SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Privity Problems Continue for Additional Insureds in the Second Circuit

November 08, 2017 — Samantha M. Martino – Saxe Doernberger & Vita, P.C.
On October 4, the Second Circuit held that Harleysville Insurance Company had no duty to defend or indemnify a project owner or general contractor as additional insureds under a sub-subcontractor’s commercial general liability (CGL) policy due to lack of direct contractual privity. 1 The underlying claim arose when an employee of The Kimmell Company, Inc. (Kimmell) was injured while repairing an HVAC system at a building owned by the University of Rochester Medical Center (UR). The injured employee sought damages for his injuries and fi led suit against (1) UR; (2) LeChase Construction Corp. (LeChase), the general contractor for the project; and (3) J.T. Mauro Co. Inc. (Mauro), a subcontractor hired by LeChase. Mauro hired Kimmell as a sub-subcontractor to perform HVAC services at the project. The Mauro-Kimmel contract required Kimmel to add Mauro, UR, and LeChase as additional insureds under Kimmell’s CGL policy. Read the court decision
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Reprinted courtesy of Samantha M. Martino, Saxe Doernberger & Vita, P.C.
Ms. Martino may be contacted at smm@sdvlaw.com

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NYC Airports Get $500,000 Makeover Contest From Cuomo

October 22, 2014 — Freeman Klopott and Allyson Versprille – Bloomberg
Governor Andrew Cuomo is holding a competition for plans to upgrade New York City’s two airports, which consistently rank as the worst in the U.S. for design, cleanliness and delays. Cuomo announced the $500,000 design contest for John F. Kennedy International and LaGuardia airports at a press briefing in Queens with U.S. Vice President Joe Biden, who in February caused a stir when he likened LaGuardia to a facility in a third-world country. “This is the next phase for New York,” Cuomo said today at Vaughn College of Aeronautics and Technology in Flushing, home of LaGuardia. The Port Authority of New York and New Jersey, which runs the airports, is allocating $8 billion to construction at the two facilities and Newark-Liberty International over the next 10 years. That includes $2.2 billion as part of a $3.6 billion redesign of LaGuardia’s 50-year-old central terminal, voted America’s dirtiest and most poorly designed by readers of Travel & Leisure magazine in 2012. Mr. Klopott may be contacted at fklopott@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net Read the court decision
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Reprinted courtesy of Freeman Klopott and Allyson Versprille, Bloomberg

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Couple Sues Attorney over Construction Defect Case, Loses

June 10, 2011 — CDJ STAFF

The California Court of Appeals has ruled against a couple who sued their lawyer, after they were unhappy with the results of a construction defect case. Craig and Jeanne Petrik sued Mahaffey and Associates for legal malpractice and breach of contract. Their lawyer, Douglas L. Mahaffey, had settled their case for $400,000. The Petricks claimed Mahaffey did not have the authority make an offer to compromise.

In the original case, Mahaffey held back the $400,000 awarded in the settlement until he and the Petricks came to terms on how much of that was owed to Mahaffey. The lower court concluded that the Petricks were due $146,323,18. The jury did not agree with the Petrik’s claim that conditions had been met in which Mahaffey would not be charging them costs.

Judges O’Leary and Ikola wrote the opinion, with the third judge on the panel, Judge Bedworth offering a dissent only on their view of the cost waiver clause.

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COVID-19 Response: California Occupational Safety and Health Standards Board Implements Sweeping New Regulations to Prevent COVID-19 in the Workplace

December 14, 2020 — Peter Shapiro, Drake Mirsch & Jade McKenzie - Lewis Brisbois
On November 19, 2020, the California Occupational Safety and Health Standards Board (OSHSB) proposed sweeping and significant new emergency standards to reduce employee exposure to COVID-19. These standards have been accepted by the Office of Administrative Law and are effective as of November 30, 2020. Accordingly, it is critical that employers familiarize themselves with these new requirements and begin to implement these standards as quickly as possible. The standards include COVID-19 prevention in the workplace, multiple COVID-19 infections and outbreaks in the workplace, “major” COVID-19 outbreaks in the workplace, prevention in employer provided housing, and prevention in employer-provided transportation to and from work. They apply to all California employers and places of employment, except places with one employee who does not have contact with others, employees working from home, or employees in specified health care facilities, services or operations when covered by section 5199. COVID-19 Prevention Program Employers are required to establish, implement, and maintain an “effective” written COVID-19 Prevention Program. Under the Program, an employer is responsible for developing a system for communicating about COVID-19, identifying and evaluating COVID-19 hazards, investigating and responding to COVID-19 cases, correcting COVID-19 hazards, providing training and instructions to employees regarding COVID-19, ensuring all employees are physically distanced, providing face coverings, implementing policies regarding personal protective equipment and recordkeeping, ensuring COVID-19 cases are excluded from the workplace, and prohibiting symptomatic employees from returning to work unless certain requirements are met. Reprinted courtesy of Peter Shapiro, Lewis Brisbois, Drake Mirsch, Lewis Brisbois and Jade McKenzie, Lewis Brisbois Mr. Shapiro may be contacted at Peter.Shapiro@lewisbrisbois.com Mr. Mirsch may be contacted at Drake.Mirsch@lewisbrisbois.com Ms. McKenzie may be contacted at Jade.Mckenzie@lewisbrisbois.com Read the court decision
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A Court-Side Seat: An End-of-Year Environmental Update

