SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Hidden Price of Outdated Damage Prevention Laws: Part I

November 21, 2018 — Brigham A. McCown - Construction Executive
Excavators know that dialing 811 triggers a process that requires all utilities operating in the service area to find and mark the location of their underground facilities so that they are not damaged during the excavation process. In addition, marking the location of the utilities is intended to keep the public safe, for instance by preventing an excavator from striking a gas line. But excavators also know that in most states, the laws and regulations that govern these procedures are weak and that enforcement is even weaker. It’s an unfortunate fact that excavators and the public – typically the least culpable parties – suffer the consequences of weak damage prevention laws and lack of strong enforcement regimes. Reprinted courtesy of Brigham A. McCown, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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New ANSI Requirements for Fireplace Screens

March 19, 2015 — Beverley BevenFlorez-CDJ STAFF
The American National Standards Institute (ANSI) now requires “vented gas fireplaces to include a safety barrier screen as standard equipment,” according to Remodeling. "While gas fireplaces, stoves and inserts are a great asset to any home, the glass can become very hot during operation and stay hot long afterwards, creating a potential burn hazard," Jack Goldman, HPBA president and CEO told Remodeling. Read the court decision
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Decline in Home Construction Brings Down Homebuilder Stocks

December 11, 2013 — CDJ STAFF
The main gains in October construction were in commercial construction. The stock market has reacted to the slow-down by selling off homebuilder stocks, leading to a drop in their price. Deutsche Bank did not expect this to be the long term situation in U.S. homebuilding. The bank expects that the dip in residential construction “should reverse course given the ongoing improvement in permits for new construction.” Read the court decision
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Insuring Lease/Leaseback Projects

August 19, 2024 — David G. Jordan & Jeffrey J. Vita - Saxe Doernberger & Vita, P.C.
Overview Several states utilize a unique statutory mechanism to allow school districts to finance the construction of public-school facilities. This arrangement (known as a “lease-leaseback agreement”) allows a school district to lease property to a contractor/developer, who then constructs or renovates a school facility on the property. Once the work is completed, the contractor/developer leases the school building back to the school district. The school district then makes lease payments over time, often many years, which can be structured in various ways to spread out the cost of construction. The arrangement typically requires a site lease for the land leased to the contractor/developer, a facilities lease for the lease-back of the school building to the school district and a traditional construction agreement. In some ways, the arrangement resembles a Public-Private Partnership (PPP) whereby a public entity collaborates with a private entity for the purpose of financing and delivering a project traditionally provided solely by the public sector. Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita, P.C. and Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. Mr. Jordan may be contacted at DJordan@sdvlaw.com Mr. Vita may be contacted at JVita@sdvlaw.com Read the court decision
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House Passes $25B Water Resources Development Bill

June 27, 2022 — Tom Ichniowski - Engineering News-Record
A key federal infrastructure bill advanced with approval in the House of a measure providing $25.3 billion to help finance 22 Army Corps of Engineers storm and flood protection, ecological restoration, harbor dredging and other projects around the country. 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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Barratt Said to Suspend Staff as Contract Probe Continues

February 02, 2017 — Jack Sidders - Bloomberg
Barratt Developments Plc suspended at least three more employees within its London business as part of an ongoing probe into potential misconduct in the awarding of contracts, according to two people familiar with the decision. Read the court decision
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Reprinted courtesy of Jack Sidders, Bloomberg
Mr. Sidders may be followed on Twitter @jacksidders

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Badly Constructed Masonry Walls Not an Occurrence in Arkansas Law

May 10, 2012 — CDJ STAFF

The US District Court for Maryland has granted a summary judgment in the case Konover Construction Corp. v. ATC Associates to Massachusetts Bay Insurance Company and denied a request for dismissal from ACT. Konover (KBE) was contracted by Wal-Mart to build a Wal-Mart store and a Sam’s Club in Port Covington, Maryland. Superus, Inc. was hired by KBE to build the masonry walls. Superus purchased a policy from Massachusetts Bay Insurance which named KBE as an additional insured. Wal-Mart hired ATC Associates to independently test and inspect the concrete structural steel, and masonry.



