SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Depreciating Labor Costs May be Factor in Actual Cash Value

April 20, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Minnesota Supreme Court considered a certified question from the the U.S. District Court regarding consideration of depreciating labor costs in determining the actual cash value of a loss. Wilcox v. State Farm Fire & Cas. Co., 2016 Min. LEXIS 50 (Minn. Feb. 10, 2016). The insureds' home was damaged by hail. State Farm provided a written estimate that calculated the actual cash value of the loss. To estimate the actual cash value of the damaged property, State Farm first calculated the replacement costs of individual items, such as roof flashing, siding, fascia, gutters, and window screens. Next, State Farm subtracted the pre-loss depreciation of some, but not all, individual items. For example, State Farm depreciated the cost of removing and replacing certain materials, such as siding. State Farm did not depreciate the cost of the new siding separately from the cost of the labor required to install the new siding on the home. Instead, State Farm calculated the removal and replacement of the siding as a single cost, then depreciated the removal-and-replacement cost as a whole. The cost of labor to repair or replace the damaged property was referred to by the court as "embedded labor costs." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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CDC Issues Moratorium on Residential Evictions Through 2020

October 05, 2020 — Steven E. Ostrow, C. Jason Kim, & Marissa Levy - White and Williams LLP
On September 1, 2020, the Centers for Disease Control and Prevention (CDC) announced that it was issuing an order (CDC Order) to temporarily halt residential evictions to prevent the further spread of COVID-19. The CDC Order became effective on September 4, 2020 and will remain in effect through December 31, 2020. The purpose of the CDC Order is to keep tenants in their residences to reduce crowding in shelters or other shared housing and to reduce the number of unsheltered homeless, as those conditions have been shown to increase the spread of COVID-19. APPLICABILITY & PROTECTIONS The CDC Order is broader than the previous eviction moratorium under the Coronavirus Relief and Economic Security Act (CARES Act), which applied only to federally-funded housing and expired on July 24, 2020. Eligible renters include those who qualified for a stimulus check under the CARES Act and individuals who expect to make less than $99,000 this year or a joint-filing couple that expects to make less than $198,000. Reprinted courtesy of Steven E. Ostrow, White and Williams LLP, C. Jason Kim, White and Williams LLP, and Marissa Levy, White and Williams LLP Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com Mr. Kim may be contacted at kimcj@whiteandwilliams.com Ms. Levy may be contacted at levymp@whiteandwilliams.com Read the court decision
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Arizona Purchaser Dwelling Actions Are Subject to a New Construction

September 04, 2019 — William L. Doerler - The Subrogation Strategist
Arizona recently amended its Purchaser Dwelling Action statute to, among other things, involve all contractors in the process, establish the parties’ burdens of proof, add an attorney fees provision, establish procedural requirements and limit a subcontractor’s indemnity exposure. The governor signed the bill—2019 Ariz. SB 1271—on April 10, 2019, and the changes go into effect and apply, retroactively “to from and after June 30, 2019.” The following discussion details some of the changes to the law. Notice to Contractors and Proportional Liability Under the revised law, a “Seller” who receives notice of a Purchaser Dwelling Action (PDA) from a residential dwelling purchaser pursuant to A.R.S. § 12-1363* has to promptly forward the notice to all construction professionals—i.e. architects, contractors, subcontractors, etc., as defined in A.R.S. § 12-1361(5)—that the Seller reasonably believes are responsible for an alleged construction defect. A.R.S. § 12-1363(A). Sellers can deliver the notice by electronic means. Once construction professionals are placed on notice, they have the same right to inspect, test and repair the property as the Seller originally placed on notice. A.R.S. § 12-1362(B), (C). To the extent that the matter ultimately goes to suit, A.R.S. § 12-1632(D) dictates that, subject to Arizona Rules of Court, construction professionals “shall be joined as third-party defendants.” To establish liability, the purchaser has the burden of proving the existence of a construction defect and the amount of damages. Thereafter, the trier of fact determines each defendant’s or third-party defendant’s relative degree of fault and allocates the pro rata share of liability to each based on their relative degree of fault. However, the seller, not the purchaser, has the burden of proving the pro rata share of liability for any third-party defendant. A.R.S. § 12-1632(D). 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

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Vaccine Mandate Confusion Continues – CMS Vaccine Mandate Restored in Some (But Not All) US States

January 03, 2022 — David S. Harvey, Jr. & Sarah Hock - Lewis Brisbois
Tampa, Fla. (December 16, 2021) - As has been widely publicized, the Biden Administration has attempted to impose various forms of vaccine mandates under a variety laws and programs. At the same time, we have seen a flurry of opposition to these efforts ranging from new state laws (for example, in Florida) to court challenges seeking to enjoin the effort. One of the federal mandates was issued by the Centers for Medicare & Medicaid Services (CMS) and is applicable to staff at Medicare- and Medicaid-certified healthcare providers. Initially, fourteen states sued in opposition to the CMS mandate and were able to obtain a nationwide injunction issued by a federal district judge in Louisiana. That injunction was appealed to the Fifth Circuit Court of Appeals, which has now issued a decision that awards points to both sides. The Fifth Circuit ruled the injunction only applies to the 14 states that participated in the Louisiana lawsuit and not nationwide. Those states are Alabama, Arizona, Georgia, Idaho, Indiana, Kentucky, Louisiana, Mississippi, Montana, Ohio, Oklahoma, South Carolina, Utah, and West Virginia. This opinion has the potential to revive the CMS vaccine mandate in just over half of U.S. states. We can anticipate new suits will be filed as to other states, with the outcome still uncertain. It is unknown at this point whether the United States Supreme Court will agree to review the issues when such review is sought in the near future. Reprinted courtesy of David S. Harvey, Jr., Lewis Brisbois and Sarah Hock, Lewis Brisbois Mr. Harvey may be contacted at David.Harvey@lewisbrisbois.com Ms. Hock may be contacted at Sarah.Hock@lewisbrisbois.com Read the court decision
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Roof's "Cosmetic" Damage From Hail Storm Covered

