SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Defect Settlement in Seattle

June 28, 2013 — CDJ STAFF
The Seattle Post-Intelligencer reports that a settlement has been reached in the Mosler Lofts construction defect claim. The settlement received by the homeowners was for about $8.5 million, which will used for repairs of the construction defects and for paying their legal costs. Read the court decision
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Caltrans Hiring of Inexperienced Chinese Builder for Bay Bridge Expansion Questioned

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
The construction of the new eastern span of San Francisco’s bay bridge has been criticized for the $6.5 billion cost, welding crack violations, and alleged cover ups by Caltrans. The Sacramento Bee reported that the company Shanghai Zhenhua Port Machinery Co. Ltd. (ZPMC) “had never built a bridge.” In fact, ZPMC “was a manufacturer of giant cranes for container ports.” How then did ZPMC manage to obtain the contract? The Sacramento Bee stated that the company “had established a reputation as fast and cost-effective, offering savings of about $250 million compared to the competing bidder.” The project was already “years behind schedule and billions of dollars over budget by political squabbles and construction delays” and there were some fears that the “old bridge might not survive a major quake.” Caltrans was told by an outside expert that ZPMC was a “high risk,” however, the company received a “contingent pass.” Sacramento Bee reported that an audit showed “ZPMC didn’t have enough qualified welders or inspectors…and routinely welded in the rain, a basic error that often causes defects.” Regardless, Caltrans signed off on the project. “In August 2007, Caltrans auditors approved ZPMC outright, although the firm still lacked adequate quality control, even for ‘fracture critical’ materials,” the Sacramento Bee reported. During the California Senate committee hearing in January, Doug Coe, a senior Caltrans engineer, said “’The race for time’ created overwhelming pressure to keep moving as planned….But there’s no excuse for building something defective like that because we are in a race for time.” Read the court decision
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South Carolina Contractors Regain General Liability Coverage

May 20, 2011 — CDJ STAFF

PR Newswire reports that the Carolinas Associated General Contractors (CAGC) have successfully persuaded the South Carolina legislature to pass a bill restoring commercial general liability (CGL) coverage. Governor Nikki Hartley signed the legislation on May 17.



A South Carolina Supreme Court decision given on January 7, 2011, had ended commercial general liability coverage in the state. Senate Bill 431 addressed this decision, restoring the ability of home builders to obtain CGL coverage.



PR Newswire quotes South Carolina homebuilder, Allen Amsler: “We have seen a lot of legislation with substantial impact to our business over the years. However, I would place this in the same level of importance with the original tort reform legislation. The effects of the Supreme Court’s ruling could have been catastrophic to our industry in South Carolina had it not been for this bill. Thanks to all those in the House, Senate and the Governor’s office who assisted us.”



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Stop Losing Proposal Competitions

December 10, 2024 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome back Matt Handal. Matt (@matthandal) provides proposal writing strategies that actually work at www.howtowritetheproposal.com. He is the author of Proposal Development Secrets, contributing editor of SMPS Marketer, and co-author of the Marketing Handbook for the Design & Construction Professional. His latest experiment is on business letters. It’s frustrating. You’re a great designer or contractor. Clients love you. The problem is you spend hours producing great proposals, but keep losing. Not only that, most of the time you don’t even get short listed. To make matters worse, the clients keep choosing firms you know you’re better than. So they get the contract and you’re left scrambling for work. Even though these firms frustrate you, imagine what it’s like to be them. They’re not the best, or most qualified firm, yet they walk away with the contract. They are not scrambling for work. They’ve got a healthy backlog. Imagine how it must feel to be them. 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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Construction Law Alert: Appellate Court Lets Broad General Release Stand in SB 800 Case

February 26, 2015 — Steven M. Cvitanovic and Colin T. Murphy – Haight Brown & Bonesteel LLP
Under California's SB 800 "Right to Repair Act," a builder may obtain a "reasonable release" to resolve a construction defect claim in exchange for a cash payment. So, what's a "reasonable release" under SB 800? This question was answered by the Second Appellate District in the case of Belasco v. Wells (filed 2/17/2015, No. B254525). Plaintiff David Belasco ("Plaintiff") purchased a newly constructed residence in 2004 from the builder defendant Gary Loren Wells ("Wells"). In 2006, Plaintiff filed a complaint against Wells with the Contractors' State License Board (the "Board") regarding certain alleged construction defects. The parties settled the 2006 action through written agreement that required Wells to pay Plaintiff $25,000 in consideration for Plaintiff executing a release and a Civil Code §1524 waiver of all known or unknown claims. In 2012, Plaintiff filed a subsequent action against Wells and Wells’ surety, American Contractors Indemnity Company ("American Contractors") (collectively "Defendants"), alleging a defect in the roof that was discovered by Plaintiff in 2011. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Colin T. Murphy, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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Walking the Tightrope of SB 35

