Seattle Washington Building Expert Directory

Anti-Fracking Win in N.Y. Court May Deal Blow to Industry

July 01, 2014 — Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr. – Bloomberg
New York’s cities and towns can block hydraulic fracturing within their borders, the state’s highest court ruled, dealing a blow to an industry awaiting Governor Andrew Cuomo’s decision on whether to lift a six-year-old statewide moratorium. The case, closely watched by the energy industry, may invigorate local challenges to fracking in other states and convince the industry to stay out of New York even if Cuomo allows drilling. Pennsylvania’s highest court issued a similar ruling last year, striking down portions of a state law limiting localities’ ability to regulate drillers. “This sends a really strong and clear message to the gas companies who have tried to buy their way into the state that these community concerns have to be addressed,” Katherine Nadeau, policy director for Environmental Advocates of New York, an anti-fracking group, said in a phone interview. “This will empower more communities nationwide.” Mr. Dolmetsch may be contacted at cdolmetsch@bloomberg.net; Mr. Klopott may be contacted at fklopott@bloomberg.net; and Mr. Efstathiou Jr. may be contacted at jefstathiou@bloomberg.net Read the court decision
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Reprinted courtesy of Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr., Bloomberg

The Leaning Tower of San Francisco

January 24, 2018 — Dave Suggs - CDJ STAFF
The Millennium Tower located at 301 Mission Street in San Francisco, California opened in 2009 and is fifty-eight stories high. It is comprised of expensive apartments with price tags in the millions. “Yet for all its curb appeal, the building has, quite literally one fundamental problem: it’s sinking into mud and tilting towards its neighbors” reports John Wetheim of CBS News in the 60 Minutes segment about the condition of the tower “San Francisco’s Leaning Tower of Lawsuits.” In the Tower’s basement along columns that protrude from the foundation of the building there are stress gauges lining the walls illustrating cracks with slow growth which is cause for concern. The tower is tilting a total of 14 inches toward the northwest and has sunk 17 inches so far. Petar Marinkovic, an engineer for the European Space Agency estimates that the tower is sinking 1.5 to 2 inches per year. Jerry Cauthen, a local engineer, weighs in on what he believes is the cause of the sinking and leaning; it was built from concrete instead of steel. “Concrete is often cheaper. And it’s just as good, but it is a lot heavier. And so you got to design your foundation and your sub-surface to support that higher weight.” A local geotechnical engineer, Larry Karp agrees stating that the foundation of a building of this size and weight should be on solid rock (bedrock). The Millennium Tower is sitting on layers debris from the 1906 earthquake, a gold rush landfill, as well as clay, mud, and sand. There over 20 parties involved in the Millennium Tower lawsuits so far. Solutions to “fix” the tower’s issues range from removing 20 stories from the top of the building to perpetually freezing the ground beneath the building. There are also ongoing mediation talks to determine the feasibility of drilling down to bedrock under a building where a thousand residents are still upstairs. Read the court decision
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Federal District Court Addresses Material Misrepresentation in First Party Property Damage Claim

August 26, 2024 — James M. Eastham - Traub Lieberman
In Pittsfield Dev. LLC v. Travelers Indem. Co., 2024 U.S. Dist. LEXIS 117530 (N.D. Ill. July 3, 2024), the United States District Court for the Northern District of Illinois addressed an alleged material misrepresentation by an insured during the course of the adjustment of a water loss claim at an insured property. Subsequent to a pipe burst event which caused damage to a number of the floors in the insured building, the insured submitted a claim to Travelers and also submitted, with the assistance of a retained public adjuster, a damage estimate of the damages at the property. Included within the estimate submitted by the insured was a line item for "Lead Paint & Asbestos Removal" with a corresponding dollar amount of $1,140,000. It was this line item which formed the basis of Travelers' claim of misrepresentation. At his deposition, the public adjuster testified that the $1,140,000 figure was an oral estimate received over the phone from an asbestos remediation company. Travelers disputed the testimony and contended that no such estimate was ever provided. For support, Travelers pointed to deposition testimony from a remediation company employee that while rough estimates were occasionally given verbally, the largest over the phone estimate she could recall was in the $20,000-$25,000 range. It was also disputed that the company would ever provide an oral quote of that magnitude sight unseen, especially since the largest project the remediation company had ever completed was less than $250,000. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Recommencing Construction on a Project due to a Cessation or Abandonment

