Seattle Washington Building Expert Directory

Georgia Court of Appeals Holds That Policyholder Can “Stack” the Limits of Each Primary Policy After Asbestos Claim

December 19, 2018 — Michael S. Levine & Alexander D. Russo - Hunton Insurance Recovery Blog
A Georgia Court of Appeals judge recently ruled that Scapa Dryer Fabrics was entitled to $17.4 million worth of primary coverage from National Union Fire Insurance Company of Pittsburgh, PA for claims of injurious exposure to Scapa’s asbestos-containing dryer felts. Nat’l Union Fire Ins. Co. of Pittsburgh, PA v. Scapa Dryer Fabrics, Inc., No. A18A1173, 2018 WL 5306693, at *1 (Ga. Ct. App. Oct. 26, 2018). Scapa sought coverage under five National Union policies issued from 1983–1987. The 1983, 1984 and 1985 National Union policies had limits of $1 million per occurrence and $1 million in the aggregate. The liability limits for the 1986 and 1987 renewal policies were amended by endorsement to $7.2 million. Scapa sought to recover the full $17.4 million from all five policies. National Union argued that a “Non-Cumulative Limits of Liability Endorsement” in the 1986 and 1987 policies limited Scapa’s recovery to only $7.2 million. Scapa sued National Union and its sister company, New Hampshire Insurance Company (from which Scapa purchased excess liability coverage), in Georgia state court. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Alexander D. Russo, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Russo may be contacted at arusso@HuntonAK.com Read the court decision
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Home Prices in 20 U.S. Cities Increase at Slower Pace

February 25, 2014 — Victoria Stilwell – Bloomberg
Home prices in the U.S. climbed at a slower pace in the year through December, pointing to a moderation in the market that will help keep more properties within reach for prospective buyers. The S&P/Case-Shiller index of property values in 20 cities rose 13.4 percent from December 2012 after increasing 13.7 percent in the year ended in November, the group said today in New York. It was the first deceleration since June. The gain matched the median estimate of 33 economists surveyed by Bloomberg. Price appreciation is slowing as rising mortgage rates combined with harsh winter weather to cool home purchases over the past few months. Smaller increases mean more homes will remain affordable as the labor market improves, helping maintain the rebound in residential real estate that has boosted growth. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

GIS and BIM Integration Will Transform Infrastructure Design and Construction

October 09, 2018 — Nicolas Mangon - Engineering News-Record
An unfortunate fact of the architecture and engineering professions and the construction industry is that, between every stage of the process—from planning and design to construction and operations—critical data is lost. Read the court decision
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Reprinted courtesy of Nicolas Mangon, ENR
ENR may be contacted at ENR.com@bnpmedia.com

The Anatomy of a Construction Dispute Stage 3- The Last Straw

January 28, 2015 — Christopher G. Hill – Construction Law Musings
Over the past two weeks here at Construction Law Musings, I’ve discussed the first two stages of a typical construction dispute (if such a thing exists): the claim, and how to bring heat short of litigation/arbitration. As promised, this week I’ll be discussing the next step or “last straw” in a construction dispute, namely, arbitration or litigation to enforce all of those rights that you preserved in the first two stages. Construction litigation is expensive, time consuming, and, quite frankly, a pain in the neck. Because of this fact, I almost always recommend that my construction clients exhaust all of the non-litigation methods (including mediation of course) of resolving their disputes prior to “going nuclear” and filing suit. Unfortunately, even the most diligent attempts at less formal resolution means can be unfruitful and more formal means become necessary. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Real Estate & Construction News Round-Up (11/16/22) – Backlog Shifts, Green Battery Storage, and Russia-Ukraine Updates

December 05, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores backlog shifts in the nonresidential construction sector, updates from the ongoing war between Russia and Ukraine, lithium-ion battery storage issues in New York City, and more.

