SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

ConsensusDOCS Updates its Forms

October 21, 2015 — Christopher G. Hill – Construction Law Musings
As reported recently in ENR Magazine, among other publications, the ConsensusDOCS folks have updated their contract forms. Why is this news? First of all, it’s only been around three and a half years since these documents were officially released and this release is about 18 months sooner than anticipated (the original revision cycle was to be 5 years). Why the revision? According to my friend and counsel to ConsensusDOCS, Brian Perlberg, one major rationale is that “the economics of the construction industry today looks nothing like it did [in 2007.” Among the changes are several terminology changes (“constructor” instead of “contractor” for instance), the addition of mandatory green building design as a basic service (these forms already have a Green Building Addendum) if included in the Owner’s plan and the ability to provide for prevailing party attorney fees (before both sides of a dispute bore their own fees). 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

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Useful Life: A Valuable Theory for Reducing Damages

March 29, 2017 — Brooke E. Beebe, Esq. - Florida Construction Law News
The situation is one all too familiar to construction defect litigants. A homeowner contracts with a roofing contractor to install a new roof with a life expectancy of ten years.[1] After only five years, the homeowner brings a claim for construction defects in the roof alleging that the roof requires complete replacement due to water intrusion. The homeowner seeks damages for the full replacement cost of the roof. However, under a “useful life” theory, the homeowner would not be entitled to damages for the full amount of the replacement cost. Instead, the homeowner would be entitled to one-half of the cost of the replacement roof, taking into account the fact that he or she had been deprived of only five, rather than ten, years of use. “Useful life” is best understood as the expected length of time that a newly built construction element can be reasonably anticipated to last, subject to routine maintenance and ordinary wear and tear. The “useful life” theory holds that granting the homeowner damages for the full replacement cost of the roof would result in unjust enrichment to the homeowner, who had contracted for a roof with a ten-year, rather than a fifteen-year, useful life. Read the court decision
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Reprinted courtesy of Brooke E. Beebe, Cole, Scott & Kissane, P.A.
Ms. Beebe may be contacted at brooke.beebe@csklegal.com

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Construction Firm Sues Town over Claims of Building Code Violations

November 06, 2013 — CDJ STAFF
Paradigm Development and Construction LLC has sued Bristol Township, Pennsylvania over the allegation that town building officials colluded with their clients to issue building code violations after Paradigm prepared to sue the clients. John and Patricia Conard hired Paradigm to construct an addition to their home. During the process, the work went through nine inspections before Paradigm stopped work over a payment dispute. Some months later, Bristol Township issued a notice that Paradigm had 37 violations of the building code. Paradigm alleges that the source was a set of photographs provided by the Conards to the building officials. The lawsuit states that Paradigm “was not notified of any construction deficiencies at the Conard property, and was not provided with an opportunity to discuss, defend or refute the allegations of the Municipal Defendants that Plaintiff has violated the Bristol Building code.” The violation notice was withdrawn a few months later. Read the court decision
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Negligent Construction an Occurrence Says Ninth Circuit

June 30, 2011 — CDJ STAFF

One June 27, the US Court of Appeals has rejected an appeal from Mid-Continent Casualty Company. Mid-Continent had appealed a summary judgment granted to Titan Construction Company.



Titan Construction had built condominiums for the Williamsburg Condominium Association, which later filed a construction defect lawsuit against Titan and other defendants. Titan settled with the developer, Kennydale, assigning its rights against Mid-Continent to Kennydale. Mid-Continent filed suit, claiming that “it had no obligation to indemnify or defend Titan, Kennydale, or various other defendants.” The district court found in favor of Mid-Continent, granting a summary judgment, concluding that Titan’s insurance covered “occurrences,” and none had taken place.



On appeal, the court found that the negligent construction of the condominiums constituted an “occurrence” The case was remanded and the district court this time found in favor of Titan, “concluding that Mid-Continent failed to raise a triable issue as to the applicability of the remaining policy exclusions.

The Ninth Circuit Court of Appeals has now affirmed that decision and Titan’s summary judgment stands.

