SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

September 03, 2015 — Steven M. Cvitanovic & Abigail E. Lighthart – Haight Brown & Bonesteel LLP
Prompt payment penalty cases do not come around very often, but when they do, there is bound to be fireworks. In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award prevailing party attorneys' fees to the party who won a prompt payment dispute. California Business and Professions Code §7108.5 and Public Contract Code §§7107 and 10262 are the mechanisms for obtaining prompt payment relief in California. As shown by the outcome, it is possible to win and lose at the same time. West Bay Builders, Inc. (“West Bay”) was the prime contractor on a school construction project for Stockton Unified School District. West Bay entered into a subcontract agreement with James L. Harris Painting & Decorating, Inc. (“Harris”) on the project. During construction there were disagreements between West Bay and Harris regarding the contractual scope of work, and Harris performed work it believed was outside the contract, believing it would be paid for the additional work. After West Bay refused to pay for the additional work, Harris left the project, and West Bay hired another subcontractor to complete the work. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Abigail E. Lighthart, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Ms. Lighthart may be contacted at alighthart@hbblaw.com Read the court decision
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No Coverage For Damage Caused by Chinese Drywall

October 28, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The pollution exclusion barred coverage for alleged property damage and bodily injury in Evanston Ins. Co. v. Harbor Walk Dev., LLC, No. 2:10cv312 (E.D. Va. Sept. 9, 2011).

Homeowners sued the insured, Harbor Walk, in three lawsuits, alleging the Chinese drywall installed in their homes emitted sulfides and other noxious gases. This caused corrosion and damage to the air-conditioning and ventilation units, refrigeration coils, copper tubing, faucets, metal surfaces, electrical appliances and other personal items. The homeowners also alleged the compounds emitted by the drywall caused bodily injury, such as allergic reactions, headaches, etc.

Harbor Walk’s insurer, Evanston, filed for a declaratory judgment that the pollution exclusion precluded coverage.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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TOP TAKE-AWAY SERIES: The 2023 Annual Meeting in Vancouver

May 22, 2023 — Marissa L. Downs - The Dispute Resolver
Program coordinators Katie Kohm and Peter Marino put together an amazing annual meeting last week in Vancouver. While its impossible to retread all of the ground we covered in discussing the "future of construction law," here are my top 10 take-aways: 10. Public-private partnerships may finally be taking off in the United States. P3s were slow to be pursued within the United States. According to panelists Peter Hahn, John Heuer, Sean Morley, and Lee Weintraub, this was chiefly because of the reticence of public bodies to deviate from the standard vendor model. Looking at the recent trends, it seems as though the United States--the "sleeping giant of public-private partnerships"--may finally be waking up. In 2022, a total of 29 public-private partnership projects were signed or reached financial close within the United States, representing an increase of 16% from the prior year. Thirty-eight states also now have some form of P3 enabling legislation. While we still lag behind our Canadian cousins, the future of P3s in this country is looking a little brighter. 9. The value proposition for the architecture profession is broken. Architects Lakisha Ann Woods (the CEO of AIA) and Phillip Bernstein (Associate Dean & Professor Adjunct Yale University) shared their thoughts with moderator Kelly Bundy on the challenges facing the architecture profession. The biggest issue they noted was the need to recruit qualified (and diverse) candidates into the profession. Unfortunately, this is difficult to do given the long career track (on average, it becomes 13.1 years to become a licensed architect) and the low salaries paid compared to other professions. Phillip shared that the high average starting salary for architecture grads from Yale (one of the leading programs in the country) is just $76,000. If we want to recruit the best and most innovative candidates into the field, the value proposition needs to change. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

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“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet

August 24, 2020 — Garret Murai - California Construction Law Blog
Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Fifth Circuit Decision on Number of Occurrences Underscores Need to Carefully Tailor Your Insurance Program

December 19, 2018 — Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery Blog
The Fifth Circuit in Evanston Insurance Co. v. Mid-Continent Casualty Co. recently held that multiple collisions caused by the same insured driver over a span of 10 minutes constitute a single occurrence subject to a $1 million limit in the insured’s primary policy with Mid-Continent. The holding reversed a lower court’s ruling that Mid-Continent is liable for an additional sum the excess insurer, Evanston, paid to resolve all of the claims arising from the collisions. At issue, a fundamental question about causation and coverage under commercial liability insurance. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Client Alert: Release of Liability Agreement Extinguishes Duty of Ordinary Care

