Seattle Washington Building Expert Directory

Construction Defects Uncertain Role in Coverage in Pennsylvania

February 04, 2013 — CDJ STAFF
Douglas E. Cameron, Jay M. Levin, and Traci S. Rea look at the implications of a pair of Pennsylvania court decisions from 2012. The judge in both cases, Judge Wettick of the Allegheny County Court of Common Pleas held that comprehensive general liability policies do not cover any claims that arise from faulty workmanship. The three conclude that "these holdings may preclude coverage for any tort claims asserted against your company if the allegations involve construction defects, even if you are sued for property damage or personal injury by a third party to your construction contract." They note that both decisions have been appealed to the Pennsylvania Superior Court. Read the court decision
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New California Construction Laws for 2020

March 09, 2020 — Smith Currie
The California Legislature introduced more than 3,033 bills in the first half of the 2019-2020 session. This article summarizes some of the more important bills affecting contractors in their roles as contractors, effective January 1, 2020, unless otherwise noted. Not addressed here are many other bills that will affect contractors in their roles as businesses, taxpayers, and employers. Each of the summaries is brief, focusing on what is most important to contractors. Because not all aspects of these bills are discussed, each summary’s title is a live link to the full text of the referenced bills for those wanting to explore the details of the new laws. BIDDING & PREQUALIFICATIONS Disabled Veteran Preferences Strengthened (AB 230, Brough) The California Legislature intends that every state procurement authority meet or exceed a DVBE participation goal of a minimum of 3% of total contract value. State departments must require prime contractors to certify at the completion of each contract the amount each DVBE received from the prime contractor, among other information. This new law requires the prime contractor to provide upon request proof of the amount and percentage of work the prime contractor committed to provide to one or more DVBEs under the contract in addition to proof of payment for work done by the DVBE. Additionally, prime contractors must now obtain permission before they may replace a listed DVBE. County of San Joaquin Now Authorized to Establish Bid Preferences (AB 1533, Eggman) This new law extends to the County of San Joaquin existing law that authorizes local agencies to establish preferences for small businesses, disabled veteran businesses, and social enterprises in facilitating contract awards. Read the court decision
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Reprinted courtesy of Smith Currie

The Looming Housing Crisis and Limited Government Relief—An Examination of the CDC Eviction Moratorium Two Months In

December 14, 2020 — Zachary Kessler - Gravel2Gavel
Months after the Centers for Disease Control and Prevention (CDC) issued a nationwide eviction moratorium using its emergency pandemic powers under the Public Health Service Act, the efficacy of this unprecedented measure remains unclear. While the Order ostensibly protects tenants facing homelessness or housing insecurity due to the financial impacts of the COVID-19 pandemic through the end of 2020, legal challenges have been initiated in Ohio and Georgia, with additional lawsuits appearing likely. Further, even barring legal challenges, courts have not handled these cases in a uniform manner. With lawmakers unable to reach any stimulus or COVID-19 relief agreement before the election, the CDC Order appears likely to remain the only federal eviction moratorium through its expiration on December 31, 2020. Since the Order’s enactment, the CDC has since released new guidance, answering some of the open questions not covered by the initial Order. This guidance, while non-binding, is largely more favorable to landlords and property management companies than the initial text of the Order, as it provides that landlords are not required to make tenants aware of the Order’s protections and may challenge the truthfulness of the tenants’ declarations in any state or municipal court. The guidance also clarified the potential criminal penalties for violating the Order and the criminal penalties for perjury for bad faith submissions of the requisite declaration by tenants. Read the court decision
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Reprinted courtesy of Zachary Kessler, Pillsbury
Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com

Norfolk Southern Agrees to $310M Settlement With Feds Over 2023 Ohio Derailment

June 21, 2024 — James Leggate - Engineering News-Record
Norfolk Southern Corp. has agreed to pay more than $310 million and implement safety improvements as part of a settlement with the U.S. Environmental Protection Agency and U.S. Dept. of Justice over the disastrous February 2023 train derailment in East Palestine, Ohio, officials and the company announced May 23. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?

March 11, 2024 — Christopher G. Hill - Construction Law Musings
Remember BAE Systems and Fluor? This post is the third here at Construction Law Musings relating to this case which is a seemingly never-ending source for content. In the prior post discussing this case, the Court found that Va. Code 1-4.1:1 which bars waiver of a right to payment before work is performed did not apply because Fluor had provided work before execution of the contract or any change orders. In the most recent opinion in this long-running litigation, and after a motion to reconsider by Fluor that was granted, the Court re-examined this finding along with the contractual language found in the Limitation of Damages (LOD) clause and came to the opposite conclusion regarding certain change orders that remained unpaid by BAE. The Court first looked to the language of the contract itself and specifically the language in the LOD provision that states “Except as otherwise provided in this Subcontract.” The Court then looked at the change order provision and its typical equitable adjustment language and the mandatory nature of the equitable adjustment language. The Court found that the LOD provisions did not apply to change orders both because price increases due to change orders are not “damages” and because of the exception language in the LOD provision itself. 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

