Seattle Washington Building Expert Directory

Construction Litigation Roundup: “It’s None of Your Business.”

May 22, 2023 — Daniel Lund III - Lexology
“It’s none of your business.” So said a construction surety resisting discovery of its underwriting file in the context of the surety’s affirmative $2 million indemnity claim (on a $25M bond), and a Missouri federal court agreed. In response to the surety’s indemnity suit, the defaulted principal contractor and additional corporate indemnitors offered up defenses of “lack of consideration and the doctrine of unclean hands, laches, waiver and/or estoppel, among others.” The indemnitors also issued written discovery to the surety seeking to obtain the surety’s underwriting file – which would reveal the underpinnings of the surety’s decision to issue the bond to the contractor – asserting “that the underwriting and due diligence documents are relevant to the[] lack of consideration defense. [Indemnitors] claim that ‘[t]his defense is based on Defendants' belief that Plaintiff did not conduct any reasonable inquiry into any Defendants' ability to pay or financial resources and therefore Plaintiff did not rely on the financial condition of each Defendant in determining whether to issue the bonds.’" Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Increasing Use of Construction Job Cameras

January 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Job site cameras are increasingly used on construction sites, for various reasons, reports Tom Sawyer of Engineering News-Record. Mark Penny, senior vice president of the Dallas Region Manhattan Construction Inc., told Sawyer that he uses the camera primarily for marketing purposes: “We have a lot of high-profile jobs that people want to see. They are a great opportunity for us and the client to showcase the construction, which makes the job of selling what we do a lot easier.” Warren Andres, senior vice president at Andres Construction uses cameras for safety monitoring. Andres told Sawyer that “he has three monitors on his desk. One shows live feeds from all his cameras. If he sees unsafe work, he sends a photo to the superintendent and demands action. Similarly, he says he can spot slow work crews and do enough quality control to send the message that management is watching.” Vendors commented to Sawyer that “the growing use [of cameras] include the rise of building information modeling and its increased need for accountability; as well as companies chasing work beyond usual areas of operations and needing to extend supervision while holding down travel of staffs trimmed by the recession.” Read the court decision
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Arizona Court of Appeals Upholds Judgment on behalf of Homeowners against Del Webb Communities for Homes Riddled with Construction Defects

February 26, 2015 — Law Offices of Kasdan Weber Turner LLP
ARIZONA COURT OF APPEALS UPHOLDS LOWER COURT DECISION APPROVING $13,703,039 JUDGMENT ON BEHALF OF 460 SUN CITY GRAND HOMEOWNERS AGAINST DEL WEBB COMMUNITIES, INC., A SUBSIDIARY OF PULTEGROUP, INC., FOR HOMES RIDDLED WITH CONSTRUCTION DEFECTS --In a separate case, an Arizona Superior Court awards $10,619,640 to another 279 Sun City Grand homeowners who sued Del Webb over construction defects, which Del Webb has appealed-- PHOENIX, Arizona – The Arizona Court of Appeals, Division One, [on Tuesday] issued a unanimous ruling upholding a lower court decision awarding $13,703,039 to 460 Sun City Grand homeowners who sued developer Del Webb Communities, Inc., a subsidiary of PulteGroup, Inc., for numerous construction defects that severely damaged the plaintiffs’ homes. Sun City Grand is an age-restricted community located in Surprise. In a separate case, an Arizona Superior Court awarded $10,619,640 to another group of 279 Sun City Grand homeowners for multiple construction defects in their homes. Stephen Weber, the managing partner in the Phoenix office of Kasdan Weber Turner LLP, which represents the homeowners, said that the case is based on construction defects that damaged the plaintiffs’ homes and took several years to resolve. The defects include defective windows, poorly installed stucco, expansive soil conditions that resulted in cracking of drywall, and deteriorating concrete foundation systems, among other problems. “Del Webb placed an arbitration clause in the sales contracts and the homeowners honored it. The binding arbitration that includes the owners of 460 homes in Sun City Grand was completed in late 2011 when the arbitration panel unanimously awarded the homeowners $13,703,039. Del Webb then challenged the award in Superior Court and the Superior Court confirmed the award in full,” Weber explained. “Del Webb did not like the Superior Court ruling either and challenged it in the Court of Appeals. And now three justices of the Arizona Court of Appeals have unanimously affirmed the Superior Court order and the arbitration award stands. Now they will have the funds to repair their homes, restore their value, and live in comfort,” Weber said. The $13,703,309 award includes amounts for home repairs, attorney fees, expert fees, court costs and pre-judgment interest. An additional $1,401,236 in post-judgment interest also accrued while the case was on appeal. The other construction defect case that awarded $10,619,640 to homeowners was not covered by binding arbitration. Del Webb has also appealed that case which will now go through the appeals process. That could take two to three years and again the homeowners will have to wait for the final judgment, Weber noted. Ken Kasdan, senior and managing partner of the Kasdan Weber Turner firm and one of the nation’s leading experts on construction defect litigation, said the defects are egregious. “The multiple defects rob them of pride of ownership,” he said. “A home is something that a homeowner wants to be proud of. Unfortunately, defective workmanship and poor construction have caused damage to the homes. Now these homes can be repaired and the homeowners will no longer have to deal with defective windows and cracked slabs. Developers need to understand that arbitration awards are final and binding,” Kasdan noted. The Kasdan Weber Turner law firm has offices in Phoenix, Arizona and in Irvine, California and Walnut Creek, California. The firm represents property owners in major construction defect litigation. For more information on the firm, visit www.kasdancdlaw.com. Stephen Weber may be contacted at (602) 224-7800. Read the court decision
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Canada Cooler Housing Market Boosts Poloz’s Soft Landing