December 22, 2019 — Robert Howard, Alexander Walker and Matt Olhausen - Gravel2Gavel Construction & Real Estate Law Blog
Developers in California know that getting approval to build new housing projects can be extremely difficult, time-consuming, and expensive. But a new policy is finally coming into full effect which could help developers cut through those barriers. SB 35, enacted in 2017, streamlines the approval process for housing developments in areas with inadequate housing supply, so long as the developments meet certain criteria. We have written elsewhere about the initial impacts of SB 35. SB 35 has successfully allowed some developers to obtain their entitlements quickly and easily through a streamlined process, but some local governments have resisted the use of SB 35. For example, the City of Los Altos denied an application that attempted to obtain streamlining through SB 35, prompting a nonprofit housing organization to sue. In Cupertino, the Planning Commission Chairman advocated in April 2019 for rescinding the SB 35 approval of the redevelopment of the Vallco Mall, which would include over 2,400 units of housing, while some residents have sued to block the development. As a result, it is crucial for developers to understand the details of SB 35 and make sure to meet all of its requirements. Any misstep may allow a recalcitrant local government to deny that a development project qualifies for SB 35 treatment and attempt to block it. In November 2018, the state Department of Housing and Community Development (HCD) released Guidelines to clarify the criteria for SB 35 and assist cities in determining whether projects qualify for streamlining. Reprinted courtesy of Pillsbury attorneys Robert Howard, Alexander Walker and Matt Olhausen Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. Walker may be contacted at alexander.walker@pillsburylaw.com Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com Read the court decision
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Alabama Court Upholds Late Notice Disclaimer

August 20, 2018 — Brian Margolies - TLSS Insurance Law Blog
In its recent decision in Evanston Ins. Co. v. Yeager Painting, LLC, 2018 U.S. Dist. LEXIS 130316 (N.D. Ala. Aug. 3, 2018), the United States District Court for the Northern District of Alabama had occasion to consider an insured’s reporting obligations under a general liability policy. Evanston’s insured, Yeager, was hired to sandblast water tanks, and in turn, subcontracted out the work to a third party. On May 19, 2012, an employee of the subcontractor was severely injured in connection with a work-site accident. It is not entirely clear when Yeager provided notice of occurrence to Evanston, although Evanston advised by letter dated January 30, 2013 that it would be further investigating the matter subject to a reservation of rights. Evanston subsequently denied coverage by letter dated April 10, 2013, the disclaimer based on a subcontractor exclusion on the policy. Notably, Evanston’s letter advised that Yeager should immediately contact Evanston if any facts changed or if it had any additional information concerning the matter. Read the court decision
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Reprinted courtesy of Brian Margolies, Traub Lieberman Straus & Shrewsberry LLP
Mr. Margolies may be contacted at bmargolies@tlsslaw.com

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Insurers Subrogating in Arkansas Must Expend Energy to Prove That Their Insureds Have Been Made Whole

July 30, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
Arkansas employs the “made whole” doctrine, which requires an insured to be fully compensated for damages (i.e., to be “made whole”) before the insurer is entitled to recover in subrogation.[1] As the Riley court established, an insurer cannot unilaterally determine that its insured has been made whole (in order to establish a right of subrogation). Rather, in Arkansas, an insurer must establish that the insured has been made whole in one of two ways. First, the insurer and insured can reach an agreement that the insured has been made whole. Second, if the insurer and insured disagree on the issue, the insurer can ask a court to make a legal determination that the insured has been made whole.[2] If an insured has been made whole, the insurer is the real party in interest and must file the subrogation action in its own name.[3] However, when both the insured and an insurer have claims against the same tortfeasor (i.e., when there are both uninsured damages and subrogation damages), the insured is the real party in interest.[4] In EMC Ins. Cos. v. Entergy Ark., Inc., 2019 U.S. App. LEXIS 14251 (8th Cir. May 14, 2019), EMC Insurance Companies (EMC) filed a subrogation action in the District Court for the Western District of Arkansas alleging that its insureds’ home was damaged by a fire caused by an electric company’s equipment. EMC never obtained an agreement from the insureds or a judicial determination that its insureds had been made whole. In addition, EMC did not allege in the complaint that its insureds had been made whole and did not present any evidence or testimony at trial that its insureds had been made whole. After EMC presented its case-in-chief, the District Court ruled that EMC lacked standing to pursue its subrogation claim because “EMC failed to obtain a legal determination that its insureds had been made whole . . . prior to initiating this subrogation action.” Thus, the District Court granted Entergy Ark., Inc.’s motion for judgment as a matter of law and EMC appealed the decision. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

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