SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim

October 14, 2019 — Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis. The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment. Reprinted courtesy of Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and Bethany L. Barrese, Saxe Doernberger & Vita, P.C. Ms. Cooper may be contacted at alc@sdvlaw.com Ms. Barrese may be contacted at blb@sdvlaw.com Read the court decision
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Candis Jones Named to Atlanta Magazine’s 2024 “Atlanta 500” List

February 26, 2024 — Candis Jones - Lewis Brisbois Newsroom
Atlanta, Ga. (February 9, 2024) – Atlanta Partner Candis R. Jones has been named to Atlanta Magazine’s 2024 “Atlanta 500” list of the most powerful law professionals in Atlanta. This is the fourth year in a row she has received this recognition. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionaries who led programs for their communities and created opportunities for employees. According to Atlanta Magazine, this list is “an anthology of the power that resides in Atlanta.” Read the court decision
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Reprinted courtesy of Candis Jones, Lewis Brisbois
Ms. Jones may be contacted at Candis.Jones@lewisbrisbois.com

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Property Owners Sue San Francisco Over Sinking Sidewalks

June 20, 2022 — Beverley BevenFlorez – CDJ Staff
Residents of the Mission Bay neighborhood seek “to hold the City of San Francisco responsible for raising up the sinking sidewalks” reported KRON 4. The suit alleges that the city should shoulder the responsibility for the necessary work needed for the infrastructure. Historically, “the neighborhood around the Chase Center east of Interstate 280 was part of the bay,” according to SF Gate. Later, “the area was filled with dirt and rock and further filled with rubble after the 1906 earthquake.” In 1998, further development took place. All of the “new occupied buildings in Mission Bay, such as the UCSF campus, the Chase Center and the 6,000 residential units there, are anchored into the bedrock," but "the sidewalks, streets and parks are not, and that's a problem.” "We're not asking for a handout; we're asking for a hand. We want them to step forward and make the repairs that they can actually implement," Scott Mackey, Partner at Berding | Weil, told CBS News. "Everyone understood that it's built on fill and built in an area where there would be some settlement. But, there also is an expectation that when the city turns over the infrastructure that that homeowners and property owners have to maintain, is that it's built correctly - that they're able to maintain it. The homeowners cannot continually chase the differential movement.” Read the full story at KRON 4... Read the full story at SF Gate... Read the full story at CBS News... Read the court decision
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Toolbox Talk Series Recap – Considerations for Optimizing Dispute Resolution Clauses

June 05, 2023 — Michael Filbin - The Dispute Resolver
In the April 27, 2023 edition of Division 1's Toolbox Talk Series moderated by Manuel del Valle, Sergio Andre Laclau (Partner at Mello Torres) and Liza Akins (Senior Assistant GC and Division Counsel at ARCO Design/Build) offered the following strategies for drafting effective ADR clauses in construction contracts:

1. Define the ADR process for various types of disputes.

Not all disputes on a construction project are the same, and the parties can tailor the ADR process to different situations. For example, the parties could choose to arbitrate complex disputes and resolve minor claims through mediation. Differentiating the ADR process between complex and minor disputes can save parties time and money. While Liza prefers arbitration for complex claims because you can get a quick and final decision from an arbitrator experienced with construction disputes, she noted that arbitration costs can add up quickly. Therefore, if the dollar amount in dispute is relatively small, arbitration may not make sense financially. Mediation tends to be a comparatively cheaper and faster option. Read the court decision
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Reprinted courtesy of Michael Filbin, Cozen O'Connor
Mr. Filbin may be contacted at mfilbin@cozen.com

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Unjust Enrichment and Express Contract Don’t Mix