January 09, 2023 — Anthony B. Cavender - Gravel2Gavel
As 2022 draws to a close, here is a brief description of recent environmental and regulatory law rulings, as well as new federal rulemaking proceedings. United States Tax Court

Green Valley Investors, LLC et al, v. Commissioner of Internal Revenue On November 9, 2022, the Tax Court agreed with the taxpayers that the IRS’s use of administrative Notice 2017-10 to impose substantial tax liabilities violated the Administrative Procedure Act (APA). The notice was the agency’s response to a provision in the American Jobs Creation Act of 2004 which increased the penalties for engaging in a reportable transaction understatement. Here, at issue was the value of charitable deductions generated by the creation of environmental easements made in connection with land transactions. These claimed deductions amounted to more than $60 million. The petitioners argued that IRS Notice 2017-10, which authorized such large penalties, was in fact a “legislative rule” whose promulgation should have complied with the notice and comment requirements of the APA. The agency contended that the Congress, by implication, absolved the IRS from the notice and comment requirements. The court agreed with the petitioners and set aside Notice 2017-10 and the imposition of penalties under Section 6662A of the Jobs Creation Act. On December 8, 2022, the IRS published a notice of proposed rulemaking that would correct the APA deficiencies noted by the courts. (See 87 FR 75185.)

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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Oregon Duty to Defend Triggered by Potential Timing of Damage

June 28, 2013 — CDJ STAFF
The Oregon Supreme Court has concluded that if it is possible that damage could have occurred prior to the completion of the project, then the policies in effect at that time are triggered. John Green of Farella Braun + Martel LLP writes that “we have long argued that, since the duty to defend exists if there is any ‘potential’ of covered liability, there is a potential that damage happened before that project was completed, or at any time after completion, triggering all policies in that time frame.” The Oregon court concluded that if property damage could have happened during construction, the insuerer had a duty to defend and “the insured had no burden to establish any additional facts to support that potential.” Read the court decision
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ACEC Statement on Negotiated Bipartisan Debt Limit Compromise

June 05, 2023 — The American Council of Engineering Companies
Washington, D.C. – The American Council of Engineering Companies (ACEC) released the following statement applauding the negotiated bipartisan compromise to raise the debt limit ahead of the scheduled House vote tonight:

"The American Council of Engineering Companies (ACEC) applauds President Biden and Speaker McCarthy for negotiating a bipartisan compromise to raise the debt limit and avoid a catastrophic default. We are particularly pleased that the bipartisan deal protects the critical funds provided under the Infrastructure Investment and Jobs Act (IIJA) and does not include any changes to the Inflation Reduction Act's (IRA) climate and clean energy provisions, which the engineering industry is working hard to deliver successfully. ACEC also strongly supports the provisions in the deal to reform the federal permitting process. These commonsense measures to modernize the National Environmental Policy Act (NEPA), particularly through the use of digital technologies, will improve interagency collaboration and allow engineering firms to help their clients deliver project benefits more efficiently while ensuring strong environmental protections and opportunities for community and stakeholder engagement."

The American Council of Engineering Companies (ACEC) is the business association of the nation's engineering industry. Founded in 1909, ACEC is a national federation of 51 state and regional organizations representing more than 5,500 engineering firms and 600,000+ engineers, surveyors, architects, and other specialists nationwide. ACEC member firms drive the design of America's infrastructure and the built environment. Read the court decision
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Housing Starts in U.S. Beat 1 Million Pace for Second Month

June 18, 2014 — Shobhana Chandra – Bloomberg
Builders broke ground on 1 million U.S. homes in May, indicating the industry is picking up this quarter after a weather-induced slump to start the year. The number of housing starts last month was in line with the median forecast of economists surveyed by Bloomberg and followed April’s 1.07 million annualized rate that was the most since November, a Commerce Department report showed today in Washington. Permits, a proxy for future construction, decreased, reflecting a decline in the volatile multi family category. A strengthening job market and a retreat in mortgage costs in recent weeks is helping support residential real-estate following a lull in building in early 2014. Faster sales will prompt developers to step up construction, given supplies of homes on the market remain lean and property values are rising. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg
Ms. Chandra may be contacted at schandra1@bloomberg.net

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