Seattle Washington Building Expert Directory

Failure to Allege Property Damage Within Policy Period Defeats Insured's Claim

October 03, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insured's inability to determine when water damage occurred meant it could not pursue claims of property damage against the insurers. Creek v. State Farm Fire & Cas. Co., 2022 U.S. Dist. LEXIS 116939 (W.D. Wash. July 1, 2022). Gold Creek Condominium complex experienced water damage. The complex was completed in 1982. The owners sued State Farm and Travelers under all-risk policies when tenders for the damage were denied. In 2017, Creek hired an expert to investigate deterioration due to water intrusion. The expert noted that "water intrusion had been evident in the exterior walls, soffits, terraces, handrails and elevated entry walkways for some time." Thereafter, Creek tendered claims for property damage to State Farm and to Travelers. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Contractor Wins in Arbitration Only to Lose Before the Superior Court on Section 7031 Claim

June 19, 2023 — Garret Murai - California Construction Law Blog
If you’re a regularly reader of the California Construction Law Blog you’re aware of Business and Professions Code section 7031 which courts have variously described as “harsh[ ],” “draconian” and “unjust,” but, importantly, nevertheless valid. We haven’t seen many cases applying Section 7031 in an arbitration setting, however, until now. In Vascos Excavation Group LLC v. Gold, 87 Cal.App.5th 842 (2022), a contractor who prevailed on a payment claim in arbitration, had its victory snatched from its fingertips by the Superior Court which found that the arbitrator had exceeded her authority because the contractor was subject to Section 7031. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Supreme Court Upholds Prevailing Wage Statute

August 19, 2024 — Ahlers Cressman & Sleight PLLC
Historically, the prevailing wage was calculated by averaging the wages within a certain industry and county. However, in 2018 the Washington Legislature amended the statute so that the prevailing wage would be assessed based on the highest wage set by collective bargaining agreements in the county. The amendment (RCW 39.12.015(3)) reads as follows: (3)(a)…the industrial statistician shall establish the prevailing rate of wage by adopting the hourly wage, usual benefits, and overtime paid for the geographic jurisdiction established in collective bargaining agreements… (b) For trades and occupations in which there are no collective bargaining agreements in the county, the industrial statistician shall establish the prevailing rate of wage by…conducting wage and hour surveys. So, for example, if union engineers bargain for a wage, that is the wage all engineers in the county must be paid on public projects. The legislature passed this law for the sake of efficiency because it took significant resources for the Industrial Statistician to compute the prevailing wage for every trade and every county, but the law has significant knock-on effects. Read the court decision
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Reprinted courtesy of Ahlers Cressman & Sleight PLLC

The Value of Photographic Evidence in Construction Litigation

April 26, 2021 — Marie Mueller - Construction Executive
If a picture is worth a thousand words, can it be worth a thousand dollars? Ten thousand? Maybe, if it provides key evidence in a construction dispute. Litigating a construction case involves each side telling their story. Details and visual context make a story compelling. Evidence and corroboration make a story persuasive. Photographs can help on both of these fronts. The Value of Photographic Evidence in Construction Litigation Consider the following examples:

A dispute relates to the timeliness of particular work. An employee has a memory of a load of materials arriving to the site later than it should have, but the records are incomplete or ambiguous about when it actually occurred. If the employee also took a photo of the materials, on the day they arrived, they could match up the date of the photo to their memory and build a clear timeline.
A dispute relates to the presence or absence of obstructions in drilled shafts. There are no available photographs or videos of the work due to site restrictions. Presentation of this type of case may be severely limited by not being able to show photos depicting the size, shape and type of material removed from the shafts, and by the lack of video depicting the work.

Reprinted courtesy of Marie Mueller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Mueller may be contacted at mmueller@verrill-law.com

Framework, Tallest Mass Timber Project in the U.S., Is On Hold

August 07, 2018 — Nadine M. Post - Engineering News-Record
The tallest mass-timber building development in the U.S. is "on hold for the foreseeable future," according to the developer, named project^. The 12-story mixed-use building, known as Framework, has been under development in Portland, Ore., since 2014. Construction was first delayed a year ago and currently is postponed because of changing market conditions, which have had a negative impact on the development's bottom line. These include inflation, escalating construction costs and fluctuations in the tax credit market, says the developer. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Federal Court Dismisses Coverage Action in Favor of Pending State Proceeding

October 12, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court declined to exercise jurisdiction over the coverage action that was parallel to a case pending in state court involving the same parties and same issues pending. Navigators Ins, Co. v. Chriso's Tree Trimming, 2020 U.S. Dist. LEXIS 129711 (E.D. Calif. July 22, 2020). Pacific Gas & Electric (PG&E) entered into a tree, brush and wood removal contract with Mount F Enterprises, Inc. Mountain F subsequently entered into a subcontractor agreement with Chriso Tree Trimming, Inc. for work to be performed for PG&E. In August 2017, Chriso attempted to remove a tree, but the tree accidentally fell in the wrong direction and knocked down nearby powerlines. The powerlines came into contact with surrounding brush and started the "Railroad Fire." The fire was eventually contained on September 15, 2017, after 12, 407 acres were burned and 7 structures and 7 homes were destroyed. Five subrogation lawsuits were filed in state court against Chriso and Mountain F by various insurance companies that paid for the damage caused by the Railroad Fire. A policy limits demand to settle all claims against Chriso and Mountain F was made. Navigators insured Chriso for $9 million through a Commercial Excess Liability Policy, payable once all other insurance was exhausted. The policy included a "Professional Services Endorsement" (PSE Exclusion) that excluded coverage of "professional services." "Professional services" was defined through a list of 12 non-exclusive professions and services that generally referred to activities involving specialized knowledge or skill that was predominantly mental or intellectual in nature rather than physical or manual. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Recommendations and Drafting Considerations for Construction Contingency Clauses Part III

December 27, 2021 — Samantha Schacht & Josh Levy - Construction Executive
The best contracts provide the parties with a clear allocation of risks and responsibilities, and a process for handling inevitable project challenges. Contract negotiations can enable parties to have the difficult conversations allocating risks before the start of a project. An effective negotiation, in turn, aligns the parties’ expectations and helps avoid costly disputes born out of misunderstandings of the parties’ respective rights and responsibilities on the project. This final installment of a three-part series on contingencies in construction contracts addresses factors that should be discussed and considered when drafting a contingency clause in a construction contract with the goal of helping to set clear expectations and avoid disputes. Part I The Best Laid Plans: Contingency in a Construction Contract explained what a construction contingency is and Part II The Best Laid Plans: Contingency in a Construction Contract discussed the two primary schools of thought on how a construction contingency fund should be used and managed. Reprinted courtesy of Samantha Schacht, Construction Executive and Josh Levy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com Read the court decision
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California Attempts to Tackle Housing Affordability Crisis

December 22, 2019 — Garret Murai - California Construction Law Blog
It’s a bit too early yet for our 2020 Construction Law Update but here’s a preview of some of the new laws taking effect next year. Earlier this month, Governor Gavin Newsom signed a slate of 18 bills to boost housing production in an effort to tackle the state’s housing affordability crisis. First, a bit of background. California currently ranks 49th among the states in housing units per resident. Experts say that the state needs to double its current rate of housing production of 85,000 unit per year just to keep up with population growth and four times the current rate to reduce housing costs. Anecdotally, here in the San Francisco Bay Area, the median rent for a one-bedroom apartments in San Francisco is currently $3,690 per month or $44,280 per year. However, as of May 2018, according to the U.S. Bureau of Statistics, the annual mean wage of a teller is just $32,840, for farmworkers $34,700, and for teachers $48,250. And that’s before taxes. Let that sink in for a moment. The result is one in five Californians live in poverty, the highest rate in the nation, when factoring in the cost of living. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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