Cambridge Massachusetts Building Expert Directory

Seattle Independent Contractor Ordinance – Pitfalls for Unwary Construction Professionals

October 09, 2023 — Travis Colburn - Ahlers Cressman & Sleight
Chapter 14.34 of the Seattle Municipal Code is a relatively new ordinance that can affect the parties to a construction contract for work performed within the City of Seattle’s city limits. The Independent Contractor Protection Ordinance (“ICPO”) was enacted to provide self-employed persons, or entities composed of not more than one person, regardless of corporate form, recourse for timely payment for work performed. The ICPO applies to contracts of $600[i] or more between an independent contractor and a hiring entity where the work, in whole or in part, is known to be performed within the City of Seattle’s city limits.[ii] The ICPO cannot be waived by parties to a contract.[iii] Historically, the primary legal recourse for non-payment or late payment for work performed under a contract involves an expensive breach of contract action, and one reason the ICPO was enacted was to give greater protection to a growing number of Washington independent contractors who report problems with timely and accurate payment. The ICPO affects “hiring entities” or any individual, partnership, association, corporation, business trust, or any entity, person or group of persons, or a successor thereof, that hires independent contractors to provide services within the scope of a hiring entity’s business or commercial activities. In the construction context, most general contractors, subcontractors, design professionals, and design consultants should be aware of this ordinance, as well as certain owners[iv] and development-side entities. Read the court decision
Read the full story...
Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

Questions of Fact Regarding Collapse of Basement Walls Prevent Insurer's Motion for Summary Judgment

December 19, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for summary judgment on whether the policy covered the collapse of basement walls based upon factual issues presented. Sirois v. USAA Cas. Ins. Co., 2018 U.S. Dist. LEXIS 158508 (D. Conn. Sept. 18, 2018). The insureds' purchased their home in 2010. In December 2015, a crack in the basement wall was noticed. It was not thought to be a serious problem. But in 2016, the insured read an article about defective concrete problems affecting homeowners in Connecticut. An inspector, Dean Soucy, was hired. He found faults and cracks in the foundation walls. Thereafter, a claim was submitted to USAA under homeowners' policies issued over the years to the insureds. USAA denied coverage. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Editorial: Qatar Is Champion of Safety Hypocrisy in Migrant Worker Deaths

December 26, 2022 — ENR Editorial Board - Engineering News-Record
Once the World Cup soccer tournament concludes, decency dictates that someone should put a wrecking ball to Qatar’s Al Bayt and Lusail stadiums, where the opening ceremonies and matches were held. There’s no polite way to say it: bulldozing the World Cup sports facilities is the only way to amplify to the world the cost in migrant construction workers lives in all that was constructed. Reprinted courtesy of ENR Editorial Board, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
Read the full story...
Reprinted courtesy of

A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured

March 25, 2024 — Gus Sara - The Subrogation Strategist
In New Jersey Mfrs. Ins. Co. v. Lallygone LLC, No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court’s finding that the prior lawsuit extinguished the carrier’s claims. In Lallygone LLC, the insured hired the defendant to renovate a detached garage on his property. In March 2022, while the defendant’s employees were removing existing concrete slabs, the garage collapsed. After the incident, the insured stopped paying the defendant. In addition, the insured filed a claim with the carrier, which ultimately paid the insured over $180,000 for the damage under its property policy. The carrier sent a subrogation notice letter to the defendant. Read the court decision
Read the full story...
Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Insurer’s Duty to Defend: When is it Triggered? When is it Not?

February 18, 2015 — Zach McLeroy – Colorado Construction Litigation
In Colorado it is well recognized that an insurer has a broad duty to defend its policyholder against pending claims. An insurer’s duty to defend is triggered when the underlying complaint against the insured alleges any set of facts that might fall within the coverage policy. Greystone Construction, Inc. v. National Fire & Marine Insurance, Co., 661 F.3d 1272, 1284 (10th Cir. 2011). Even if the insurer’s duty to defend is not clear from the pleadings filed against the insured, the insurer’s duty to defend is triggered if the claim is potentially or arguably within the policy coverage. Id. If there is any doubt as to whether a theory of recovery falls within the policy coverage, such doubt is decided in favor of the insured and the insurer’s duty to defend is triggered. Id. In order to avoid this duty to defend, an insurer must show that an exemption to the policy applies and that no other basis exists for coverage under the policy. In Cornella Brothers, Inc. v. Liberty Mutual Fire Insurance Company, 2014 WL 321335 (D. Colo. Jan. 29, 2015), the Court was to determine whether Liberty Mutual Fire Insurance Company (“Liberty Mutual”) had a duty to defend a lawsuit filed against its insured, Cornella Brothers, Inc. (“Cornella”). The underlying lawsuit alleged construction defects at a recharging facility. Upon being named a party to the underlying litigation, Cornella provided notice to Liberty Mutual and demanded that Liberty Mutual defend Cornella. Read the court decision
Read the full story...
Reprinted courtesy of Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLeroy may be contacted at mcleroy@hhmrlaw.com