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Seventh Circuit affirmed the district court's determination that cosmetic damage to the insured's roof was covered. Advance Cable Co., LLC v. Cincinnati Ins. Co., 2015 U.S. App. LEXIS 9805 (7th Cir. June 11, 2015). The insured submitted a claim to its insurer, Cincinnati, for damage to the metal roof of its building caused by a hail storm. The insured inspected the roof with a claims representative for Cincinnati. Dents were spotted, but there was little other evidence of damage. The loss was estimated at $1,894.74. A check for this amount was sent to the insured. Six months later, the insured considered selling the building. A potential buyer inspected the roof and found hail damage. At the request of the insured, Cincinnati conducted another inspection of the roof. Again, dents of approximately 1 inch in diameter were found. The inspector noted that the denting would not affect the performance of the roof panels or detract from their life expectancy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Washington State Enacts Law Restricting Non-Compete Agreements

September 23, 2019 — Ellie Perka - Ahlers Cressman & Sleight PLLC
Washington State has enacted a new law that means big changes for employers. The new law, in effect on January 1, 2020, will dramatically limit the enforcement of non-compete agreements in our state and imposes tough penalties on employers found to be in violation. While the new law does not take effect for many months, businesses should nonetheless act quickly and before year’s end to evaluate practices and, if necessary, revise existing and future non-compete agreements to ensure compliance. Under the new law, if an employee successfully proves a company’s non-compete agreement is unenforceable, then the employer will be required to pay the greater of $5,000 or an employee’s actual damages, plus the employee’s attorneys’ fees (and its own, in defending the non-compete), expenses and costs incurred in challenging the agreement. Brief Summary of Changes Washington Courts have typically disfavored restrictive covenants but usually enforced a non-competition agreement that protected an employer’s legitimate business interests and was reasonable in scope, geographic reach, and duration. The Legislature halted this trend through passage of Engrossed Substitute House Bill 1450. Read the court decision
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Reprinted courtesy of Ellie Perka, Ahlers Cressman & Sleight PLLC
Ms. Perka may be contacted at ellie.perka@acslawyers.com

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Contract Change #9: Owner’s Right to Carry Out the Work (law note)

March 28, 2018 — Melissa Dewey Brumback - Construction Law in North Carolina
In prior versions of the General Conditions, if a contractor defaulted and the Owner (after giving notice) opted to cure by carrying out the work itself, an appropriate Change Order would be issued. However, a Change Order is a contract that requires an agreement by both the Owner and Contractor, and, obviously, Contractors were reluctant to agree that they were in default and responsible for a deductive change order. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina

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BHA’s Next MCLE Seminar in San Diego on July 25th

July 02, 2014 — Beverley BevenFlorez-CDJ STAFF
There are just three weeks remaining to sign up for Bert L. Howe & Associate’s next California MCLE seminar, UNDERSTANDING CONSTRUCTION DEFECT LITIGATION. This activity will be presented on Friday, July 25th at noon, in BHA’s San Diego offices, located at: 402 W. Broadway Suite 400 San Diego, CA 92101 There is no cost for attendance at this seminar and lunch will be provided. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of California Committee on MCLE in the amount of 1.0 credit hours, of which 0.0 credit hours will apply to legal ethics/professional responsibility credit. The seminar will be presented by Charlie Miller, general contractor and project manager. Water intrusion through doors, windows and roofing systems, as well as soil and foundation-related movement, and the resultant damage associated therewith, are the triggering effects for the vast majority of homeowner complaints today and serve as the basis for most residential construction defect litigation. The graphic and animation-supported workshop/lecture activity will focus on the residential construction process from site preparation through occupancy, an examination of associated damages most often encountered when investigating construction defect claims, and the inter-relationships between the developer, general contractor, sub trades and design professionals. Typical plaintiff homeowner/HOA expert allegations will be examined in connection with those building components most frequently associated with construction defect and claims litigation. The workshop will examine: • Typical construction materials, and terminology associated with residential construction • The installation process and sequencing of major construction elements, including interrelationship with other building assemblies • The parties (subcontractors) typically associated with major construction assemblies and components • An analysis of exposure/allocation to responsible parties. Attendance at THE UNDERSTANDING CONSTRUCTION DEFECT LITIGATION seminar will provide the attendee with: • A greater understanding of the terms and conditions encountered when dealing with common construction defect issues • A greater understanding of contractual scopes of work encountered when reviewing construction contract documents • The ability to identify, both quickly and accurately, potentially responsible parties • An understanding of damages most often associated with construction defects, as well as a greater ability to identify conditions triggering coverage To register for the event, please email Charlie Miller at cmiller@berthowe.com. If you have any questions, please feel free to contact Charlie at (800) 482-1822 (office) or (714) 353-1959 (cell). Read the court decision
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