August 23, 2021 — Christopher G. Hill - Construction Law Musings
I am a huge fan of clearly written construction contracts. Virginia state and federal courts will interpret contract provisions as written and will seek to enforce all of those terms where possible. Where the contract is ambiguous, we construction attorneys make money and the courts are forced to make decisions that the parties may not like. A recent case out of the Eastern District of Virginia federal court highlights the ways in which a clear contract affects the claims that can be brought and limits the scope of possible litigation. In First Call Environmental LLC v. Murphy Oil USA LLC, the Court looked at a relatively typical Owner, Contractor, Subcontractor set of agreements. In this matter, Murphy Oil entered a contract with National Rapid Response, Inc. (“NRR”) whereby NRR would provide emergency and environmental management and waste disposal services to Murphy Oil. NRR then subcontracted with the Plaintiff First Call to perform the services for Murphy Oil. First Call filed suit against Murphy Oil alleging two counts: breach of contract (based on a third-party beneficiary theory), and unjust enrichment. 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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Green Energy Can Complicate Real Estate Foreclosures

November 30, 2016 — Bob L. Olson – Snell & Wilmer Real Estate Litigation Blog
A quick drive through almost any newer residential community in the Southwest will show that a lot of residents are embracing “Green Energy” or renewable energy by placing solar panels on their properties. While most people would agree that increasing the use of alternative energy is socially responsible, there are a number of real estate investors that may view it as an opportunity to make additional profits by purchasing distressed properties with solar panels and then reselling those properties for more than they would be worth without solar panels. The theory is relatively straight forward as many believe that foreclosure of a deed of trust that was recorded before the solar panels were installed would extinguish any liens in favor of the vendor that sold or financed the sale of the solar panels. After all, it is generally held that “a valid foreclosure of a mortgage terminates all interest in the foreclosed real estate that are junior to the mortgage being foreclosed.” See SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. Adv. Op. 75, 334 P.3d 408, 412 (2014) (quoting Restatement (Third) of Property, Mortgages §7.1 (1997)). NOT SO FAST! While the general rule is that foreclosure of a senior lien terminates junior liens, most purveyors of solar panels do not encumber the property with mortgages or deeds of trust to secure payment of amounts they are owed. Rather, they typically either lease the solar panels to the property owner or secure repayment of the purchase price of the solar panels with a fixture filing under the Uniform Commercial Code (the “UCC”). Read the court decision
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Reprinted courtesy of Bob L. Olson, Snell & Wilmer
Mr. Olson may be contacted at bolson@swlaw.com

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No Coverage For Damage Caused by Chinese Drywall

October 28, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The pollution exclusion barred coverage for alleged property damage and bodily injury in Evanston Ins. Co. v. Harbor Walk Dev., LLC, No. 2:10cv312 (E.D. Va. Sept. 9, 2011).

Homeowners sued the insured, Harbor Walk, in three lawsuits, alleging the Chinese drywall installed in their homes emitted sulfides and other noxious gases. This caused corrosion and damage to the air-conditioning and ventilation units, refrigeration coils, copper tubing, faucets, metal surfaces, electrical appliances and other personal items. The homeowners also alleged the compounds emitted by the drywall caused bodily injury, such as allergic reactions, headaches, etc.

Harbor Walk’s insurer, Evanston, filed for a declaratory judgment that the pollution exclusion precluded coverage.

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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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Senate’s Fannie Mae Wind-Down Plan Faces High Hurdles

March 19, 2014 — Clea Benson, Cheyenne Hopkins and Kathleen Hunter – Bloomberg
A bipartisan U.S. Senate plan to dismantle Fannie Mae (FNMA) and Freddie Mac must clear many political hurdles in a short time if it is to become law, leaving narrow chances of a housing-finance overhaul being enacted this year. Senate Banking Committee leaders said the proposal, which they plan to release later this week, would replace the two U.S.-owned mortgage financiers with government bond insurance that would kick in only after private capital suffered severe losses. It will be left to the courts to decide how investors in Fannie Mae and Freddie Mac are treated as the two companies are wound down, Mike Crapo, an Idaho Republican who co-wrote the bill, said today in an interview on Bloomberg Television. Investors including Perry Capital and Fairholme Capital Management are suing the U.S. to challenge an arrangement in which all the companies’ profits go to the Treasury. Ms. Benson may be contacted at cbenson20@bloomberg.net; Ms. Hunter may be contacted at khunter9@bloomberg.net; Ms. Hopkins may be contacted at chopkins19@bloomberg.net Read the court decision
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Reprinted courtesy of Clea Benson, Cheyenne Hopkins and Kathleen Hunter, Bloomberg

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