SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Why Do Construction Companies Fail?

February 14, 2023 — The Hartford Staff - The Hartford Insights
If a construction company takes on a lot of work, it’s a good thing, right? Not exactly. In fact, overextension is one of the primary reasons why contractors fail. And it’s something that contractors should consider as a priority for their risk management plan. Of the 43,277 construction businesses that started in March 2011, only 37.6% of companies survived 10 years later.1 “The construction industry has a high rate of failure,” explains Tim Holicky, senior executive underwriter in The Hartford’s construction central bond team. “And more often than not, it’s because of too much work, rather than too little of it. The key to a contractor’s long-term survival is knowing when to say no.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

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CA Supreme Court Rejects Proposed Exceptions to Interim Adverse Judgment Rule Defense to Malicious Prosecution Action

August 24, 2017 — David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Parrish v. Latham & Watkins (No. S228277 - August 10, 2017) (“Parrish”), the California Supreme Court examined the “interim adverse judgment rule” in a different context than previous decisions on the subject. The rule provides that if an earlier action succeeds after a hearing on the merits, this success establishes the existence of probable cause and precludes a subsequent malicious prosecution action. In a typical case applying the rule, a plaintiff in the underlying action defeats the defendant’s motion for summary judgment but then loses the case at trial leading to a subsequent malicious prosecution claim. In Parrish, the Court addressed whether the rule applies when the trial court had denied the defendant’s summary judgment motion but concluded after the defense prevailed at a bench trial that the suit had been brought in “bad faith” due to a lack of evidentiary support. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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Kushners Abandon Property Bid as Pressures Mount Over Conflicts

May 10, 2017 — David Kocieniewski & Caleb Melby - Bloomberg
A company owned by the family of Jared Kushner, President Donald Trump’s son-in-law, has abandoned plans to buy a sprawling industrial site in New Jersey from Honeywell International Inc., a major federal contractor, and develop it into a residential community. Kushner Cos. had been the leading bidder for the 95-acre formerly contaminated site known as Bayfront, which is co-owned by Honeywell and Jersey City, city officials said. The company had submitted plans to build as many as 8,100 housing units to be marketed to Orthodox Jewish residents of the Williamsburg section of Brooklyn who are being priced out of that neighborhood. Last fall, the Kushners bid about $150 million, tens of millions higher than competitors, according to people involved in the negotiations. Honeywell heard from others who would only make an offer once the environmental approvals for the cleaned-up site were final. So the bidding is scheduled to reopen later this year and Kushner Cos. had been expected to continue in the process, the people said. But on Tuesday, when Bloomberg News asked about Bayfront, company spokesman James Yolles said the Kushners are no longer pursuing the project. He wouldn’t elaborate or explain. Reprinted courtesy of David Kocieniewski, Bloomberg and Caleb Melby, Bloomberg Read the court decision
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Florida SB 2022-736: Construction Defect Claims

February 07, 2022 — Kelly A. Johnson - Saxe Doernberger & Vita, P.C.
*Special thank you to SDV Law Clerk Iliriana Fteja for contributing to this article. A new bill (SB 2022-736) was recently introduced to the Florida Senate. The proposed amendments to the statutes of limitations and repose could significantly impact construction defect claims by effectively creating additional exposure to contractors and insurance carriers. The proposed bill requires all actions founded on the design, planning, or construction of an improvement to real property to be commenced within four years after the time to commence an action begins. Under the proposed amendment, the time to commence an action runs from the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and their employer. This provision would effectively alter the time to commence an action to whichever triggering event is earliest instead of the latest triggering event per the previous statute. Read the court decision
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Reprinted courtesy of Kelly A. Johnson, Saxe Doernberger & Vita, P.C.
Ms. Johnson may be contacted at KJohnson@sdvlaw.com

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Insured's Motion for Reconsideration on Protecting the Integrity of Referral Sources under Florida Statute s. 542.335