April 15, 2014 — Greg Quinn – Bloomberg
Declines in housing starts and building permits data suggest Canada is headed for the soft landing in real estate that policy makers have forecast, damping concern that a rapid fall in home prices could hobble the world’s 11th-largest economy. Home construction dropped 18 percent in March to the lowest annual pace since the 2009 recession, Canada Mortgage & Housing Corp. said from Ottawa today. Residential building permits also dropped 21 percent in February from January’s record high, Statistics Canada said in a separate report. Bank of Canada Governor Stephen Poloz has said the housing market is heading for a “soft landing” with consumer debts as a share of income stabilizing around record highs. The International Monetary Fund said today that house prices and household finances remain a “key vulnerability” for Canada. Read the court decision
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Reprinted courtesy of Greg Quinn, Bloomberg
Mr. Quinn may be contacted at gquinn1@bloomberg.net

The Drought Is Sinking California

August 19, 2015 — Jennifer Oldham – Bloomberg
Land in California’s central valley agricultural region sank more than a foot in just eights months in some places as residents and farmers pump more and more groundwater amid a record drought. The ground near Corcoran, 173 miles (278 kilometers) north of Los Angeles, dropped about 1.6 inches every 30 days. One area in the Sacramento Valley was descending about half-an-inch per month, faster than previous measurements, according to a report released Wednesday by the Department of Water Resources. NASA completed the study by comparing satellite images of Earth’s surface over time. “Groundwater levels are reaching record lows -- up to 100 feet lower than previous records,” Mark Cowin, the department’s director, said in a statement. “As extensive groundwater pumping continues, the land is sinking more rapidly and this puts nearby infrastructure at greater risk of costly damage.” Read the court decision
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Reprinted courtesy of Jennifer Oldham, Bloomberg

New California Employment Laws Affect the Construction Industry for 2019

February 18, 2019 — Smith Currie
The California Legislature introduced more than 2637 bills in the second half of the 2017-2018 session that became law effective January 1, 2019, many of which address employment issues facing California employers in the construction industry. Below we have summarized some of the more important laws (the summary titles are live links to the text of the new law), and employers are urged to protect their companies by updating contracts, policies, and/or practices for compliance. The following is for general knowledge, and we recommend you consult with your attorney for specific legal advice. AB 1565 – Contractor Wage Liability: AB 1565 repeals the provision that relieved direct contractors for liability for anything other than unpaid wages and fringe or other benefit payments or contributions, including interest owed. In the past, a direct contractor could withhold “disputed” sums owed to a subcontractor if the subcontractor failed to provide “information” about their and lower-tier subcontractors’ payroll records. Read the court decision
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Reprinted courtesy of Smith Currie
Smith Currie attorneys may be contacted at info@smithcurrie.com

Settlement Conference May Not Be the End in Construction Defect Case

February 21, 2013 — CDJ STAFF
The builder has been sentenced to jail for theft. The building has been condemned over construction defects. And the settlement conference probably won’t bring an end to the case. The building in question is a condominium complex, located at 770 Sandy Street in Norristown, Pennsylvania. Bruce Fazio took out a $2.5 million construction loan to build it. And when it was done, there were inspections over construction defects, the building was condemned, and then the court ordered repair work. The city of Norristown has sued Fazio to recover the more than $1.5 million it took to repair the building and allow at least some condominium owners to move back in. The suit alleges that Norristown officials failed to properly inspect the construction work, and that inspectors were not properly certified. Further, it is alleged that secretaries and clerks signed off on inspection reports and certificates of occupancy. Read the court decision
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ASCE Releases New Report on Benefits and Burdens of Infrastructure Investment in Disadvantaged Communities

February 05, 2024 — The American Society of Civil Engineers
Washington — The American Society of Civil Engineers today released a new paper, Measuring the Benefits and Burdens of Infrastructure in Disadvantaged Communities. The report looks at how several communities across the country consider equity when investing infrastructure funds, and the impact of those projects on lower-income communities. "Civil engineers are focused on improving quality of life by building systems that improve the public's health, safety, and well-being," said Marsia Geldert-Murphey, P.E., 2024 President, ASCE. "However, the decisions on how and where infrastructure is built can affect communities for decades after a project is complete. By looking at the benefits and burdens of past projects, infrastructure owners and developers can find better ways to consider the impact of infrastructure projects being designed now." Some of the recommendations in the paper include encouraging government and other infrastructure stakeholders to use community engagement and transparent metrics when making decisions about proposed infrastructure investments. It also encourages post-project assessments and the use of existing resources to evaluate the positive and unexpected consequences of past infrastructure projects. Measuring the Benefits and Burdens of Infrastructure in Disadvantaged Communities is available here. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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