Seattle Washington Building Expert Directory

Sinking Buildings on the Rise?

July 01, 2019 — Jason M. Adams - Gibbs Giden
By now everyone in the construction and insurance industries is familiar with the 58-story Millennium Tower building in San Francisco that has sunk 17 inches and tilted another 14 inches to the northwest. Another recent New York lawsuit alleges that a 58-story luxury Manhattan condo high-rise is also sinking and causing significant damage. With construction booming in the Southeast and other areas with questionable soils, sinking building cases may be on the rise. Given this reality, the issue of subsidence should be of paramount importance to every construction and insurance professional when insuring a project. Most insurance carriers will include a subsidence and/or other earth movement exclusion on a commercial general liability ("CGL") quote for insurance as a matter of course. Construction professionals (owners/developers, general contractors, and subcontractors) or their brokers may be under the mistaken impression that they have no choice but to accept these subsidence exclusions as part of a standard construction policy. This is not the case. To the contrary, most insurance carriers are willing to remove subsidence exclusions if the underwriters are provided with acceptable geotechnical/soils reports when considering the project. The insured construction professional often pushes back on the insurance carrier's request for soils reports because the insured sees the request as an unnecessary hassle, expense or unwelcome interference in the job. However, the carrier's soils review is designed to benefit everyone. If potential soils issues are discovered during the underwriting process they can be addressed at the outset of the project rather than after the project is built, which will typically cost substantially more to remedy. Moreover, a thorough analysis of the condition of the soils at the outset of the project allows the risk management team to recognize any potential issues and ensure that the proper coverage is obtained in order to provide protection down the road. Even if the insurance carrier charges more money to sign off on questionable soils after a review of the reports, the slight increase in premium is likely a worthwhile investment in the event of a subsidence loss. The lesson is that the insured should not blindly accept a subsidence exclusion and should negotiate its removal. The insured should provide its broker and the insurance carrier the information they need in order to make a fully-informed decision as it pertains to the soils. Once the insurance carrier has had the opportunity to review and sign off on the condition of the soil, the carrier should feel comfortable enough to remove any subsidence exclusions or other similar earth movement limitations. Subsidence is a relatively straightforward issue to deal with as long as the project team’s lawyers, brokers, risk managers and insurance company underwriters are working together toward the common goal of properly evaluating the risk and adequately insuring the project. This simple cooperative process between the entire risk management team could mean the difference between being covered or not covered in the event of a loss related to earth movement. Jason M. Adams, Esq. is Senior Counsel at Gibbs Giden representing construction professionals (owners/developers, contractors, architects, etc.) in the areas of Construction Law, Insurance Law and Risk Management, Common Interest Community Law (HOA) and Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms. Mr. Adams can be reached at jadams@gibbsgiden.com. The content contained herein is published online for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. The transmission of information by email, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. This publication may not be reproduced or used in whole or in part without written consent of the author. Copyright 2019 © Read the court decision
Read the full story...
Reprinted courtesy of

Hunton Insurance Team Wins Summary Judgment on Firm’s Own Hurricane Harvey Business Income Loss

March 23, 2020 — Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery Blog
A Texas judge has ruled that Hunton Andrews Kurth is entitled to coverage from Great Northern Insurance Co., a unit of Chubb, Ltd. (“Chubb”), for losses its predecessor firm suffered when Hurricane Harvey closed its Houston office and disrupted business in 2017. The court agreed with Hunton’s position that the policy, written specifically for a law firm, covered its business income loss until the firm’s operations were restored to their pre-loss levels. The court rejected in its entirety Chubb’s argument that coverage lasted only until the physical damage that closed the building had been repaired. Rather, siding with Hunton, the court found that the policy language affords, in addition to ordinary business income coverage during the damage period, “extended period” coverage that commences after the damaged property is repaired and after the firm’s operations resume. From August 27 to August 31, 2017, the firm was forced to close its Houston office due to flooding and damage caused by Hurricane Harvey. While employees were permitted to return to the office on August 31, income did not return to its pre-loss level until September 14, 2017. The firm submitted a claim to Chubb for the loss sustained from August 27 to September 14, but Chubb paid only for income loss suffered during the 3-day closure period, and refused to cover the loss suffered after the building reopened. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Michelle M. Spatz, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Spatz may be contacted at mspatz@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