September 28, 2017 — David Adelstein - Florida Construction Legal Updates
Referral sources are generally important for all businesses. Due to their importance, certain businesses require employees to execute non-solicitation or even non-compete agreements to protect the integrity of their referral sources. Now, whether referral sources for a particular business constitutes a legitimate business interest (very important words) is a question where the context must be examined. Nonetheless, in a case that is certainly important for businesses, the Florida Supreme Court held that referral sources can serve as a legitimate business interest. While this case dealt with home health care companies, the rationale would be the same no matter the business, provided that referral sources are contextually a legitimate business interest for that business. Read the court decision
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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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California Court of Appeal Clarifies Intent of Faulty Workmanship Exclusions

October 26, 2017 — Tiffany Casanova – Saxe Doernberger & Vita, P.C.
Last month, in Global Modular, Inc. v. Kadena Pacific, Inc., 1 a California Court of Appeal clarified the meaning of the frequently asserted j.(5) and j.(6) exclusions of the standard commercial general liability policy; an issue the court deemed one of “first impression” for the state. The court took a close look at how courts nationwide handle the exclusions and relied on the policy language to come to a policyholder-friendly decision. Read the court decision
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Reprinted courtesy of Tiffany Casanova, Saxe Doernberger & Vita, P.C.
Ms. Casanova may be contacted at tlc@sdvlaw.com

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New Home Construction Booming in Texas

October 24, 2022 — Jason Daniel Feld & Ron Raydon - Kahana Feld

With the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:

Houston

Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	483	$ 129,812.00
2-Camillo Properties	190	$ 147,790.00
3-Lennar Homes	188	$ 195,503.00
4-Meritage Homes	124	$ 248,597.00
5-Wan Pacific Real Estate Development	117	$ 165,044.00

Dallas

In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	555	$ 179,430.00
2-Lennar Homes	232	$ 202,318.00
3-Trophy Signature Homes	111	$ 274,016.00
4-Bloomfield Homes	97	$ 405,235.00
5-Meritage Homes	92	$ 267,425.00

 Austin

Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:

Builder	Total Permits	Average Value
1-Lennar Homes	150	$ 154,390.00
2-KB Homes	147	$ 253,606.00
3-D.R. Horton	99	$ 200,416.00
4-Taylor Morrison Homes	79	$ 365,183.00
5-David Weekley Homes	64	$ 436,978.00

 San Antonio

In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-Lennar Homes	126	$ 174,315.00
2-KB Homes	55	$ 254,109.00
3-Pulte Homes	52	$ 241,012.00
4-M/I Homes	51	$ 237,283.00
5-LGI Homes	30	$ 202,760.00

The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.

The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.

Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld

Mr. Feld may be contacted at jfeld@kahanafeld.com

Mr. Raydon may be contacted at rraydon@kahanafeld.com

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Hennigh Law Corporation Wins Award Against Viracon, Inc In Defective Gray PIB Case

July 11, 2022 — Scott Hennigh - Hennigh Law Corporation
LOS ANGELES, July 08, 2022 (GLOBE NEWSWIRE) -- Hennigh Law Corporation has announced that, after an over four-year battle in and out of court, a three arbitrator panel issued a 93-page interim award in finding Viracon, Inc., liable for $13,682,840 in direct damages for defrauding the owner of the premier office building in Burbank, California, The Pointe. The matter now enters the second phase, where the arbitration panel will rule on the amount of punitive damages to assess, as well as attorney fees and interest. Scott Hennigh, trial attorney, states, "The California construction industry is very robust with high standards. The arbitration panel appears to have recognized that California law does not tolerate large out-of-state companies misleading customers. They appear poised to send a message to Viracon about its lack of corporate responsibility." The premier Class-A office building in Burbank, California, The Pointe, serves high-end tenants in entertainment industries such as Warner Brothers. Constructed in 2009, the 13 exterior curtain wall of the 13-story building is encased in seamless glass panels. Read the court decision
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Reprinted courtesy of Scott Hennigh, Hennigh Law Corporation
Mr. Hennigh may be contacted at Scott.hennigh@hennighlaw.com

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