Seattle Washington Building Expert Directory

Colorado Supreme Court Decision Could Tarnish Appraisal Process for Policyholders

September 16, 2019 — Michael V. Pepe - Saxe Doernberger & Vita, P.C.
On June 24, 2019, the Colorado Supreme Court ruled that the plain language of appraisal provisions in insurance policies, requiring “impartial appraisers,” direct appraisers to be “unbiased, disinterested, and unswayed by personal interest,” regardless of who hires them, and prohibits the party-appointed appraisers from acting as advocates. A common and attractive alternative dispute resolution option, the appraisal process usually entails the policyholder and insurer each hiring their own appraiser, who estimates how much the claim is worth. These appraisers also select a third-party umpire, and if they cannot agree upon one, a court appoints one. The umpire analyzes the conflicting estimates and presents a number to resolve the dispute. If two of the three parties agree with the outcome, the number becomes binding. Owners Ins. Co. v. Dakota Station II Condo. Ass'n, Inc.1 began when Dakota Station II Condominium Association Inc. (“Dakota”) and its insurer, Owners Insurance Company (“Owners”) could not agree on how to value two claims arising out of weather damage. To settle the differences and come to a resolution, Dakota invoked the appraisal provision in the insurance policy instructing each party to select its own “competent and impartial appraiser.” Ultimately, a court-appointed umpire considered six cost categories in dispute and adopted four of Owners’ estimates and two of Dakota’s. Read the court decision
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Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita, P.C.
Mr. Pepe may be contacted at mvp@sdvlaw.com

Boston Catwalk Collapse Injures Three Workers

May 10, 2022 — Scott Van Voorhis - Engineering News-Record
The collapse of a catwalk in a defunct, 124-year-old power plant building in Boston on May 4 injured three workers in the latest in a spate of serious construction accidents in the city and its environs. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Points on Negotiating Construction Claims

December 30, 2013 — CDJ STAFF
Eugene Heady of Smith Currie and Hancock offers some pointers on the effective negotiation of construction claims. He notes that “claims and disputes in the construction industry are commonplace,” but that “settlement usually comes after much pain, suffering, and expense.” He offers nine points to consider when negotiating construction claims. His first two points are to develop a claim position and then document that claim. He says that “the facts underlying the claim should be nonnegotiable.” The documentation “suggests to your opponent that you have done your homework and are serious about the pursuit of your claim.” He also notes that you need to understand the strengths and weaknesses of your position. On the other side, you need to “understand your opponent’s positions,” and also “your opponent’s strengths.” He points out that “an appreciation for what is truly important to your opponent is the starting point for the development of creative solutions to the dispute. Further, bargaining should be done in good faith, negotiation should be done on the merits, and you are well advised to “choose a seasoned and skilful negotiator. “A prolonged and expensive legal battle is not likely to change the outcome,” he warns. Read the court decision
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Building on New Risks: Construction in the Age of Greening

February 20, 2023 — Blanca Berruguete - Construction Executive
Fire and explosions remain the No. 1 cause of construction and engineering insurance claims, accounting for 27% of the value of insurance claims over the last five years, according to industry claims data analysis conducted by global commercial insurer AGCS. Natural catastrophes, such as hurricanes or floods, account for almost a fifth of claims by value (19%), followed by defective products (10%). Faulty workmanship or maintenance (8%) and machinery breakdown (7%) round out the top five causes of construction and engineering losses, according to the value of claims. The Risks and Benefits of Greening The analysis was conducted on 22,705 insurance claims made worldwide between January 2017 and December 2021. The claims were worth approximately $13.9 billion in value and include the share of other insurers as well as AGCS. But if there is an impression that the risks remain in stasis, that is not the case. Reprinted courtesy of Blanca Berruguete, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Fla. Researchers Probe 'Mother of All Sinkholes'

August 24, 2017 — Thomas F. Armistead - Engineering News-Record
It will take months to complete remediation of the largest sinkhole in Pasco County, Fla.’s recent history, county officials say. Seven houses have been lost or condemned since the sinkhole was reported at 7:21 a.m. on July 14. That day, two houses collapsed into the hole, which initially measured 225 ft long and 50 ft deep. As the cavity’s dimensions grew to between 260 ft and 180 ft, the county red-tagged five additional houses. Read the court decision
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Reprinted courtesy of Thomas F. Armistead, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Helsinki is Building a Digital Twin of the City

May 20, 2019 — Aarni Heiskanen - AEC Business
The capital of Finland first tested city modeling as long back as 1987. But the most recent model of the Kalasatama district demonstrates the new state-of-the-art possibilities of this technology: creation of a highly accurate digital twin of the city. My hosts, Helsinki’s city modeling specialists Jarmo Suomisto and Enni Airaksinen, showed me their latest projects. One of them offered a glimpse of history through a lens of the future. With 3D glasses on, I was able to experience the unrealized city plan made by Eliel Saarinen, the father of the world-renowned architect Eero Saarinen. The virtual model in question was a digitized version of a huge physical model from 1915. Being able to stroll the streets and fly over the roofs of the imagined city really made me understand how awesome the original design was. I had seen a scale model of this same plan while it was laid in the foyer of the Museum of Finnish Architecture many years ago, but this experience was quite different. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Superior Court Of Pennsylvania Holds Curb Construction Falls Within The Scope Of CASPA

September 17, 2014 — Jerrold Anders & Michael Jervis – White and Williams LLP
In Prieto Corp. v. Gambone Construction Co., the Superior Court of Pennsylvania recently considered three issues arising out of a construction dispute, including whether construction of a curb falls within the scope of the Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516. CASPA is a Pennsylvania statute which is intended to protect contractors and subcontractors from abuses in the building industry and which establishes certain rules and deadlines for payments between owners, contractors, and subcontractors. Failure to abide by the act’s payment requirements subjects an owner or contractor to liability for interest, penalties and attorneys fees. In this case, Prieto was a subcontractor hired by Gambone to construct concrete or Belgian block curbs at Gambone’s property developments. Prieto sued Gambone under CASPA for failure to pay its invoices for four projects. After the trial court entered judgment for Prieto, Gambone appealed, arguing that CASPA did not encompass the work at issue, i.e. the construction of curbs, because curbs did not constitute an improvement to real property. Reprinted courtesy of Jerrold Anders, White and Williams LLP and Michael Jervis, White and Williams LLP Mr. Anders may be contacted at andersj@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com Read the court decision
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Faulty Workmanship an Occurrence in Iowa – as Long as Other Property Damage is Involved

November 30, 2016 — Austin D. Moody – Saxe Doernberger & Vita, P.C.
The Eighth Circuit recently weighed in on one of the more contentious issues in insurance coverage litigation: is faulty workmanship an occurrence? In Decker Plastics Inc. v. West Bend Mut. Ins. Co., the Eighth Circuit ruled that, under Iowa law, faulty workmanship is an occurrence – as long as it leads to other property damage. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

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