Dallas Condo Project to Expand

November 20, 2013 — CDJ STAFF
Cooper & Stebbins has announced that they are building additional units at Southlake Town Square. One set of additions will expand the Garden District Brownstones, which were built in 2006. There will additionally be a five-story building to be called The Residences. Southlake Town Square is a mixed-use development, combining retail and residences. Read the court decision
Read the full story...
Reprinted courtesy of

Florida’s “Groundbreaking” Property Insurance Reform Law

April 18, 2023 — Bradley S. Fischer & Laura Farrant - Lewis Brisbois
Fort Lauderdale, Fla. (April 18, 2023) – On December 16, 2022, Florida Governor Ron DeSantis signed into law Senate Bill 2-A (S.B. 2-A, or the Act). Widely touted as “groundbreaking,” S.B. 2-A reforms many aspects of the claims process, including the timing for paying and adjusting claims, eliminating one-way attorneys’ fee awards, and banning assignment-of-benefits agreements. This alert provides an overview of the key provisions of S.B. 2-A. Unless otherwise stated in each amended statute, December 16, 2022 appears to be the effective date of the Act. I. Assignment of Benefits – Section 627.7152 (effective January 1, 2023)

A policyholder may not assign any post-loss insurance benefits under any residential or commercial property insurance policy. Any attempt to assign such benefits is void, invalid, and unenforceable.

Reprinted courtesy of Bradley S. Fischer, Lewis Brisbois and Laura Farrant, Lewis Brisbois Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com Read the court decision
Read the full story...
Reprinted courtesy of

Former Superintendent Sentenced in Rhode Island Tainted Fill Case

July 05, 2023 — James Leggate - Engineering News-Record
A federal judge sentenced a contractor’s former superintendent June 20 for misleading officials about the source of fill and quality of contaminated fill used on the $410 million Route 6/10 interchange project in Rhode Island. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
Read the full story...
Reprinted courtesy of

Colorado Defective Construction is Not Considered "Property Damage"

September 12, 2022 — Saxe Doernberger & Vita, P.C.
In the July 5, 2022, case of Indian Harbor Ins. Co. v. Houston Casualty Co., the United States District Court for Colorado addressed the issue of whether damage to defectively installed balconies is considered “property damage” under Colorado law, requiring payment by a commercial general liability policy. Facts of the Case The case stems from a construction project where a subcontractor improperly installed balconies on an apartment complex. The owner of the project secured commercial general liability (CGL) coverage through an OCIP insured by Houston Casualty Company (HHC). The OCIP insured the general contractor and subcontractors. The general contractor also purchased a subcontractor default insurance policy insured by Indian Harbor. All parties agreed that the subcontractor improperly installed portions of various balconies, including flashing, water-proof sealing, and water-resistant barriers, among other defects with the installation process. The parties also agreed that other portions of the balconies were properly installed. However, in order to repair the defects in the installations, every bit of each balcony had to be torn off and re-constructed. Read the court decision
Read the full story...
Reprinted courtesy of Saxe Doernberger & Vita, P.C.

Angela Cooner Appointed Vice-Chair of Arizona’s Inaugural Board of Legal Specialization Construction Defect Law Advisory Commission

June 20, 2022 — Angela Cooner - Lewis Brisbois
Phoenix, Ariz. (May 17, 2022) - Phoenix Partner Angela Cooner has been appointed as the vice-chair of the State Bar of Arizona’s inaugural Board of Legal Specialization Construction Defect Law Advisory Commission. The commission was created pursuant to the Arizona Supreme Court’s recent administrative order recognizing construction defect law as a new area of specialization. The commission will, among other things, create the application, examination, and interview process that Arizona attorneys will be required to complete to earn the construction defect law specialized certification. Ms. Cooner will serve a two-year term that will end on January 31, 2024. Read the court decision
Read the full story...
Reprinted courtesy of Angela Cooner, Lewis Brisbois
Ms. Cooner may be contacted at Angela.Cooner@lewisbrisbois.com

Business Risk Exclusions Bar Coverage for Construction Defect Claims

August 27, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014). The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable. The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES