Seattle Washington Building Expert Directory

Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable

September 20, 2021 — Garret Murai - California Construction Law Blog
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case. In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise. The Remedial Construction Case In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Worker’s Compensation Exclusivity Rule Gets “Trumped” by Indemnity Provision

October 27, 2016 — Garret Murai – California Construction Law Blog
Sorry, I couldn’t help myself with the title. The next case, Aluma Systems Concrete Construction of California v. Nibbi Bros., Inc., California Court of Appeals for the First District, Case No. A145734 (August 16, 2016), discusses the interplay between indemnity provisions and the worker’s compensation exclusivity rule. The worker’s compensation exclusivity rule generally provides that worker’s compensation insurance is the exclusive remedy of employees for injuries or death arising out of the course and scope of their employment. In the Aluma case, the California Court of Appeals, addressed what happens when a subcontractor’s employees are injured on a project, sue the general contractor, and the general contractor, pursuant to an indemnity provision in its subcontract, tenders the claim to the subcontractor whose worker’s compensation insurance has already paid the employees. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Why Builders Should Reconsider Arbitration Clauses in Construction Contracts

October 21, 2019 — David M. McLain – Colorado Construction Litigation
My advice to home builders has long been to arbitrate construction defect claims instead of litigating them in front of juries. Based on my experience and watching others litigate claims, I have learned that home builders usually fare better in arbitration than in jury trials, both in terms of what they have to pay the homeowners or HOAs and also in what they recover from subcontractors and design professionals. Because of these dynamics, conventional wisdom has been that builders should arbitrate construction defect claims. For several reasons, I am now questioning whether the time is right to consider a third option. First, plaintiffs’ attorneys dislike arbitration and will continue their attempts to do away with arbitration for construction defect claims. In 2018, the Colorado Legislature considered HB 18-1261 and HB 18-1262. While both bills were ultimately killed, they showed the plaintiffs’ attorneys disdain for arbitration, and serve as a warning that attempts to prevent arbitration legislatively will continue. If the legislature does away with the ability to arbitrate construction defect claims, and that is the only means of dispute resolution contained in a builder’s contracts, that builder may find itself in front of a jury. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

PFAS: From Happy Mistake to Ubiquity to Toxic Liability (But is there coverage?)

March 14, 2022 — Michael S. Levine & Rachel E. Hudgins - Hunton Andrews Kurth
In 1938, a DuPont chemist’s experiment yielded not—as he first thought—a lumpen, waxy mistake, but a new chemical with remarkable properties: heat-resistance, chemical stability, and low surface friction. Decades of continuing experimentation yielded a class of chemicals with the capacity to make non-stick, water-resistant coatings. In time, these chemicals, per- and polyfluoroalkyl substances (PFASs), would become a major component in thousands of consumer goods: food packaging, non-stick cookware, waterproof clothing, paint, stain-resistant carpets and furniture, and firefighting foams. The discovery of the toxicity of these remarkable chemicals lagged behind the widespread adoption, but eventually yielded a moniker that reflected PFAS’s stability and longevity: “Forever Chemicals.” In October 2021, the Biden administration announced a plan to address, among other concerns, PFAS’s migration to drinking water sources. EPA Administrator Michael S. Regan debuted the plan in Raleigh, North Carolina alongside Governor Roy Cooper. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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An Oregon School District Files Suit Against Robinson Construction Co.

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The Tigard-Tualatin School District in Tigard, Oregon filed a lawsuit against Robinson Construction for water damage to the Alberta Rider Elementary school, built in 2005, according to The Oregonian. The school district “is seeking $1.4 million in damages.” According to the suit, as quoted by The Oregonian, the school district “holds Robinson responsible for faulty construction of the school’s panel siding, windows, doors, exterior walls and more.” Repairs began in December of 2011, reported The Oregonian, and the cost so far is more than one million: “The district had to replace parts of the ‘exterior wall cladding system’ and remove and reinstall ‘storefront windows and window/door assemblies to ensure watertight performance,’ in addition to other alterations, the lawsuit reads.” Read the court decision
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Toolbox Talk Series Recap - The New Science of Jury Trial Advocacy

December 31, 2024 — Douglas J. Mackin - The Dispute Resolver
In the November 21, 2024 edition of Division 1's Toolbox Talk Series, John Jerry Glas discussed how construction lawyers should adjust their trial strategies in response to shifts in juror attitudes. Glas believes that jurors have changed in the last twenty years, with modern jurors being more reluctant than ever to be seen as a lawyer’s puppet. Instead, they simply want a lawyer to help them organize and wade through evidence without spinning it and without spoon-feeding it. Essentially, Glas believes that lawyers achieve better jury trial results if they acknowledge the paradigm shift in jury psychology and reinvent themselves in response by influencing jury deliberations without directly telling a jury what to do. Glas refers to this as the “Waiter Pivot” and recently published a book on the topic. Throughout his presentation, Glas discussed how construction lawyers can embrace the Waiter Pivot throughout a jury trial:

Voir Dire: Lawyers make their first impressions on a jury during voir dire. As such, lawyers should avoid questions that make jurors feel judged or stereotyped. Instead, give the jurors credit and make use of the opportunity to begin framing their case. For example, Glas once repeated the word “specifications” or “specs” in every question during voir dire where his product liability case turned on whether or not the product deviated from specifications.

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Reprinted courtesy of Douglas J. Mackin, Cozen O’Connor
Mr. Mackin may be contacted at dmackin@cozen.com

Economic Damages and the Right to Repair Act: You Can’t Have it Both Ways

March 16, 2017 — Garret Murai – California Construction Law Blog
In 2002, the California State Legislature passed Senate Bill 800 also known as the Right to Repair Act (Civil Code Sections 895 et seq.) in an effort to stem a then rising tide in residential construction defect litigation. SB 800, which applies to newly constructed residential units including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003, was intended to curb residential construction defect lawsuits by giving developers and others in the construction chain an opportunity to repair construction defects before being sued in court. SB 800 also provides minimum construction standards and limits the time in which a homeowner can bring a claim for construction defects. In Acqua Vista Homeowners Association v. MWI, Case No. D068406 (January 26, 2017), the California Court of Appeals for the Fourth District examined the circumstances in which homeowners can sue a material supplier under the Right to Repair Act. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Actual Cost Value Includes Depreciation of Repair Labor Costs

November 07, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022). Hurricane Laura damaged the insured's home. She filed a claim with Allstate under her homeowners policy. Allstate issued payment. The insured filed suit alleging Allstate wrongfully withheld amounts by depreciating labor when calculating the ACV of the damaged property. Allstate moved to dismiss. The policy was a replacement cost policy where the insured would receive the actual cash value of her insured property when it was damaged or destroyed by a covered peril. ACV was calculated by taking the repair/replacment which included both material and labor, and then deducting for depreciation. If no repairs or replacements were made, the insured was paid the ACV. If repairs or replacement was done, Allstate reimbursed the insured for the depreciation deduction. The insured challenged Allstate's refusal to pay 100% of the future labor costs, without any depreciation, even if the insured did not replace or repair the damaged property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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