October 26, 2017 — David Adelstein - Florida Construction Legal Updates
There are instances where the owner of a construction project terminates its general contractor prior to the completion of the project. There are instances where the owner suspends the work prior to the completion of the project, meaning there is a cessation in the construction. And, there are instances where the project is simply abandoned. I have been involved in all instances, and the owner’s reasons vary…from an owner claiming a termination for default, termination for convenience, or a suspension or abandonment due to the market or financial factors. Regardless of the owner’s reasoning, at some point—hopefully—the owner will want to resume or, more properly stated, recommence construction and complete the project. 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

Las Vegas Harmon Hotel to be Demolished without Opening

May 22, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Architectural Record, the Harmon Hotel, part of the CityCenter hotel-casino-entertainment complex on the Las Vegas Strip in Nevada, “is being razed without ever opening.” MGM Resorts International will be demolishing “the unfinished 27-floor, oval-shaped tower following a protracted legal battle with its contractor, Tutor Perini Corp., over building defects.” Demolition is expected to cost $11.5 million, while the “incomplete construction” had cost $279 million. Problems for the hotel began after the discovery “that reinforcing steel was improperly installed on 15 building floors during construction.” Architectural Record reported that a third-party inspector “had falsified 62 daily reports between March and July of 2008 stating that things were okay when they were not. The findings prompted a temporary project shut-down and eventual building redesign.” Read the court decision
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Construction Halted in Wisconsin Due to Alleged Bid Issues

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
A $9 million construction project in Middleton, Wisconsin has been halted due to an allegation that the construction company, Newcomb, did not comply with the advertised bid requirements and they were not the lowest bidder, according to the Wisconsin State Journal. “Dane County Judge Rhonda Lanford issued a temporary restraining order at the request of Associated General Contractors of Wisconsin asking the city to stop work on the…facility,” the Wisconsin State Journal reported. “We are pleased with the court’s decision. Fairness and transparency in public contracting is critical for the industry,” Robert Barker, Associated’s executive vice president, told the Wisconsin State Journal. “The city must abide by the rules so that all bidders are given a fair shake.” However, the city stated that Newcomb was the construction company with the lowest bid in that category. Read the court decision
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Sewage Flowing in London’s River Thames Draws Green Bond Demand

April 04, 2022 — Ronan Martin - Bloomberg
The green bond market just got one of its biggest challenges yet -- cleaning up London’s River Thames. A sale of the notes aims to help to fund upgrades to the city’s Victorian-era sewers, as population growth in London heaps increasing pressure on them. Designed to serve about 4 million people, the sewers instead handle waste from more than double that number, leading to multiple sewage overflows every year. Bazalgette Finance Plc sold 300 million pounds ($400 million) of green bonds Thursday to fund construction of a 25-kilometer tunnel to prevent millions of tonnes of sewage overflowing into the river. The 12-year notes were priced at 130 basis points above U.K. gilts, drawing investor orders of more than four times the amount on offer, according to a person with knowledge of the sale, who asked not to be named. The bond proceeds will be given to Bazalgette Tunnel Ltd for the ongoing construction of the Thames Tideway Tunnel, which is expected to be completed in 2023, according to the Tideway website. The 66 meter-deep tunnel is more than seven meters wide and will cost an estimated 4.2 billion pounds ($5.6 billion) at completion, according to an investor presentation seen by Bloomberg News. Read the court decision
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Reprinted courtesy of Ronan Martin, Bloomberg

Withholding Payment or Having Your Payment Withheld Due to Disputes on Other Projects: Know Your Rights to Offset

January 04, 2021 — Christopher C. Broughton, Jones Walker LLP - ConsensusDocs
Introduction The right to offset refers to the common sense ability to reduce or eliminate your payment obligations to a party who owes you money on another contract. With offsets, common law largely tracks common sense. The right of offset is recognized by statute and court decisions in many states as well as under federal law and the U.S. Bankruptcy Code. The right to offset can also be established in the contract or subcontract. But like many things that may seem simple, the right to offset can easily become complex. This article provides an overview of the extent and limits of the right to offset varies from state to state and with federal government contracts about the extent and limits of the right of offset. Construction trust fund statutes add another layer of complications. These variations may not be obvious or intuitive, but they have a tremendous impact on your right to get paid or your right to withhold payment. Because of the variations, you must always confirm the law applicable to your contract or subcontract, which may not be where the project or you are located. Read the court decision
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Reprinted courtesy of Christopher C. Broughton, Jones Walker LLP
Mr. Broughton may be contacted at cbroughton@joneswalker.com

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