Seattle Washington Building Expert Directory

Joint Venture Dispute Over Profits

January 28, 2019 — David R. Cook, Jr. - Autry, Hall, & Cook, LLP
A recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits. One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim. Read the court decision
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Reprinted courtesy of David R. Cook, Jr., Autry, Hall, & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

SDNY Vacates Arbitration Award for Party-Arbitrator’s Nondisclosures

April 13, 2017 — Justin K. Fortescue & Ciaran B. Way - White and Williams LLP
The US District Court for the Southern District of New York recently vacated an arbitration award finding that a party-appointed arbitrator’s undisclosed relationship with the party appointing him was significant enough to demonstrate evident partiality. Certain Underwriting Members at Lloyd’s of London, et. al. v. Ins. Companies of America, Inc., Nos. 16-cv-232 and 16-cv-374 (S.D.N.Y. March 31, 2017). In the arbitration, the panel was asked to determine whether the reinsurance contracts, covering workers’ compensation policies, only applied when multiple claimants were injured as the result of the same loss occurrence. After a three-day hearing, the arbitration panel issued an award in favor of the ceding company, Insurance Companies of America (ICA). After the award was issued, Lloyd’s discovered that ICA’s arbitrator had significant undisclosed relationships with principals at ICA and moved to vacate the award in federal court. Reprinted courtesy of Justin K. Fortescue, White and Williams LLP and Ciaran B. Way, White and Williams LLP Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com Ms. Way may be contacted at wayc@whiteandwilliams.com Read the court decision
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Winter COVID-19 Relief Bill: Overview of Key Provisions

January 04, 2021 — White and Williams LLP
In a much needed holiday gift for businesses and individuals who continue to be affected by COVID-19, Congress finally approved a $900 billion aid package follow-up to the CARES Act (the Winter Covid-19 Relief Bill), the several trillion dollar stimulus that was enacted early in the pandemic. The bill, part of the larger annual spending bill, will hopefully be signed into law by President Trump in the coming days although the President has indicated his disappointment about the small amount of direct relief to individuals included in the bill. The bill was passed by both houses of Congress by a veto proof majority and is expected to become law whether or not the President chooses to exercise his veto power. White and Williams has and will continue to provide more detailed updates on important components of the legislation, some of which address matters beyond COVID-19-related relief and support, including a new Paycheck Protection Program and tax deductibility of expenses paid for with PPP funds, extension and expansion of the employee retention tax credit, direct payments to individuals, additional unemployment assistance, restrictions on surprise medical billing, rental assistance and extension of the eviction moratorium, education funding, vaccine distribution, testing and tracing, and other healthcare funding. In the meantime, here is a brief overview of several pieces of the legislation: Paycheck Protection Program The Winter COVID-19 Relief Bill provides for $284 billion of funding for a new round of the popular Paycheck Protection Program (PPP), which was established by the CARES Act and allowed borrowers to receive forgivable loans to be used to retain employees and cover certain other basic operating expenses. New and existing businesses may participate in the program. However, eligibility for PPP Part II is more restrictive and targeted then the original PPP. Read the court decision
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Reprinted courtesy of White and Williams LLP

COVID-19 Could Impact Contractor Performance Bonds

March 30, 2020 — Ben Williams & MG Surety - Construction Executive
As COVID-19 continues to expand around the United States and the world, it may only be a matter of time before U.S. construction projects are affected by the virus. Performance bonds guarantee that a project will be completed by a contractor according to the contract. However, what if a contractor cannot complete a project on time due to widespread disease? What, if any, impact could the virus have on a contractor’s surety bond program? Risk Factors Several risks associated with the virus could trigger a performance bond claim. 1. Materials. The Chinese account for a large supply of construction materials, including steel, copper, cabinetry, etc. An inability to obtain these materials could significantly delay or stop a project all together. Even if a contractor is able to obtain them from other sources, it may be at a significantly higher cost than they put into the bid. 2. Labor. There is already a shortage of qualified labor in the construction industry. Additionally, construction already lends itself to the spreading of viruses; workers are often in close proximity, handling common materials, and they may not have an easily accessible place to wash their hands. Furthermore, even though many now have paid sick leave, there is often pressure not to use it. These things could magnify the labor shortage and make it difficult to complete projects on time. 3. Safety. Finally, the world is having a serious shortage of respirators. Because of widespread panic, many people have been purchasing N95 respirators—so much that the Surgeon General has asked people to stop buying them. It has created a shortage for people who really need them, like contractors. If contractors can’t get these safety masks, certain trades will either be unable to work, or risk continuing the project without masks, which would endanger workers and open them up to OSHA penalties. Reprinted courtesy of Ben Williams and MG Surety, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Williams may be contacted at benw@mgsuretybonds.com