After the building was in use, a large crack appeared which was attributed a latent construction defect. Other cracks were discovered. Upon investigation, it was discovered that there were “voids or foam in the concrete block surrounding the reinforcing steel that should have been filled with grout,” and in some cases, “reinforcing steel was missing or not installed in accordance with the specifications.” KBE paid for the repair and remediation and Wal-Mart assigned all rights and interests against ATC to KBE.



KBE filed suit against ATC. ATC called for dismissal on the grounds that Wal-Mart had no claims as the problems had been remediated. Wal-Mart then provided KBE with additional agreements to give them enforceable rights against ATC and Superus. KBE filed a fourteen claims against ATC, Superus, and Massachusetts Bay. In the current case, Massachusetts Bay sought summary judgment and ATC sought dismissal of all claims against it.



Massachusetts Bay claims that they need not indemnify Superus, as “there is no evidence adequate to establish that Superus’ defective work caused any collateral and/or resulting damage that was not subject to an Impaired Property exclusion, and that, in any event, no damage occurred during the policy period.”



As Wal-Mart is headquarted in Arkansas, certain contracts were under Arkansas law. Under the Arkansas courts, “defective workmanship, standing alone and resulting in damages only to the work product itself, is not an ‘occurrence.’” The court determined that collateral or resultant damage would be covered. The court found that “it is clear under Arkansas law, and the parties appear to agree, that Massachusetts Bay is not obligated to indemnify KBE for any repairs to the masonry walls themselves, including any cracks or gaps in the walls.” The court also found that “there is no evidence adequate to prove that any allegedly resultant property damage was caused by Superus’ faulty construction of the walls.” The court also noted that “if the building code violation and structural integrity problem were ‘property damage,’ insurance coverage would be barred by the Impaired Property Exclusion.” Based on these findings, the court concluded that Massachusetts Bay is entitled to summary judgment.



While the court dismissed the case against Massachusetts Bay, the court declined ATC’s motion to dismiss. The court noted that ACT’s alleged negligence in conducting inspections “created only a risk of economic loss for KBE.” Although hired by Wal-Mart, ATC “transmitted its daily testing and inspection reports of the Wal-Mart and Sam’s Club projects directly to KBE.” The court found that “KBE has made a plausible claim.”



ATC also claimed that KBE contributed to the negligence due to the negligence of its subcontractor. The court concluded that it was plausible that “ATC will not be able to carry its burden of proving KBE was contributorily negligent.” The court was less sanguine about KBE’s fraud claim, but though it “may not now appear likely to have merit, it is above the ‘plausibility’ line.”



In conclusion, KBE may not continue its case against Massachusetts Bay. However, the judge allowed the other proceedings to continue.



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Global Insurer Agrees to Pay COVID-19 Business Interruption Claims

July 06, 2020 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
AXA, one of the biggest insurance companies in the world, has agreed to pay COVID-related business interruption claims by a group of restaurants in Paris after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under AXA’s policies. AXA initially took the position that its insurance policies did not cover business interruption caused by COVID-19. The restaurant then sued AXA in a French court, seeking coverage for operating losses resulting from a government order issued in March mandating the closure of restaurants and bars in response to the COVID-19 pandemic. The court concluded that the government orders, which prohibited restaurants from receiving the public and offering traditional sit-down dining services, triggered the policy’s coverage for business interruption coverage. The court rejected AXA’s argument that the pandemic was uninsurable, and made clear that if AXA intended to exclude such a risk it should have done so expressly in its policy. The court also rejected AXA’s argument that there must be a prerequisite of an insured event for the application of the “administrative closure” provision, noting that no prerequisite was required by the policy. AXA’s argument that the government orders did not require the restaurant to be closed because the restaurant was authorized to maintain take-away services was also rejected. As a result, the court ruled in favor of the policyholders, holding that the business interruption loss resulting from the government orders qualified for insurance coverage. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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