SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Two Things to Consider Before Making Warranty Repairs

January 21, 2019 — David McLain - Colorado Construction Litigation Blog
In my last article, “What a construction defect ‘win’ looks like for a builder,” I made the point that builders should go to great lengths to work with homeowners to resolve legitimate problems through the entire statute of repose, in order to prevent the homeowners from involving attorneys. Again, happy homeowners do not call attorneys and do not bring construction defect claims. In this article, I want to address the ramifications of this strategy that builders should consider. First, builders must be aware that any repairs performed will likely start anew the statutes of limitation and repose for the repairs. Second, builders should inform and involve their insurers in this process so as to avoid running afoul of their carriers’ “voluntary payments” clauses. In the long run, keeping homeowners happy is well worth the cost, especially if you keep in mind these additional considerations. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Real Estate & Construction News Roundup (04/18/23) – Clean Energy, Critical Infrastructure and Commercial Concerns

April 25, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In today’s roundup, construction waxes and wanes, energy goals are set, and concerns abound for the commercial real estate market in the United States and Europe.

• A new AI-driven real estate platform, Land on Earth, will use their ChatGPT-powered HomeMatch technology to match house hunters with their ideal properties. (Business Wire)
• Following a strong show in February, new construction decreased in March, with an 8.8 percent decrease in permits. (Tim Smart, U.S. News)
• The UK’s construction industry made a strong performance this winter, but strikes have offset gains, dimming hopes of economic revival. (Paul Godfrey, UPI)

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

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What to Know Before Building a Guesthouse

September 17, 2014 — Cynthia Flash – Bloomberg
Those tiny, often very cute homes that people are adding on their properties seem to be popping up everywhere these days. The tiny buildings can provide extra rental income, offer a less-expensive housing option or provide a home for a relative. Accessory dwelling units, or ADUs, are second dwelling units created on a lot with an existing house or attached house. They’re often referred to as mother-in-law apartments, granny flats or studio apartments. As a homeowner, what are the legal issues to consider before building an ADU of your own? Different cities, different rules First off, different cities have different rules. Before plotting the space for your new tiny house, check with your city’s planning and zoning department to determine what those rules are. You can start online at accessorydwellings.org for a list of regulations by state and city. Read the court decision
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Reprinted courtesy of Cynthia Flash, Bloomberg

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Expert Excluded After Never Viewing Damaged Property

October 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Plaintiff's expert was excluded for never having seen the property. Wehman v. State Farm Fire and Casualty Co., 2015 U.S. Dist. LEXIS 117445 (D. N.J. Sept. 3, 2015). Plaintiff's home was damaged by Superstorm Sandy on October 29, 2012. He reported his loss to State Farm on Octorber 25, 2013, claiming that some roof shingles had come loose during the storm. No other damage was reported. An investigator for State Farm visited the property. The investigator determined that the damage to the roof was not caused by Sandy, but by age, wear and tear, all of which were excluded causes under the policy. Plaintiff informed the investigator there was no damage to the interior of the home and denied the investigator's request to enter the house to inspect. Plaintiff then sued State Farm for breach of contract and bad faith. Plaintiff designated Timothy Fife of Gulf Coast Estimating Services as his expert in the litigation. Fife's estimate of damages consisted of twelve pages of allegedly required repairs for both the interior and exterior of Plaintiff's property totaling $86,351.01. Fife never visited the property to inspect and never spoke with Plaintiff regarding the condition of the property prior to Sandy or the damage allegedly caused by Sandy. Instead, Fife relied upon an inspection conducted by someone else. 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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Lucky No. 7: Seventh Circuit Court of Appeals Issues Pro-Policyholder Decision Regarding Additional Insured Coverage for Upstream Parties

