Seattle Washington Building Expert Directory

Liquidated Damages: A Dangerous Afterthought

January 15, 2019 — Trevor B. Potter - Construction Executive
Owners and contractors frequently treat liquidated damages provisions as an afterthought, but they deserve to be treated as a key deal term. If a contractor breaches a contract by failing to complete the work in a timely manner, the remedy is typically an agreed upon amount or rate of liquidated damages. Liquidated damages provisions seldom get more than a cursory, “back of the napkin” analysis, or worse, parties will simply plug in a number. This practice is dangerous because liquidated damages typically represent the owner’s sole remedy for delay and, more importantly, they are subject to attack and possible invalidation if certain legal standards are not met. The parties to a construction contract should never agree to an amount of liquidated damages without first attempting to forecast and calculate actual, potential damages. Reprinted courtesy of Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Would You Trade a Parking Spot for an Extra Bedroom?

August 23, 2021 — Virginia Postrel - Bloomberg
A bill wending its way through the California Legislature could suddenly make a lot more new housing economically feasible. Known as AB 1401, the legislation would abolish local parking requirements for new residential and commercial developments near bus or train stops. It applies to counties with more than 600,000 residents and cities with more than 75,000 people. The bill does not prohibit or restrict parking. It merely deregulates it, allowing developers to decide what works best for a given project. It opens up the possibility, for example, of providing parking in an off-site garage or lot. It permits tandem parking to save space or subsidized shared ride services. It doesn’t prescribe a one-size-fits-all solution to how buildings can best serve the people who use them, and it allows flexibility as transportation options evolve. Most homeowners and tenants want some sort of parking, but local mandates can be extreme — and extremely expensive. Twenty-one California towns even require more than three parking places for a three-bedroom single-family home. Read the court decision
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Reprinted courtesy of Virginia Postrel, Bloomberg

Bremer Whyte Brown & O’Meara, LLP is Proud to Announce Jeannette Garcia Has Been Elected as Secretary of the Hispanic Bar Association of Orange County!

February 03, 2020 — Bremer Whyte Brown & O'Meara LLP
The Hispanic Bar Association of Orange County is an affiliate bar of the OCBA. The OC HBA promotes education, unity, and excellence in the Hispanic legal community by expanding the business and professional opportunities available to its members, enhancing the members’ business and professional stature in the Hispanic community, increasing the participation of Hispanic leaders in civic affairs and enhancing the quality of life for the members and the community. Associate Jeannette Garcia has been a member of the OC HBA since 2012, a board member since 2017 and an executive board member since 2018. Jeannette will now serve as Secretary of the OC HBA for the 2020 term. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Construction Law Alert: Builder’s Alternative Pre-litigation Procedures Upheld Over Strong Opposition

April 01, 2014 — Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLP
Last week, the Court of Appeal, Fifth Appellate District, was tasked with evaluating the enforceability of provisions in home purchase contracts containing alternative pre-litigation procedures which differ from the standard Right to Repair Act procedures. The Court of Appeal, in McCaffrey v. Superior Court of Fresno, et al. ultimately upheld the contractual provisions, and in overturning the trial court's decision, preserved the rights of builders to contract around certain requirements set forth in the Right to Repair Act. The McCaffrey Group, Inc. constructed single-family homes in a Fresno development. Plaintiffs consisted of 24 homeowners within the development who brought suit against McCaffrey for construction defects in their homes. The homeowners were comprised of three categories: (1) the original purchasers who bought their homes from McCaffrey before January 1, 2003 and had a 2001 version of McCaffrey's contract; (2) the original purchasers who bought their homes from McCaffrey on or after January 1, 2003 and signed a 2003 version of McCaffrey's contract; and (3) the subsequent purchasers who did not buy their homes directly from McCaffrey, but purchased their homes subject to either the 2001 or 2003 version of McCaffrey's home purchase agreement. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Whitney L. Stefko, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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Last, but NOT Least: Why You Should Take a Closer Look at Your Next Indemnification Clause

March 09, 2020 — Aimee Cook Oleson - Construction & Infrastructure Law Blog
Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. It is not uncommon for parties to simply re-use the indemnity language from a prior agreement without considering whether it is a good fit for their current project. This can be a big mistake that may lead to ambiguities and uncertainties if a dispute arises down the road. A standard or canned indemnification clause might work to undo all of the effort that has gone into properly allocating risk. These clauses often contain language such as “notwithstanding anything to the contrary herein,” or the like, which can alter and override other provisions in the agreement. Indemnification clauses are arguably the most important part of an agreement when an accident or dispute arises on a project. Therefore, they deserve an extra look before finalizing an agreement. Here are a few issues to keep in mind when reviewing your next indemnification clause:

Have you included all necessary parties?

Any party who could face potential liability should be included as an indemnified party. This often includes entities and persons related to the contracting parties, not just the parties themselves.
A well drafted indemnity clause will ensure that all parties are liable for the result of their own work and negligence and that of any party that they have hired to work on a project. This includes employees, agents, subcontractors, or any other similar party.

