Seattle Washington Building Expert Directory

Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable

November 30, 2016 — Masaki James Yamada – Ahlers & Cressman PLLC
When the indemnity provision of a contract conflicts with ORS 30.140, it is voided to the extent that it conflicts with the statute, but no more. Such provisions can remain partially valid and enforceable.[i] In Montara Owner Assn., the owner brought claims against the contractor for construction defects and damage relating to the construction of 35 townhouses. Contractor then brought third-party claims against more than 20 subcontractors for breach of contract and indemnity. Before trial, contractor settled with all but one subcontractor. The subcontract contained an indemnity provision requiring subcontractor to indemnify contractor for losses arising out of subcontractor’s work, including losses caused in part by contractor’s own negligence. Read the court decision
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Reprinted courtesy of Masaki James Yamada, Ahlers & Cressman PLLC
Mr. Yamada may be contacted at myamada@ac-lawyers.com

Georgia Update: Automatic Renewals in Consumer Service Contracts

August 31, 2020 — David R. Cook - AHC Blog
Georgia HB 1039 amends O.C.G.A. § 13-12-3 to provide additional protections for consumers who enter into service contracts containing lengthy automatic renewal provisions. Pre-Existing Requirement: For service contracts with an initial term of twelve months or longer and an automatic renewal provision for more than one month, unless the consumer terminates the agreement, sellers must provide written or electronic notification of the automatic renewal provision to the consumer. The notification must be provided to the consumer between 30 and 60 days before the cancellation deadline under such renewal provision. The notice must also “clearly and conspicuously” disclose that unless the consumer cancels, the agreement will automatically renew and disclose how the consumer may obtain details about the automatic renewal provision and cancellation procedure. The process by which a consumer may obtain such information must include the seller’s contact information (e.g., specific phone number or address), reference to the contract, or any other method provided. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Berger: FIGG Is Slow To Hand Over All Bridge Collapse Data

November 12, 2019 — Richard Korman - Engineering News-Record
The Florida International University Tragedy About half an hour before the almost-completed pedestrian bridge collapsed onto a busy Miami-area road last year, killing six people, Denney Pate, the bridge’s engineer-of-record, sent a text to Linda Figg, the chief executive of FIGG Bridge Engineers. Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Reprinted courtesy of

Final Rule Regarding Project Labor Agreement Requirements for Large-Scale Federal Construction Projects

January 29, 2024 — Aaron C. Schlesinger & Julia Loudenburg - Peckar & Abramson, P.C.
Beginning on January 22, 2024, in compliance with President Biden’s February 4, 2022 Executive Order, 14603, federal construction projects with a total estimated cost of $35 million are required to utilize a project labor agreement (“PLA”) unless the contracting agency grants an exception. The Federal Register estimates that this rule will impact approximately 119 IDIQ contracts each year; these contracts have an average award value of about $114 million. The White House claims the PLAs will improve projects by:

Eliminating project delays from labor unrest, such as strikes;
Creating dispute resolution procedures and cooperation for labor-management disputes, such as those over safety;
Including provisions “to support workers from underserved communities and small businesses”;
Helping to create a steady pipeline of workers for federal projects; and
Promoting competition on government contracts so that all builders, even those who are non-union, can bid on jobs that require a PLA.

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Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com

California’s Fifth Appellate District Declares the “Right to Repair Act” the Exclusive Remedy for Construction Defect Claims

September 03, 2015 — Stephen A. Sunseri – Gatzke Dillon & Balance LLP
August 26, 2015 - The Fifth Appellate District ruled SB800 (California's "Right to Repair Act" [the "Act"]) provides the sole remedy for homeowners in construction defect actions. The court found "no other cause of action is allowed to recover for repair of the defect itself or for repair of any damage caused by the defect." (McMillin Albany LLC v. Superior Court of California (Aug. 26, 2015, No. F069370) __ Cal.App.4th __ [2015 WL 5029324].) The court issued a blistering criticism of the Fourth Appellate District's prior opinion in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, which severely limited the reach of the Act to actions not involving property damage and allowing property damage claims to proceed freely under common law without any constraints posed by the Act. In McMillin, the court reviewed whether a homeowner was required to follow the Act's prelitigation procedures even after dismissing a cause of action arising under the Act. In deciding the issue, the court quoted directly from the first line of the Act (Civ. Code § 896) and found "[i]n any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction … , the claimant's claims or causes of action shall be limited to violation of" the standards set out in the Act. The court recognized the statutory exceptions to this rule, such as for claims arising under contract, or any action for fraud, personal injuries, or statutory violations. (Civ. Code., § 943.) However, this result directly conflicts with the Fourth Appellate District's decision in Liberty Mutual, which found homeowners can circumvent the entire Act by simply alleging property damage claims. McMillin rejects Liberty Mutual's "reasoning and outcome" as being inconsistent with the express language of the Act. McMillin found that Liberty Mutual failed to fully analyze the statutory language of the Act, which (on its face) limits any action for construction deficiencies to the requirements of the Act. McMillin concludes the Legislature intended that all construction defect actions (for new residences sold on or after January 1, 2003), are subject to the requirements of the Act, including the prelitigation procedures, regardless of whether a complaint expressly alleges a cause of action under the Act or not. McMillin is a great victory for homebuilders, but battle lines are now clearly drawn between the two appellate districts. McMillin directly conflicts with Liberty Mutual, and because of this conflict, the issue will need to be resolved by the California Supreme Court. Until such review is granted, the conflict will remain and trial courts will likely continue to conflate the issue. Read the court decision
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Reprinted courtesy of Stephen A. Sunseri, Gatzke Dillon & Balance LLP
Mr. Sunseri may be contacted at ssunseri@gdandb.com

New Jersey Court Washes Away Insurer’s Waiver of Subrogation Arguments

May 27, 2019 — William L. Doerler - The Subrogation Strategist
Subrogating insurers often address waiver of subrogation clauses in the form contracts drafted by the American Institute of Architects. In ACE Am. Ins. Co. v. Am. Med. Plumbing, No. A-5395-16T4, 2019 N.J. Super. LEXIS 45 (App. Div.), ACE American Insurance Company (ACE) argued that the waiver clause in the AIA General Conditions form A201-2007 did not extend to the post-construction loss at issue. Adopting what the court termed the “majority” position, the Appellate Division held that, by reading §§ 11.3.5 and 11.3.7 together, the waiver applied to bar the insurer’s subrogation claim. The Appellate Court’s ruling makes pursuing subrogation against New Jersey contractors using AIA contract forms more difficult. In this matter, Equinox Development Corporation (Equinox Development), ACE’s insured, contracted with Grace Construction Management Company, LLC (Grace Construction) to build the “core and shell” of a new health club (the Work). Grace Construction subcontracted the plumbing work to American Medical Plumbing, Inc. (AM Plumbing). Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Defining a Property Management Agreement

June 22, 2020 — Bremer Whyte Brown & O'Meara LLP
This article will serve as a guide to what is needed in a Property Management Agreement to avoid potential real estate disputes between owners and property managers. What is a Property Management Agreement? With the known volatility in the stock market since the “Dot-com Bubble” in the late 1990’s the Financial Crisis spanning 2007 to 2009, and even today’s global market crash arising from the COVID-19 Pandemic, people have looked to invest in options such as real estate that have proven to be more stable than the fluctuating and uncertain stock market. Today, more than ever, people have recognized the benefits in real estate and diversified their investments to include the ownership of residential or commercial property. This has grown to become a lucrative source of income. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Marlena Ellis Makes The Lawyers of Color Hot List of 2022

January 17, 2023 — Marlena Ellis - White and Williams LLP
In just her first year of practice, Marlena Ellis, Associate, is included in the Lawyers of Color Hot List of 2022. Marlena joined the firm in 2021 as a full-time associate practicing both Commercial Litigation, Insurance Coverage, and Bad Faith Practice. She advises a variety of clients including corporations, commercial entities and insurance companies in complex disputes and breach of fiduciary duty matters. The Lawyers of Color Hot List of 2022 honors junior and mid-level attorneys of color who exemplify integrity, leadership, and a passion for diversity in their roles. The selection committee spent months reviewing nominations to identify the right candidates for the list, and Marlena was one of the few chosen for this year. Read the court decision
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Reprinted courtesy of Marlena Ellis, White and Williams LLP
Ms. Ellis may be contacted at ellism@whiteandwilliams.com

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