February 05, 2015 — R. Bryan Martin and Whitney L. Stefko – Haight Brown & Bonesteel LLP
On January 27, 2015, the California Court of Appeal, Fourth Appellate District, in Eriksson v. Nunnink (Case No. E057158), held a release of liability between Decedent and Defendant was enforceable as a defense to the Decedent's Parents' wrongful death and negligent infliction of emotional distress ("NIED") claims. In Eriksson, the Court concluded that on the basis of the signed release agreement, Defendant did not owe a duty of care to Decedent and thus could only be liable for Decedent's death if caused by the Defendant's gross negligence. The Court held that Plaintiffs failed to establish gross negligence and affirmed the lower court's judgment. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin and Whitney L. Stefko Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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Environmental Roundup – April 2019

May 06, 2019 — Anthony B. Cavender - Gravel2Gavel
Besides showers, this April brought a number of notable new environmental decisions issued by the federal courts. Before your mind turns to May and its flowers, here’s a summary: 1. DC Circuit. On April 23, 2019, the U.S. Court of Appeals for the DC Circuit decided the case of State of New York, et al. v. EPA. In the Clean Air Act amendments of 1990, the Congress established the Northeast Ozone Transport Region, composed of the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, the District of Columbia and a portion of Virginia. Recently, several of these states requested EPA to expand this region to include the “upwind states” of Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and the remaining portions of Virginia. Doing so would assist the “downwind” states in complying with EPA’s 2008 Ozone standard. EPA rejected this request, which was then appealed to the DC Circuit by the states of Connecticut, Delaware, Maryland, Massachusetts, New York, Pennsylvania, Rhode Island and Vermont. Because of its unique properties, ozone created by emissions in the upwind states can be transported to the downwind states, thus allegedly hampering their ability to cope with EPA ozone standards. The court agreed that EPA has the authority to expand the Northeast Transport Ozone Transport Region, but it also has the ability to exercise its reasonable discretion not to do so. In addition, the agency’s decision to rely instead on the remedies available to it in in the Clean Air Act’s “Good Neighbor” provision was reasonable and adequately justified, and the court accordingly upheld the agency’s decision. The court also noted that other remedies may be available to the downwind states, just not this one. 2. DC Circuit. The Court also decided on April 23, 2019 the case of Air Transport Association of America v. Federal Aviation Administration. The FAA held that the payments made by the City of Portland’s airport’s utility city charges for offsite stormwater drainage and Superfund remediation was not an “impermissible diversion” of airport revenues or in violation of the “Anti-Head Tax Act,” which is codified at 49 USC Section 40116(b) and which prohibits collecting a tax on persons travelling in air commerce. Here, the charges are assessed against the airport for the use by the airport of the city’s water and sewage services. The Superfund assessment is based on the fact that the Willamette River which runs through downtown Portland could make the city a Superfund potentially responsible party, and the cty is assessing all rate payers—including the airport—a Superfund assessment. The airport is federally funded and is owned and operated by the Port of Portland, and the Port pays a combined sewer, stormwater /water bill with multiple line items including these contested items. The court notes that federal law, in particular 49 USC Section 47107(k)(2), authorizes airport revenues to be used for the operating costs of the airport receiving federal funding, and the FAA could reasonably determine that these general expenses are authorized airport “operating costs” even though the city services are provided outside the boundaries of the airport. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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New Report Reveals Heavy Civil Construction Less Impacted by COVID-19 Than Commercial Construction

August 31, 2020 — Dodge Data and Analytics - Construction Executive
Heavy civil construction is deemed essential to the economy and has continued in many jurisdictions throughout the economic shutdown. However, data from The Civil Quarterly (TCQ), a new publication from Dodge Data & Analytics, reveals contractors in this sector are facing supply chain issues and other challenges in keeping jobsites going. The Civil Quarterly (TCQ) is the result of a partnership with Founding partner Infotech, Platinum partner Leica Geosystems and Gold partners Command Alkon and Digital Construction Works, and is based on original research collected quarterly from civil contractors and engineers. The research provides a snapshot of the current business health of contractors operating in this dynamic environment. The inaugural report features research on how technology is transforming civil jobsites and on the prevalence of important safety practices, and future issues will continue to offer insights into key trends that are transforming the sector. Ninety-nine contractors responded to the survey conducted online from mid-April to mid-May 2020. Reprinted courtesy of Dodge Data and Analytics, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. To learn more about Dodge Data and Analytics, visit www.construction.com Read the court decision
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