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Reprinted courtesy of Aimee Cook Oleson, Sheppard Mullin
Ms. Oleson may be contacted at AOleson@sheppardmullin.com

ASCE Statement On House Passage Of The Precip Act

May 16, 2022 — Dennis D. Truax, President, American Society of Civil Engineers (ASCE)
Washington, DC. – ASCE congratulates the U.S. House of Representatives on passage of the PRECIP Act, H.R. 1437 which requires the National Oceanic and Atmospheric Administration (NOAA) to update precipitation frequency estimates every five years, and encourages its swift passage in the Senate. To build for the future and prioritize the resilience of our nation's critical infrastructure systems, civil engineers require the most current precipitation data available. Unfortunately, too often the rainfall data that engineers must rely on to design our nation's infrastructure is out-of-date and does not account for the increasingly heavy rains and less predictable weather patterns of today. The lack of current data poses significant challenges for engineers as they attempt to protect public health, safety and welfare and impacts the security of the nation's dams, levees, wastewater and stormwater infrastructure. Design and protection of all infrastructure systems depend on current, accurate and reliable precipitation data that adequately accounts for ongoing climate changes. The PRECIP Act provides needed resources to help NOAA produce more accurate data and serves to strengthen the nation's infrastructure so that it can withstand the increasingly severe effects of climate change. Passage of this legislation is a critically vital step toward meeting the goals set forth in the recently passed Infrastructure Investment and Jobs Act to ensure resilient infrastructure so that every community can thrive. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Entire Fairness or Business Judgment? It’s Anyone’s Guess

January 09, 2015 — Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico – White and Williams LLP
In lawsuits challenging the validity of business transactions and combinations, the most significant issue is often which standard of review the court applies: the defense-friendly “Business Judgment Rule” or the more stringent “Entire Fairness Standard.” The standard utilized by the court – or more often times the standard which the parties think the court will apply – can drive decisions on motion practice, settlement discussions, and resolution strategy. Under the Business Judgment Rule, directors are presumed to have acted in good faith and their decisions will only be questioned when they are shown to have engaged in self-dealing or fraud. However, if a “Controlling Shareholder” stands on both sides of the transaction, the court will often scrutinize the transaction under the more plaintiff-friendly “Entire Fairness Standard.” So, what constitutes a “Controlling Shareholder?” If the party in question owns more than 50% of a company’s equity, the answer is clear-cut. However, for cases involving stockholders who own less than 50% of a company’s equity and stand on both sides of the disputed transaction, the answer is not so simple. This uncertainty was highlighted in back-to-back decisions by the Delaware Chancery Court in November 2014. On November 25, 2014, the court granted the defendants’ motion to dismiss a derivative lawsuit alleging breach of fiduciary duty in In Re Sanchez Energy Derivative Litigation (“Sanchez”). Vice Chancellor Glasscock held that the complaint failed to plead facts sufficient to raise an inference that two directors with a collective 21.5% equity interest in the company were Controlling Shareholders. The very next day, in In Re Zhongpin Inc. Stockholders Litigation (“Zhongpin”), the Delaware Chancery Court denied the defendants’ motion to dismiss breach of fiduciary duty claims against an alleged “Controlling Shareholder” and members of the company’s board. In Zhongpin, Vice Chancellor Noble held that sufficient facts were plead to raise an inference that a CEO with a 17.5% equity was a “Controlling Shareholder.” Reprinted courtesy of White and Williams LLP attorneys Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico Mr. Pesso may be contacted at pessom@whiteandwilliams.com Mr. Steinberg may be contacted at steinbergg@whiteandwilliams.com Mr. Orrico may be contacted at orricoc@whiteandwilliams.com Read the court decision
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Eleventh Circuit Asks Georgia Supreme Court if Construction Defects Are Caused by an "Occurrence"

December 20, 2012 — TRED EYERLY, INSURANCE LAW HAWAII
The Eleventh Circuit certified a question to the Georgia Supreme Court, asking whether property damage can constitute an "occurrence" under a CGL policy where its effects are not felt on "other property." HDI-Gerling Am. Ins. Co. v. Morrison Homes, Inc., 2012 U.S. App. Ct. LEXIS 23813 (11th Cir. Nov. 19, 2012). The general contractor, Taylor Morrison Services, Inc., was covered by a CGL policy issued by Gerling. The policy excluded "expected or intended injury," contractual liability," and business risk exclusions. Morrison was sued by homeowners in a class action suit. Morrison had allegedly omitted four inches of gravel required beneath the base of the concrete foundations by the Uniform Building Code. Thereafter, the houses sustained water intrusion, cracks in the floors and driveways, and warped and buckling flooring. Gerling defended, but sued Morrison for a declaratory judgment. Read the court decision
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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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