Read the court’s decision…

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Forget the Apple Watch. Apple’s Next Biggest Thing Isn’t for Sale

May 20, 2015 — Garret Murai – California Construction Law Blog
Apple released its much anticipated Apple Watch this past month. The Apple Watch is significant for Apple, not only because its profit and loss statement has a lot riding on it, but because it’s the company’s first foray into consumer “wearables.” This isn’t the first time the Cupertino company has ventured into new areas, through. Since its first consumer product, the Apple I, was released in 1976, Apple has gone from personal computers – and its iterations, including, desktops, laptops and tablets – to music players, cell phones and now watches. Today, Apple is less a computer company than a consumer electronics company, and even that doesn’t quite seem to go far enough, as it has become a lifestyle brand for many. Comparisons can be drawn to Sony during the mid-1980s when everyone aspired to a home filled with Sony televisions, Sony receivers and Sony Walkmans. Part of Apple’s success is that it sells a lifestyle that transcends its products, in which a glossy, sophisticated minimalism and simplicity, are among its most recognizable characteristics. It goes beyond their products, and is embodied in their advertising, their online and retail stores, and their packaging. And while the Apple Watch may be Apple’s latest “big” thing, I think something even bigger is underfoot at Apple, and it’s something you can’t buy. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Project-Specific Policies and Products-Completed Operations Hazard Extensions

May 31, 2021 — Jeremiah M. Welch - Saxe Doernberger & Vita
1. Understanding the “Products-Completed Operations Hazard” ISO commercial general liability (“CGL”) policies use the term “products-completed operations hazard” (“PCOH”) to define a category of risk which is treated specially by certain exclusions within the policy and often subject to separate limits of insurance. In construction, we think about PCOH as being about coverage for completed work. Bodily injury and property damage arising out of completed work is a significant construction risk. Most construction contracts include warranty and indemnity obligations for completed work. All states allow lawsuits to be brought alleging bodily injury or property damage because of completed work based on common law. Contract and common law claims are subject to statutes of limitation – laws which define the time in which suits must be brought. Most states provide exceptions to their statutes of limitation for common law claims – the most common example is an extension to file a lawsuit based on a latent defect until the defect is discovered. Most states also have “statutes of repose” – laws that set a date after which suit may no longer be brought, no matter what the circumstances are. A construction contractor, therefore, has potential liability until the statute of repose period has expired. Thus, a contractor looks to ensure that it has coverage for the PCOH for its full statute of repose liability period. Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita
Mr. Welch may be contacted at JWelch@sdvlaw.com

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Congress Considers Pandemic Risk Insurance Act to Address COVID-19 Business Interruptions Losses

May 18, 2020 — Richard W. Brown & Andres Avila - Saxe Doernberger & Vita, P.C.
The draft legislation, entitled the Pandemic Risk Insurance Act of 2020 (“PRIA”), would establish a Federal Pandemic Risk Reinsurance Fund and Program (the “Program”), that is intended to provide a system of shared public and private compensation for business interruption (“BI”) losses resulting from a pandemic or outbreak of communicable disease. PRIA, in its current draft form, is modeled after and in many ways mirrors the Terrorism Risk Insurance Act that was enacted to address catastrophic losses resulting from acts of terrorism. PRIA effectively mandates that participating insurers provide coverage for any business interruption loss resulting from an outbreak of infectious disease or pandemic that is declared an emergency or major disaster by the President and certified by the Secretary of Treasury (the “Secretary”) as a public health emergency. PRIA would be triggered in the case of certified public health emergencies upon the aggregate industry insured losses exceed $250 million dollars, and include an annual aggregate limit capped at $500 billion dollars. The draft bill provides that the Secretary would administer the Program and pay the Federal share of compensation for insured losses, which would be 95% of losses in excess of an applicable insurer annual deductible, once the Program is triggered. The compensation would benefit those insurers that elect to participate in the Program in exchange for a premium paid by the participating insurer for reinsurance coverage under the Program. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Andres Avila, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Mr. Avila may be contacted at ara@sdvlaw.com Read the court decision
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Second Circuit Court Differentiates the Standard for Determining Evident Partiality for a Neutral Arbitrator and a Party-Appointed Arbitrator

August 07, 2018 — Celia B. Waters - Saxe Doernberger & Vita, P.C.
On June 7, 2018, the Second Circuit Court in Certain Underwriting Members of Lloyds of London v. Fla., Dep’t of Fin. Servs.,1 held that a party-appointed arbitrator should not be held to the same standard as a neutral arbitrator. The Court vacated a district court’s order vacating an arbitral award in a reinsurance dispute between Insurance Company of Americas (“ICA”) and Certain Underwriting Members of Lloyds of London (“Underwriters”). The case was one of first impression for the Second Circuit on how to determine the standard of evident partiality challenged to a party-appointed arbitrator. Underwriters reinsured ICA under a series of treaties. The treaties each contained an arbitration clause requiring that disputes be adjudicated by an arbitration panel consisting of three members: one party-appointed arbitrator for each party, and a neutral. The clause required only that the arbitrators “be active or retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s London Underwriters.” Read the court decision
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Reprinted courtesy of Celia B. Waters, Saxe Doernberger & Vita, P.C.
Ms. Waters may be contacted at cbw@sdvlaw.com

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