Everyone's Moving to Seattle, and It's Stressing Out Sushi Lovers

July 16, 2014 — Peter Robison and Alison Vekshin – Bloomberg
Sooner or later, everyone moves to Seattle, went one saying in the city’s 1990s heyday. The trouble residents face now: What happens after everyone does? Known for hiking and the open spaces of the American West, Seattle is in the midst of another boom that’s made it the fastest-growing among the top 50 U.S. cities. That’s causing angst over density, affordability, crime and other issues more familiar to an East Coast metropolis. At the same time, pay is outpacing the national average and an already rich cultural life is thriving as new restaurants and nightspots open. “It’s a blessing,” Seattle Mayor Ed Murray, a 59-year-old Democrat, said of the growth. “But with it comes some real challenges.” Mr. Robison may be contacted at robison@bloomberg.net; Ms. Vekshin may be contacted at avekshin@bloomberg.net Read the court decision
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Reprinted courtesy of Peter Robison and Alison Vekshin, Bloomberg

Human Eye Resolution Virtual Reality for AEC

July 02, 2018 — Aarni Heiskanen - AEC Business
Virtual reality opens new perspectives for communication and customer involvement in construction. Sweco, Varjo, and Teatime Research are together exploring the possibilities of VR using state-of-the-art technology. “I think that the use of VR in construction is still at a visionary stage and useful practical applications are rare,” says Niina Jaatinen, Service Manager at Sweco. “When we learned about Varjo’s exceptional technology, we thought that maybe it’s now time to start developing the really useful apps customers would yearn for.” Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

New Jersey Supreme Court Issue Important Decision for Homeowners and Contractors

September 08, 2016 — Wally Zimolong – Supplemental Conditions
The lack of insurance coverage for a contractor’s faulty workmanship is the bane of both homeowners looking to recover damage for defective work and contractors seeking to defend against such claims. In many states, like Pennsylvania, courts hold that faulty workmanship is not an “occurrence” that is covered by a standard commercial general liability insurance policy. In other words, courts hold that CGL policies cover damage to other property not part of the construction project itself. This is problematic for both the homeowner and the insured. For the homeowner, the lack of a policy providing indemnification sometimes means the homeowner is left trying to collect against a defendant, who is otherwise but has little to no assets against which to collect a judgment. For the contractor, the lack of a policy providing coverage means that assets are at risk and it could be forced to spend significant sums in attorneys fees defending the case. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

A Court-Side Seat: NWP 12 and the Dakota Access Pipeline Easement Get Forced Vacations, while a Potential Violation of the Eighth Amendment Isn’t Going Anywhere

August 10, 2020 — Anthony B. Cavender - Gravel2Gavel
Here’s a report on several new decisions made over the past few days. U.S. SUPREME COURT U.S. Army Corps of Engineers v. Northern Plains Resources Council On July 8, 2020, the Court has issued a partial stay of the decision of the U.S. District Court for Montana, which had held that the nationwide use by the Corps of Engineers of its Nationwide Permit 12 to permit oil and gas pipelines must be vacated because the Corps, when it reissued these permits in 2012, failed to follow the requirements of the Endangered Species Act. The breadth of this ruling seems to have surprised and alarmed many past and perspective permittees of the Corps. The stay will not apply to the ongoing Ninth Circuit litigation. FEDERAL COURTS OF APPEAL Vega, et al. v. Semple (The U.S. Court of Appeals for the Second Circuit) On June 29, 2020, the court refused to dismiss a putative class action by past and present inmates of Connecticut’s Garner Correctional Institution who alleged that state correctional officials exposed them to excessive amounts of radon gas in violation of the Eighth Amendment. These officials are alleged to have been “deliberately indifferent” to inmate safety. A 1993 Supreme Court decision, Helling v. McKiney, clearly established the law in this area, and the Garner facility opened in 1992. The defense clams of limited immunity as to federal law violations were rejected. Read the court decision
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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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