SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Some Work Cannot be Included in a Miller Act Claim

June 28, 2021 — Christopher G. Hill - Construction Law Musings
The Miller Act is close to my heart here at Construction Law Musings. Payment bond claims under the Miller Act help protect subcontractors on construction projects where the national government or its agencies are the owners of the property and therefore mechanic’s liens are unavailable. Even where you follow the proper claims process under this statute, the question remains as to what sorts of costs can be included in the claim. A recent case out of the Eastern District of Virginia federal court in Alexandria, VA gives some insight into the limits of claims under the federal Miller Act. In Dickson v Forney Enterprises, Inc. et. al., the Court looked at the question of whether costs of a project manager’s purely clerical duties can be included and correspondingly whether performing those duties can extend the relevant one-year limitations period for filing suit. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Faulty Workmanship may be an Occurrence in Indiana CGL Policies

April 07, 2011 — Beverley BevenFlorez CDJ STAFF

The question of whether construction defects can be an occurrence in Commercial General Liabilities (CGL) policies continues to find mixed answers. The United States District Court in Indiana denied the Plaintiff’s Motion for Summary Judgment in the case of General Casualty Insurance v. Compton Construction Co., Inc. and Mary Ann Zubak stating that faulty workmanship can be an occurrence in CGL policies.



Judge Theresa L. Springmann cited Sheehan Construction Co., et al. v. Continental Casualty Co., et al. for her decision, ”The Indiana Supreme Court reversed summary judgment, which had been granted in favor of the insurer in Sheehan, holding that faulty workmanship can constitute an ‘accident’ under a CGL policy, which means any damage would have been caused by an ‘occurrence’ triggering the insurance policy’s coverage provisions. The Indiana Supreme Court also held that, under identically-worded policy exclusion terms that are at issue in this case, defective subcontractor work could provide the basis for a claim under a CGL policy.”



As we reported on April 1st, South Carolina’s legislature is currently working on bill S-431 that would change the wording of CGL policies in their state to include construction defects. Ray Farmer, Southwest region vice president of the American Insurance Association spoke out against the bill. “CGL policies were never meant to cover faulty workmanship by the contractor,” he said. “The bill’s supplementary and erroneous liability provisions will only serve to unnecessarily impact construction costs in South Carolina.”

 

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Environmental Roundup – May 2019

July 09, 2019 — Anthony B. Cavender - Gravel2Gavel
Federal Courts of Appeal Dam Claims Collapse On May 7, 2019, the U.S. Court of Appeals for the Eleventh Circuit decided the case of Navelski, et al. v. International Paper Company. After a major storm, a dam constructed by International Paper to serve the operations of its local paper mill, was breached, releasing millions of gallons of water into a nearby creek resulting in the flooding of many homes located downstream from the creek. IP was sued by the homeowners in a class action, alleging negligence and strict liability for conducting an abnormally dangerous activity. The trial court dismissed the strict liability claim, and the jury found IP was not negligent in the operation of the dam. On appeal, the court upheld the jury verdict, agreeing that the verdict was supported by the evidence heard by the jury. The appeals court also agreed that the strict liability claim was properly dismissed as a matter of law because the operation of this dam was not an abnormally dangerous activity under Florida law. The plaintiffs had also argued that the jury should not have been advised that the home county, Escambia County, has applied for a FEMA grant which apparently made the case that some of the downstream homes were naturally prone to flooding. A redacted version of the application was allowed to be shown to the jury, but the appeals court held that the plaintiffs had not demonstrated that the court ruling was prejudicial. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Introducing Nomos LLP!

December 30, 2019 — Garret Murai - California Construction Law Blog
We’ve been quiet lately we know. We’ve been nesting. Not the alien popping through your stomach kind of nesting, although, there have been a few white knuckled “what the heck did we get ourselves into!” moments. Rather, we’ve been quietly building something we think is pretty great. Not just for us, but for our clients. Our own law firm. So here’s the 411: What’s with the name Nomos LLP? We’ve gotten a few questions about that. We wanted to create a client-centric law firm not a lawyer-focused one. Hence, no last names. Plus, we don’t have cool last names like Low, Ball & Lynch or Payne & Fears. The name “nomos” is Greek for “law.” And, of course, it’s from the Greeks that much of modern Western legal system is derived. Simple. Opa! Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Colorado “occurrence”

January 06, 2012 — CDCoverage.com

In Greystone Construction, Inc. v. National Fire & Marine Insurance Co., No. 09-1412 (10th Cir. November 1, 2011), general contractors Greystone and Branan were each sued by purchases of homes built by each alleging defective construction performed by subcontractors. CGL insurer American Family Mutual Insurance Company defended both Greystone and Brannon while co-insurer National Fire & Marine Insurance Company denied a defense. Greystone, Branan, and American Family sued National Fire for contribution towards defense costs. The federal district trial court entered summary judgment for National Fire.