November 02, 2020 — Daniela Aguila - Saxe Doernberger & Vita
In Scottsdale Ins. Co. v. Columbia Ins. Group, Inc,1 the Seventh Circuit Court of Appeals recently held that a subcontractor’s insurer was obligated to defend and indemnify the project owner’s insurer for damages associated with the subcontractor's employee's personal injury lawsuit where the underlying complaint alleged negligence by the additional insureds. The case cements the notion that under Illinois law, one can significantly benefit from the facts presented in third party complaints as a basis for additional insured coverage. Rockwell Properties (“Rockwell”) was the project owner, along with Prairie Management & Development (“Prairie”), the general contractor, on a construction project in Chicago. Prairie subcontracted HVAC services to TDH Mechanical (“TDH”). When an employee of TDH Mechanical sustained serious injuries performing work at a construction site, a suit was lodged against Rockwell and Prairie in state court. The lawsuit did not bring any claims against TDH but instead alleged that both Rockwell and Prairie had negligently failed to supervise the subcontractors’ work on-site, thus contributing to the worker’s injuries. Read the court decision
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Reprinted courtesy of Daniela Aguila, Saxe Doernberger & Vita
Ms. Aguila may be contacted at dag@sdvlaw.com

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Enforceability of Contract Provisions Extending Liquidated Damages Beyond Substantial Completion

April 15, 2024 — Stu Richeson - The Dispute Resolver
This post takes a look at the enforceability of contract provisions providing for liquidated delay damages after substantial completion. Typically, the assessment of liquidated delay damages ends at substantial completion of a project. However, various standard form contracts, including some of the ConsensusDocs and EJCDC contracts, contain elections allowing for the parties to agree on the use of liquidated damages for failing to achieve substantial completion, final completion, or project milestones. The standard language in the AIA A201 leaves it up to the parties to define the circumstances under which liquidated damages will be awarded. Courts are split on the enforceability of provisions that seek to assess liquidated damages beyond substantial completions. Courts in some jurisdictions will not impose liquidated damages after the date of substantial completion on the ground that liquidated damages would otherwise become a penalty if assessed after the owner has put the project to its intended use. Perini Corp. v. Greate Bay Hotel & Casino, Inc., 129 N.J. 479, 610 A.2d 364 (1992). When the terms are clear, other jurisdictions will enforce contract terms providing for liquidated damages until final completion, even if the owner has taken beneficial use of the facility. Carrothers Const. Co. v. City of S. Hutchinson, 288 Kan. 743, 207 P.3d 231 (2009). Read the court decision
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Reprinted courtesy of Stu Richeson, Phelps
Mr. Richeson may be contacted at stuart.richeson@phelps.com

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Construction Lien Needs to Be Recorded Within 90 Days from Lienor’s Final Furnishing

March 22, 2018 — David Adelstein – Florida Construction Legal Updates

A lienor needs to record its construction lien within 90 days of its final furnishing date. This final furnishing date excludes punchlist, warranty, or the lienor’s own corrective work. A lien recorded outside of the 90-day window will be deemed invalid.

The opinion in In re: Jennerwein, 309 B.R. 385 (M.D. Fla. 2004) provides a good discussion of this 90-day window. This matter dealt with a debtor / owner’s bankruptcy where the owner was contesting the validity of a construction lien by its pool contractor. The owner contended that the lienor’s lien was recorded outside of this 90-day window thus rendering the lien invalid. The bankruptcy court was determining the validity of the lien.

In this matter, the owner hired a swimming pool contractor to construct a pool. On October 25, 2002, the pool contractor installed pavers around the pool. After this was performed, the pool contractor realized the owner was unable to obtain the financing to pay for the pool. As a result, the pool contractor ceased doing any more improvements. But, neither the pool contractor nor the owner terminated the contract. Then, on November 27, 2002, the pool contractor sent a supervisor to the property to inspect the pool (work-in-place), the pool equipment, the installed pavers, made a list of the unfinished work, and remove any debris. On January 27, 2003, the pool contractor recorded its lien.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Building Amid the COVID Challenge

November 29, 2021 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
At longtime client Clark Construction, Dave Beck took charge of risk management just weeks before the COVID-19 pandemic struck. David Beck made a big career move last year—just how big, he soon learned. In January 2020, Beck became division president for risk management at Clark Construction Group, a major national builder based in Bethesda, Md., with more than 4,000 employees across the U.S. In business since 1906, Clark has grown from a small, local excavator into one of the country’s best-known providers of construction services. Beck took up his position at Clark shortly before COVID-19 changed life for everyone. We recently reached out to him to learn how his role has evolved since then. Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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