Seattle Washington Building Expert Directory

New Case Law Alert: Licensed General Contractors Cannot Sue Owners to Recover Funds for Work Performed by An Unlicensed Subcontractor

May 30, 2022 — Michele A. Ellison & Samantha R. Riggen - Gibbs Giden
The opinion in Kim v. TWA Construction, Inc. (2022 Cal. App. LEXIS 412) issued by the Court of Appeal of California Sixth Appellate District, on May 13, 2022, makes it clear that a properly licensed general contractor cannot bring an action for compensation from an owner for work performed by an unlicensed subcontractor. California licensing law has long made explicit that an unlicensed contractor cannot bring or maintain any action to collect or recover compensation for work that contractor performed unless they were duly licensed at all times during the performance of that work. This new ruling extends the scope of this restriction to licensed contractors who hired unlicensed subcontractors. The Underlying Dispute The case involved a dispute between property owners and their former general contractor and its principal (collectively “TWA”). The property owners hired TWA to construct a home, and during the early stages of the project, TWA hired an unlicensed subcontractor to perform tree trimming services and to remove a large eucalyptus tree. The subcontractor partially removed the eucalyptus tree, but was stopped by a neighbor, and it was discovered that the tree was partly located on the neighbor’s property. The neighbor brought suit against the property owners, and eventually TWA, for the damage. The property owners subsequently filed a cross-complaint against TWA, and TWA in turn filed a cross-complaint against the property owners. Reprinted courtesy of Michele A. Ellison, Gibbs Giden and Samantha R. Riggen, Gibbs Giden Ms. Ellison may be contacted at mellison@gibbsgiden.com Ms. Riggen may be contacted at sriggen@gibbsgiden.com Read the court decision
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Housing Starts in U.S. Drop to Lowest Level in Three Months

February 23, 2016 — Michelle Jamrisko – Bloomberg
New-home construction in the U.S. unexpectedly cooled in January, indicating there is a limit to how much gains in residential real estate will boost growth at the start of 2016. Housing starts dropped 3.8 percent to a 1.1 million annualized rate, the weakest in three months, from a 1.14 million pace the prior month, a Commerce Department report showed Wednesday in Washington. The median forecast of 76 economists surveyed by Bloomberg was 1.17 million. Permits, a proxy for future construction, were little changed. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg

Inside the Old Psych Hospital Reborn As a Home for Money Managers

October 28, 2015 — Simone Foxman – Bloomberg
It’s the most exclusive club for financiers in Dallas. With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors. Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display. Read the court decision
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Reprinted courtesy of Simone Foxman, Bloomberg

“Over? Did you say ‘over’?”

December 31, 2024 — Daniel Lund III - Lexology
The United States Seventh Circuit Court of Appeals recently held that under the Federal Arbitration Act, an arbitrator – and not a court – is to determine the preclusive effect of an arbitrator’s earlier ruling. In the case, insurers engaged in three reinsurance agreements had previously arbitrated concerning one of the insurer’s billing methodologies. When a similar dispute occurred years later, the victors in the first arbitration – rather than pursuing arbitration – filed in federal court in Chicago seeking to have the court declare that the prior arbitration award precluded re-arbitration of the latest dispute. The insurer on the other side of the dispute moved to compel arbitration, a motion granted by the district court. The plaintiff insurers appealed. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Hunton Insurance Recovery Partner Michael Levine Quoted on Why Courts Must Consider the Science of COVID-19

March 15, 2021 — Latosha M. Ellis & Matt Revis - Hunton Insurance Recovery Blog
One year into the COVID-19 pandemic, courts have issued hundreds of rulings in COVID-19 business interruption lawsuits, many favoring insurers. Yet those pro-insurer rulings are not based on evidence, much less expert opinion evidence. For insurers, ignorance is bliss. Despite early numbers in federal courts favoring insurers (state court decisions actually favor policyholders), the year ahead holds promise for policyholders. Fundamental science is the key. Indeed, as researchers continue to broaden their knowledge about COVID-19, it has become increasingly clear that scientific evidence supports coverage for policyholders’ claims. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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Maximizing Contractual Indemnity Rights: Problems with Common Law

December 02, 2015 — William Kennedy – White and Williams LLP
At its core, the concept of tort law is simple: you pay for the damages you negligently cause. In reality, tort law can sometimes require a party to pay far more than just its share of causal damages. Tort law can even require a party to pay when it was not actually negligent, but rather is related to the actually-negligent actor. The vagaries of tort law suggest that the allocation of the “risk of loss” is a vital detail in any contract. Without effective contractual provisions, parties to a contract may find that common law tort principles yield harsh or unexpected results. Properly written contractual provisions can define which party bears the risk of which losses. Both the party receiving the financial protection (the Indemnitee) and the party providing the protection (the Indemnitor) have an interest in obtaining insurance to cover the risk that is being borne. Read the court decision
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Reprinted courtesy of William Kennedy, White and Williams LLP
Mr. Kennedy may be contacted at kennedyw@whiteandwilliams.com

Insured's Complaint for Breach of Contract and Bad Faith Adequately Pleads Consequential Damages

March 27, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court overturned the trial court's dismissal of the insured's complaint seeking consequential damages. D.K. Prop. Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh v, Pa., 2019 N.Y. App. Div. LEXIS 329 (N.Y. App. Div. Jan. 17, 2019). The insured's building began to shift and exhibit structural damage, including cracks, after construction began in an adjoining building. The insured submitted a claim under its commercial insurance policy. The insurer did not pay the claim, nor did it disclaim coverage. The insured sued, alleging breach of contract for failure to pay covered losses under the policy. The second cause of action was for breach of the implied covenant of good faith and fair dealing. The complaint also requested consequential damages in connection with each cause of action. The trial court granted the insurer's motion to dismiss the claim for consequential damages. 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

Las Vegas Harmon Hotel to be Demolished without Opening

May 22, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Architectural Record, the Harmon Hotel, part of the CityCenter hotel-casino-entertainment complex on the Las Vegas Strip in Nevada, “is being razed without ever opening.” MGM Resorts International will be demolishing “the unfinished 27-floor, oval-shaped tower following a protracted legal battle with its contractor, Tutor Perini Corp., over building defects.” Demolition is expected to cost $11.5 million, while the “incomplete construction” had cost $279 million. Problems for the hotel began after the discovery “that reinforcing steel was improperly installed on 15 building floors during construction.” Architectural Record reported that a third-party inspector “had falsified 62 daily reports between March and July of 2008 stating that things were okay when they were not. The findings prompted a temporary project shut-down and eventual building redesign.” Read the court decision
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