SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Utah Becomes First State to Enact the Uniform Commercial Real Estate Receivership Act

March 29, 2017 — David Leta - Snell & Wilmer Real Estate Litigation Blog
On March 25, Utah became the first state to enact the Uniform Commercial Real Estate Receivership Act (“UCRERA”) which was drafted by the National Conference of Commissioners on Uniform State Laws (the “Conference”) and adopted by the Conference at its annual meeting in July 2015. The Utah Uniform Commercial Real Estate Receivership Act, (the “Utah Act”) mirrors UCRERA and applies to all commercial real property receiverships that are filed in the Utah District Courts on and after May 9, 2017. The Utah Act provides both substantive and procedural guidance in an area of law that historically has been marked by inconsistency and uncertainty. This new law not only will provide judges, lenders and other receivership constituents with much needed instruction about their respective rights and responsibilities in commercial receivership proceedings, but it also is likely to reduce the cost and increase the predictability of these receiverships in Utah. Read the court decision
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Reprinted courtesy of David Leta, Snell & Wilmer
Mr. Leta may be contacted at dleta@swlaw.com

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Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear” Damages

March 14, 2022 — Blake A. Dillion, Jared De Jong & Scott S. Thomas - Payne & Fears
Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue there is no coverage for so-called “tear-out” or “rip-and-tear” damages, where fixing property damage requires replacing defective work that has not itself been damaged. Fortunately, in a newly decided case, a Texas federal district court rejected both arguments by an insurer. Amerisure Mutual Insurance Company v. McMillin Texas Homes, LLC, No. SA-20-CV-01332-XR, 2022 WL 686727 (W.D. Tex. Mar. 8, 2022). As with most construction-defect claims, this case involved homeowner claims against a residential developer, McMillin Texas Homes (“McMillin”). After the homes were completed, homeowners complained about defects in the artificial stucco exterior finish and filed suit. McMillin tendered to its insurer, Amerisure Mutual Insurance Company (“Amerisure”). Amerisure then sued McMillin for declaratory relief, arguing that it had no duty to defend or indemnify the homeowner claims. McMillin filed a counterclaim alleging Amerisure breached its policies by refusing to defend or indemnify McMillin. Reprinted courtesy of Blake A. Dillion, Payne & Fears, Jared De Jong, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Dillion may be contacted at bad@paynefears.com Mr. De Jong may be contacted at jdj@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Policy Renewals: Has Your Insurer Been Naughty or Nice?

December 26, 2022 — Latosha M. Ellis & Jae Lynn Huckaba - Hunton insurance Recovery Blog
A review of insurance policies at renewal should be on every business’s annual task list—and it should be checked twice! Just as your business grows and evolves every year, so should your insurance program. Together with staying proactive and preparing for renewal months before the policy expiration, there are a number of best practices to put your business in the best position to maximize insurance recovery, including shopping around, evaluating changes to your business, engaging the appropriate stakeholders, and performing a policy audit with a coverage attorney. Shop Around An early start to the renewal process allows for thorough decision-making and more time to engage in negotiations with the insurer. Even if the preference is to stay with the existing insurer, shopping around creates some buying power within the negotiation process. Evaluate Operational or Business Practice Changes Risk control and mitigation have a direct impact on your premiums and availability of coverage. Assess any changes in the business’s exposure to risk and make any necessary insurance coverage adjustments. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Jae Lynn Huckaba, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Ms. Huckaba may be contacted at jhuckaba@HuntonAK.com Read the court decision
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Mass. Gas Leak Follows NTSB Final Report, Call for Reforms

November 24, 2019 — Johanna Knapschaefer - Engineering News-Record
A major natural-gas leak forced Lawrence, Mass., residents to evacuate their homes early on Sept. 27. National Grid cut power to more than 1,300 customers to avoid another disaster like last year’s natural-gas explosions and fires in Lawrence and two other towns north of Boston. The leak came just days after federal officials called for changes to national pipeline regulations as they released a final report on the causes of the Sept. 13, 2018, disaster. Reprinted courtesy of Johanna Knapschaefer, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Quick Note: Attorney’s Fees on Attorney’s Fees

June 13, 2022 — David Adelstein - Florida Construction Legal Updates
In a recent case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party. The attorney’s fees provision at-issue stated: “In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.” Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision. However, this provision was NOT broad enough to recover “fees on fees.” As explained in this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Presidential Memorandum Promotes Reliable Supply and Delivery of Water in the West

November 14, 2018 — Anthony B. Cavender - Gravel2Gavel
In a Memorandum dated October 19, 2018 and entitled Promoting the Reliable Supply and Delivery of Water in the West, the President has directed the Secretaries of the Interior and Commerce to work together to minimize “unnecessary regulatory burdens and foster more efficient decision-making” so that major federal water projects are constructed and operated in a manner that delivers water and power in an “efficient, cost-effective way.” More specifically, they will take steps to streamline the western water infrastructure regulatory processes and remove unnecessary burdens in accordance with the timetables set forth in the Memorandum. 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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Failure to Meet Code Case Remanded to Lower Court for Attorney Fees

May 24, 2011 — CDJ STAFF

Judge Patricia J. Cottrell, ruling on the case Roger Wilkes, et al. v. Shaw Enterprises, LLC, in the Tennessee Court of Appeals, upheld the trial court’s conclusion that “the builder constructed the house in accordance with good building practices even though it was not in strict conformance with the building code.” However, Judge Cottrell directed the lower court to “award to Appellants reasonable attorneys' fees and costs incurred in their first appeal, as determined by the trial court.”

Judge Cottrell cited in her opinion the contract which specified that the house would be constructed “in accordance with good building practices.” However, after the Wilkes discovered water leakage, the inspections revealed that “that Shaw had not installed through-wall flashing and weep holes when the house was built.” The trial court concluded that:

“Separate and apart from the flashing and weep holes, the trial court concluded the Wilkeses were entitled to recover damages for the other defects they proved based on the cost of repair estimates introduced during the first and second trials, which the court adjusted for credibility reasons. Thus, the trial court recalculated the amount the Wilkeses were entitled to recover and concluded they were entitled to $17,721 for the value of repairs for defects in violation of good business practices, and an additional 15%, or $2,658.15, for management, overhead, and profit of a licensed contractor. This resulted in a judgment in the amount of $20,370.15. The trial court awarded the Wilkeses attorneys” fees through the Page 9 first trial in the amount of $5,094.78 and discretionary costs in the amount of $1,500. The total judgment following the second trial totaled $26,973.93.”

In this second appeal, Judge Cottrell concluded, that “the trial court thus did not have the authority to decide the Wilkeses were not entitled to their attorneys” fees and costs incurred in the first appeal.”

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New Jersey’s Proposed Construction Defect Law May Not Cover Everything

December 11, 2013 — CDJ STAFF
New Jersey is considering a new law that would make explicit that construction defects are accidents under a commercial general liability policy. But the site GreenBuildingConstructionLaw points out that it wouldn’t necessarily be the last word on things. The bill “does not obligate insurers to provide coverage for construction defects.” Exclusions could still come from “the various ‘business risk’ exclusions commonly found in commercial general liability policies, such as the ‘your work’ or ‘insured product’ exclusions.” The writer concludes that “contractors seeking coverage under the policies (and their insurers seeking to disclaim coverage), however, will still need to litigate the issue of whether the alleged property damage is covered by the insuring clause, and if it is, whether the various exclusions apply.” Read the court decision
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