Seattle Washington Building Expert Directory

“Incidental” Versus “Direct” Third Party Beneficiaries Under Insurance Policies in Which a Party is Not an Additional Insured

April 18, 2023 — Garret Murai - California Construction Law Blog
As they say, when it rains, it pours. Indemnity and insurance are the “Big Two” when it comes to risk avoidance on construction projects. The next case, LaBarbera v. Security National Security Company, 86 Cal.App.5th 1329 (2022), involves both. It’s an interesting case, which I think could have gone either way, involving claims by a higher-tiered party that they were a third party beneficiary under an insurance policy in which they were not named as an additional insured. The LaBarbera Case The Indemnity Provision and Insurance Policy In June 1016, Chris LaBarbera hired Richard Knight doing business as Knight Construction to remodel his house in Carmichael, California. The construction contract included an indemnity provision which provided that Knight would defend and indemnify LaBarbera from all claims arising out the remodeling work except for claims arising from LaBarbera’s sole negligence and willful misconduct. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Joint Venture Dispute Over Profits

January 28, 2019 — David R. Cook, Jr. - Autry, Hall, & Cook, LLP
A recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits. One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim. Read the court decision
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Reprinted courtesy of David R. Cook, Jr., Autry, Hall, & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

A Compilation of Quirky Insurance Claims

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Property Casualty 360 showcased five “nutty claims stories” based upon recollections by several insurance professionals. Number four, subtitled, “The Case of the Soaked Survivalists,” described a claim by an elderly couple who “made a $350,000 water-damage claim after heavy rains and an inadequate sump pump ruined what they described as thousands of ‘valuable items’ in their storage area.” However, a claims adjuster discovered during the investigation that the area in question was actually a bomb shelter built during the Cold War era, and the so-called valuable items were actually “soap, toothpaste, canned goods, and more.” The insurer ended up settling for about $200,000. Read the court decision
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A Top U.S. Seller of Carbon Offsets Starts Investigating Its Own Projects

April 19, 2021 — Ben Elgin - Bloomberg
Following concerns that it is facilitating the sale of meaningless carbon credits to corporate clients, the Nature Conservancy says it’s conducting an internal review of its portfolio of carbon-offset projects. The nonprofit owns or has helped develop more than 20 such projects on forested lands mostly in the U.S., which generate credits that are purchased by such companies as JPMorgan Chase & Co., BlackRock Inc., and Walt Disney Co., which use them to claim large reductions in their own publicly reported emissions. The self-examination follows a Bloomberg Green investigation last year that found the world’s largest environmental group taking credit for preserving trees in no danger of destruction. The internal review is a sign that it’s at least questioning some practices that have become widespread in the environmental world, and could carry implications for the broader market for carbon credits. Read the court decision
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Reprinted courtesy of Ben Elgin, Bloomberg

Government Claims Act Does Not Apply to Actions Solely Seeking Declaratory Relief and Not Monetary Relief

March 25, 2024 — Garret Murai - California Construction Law Blog
Perhaps it should come as no surprise, but public entities get special treatment under the law, and when filing a claim against a public entity, in most cases, a claimant is required to file a claim with the public entity before filing suit under the Government Claims Act (Gov. Code §810 et seq.). But, as the next case demonstrates, that’s not always the case. In Stronghold Engineering Incorporated v. City of Monterey, 96 Cal.App.5th 1203 (2023), the 6th District Court of Appeals examined whether a public works contractor that alleged an extended overhead claim was required to file a Government Claims Act claim before filing suit when its initial complaint was limited to a claim for declaratory relief. The Stronghold Case In December 2015, general contractor Stronghold Engineering Incorporated entered into a construction contract with the City of Monterey for the renovation of the City’s conference center and an adjacent city-owned plaza. The construction contract provided that any modification to the construction contract had to be approved by the City through a written change order. No surprise there. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Kiewit and Two Ex-Managers Face Canada Jobsite Fatality Criminal Trial

October 12, 2020 — Scott Van Voorhis - Engineering News-Record
Canada appears set to try a rare criminal case against a major company—U.S. contractor Kiewit Corp.—for a workplace fatality stemming from a more than decade-old accident on a remote British Columbia hydroelectric project that killed a 24-year-old field employee. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Phillips & Jordan Awarded $176M Everglades Restoration Contract

March 01, 2021 — Thomas F. Armistead - Engineering News-Record
Construction of the next major project for the Everglades Agricultural Area Reservoir south of Lake Okeechobee is set to begin in April following the South Florida Water Management District's award of a $175.8-million lump-sum contract to Phillips and Jordan Inc. Reprinted courtesy of Thomas F. Armistead, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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A Construction Stitch in Time

October 28, 2015 — Christopher G. Hill – Construction Law Musings
It’s a cliche for a reason that “A Stitch in Time Saves Nine.” Why? Because it is almost always cheaper and more efficient in the long run to get something right the first time than to fix it later. This old adage is true in life, and particularly true in the world of construction. Whether it’s measuring twice before making your bid, checking with your subcontractors and suppliers to be sure they haven’t missed anything when giving you a price, or yes (and you knew this was coming), being sure that your contracts are written as they should be and cover the bases. To use another construction related analogy, these types of basic practices create a great foundation for your construction project(s) that will (hopefully) see you through to a successful and profitable construction project. Aside from the last of my examples, how can adding a knowledgeable construction attorney help with laying this foundation? We construction lawyers spend our days either dealing with problems that have occurred (not ideal), anticipating risks that could occur (better, though can lead to a relatively cynical world view), and advising clients before the fact of the potential risks and how to best avoid them (best). Speaking from experience, I would much rather spend my time keeping my construction clients making money and avoiding the pitfalls of the “Murphy’s Law” governed world of construction than spend time with them in court. 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

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