Timely Written Notice to Insurer and Cooperating with Insurer

June 21, 2017 — David Adelstein - Florida Construction Legal Updates
I harp on notifying a liability insurer in writing once a claim is asserted against you. As soon as possible. I harp on this because as an insured you want to remove any doubt or argument that the insurer was prejudiced due to a lack of timely notice. In a recent opinion, Zurich American Insurance Co. v. European Tile and Floors, Inc., 2017 WL 2427172 (M.D.Fla. 2017), the insurer moved for summary judgment in a coverage action arguing that its insured failed to provide it timely written notice. Specifically, the insurer argued that the insured violated the clause in the liability policy that states: 2. Duties in the Event of Occurrence, Offense, Claim or Suit

Immediately record the specifics of the claim or “suit” and the date received; and
Notify us as soon as practicable.

You must see to it that we receive written notice of the claim or “suit” as soon as practicable.

Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or “suit”;
Authorize us to obtain records and other information;
Cooperate with us in the investigation, settlement or defense of the claim or “suit”; and
Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply.

Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Arbitration and Mediation: What’s the Difference? What to Expect.

September 09, 2019 — Brittany Rupley Haefele - Porter Law Group
Mediation Mediation is a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable settlement agreement. During this process, a neutral third party, with no decision-making power, intervenes in the dispute to help the litigants voluntarily reach their own agreement. Through a series of discussions, statements and private caucuses between the parties and the mediator, the process lets both parties negotiate and agree to a resolution with which everyone can abide. It is an excellent method of bringing a dispute to a conclusion without the further uncertainty and expense of litigation. Arbitration Arbitration, in addition to mediation, is one of the most common methods of alternative dispute resolution (“ADR”), whereby the parties bring a dispute before a disinterested third party who is typically selected by both parties. An arbitrator hears evidence presented by the parties, makes legal rulings, determines facts and makes an arbitration award. Arbitration awards may be entered as judgments in accordance with the agreement of the parties or, where there is no agreement, in accordance with California statutes. Arbitrations can be binding or non-binding, as agreed by the parties in writing. In most cases, the arbitrator’s decision is binding and final. When is it Appropriate to Engage in Mediation and/or Arbitration? Mediation can be held at any time, before or during a lawsuit. It is a voluntary process, where both sides simply agree to go to mediation in an effort to get the case settled. Sometimes, it is a contractually required process for the parties to complete prior to going to litigation or arbitration. Typically, in this situation, if a party ignores this requirement and fails to participate in a contractually mandated mediation, they will lose their rights to recover attorneys’ fees and costs – even if they ultimately prevail. Other times, mediation is strongly encouraged by the judge if a lawsuit has already been filed, and some would even say, ordered by the court (though it is typically not called “mediation” but something very similar like a “Dispute Resolution Conference” or “Mandatory Settlement Conference”). Read the court decision
Read the full story...
Reprinted courtesy of Brittany Rupley Haefele, Porter Law Group
Ms. Haefele may be contacted at bhaefele@porterlaw.com

Teaming Agreements- A Contract to Pursue a Solicitation and Negotiate

November 23, 2020 — David Adelstein - Florida Construction Legal Updates
Teaming agreements are practical and useful agreements on public projects where a prime contractor teams with a subcontractor for purposes of submitting a bid or proposal in response to a solicitation. The prime contractor and subcontractor work together to pursue that solicitation and have the government award the contract to the prime contractor. The teaming agreement allows for information to be confidentially shared (estimating and pricing, construction methodologies, systems, and suggestions, value engineering, etc.) where the subcontractor agrees that it will only pursue the solicitation with the prime contractor. In other words, the subcontractor ideally is not going to submit pricing to another prime contractor proposing or bidding on the same project and is not going to share information the prime contractor has furnished to it. Likewise, the prime contractor is not going to use the subcontractor’s information for purposes of finding another subcontractor at a lower price and is agreeing to use its good faith efforts or best attempts to enter into a subcontract with the subcontractor if it is awarded the project. This is all memorialized in the teaming agreement. The potential problem lies with language that requires the parties to use their good faith efforts or best attempts to enter into a subcontract if the project is awarded to the prime contractor. In essence, this can become a disfavored “agreement to agree” to a future contract that could allow either party to create an argument to back out of the deal under the auspice that they could not come to terms with the subcontract. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES