SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

District Court's Ruling Affirmed in TCD v American Family Mutual Insurance Co.

May 10, 2012 — CDJ STAFF

In the case, TCD, Inc. v American Family Mutual Insurance Company, the district court’s summary judgment was in favor of the defendant. In response, the Plaintiff, TCD, appealed “on the ground that the insurance company had no duty to defend TCD under a commercial general liability (CGL) insurance policy.” The appeals court affirmed the decision.



The appeals ruling provides a brief history of the case: “This case arises out of a construction project in Frisco, Colorado. The developer, Frisco Gateway Center, LLC (Gateway), entered into a contract with TCD, the general contractor, to construct a building. TCD entered into a subcontract with Petra Roofing and Remodeling Company (Petra) to install the roof on the building. The subcontract required Petra to "indemnify, hold harmless, and defend" TCD against claims arising out of or resulting from the performance of Petra’s work on the project. The subcontract also required Petra to name TCD as an additional insured on its CGL policy in connection with Petra’s work under the subcontract.”



Furthermore, “TCD initiated this case against Petra and the insurance company, asserting claims for declaratory judgment, breach of insurance contract, breach of contract, and negligence. The district court entered a default judgment against Petra, and both the remaining parties moved for summary judgment. The court granted summary judgment on the entirety of the action, in favor of the insurance company, concluding that the counterclaims asserted by Gateway against TCD did not give rise to an obligation to defend or indemnify under the CGL policy.”



The appeals court rejected each contention made by TCD in turn. First, “TCD contend[ed] that Gateway’s counterclaims constitute[d] an allegation of ‘property damage,’ which is covered under the CGL policy.” The appeals court disagreed. Next, “TCD argue[d] that [the court] should broaden or extend the complaint rule, also called the ‘four corners’ rule, and allow it to offer evidence outside of the counterclaims to determine the insurance company’s duty to defend in this case.” The appeals court was not persuaded by TCD’s argument.



The judgment was affirmed. Judge Roman and Judge Miller concur.



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2017 Legislative Changes Affecting the Construction Industry

July 13, 2017 — Melinda S. Gentile – Peckar & Abramson, P.C.
The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement. The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor. Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017. Read the court decision
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Reprinted courtesy of Melinda S. Gentile, Peckar & Abramson, P.C.
Ms. Gentile may be contacted at mgentile@pecklaw.com

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Lawsuit Decries Environmental Assessment for Buffalo, NY, Expressway Cap Project

July 08, 2024 — Justin Rice - Engineering News-Record
The New York Civil Liberties Union has filed a lawsuit against the New York State Dept. of Transportation for redeveloping Buffalo’s Kensington Expressway with a “limited and flawed” environmental assessment. Reprinted courtesy of Justin Rice, Engineering News-Record Mr. Rice may be contacted at ricej@enr.com Read the full story... Read the court decision
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Federal Energy Regulator Approves Rule to Speed Clean Energy Grid Links

August 28, 2023 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
The Federal Energy Regulatory Commission unanimously passed a sweeping rule at its July 27 open meeting meant to eliminate U.S. transmission system bottlenecks for new power generation and storage. But stakeholders worry that more needs to be done to add needed and viable clean energy projects to the grid. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record ENR may be contacted at enr@enr.com Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Brief Overview of Rights of Unlicensed Contractors in California

September 10, 2014 — William M. Kaufman – Construction Lawyers Blog
Under California Contractor’s State License Law enumerated in Business and Professions Code Sections 7000 to 7191, a contractor may not “bring or maintain” any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed “at all times” during performance. Bus & Prof Code Section 7031(a). What does this mean and who does it include? This is a question that often has to be answered on a case by case basis. Basically, California does not want unlicensed contractors to be able to get paid for work that should be performed by a licensed contractor. The law has set forth some general parameters. General contractors, subcontractors, and master developers must be licensed. However, suppliers, manufacturers, laborers and equipment lessors are exempt and do not need a contractor’s license. Essentially, those parties that merely furnish material or supplies without fabricating them into, or consuming them in the performance of work, do not need to be licensed. Bus & Prof Code Section 7052. There are sever fines and penalties for those who improperly perform construction work without a license. A contract between any contractor and an unlicensed subcontractor is a misdemeanor. Lack of a license bars all actions in law or in equity for collection of compensation for the performance of work requiring a license. There are very few exceptions to this rule. A “savvy” unlicensed contractor cannot simply avoid these requirements by “subbing” out all the work to licensed contractors. Any person who uses the services of an unlicensed contractor may file a court action or cross-complaint to recover all payments made to the unlicensed contractor. In addition, a person who uses the services of an unlicensed contractor is a victim of a crime and eligible for restitution of economic losses regardless of whether that person had knowledge that the contractor was unlicensed. Bus. & Prof Code Sections 7028, 7028.16. It goes without saying that performing work without a license on projects is a bad idea. Reprinted courtesy of William M. Kaufman, Lockhart Park LP Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com Read the court decision
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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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To Sea or Not to Sea: Fifth Circuit Applies Maritime Law to Offshore Service Contract, Spares Indemnity Provision from Louisiana Oilfield Indemnity Act

March 29, 2017 — Richard W. Brown & Afua Akoto – Saxe Doernberger & Vita, P.C.
Faced with the issue of whether maritime or state law should be applied to determine the validity of an indemnity clause in a Master Services Contract (MSC), the Fifth Circuit affirmed that where there is no historical treatment of the contract in question (1), it would consider six factors established in Davis (2). In Doiron, the Apache Corporation and STS (3) entered a broad-form blanket MSC, under which STS agreed to perform flow-back services, a process designed to dislodge solid objects from inside a well, on Apache’s well located off shore of Louisiana. The MSC also contained an indemnification provision, which required STS to defend and indemnify Apache and its company groups against all claims of property injury or bodily injury. During the flow-back operation, Larry Doiron Inc. (LDI), one of the Apache Company groups, supplied a crane barge for use by STS employees. Subsequently, the crane knocked over an STS employee, causing him to suffer severe injuries. LDI then made a formal demand to STS for defense and indemnification. STS rejected the demand and argued that the Louisiana Oilfield Indemnity Act applied to the MSC instead of maritime law. Pursuant to the Act, indemnity clauses in agreements pertaining to wells for oil, gas or water are void as against public policy. But, under maritime law, the enforcement of such provisions is not barred. Therefore, if the MSC was construed under the Act, STS had no duty to defend or indemnify LDI. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Afua S. Akoto, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Ms. Akoto may be contacted at asa@sdvlaw.com Read the court decision
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New Orleans Reviews System After Storm Swamps Pumps

August 17, 2017 — Pam Radtke Russell - Engineering News-Record
The city of New Orleans will hire an independent team of engineers to evaluate the problems that led to severe flooding following an Aug. 5 rainfall of up to 10 in. The decision followed the revelation that 16 of the city’s pumps were not working, despite claims the system was at capacity. Further, the power system that operates those pumps was severely crippled. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

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