Leonard Fadeeff v. State Farm General Insurance Company

September 21, 2020 — Michael Velladao - Lewis Brisbois
In Fadeeff v. State Farm Gen. Ins. Co., 50 Cal.App.5th 94 (May 22, 2020), the California Court of Appeal reversed the entry of summary judgment in favor of State Farm General Insurance Company (“State Farm”) in connection with a smoke and soot damage claim made by Leonard and Patricia Fadeeff (the “Fadeeffs”) for damage sustained by their home due to the 2015 Valley Fire. The parties’ dispute arose out of the Valley Fire, which took place in Lake County, California. The Fadeeffs’ home was located in Hidden Valley Lake. The Fadeeffs submitted a claim to State Farm under their homeowners policy. Initially, after an adjuster inspected the home and noted that it was “well maintained” with no apparent maintenance issues, State Farm made a series of payments and arranged for ServPro to clean the smoke and soot damage. Subsequently, the Fadeeffs retained an independent adjuster and submitted a supplemental claim in the amount of $75,000. State Farm retained a different unlicensed adjuster to investigate the claim and retained expert, Forensic Analytical Consulting Services (FACS) to inspect the Fadeeffs’ home, and another company referred to as HVACi, to inspect the Fadeeffs’ HVAC system. The independent adjuster used to investigate the Fadeeffs’ supplemental claim failed to follow company guidelines in connection with using experts, which required specific questions to be addressed by the expert. In addition, FACS only took surface samples of the walls in the Fadeeffs’ home. Ultimately, the reports prepared by FACS and HVACi concluded that no additional work was required to remediate the damage sustained by the Fadeeffs’ home. Thereafter, State Farm denied the Fadeeffs’ supplemental claim. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

LEEDigation: A Different Take

June 22, 2020 — Christopher G. Hill - Construction Law Musings
This weeks Guest Post Friday at Musings is a real treat. Sara Sweeney is a registered architect, LEED AP and GreenFaith Fellow in religious environmental leadership. Her 18-year architectural career reflects her passion and commitment to sustainable building design and stewardship of our natural environment. She is the founder of EcoVision LLC, a solutions-based research and consulting firm, grounded in sustainable design practices, environmental stewardship, and building science. Dude Every so often I come across a word that drives me nuts. A few years ago it was ‘Dude.’ Lately, it is ‘LEEDigation.’ It’s a new term to “describe green building litigation” coined by Chris Cheatham, a fine person and very knowledgeable attorney in construction law and a LEED AP as well. Per his definition, LEEDigation “could involve disputes arising from green building certification, could arise if a project fails to obtain government incentives or satisfy mandates for green building construction, or could simply result from improperly designed or constructed green building strategies. It all makes sense. So why does it drive me nuts? Round Peg. Square Hole. Although I fully understand why the term was coined, such a term keeps us in flat world, that is, the world of conventional design and construction. Designing and building to LEED standards, or rather, just designing and building sustainably in general, whether to meet a third party standard or not, is a different way than what we have been used to. Period. Whereas our conventional way is focused on first costs, and sees the building more as a commodity than the human imprint and legacy on Earth, sustainable design and building is a process which, at its best, considers the economic impacts of NOT building responsibly. It is a more holistic way of building and balances long-term costs and implications with short term costs. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Surety’s Several Liability Under Bonds

March 20, 2023 — David Adelstein - Florida Construction Legal Updates
When a payment or performance bond is issued on behalf of its bond-principal, the surety is jointly and severally liable with its bond-principal. This means the surety has several liability under the bond, i.e., you don’t need to pursue the principal of the bond to pursue liability under the bond, which is a separate written intrument. Thus, if you are claiming damages of $500,000, by way of example, you can sue both the principal and surety under the bond, you can ONLY sue the principal under the bond (which is rarely practical), or you can ONLY sue the surety under the bond (which, oftentimes, is very practical). In many instances where I am pursuing a bond claim on behalf of a client, particularly a payment bond claim, I only sue the surety and do not sue the bond-principal unless there are certain strategic reasons in doing so. This is because of the surety’s several liability under the bond and there may be solvency issues with the principal or contractual reasons that, strategically, make much more sense to exclude the principal from the action. In MJM Electric, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2023 WL 2163087 (M.D.Fla. 2023), an electrical subcontractor was hired to perform electrical work by the prime contractor. The prime contractor had a payment bond. The project was delayed for two years. The electrical subcontractor claimed the prime contractor failed to compensate it for significant delays and out of scope work. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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