According to Associated Builders and Contractors, construction backlog fell back below the reading observed in February 2020, largely due to a decline in the commercial and institutional sector. (Sebastian Obando, Construction Dive)
Amid celebration after retaking Kherson from retreating Russian troops, the Kremlin targeted critical infrastructure before withdrawing. (Michael Kern, Oil Price)
Real estate value in the metaverse is rising, given that virtual land can be built upon to create unique branding experiences that lend to advertising, marketing, socializing, and entertainment. (Evan Bourke & Sarah Hedley Hymers, Euronews)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Navigating the Construction Burrito: OCIP Policies in California’s Construction Defect Cases

November 16, 2023 — Alexa Stephenson & Ivette Kincaid - Kahana Feld
In the early 2000’s, Owner-Controlled Insurance Programs (OCIP) or WRAPS, were traditionally used in large commercial projects of over $50 million in construction costs. As construction defect lawsuits became more prevalent, subcontractors found themselves unable to meet the insurance requirements of their contracts with developers and general contractors because they could not find insurance companies that were willing to insure the risk. This presented a problem for developers and general contractors and left them with no option but to look into new insurance products that would insure them and all subcontractors who worked on the project. OCIPs became in some instances the only insurance option for developers, general contractors, and subcontractors to build single-family or multi-family projects in California and other western states. OCIPS or WRAPS, often likened to the layers of a savory burrito, offer both enticing benefits and potential pitfalls. Just as a burrito’s ingredients can harmonize or clash, OCIP policies can shape the outcome of legal battles, impacting contractors, developers, and insurers alike. Pros – Savoring the OCIP Burrito: 1. Wrapped Protection: Much like a well-folded burrito envelops its contents, OCIP policies offer comprehensive coverage for construction projects. Developers, general contractors, and subcontractors find comfort in knowing that their liability risks are bundled into a single policy, ensuring all enrolled parties have coverage in the event of a claim. Reprinted courtesy of Alexa Stephenson, Kahana Feld and Ivette Kincaid, Kahana Feld Ms. Stephenson may be contacted at astephenson@kahanafeld.com Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Read the court decision
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Know Your Obligations Under Both the Prime Contract and Subcontract

December 02, 2015 — Craig Martin – Construction Contractor Advisor
A recent case out of New Mexico highlights the importance for subcontractors to review their contract with the general and the contract between the general and the owner. In Centex/Worthgroup, LLC v. Worthgroup Architects, L.P, the architect claimed that the limitation of liability clause in the prime contract trumped the provisions of the subcontract. The court disagreed and ruled that the specific provision in the subcontract controlled. In the case, a general contractor was hired to expand and renovate a resort. The general contractor subcontracted with an architect to design a mechanically stabilized earth wall. The prime contract contained a limitation of liability clause that states:

general contractor shall require its design professional Subcontractor(s) to obtain insurance in an amount not less than $3,000,000. Owner agrees that it will limit general contractor’s liability to Owner for any errors or omissions in the design of the Project to whatever sums Owner is able to collect from the above described professional errors and omissions insurance carrier.

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Kumagai Drops Most in 4 Months on Building Defect: Tokyo Mover

June 11, 2014 — Kathleen Chu and Kevin Buckland - Bloomberg
Kumagai Gumi Co. (1861), a Japanese construction company, fell the most in four months after saying an apartment complex it had built has defects. The shares dropped 5.7 percent to 264 yen at the close of trading in Tokyo, the biggest decline since Feb. 4. Construction flaws in supporting pillars were found in the building completed in March 2003 in Yokohama City, south of Tokyo, the company said in a statement through the stock exchange today. The residents have been asked to relocate to temporary shelters and further investigation is required, it said. “This is a big negative for Kumagai’s reputation and it may hurt the company’s future earnings,” said Yoji Otani, an analyst at Deutsche Bank AG in Tokyo. The latest defect comes after Mitsubishi Estate Co. (8802) said in March it will rebuild a residential complex, constructed by Kajima Corp. (1812), in central Tokyo, after defects were found. Mitsui Fudosan Co. (8801) said it would repair some parts of an apartment building in Kawasaki City after the builder Shimizu Corp. (1803) found cracks in the concrete of some columns in April. Ms. Chu may be contacted at kchu2@bloomberg.net; Mr. Buckland may be contacted at kbuckland1@bloomberg.net Read the court decision
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Reprinted courtesy of Kathleen Chu and Kevin Buckland, Bloomberg

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