witry, Laurie & Brennan LLP
Mr. Witry may be contacted at bwitry@lauriebrennan.com

Southern California Lost $8 Billion in Construction Wages

August 17, 2011 — CDJ STAFF

Los Angeles and Orange Counties are first on a list no area wants to be on. According to the Sacramento Bee, reporting on data from the U.S. Bureau of Economic Analysis, LA and Orange Counties saw an $8 billion drop in construction wages in 2010, as compared to 2006. In 2006, the region saw payrolls of $26.8 billion, but in 2010, that was reduced to $18.5 billion.

This was not the largest percentage change. Of the metropolitan areas with the largest declines in construction earnings, Las Vegas saw a $3.6 billion drop, however that represented half of their 2006 totals of $7.2 billion. Conversely, a $3.3 billion drop in the New York area represented only 10% of what had been $33.8 billion in payroll in 2006.

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Fraud and Construction Contracts- Like Oil and Water?

December 31, 2014 — Christopher G. Hill – Construction Law Musings
We have discussed the interaction of fraud and breach of contract actions on occasion here at Construction Law Musings. In most cases the two do not mix. Between the economic loss rule and the general desire of Virginia courts to keep contract actions and tort actions separate, most of the time it is impossible to make a fraud action relating to a contract stick in a construction context. The Virginia Supreme Court recently confirmed this fraud/contract distinction. As discussed in the Virginia Real Estate Land Use & Construction Law blog (Thanks Heidi!), Station No. 2, LLC v. Lynch, et. al. strongly re-states the Virginia courts’ strong reluctance to allow a breach of contract turn into a claim for fraud. Without re-iterating the great discussion of the facts of the case found in the post by Heidi Meizner, suffice it to say that certain contractual promises between and among the parties were not fulfilled much to Station 2, LLC’s detriment. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

In Louisiana, Native Americans Struggle to Recover From Ida

August 07, 2022 — The Associated Press (Rebecca Santana) - Bloomberg
Along Bayou Pointe-Au-Chien, La. (AP) -- Driving through her village along a southeastern Louisiana bayou, tribal official Cherie Matherne points out the remnants of house after house — including her own — wrecked nine months ago when Hurricane Ida roared through the Pointe-au-Chien Indian Tribe community. Beige trailers from the Federal Emergency Management Agency and travel campers sit next to pilings that elevated homes 14 feet (4.3 meters) off the ground to protect them from flooding. But it was the wind that got them this time. For hours, the Category 4 hurricane tore off roofs and siding, ripped out insulation and scattered treasured belongings. It destroyed shrimp boats and tossed crab traps. “It’s going to take years before people can get back to their lives. The majority of people are still at a standstill,” said Matherne, the tribe’s cultural heritage and resiliency coordinator. Read the court decision
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Reprinted courtesy of Bloomberg

Lawsuit Gives Teeth to Massachusetts Pay Law

September 16, 2024 — Joseph Barra - Robinson+Cole
“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered. Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds. Read the court decision
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Reprinted courtesy of Joseph Barra, Robinson+Cole
Mr. Barra may be contacted at jbarra@rc.com

Six Reasons to Use Regular UAV Surveys on Every Construction Project

October 14, 2019 — Dustin Price - Construction Executive
UAVs are the future of the construction industry. From accurate 3D modeling simulations to regular safety and maintenance checks, UAVs can improve construction projects in many ways—and the value and applications for UAVs is consistently growing. Drones are agile, cost-effective and safe. Here are some reasons why UAV surveys should be part of any construction project. 1. UAV scans are much faster than human inspections Drones can cover large territory much faster than human inspectors can. They can also be used over more difficult terrain, and they can survey areas that are otherwise inaccessible. A drone survey can be completed in a day; not only does this mean that the territory is well-surveyed each time, but it also means surveys can be done more frequently. Construction projects need to be inspected regularly and on time if the project is to meet its deadlines. Delayed construction projects can cost a company millions of dollars, as construction projects need to be completed stage by stage, usually on a strict timeline. Drones will improve the consistency of the project and, in turn, this will improve the reputation of the company itself. Reprinted courtesy of Dustin Price, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Indicted Union Representatives Try Again to Revive Enmons

June 22, 2016 — Wally Zimolong – Supplemental Conditions
The Boston Globe reports that the Massachusetts AFL-CIO has filed a friend of the court brief seeking to have the indictment of five members of the Teamsters Union in Boston dismissed. The Teamsters members are facing federal charges that they extorted non-union contractors and owners that employed non-union contractors. The Massachusetts AFL-CIO is arguing that under the Supreme Court’s 1972 decision in U.S. v. Enmons the Teamsters alleged conduct was in furtherance of a legitimate union objective and, therefore, no illegal. Read the court decision
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Reprinted courtesy of Wally Zimolong, Supplemental Conditions
Mr. Zimolong may be contacted at wally@zimolonglaw.com

In Pennsylvania, Contractors Can Be Liable to Third Parties for Obvious Defects in Completed Work

July 10, 2023 — Michael L. DeBona - The Subrogation Strategist
In Brown v. City of Oil City, No. 6 WAP 2022, 2023 Pa. LEXIS 681 (2023), the Supreme Court of Pennsylvania (Supreme Court) recently held that a contractor can be liable for dangerous conditions it creates even if the hazard is obvious or known by the property owner. In City of Oil City, the City of Oil City (Oil City) contracted with Harold Best and Struxures, LLC and Fred Burns, Inc. (collectively Contractors) to reconstruct the concrete stairs to the city library. Contractors completed their work at the end of 2011. In early 2012, Oil City received reports of issues with the stairs. Oil City notified Contractors that it considered the stairs dangerous and that Contractors’ defective workmanship created the condition. Neither Oil City or Contractors took any action to fix the stairs or warn of the danger and the stairs’ condition worsened with time. On November 23, 2015, David and Kathryn Brown exited the library. Kathryn Brown tripped on one of the deteriorated steps, falling and striking her head. Kathryn suffered a traumatic head injury and passed away six days later. The Estate of Kathryn Brown and David Brown, individually (collectively, the Browns), sued Oil City as the owner of the library and Contractors. With respect to Contractors, the Browns asserted that Contractors’ work on the stairs created a dangerous condition that presented an unreasonable risk of harm to those using the steps. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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