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Reprinted courtesy of CDCoverage.com

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Is Settling a Bond Claim in the Face of a Seemingly Clear Statute of Limitations Defense Bad Faith?

October 11, 2021 — Christopher G. Hill - Construction Law Musings
We have often discussed payment and performance bonds here at Construction Law Musings, most often in the context of payment bond claims relating to federal and state-owned. construction projects. A late 2020 case out of the Eastern District of Virginia federal court examined what happens after such a claim, in this case, based upon a developer’s subdivision bonds, is made and negotiations commence between the surety and the claimant. Specifically, Fidelity & Deposit Co. of Maryland v. Ransgate Corp., et. al. looked at claims for indemnity by a surety and the principal/indemnitors in the event that the Surety settled such a claim. In the Ramsgate case, Surety provided two separate subdivision subcontract bonds to Ramsgate. Pursuant to those bonds and the indemnity clause of its indemnity agreement, the Surety sought reimbursement of its $80,000.00 settlement payment to the local building authority that it paid to resolve what was originally a claim for over $420,000.00 by the City. The project was started in 2002 and after many years of failures to complete (according to the City of Suffolk), the City made its claim for expenses in 2017. Ramsgate claimed that it completed the subdivisions in 2003. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Why Builders Should Reconsider Arbitration Clauses in Construction Contracts

October 21, 2019 — David M. McLain – Colorado Construction Litigation
My advice to home builders has long been to arbitrate construction defect claims instead of litigating them in front of juries. Based on my experience and watching others litigate claims, I have learned that home builders usually fare better in arbitration than in jury trials, both in terms of what they have to pay the homeowners or HOAs and also in what they recover from subcontractors and design professionals. Because of these dynamics, conventional wisdom has been that builders should arbitrate construction defect claims. For several reasons, I am now questioning whether the time is right to consider a third option. First, plaintiffs’ attorneys dislike arbitration and will continue their attempts to do away with arbitration for construction defect claims. In 2018, the Colorado Legislature considered HB 18-1261 and HB 18-1262. While both bills were ultimately killed, they showed the plaintiffs’ attorneys disdain for arbitration, and serve as a warning that attempts to prevent arbitration legislatively will continue. If the legislature does away with the ability to arbitrate construction defect claims, and that is the only means of dispute resolution contained in a builder’s contracts, that builder may find itself in front of a jury. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Federal Judge Strikes Down CDC’s COVID-19 Eviction Moratorium

March 29, 2021 — Zachary Kessler, Amanda G. Halter & Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog
A federal judge in Texas has declared the Centers for Disease Control and Prevention (CDC) eviction moratorium unconstitutional, holding that Article I’s power to regulate interstate commerce and enact laws necessary and proper for such regulation does not include the power to suspend residential evictions on a nationwide basis. While the court stopped short of issuing immediate injunctive relief, instead relying on the CDC to “respect the declaratory judgment” and withdraw the Order, the court stated that such relief would be available if the government does not comply with the decision. With this ruling, the most significant prohibition on residential evictions for nonpayment of rent is likely to be lifted, and many residential evictions halted or delayed under the Order may begin in earnest. While additional tenant protections remain in certain locales, this federal ruling increases the likely rate and pace of residential eviction activity across the country. The CDC Eviction Moratorium was a nationwide order enacted under the Trump Administration in an effort to reduce the adverse economic impacts of the ongoing COVID-19 pandemic on residential tenants, and as a public health measure to prevent displacement of individuals into living situations conducive to the spread of the COVID-19. The Order allowed tenants facing eviction due to financial strains caused by the pandemic to certify in writing to their landlord that they are unable to pay full rent and that eviction would likely lead to homelessness or force the individual into unsafe congregate or shared living quarters. The CDC issued the order under its emergency pandemic powers under the Public Health Service Act. Initially in effect through December 31, 2020, the Order was subsequently extended through March 31, 2021. Reprinted courtesy of Zachary Kessler, Pillsbury, Amanda G. Halter, Pillsbury and Adam Weaver, Pillsbury Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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