SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Impact of Nuclear Verdicts on Construction Businesses

October 28, 2024 — Craig Tappel - Construction Executive
A rush to build at a time when the U.S. housing supply continues to fall short may come with a cost to the construction industry. Particularly in hot markets—Sun Belt states and the Mountain West—the drive to finish fast, if not big, can lead to construction and design-defect litigation. Last fall, for example, $22 million in damages were awarded to 220 unhappy homeowners in a South Carolina subdivision northwest of Charleston, four years after their claim for defective work was filed against a major U.S. homebuilder and its subcontractors. Defective work is one of three areas where the construction industry is particularly vulnerable as class-action litigation and thermonuclear verdicts surge. Another is the risk of loss of life or permanent disability on a site, and not solely involving workers: Over $860 million was awarded in 2023 to the family of a woman who was killed in a 2019 crane collapse at a Dallas construction site. Reprinted courtesy of Craig Tappel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No Coverage for Construction Defect Claim Only Impacting Insured's Work

January 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
In a coverage dispute between two insurers over a claim for damages caused by faulty workmanship, the court found there was no right to equitable contribution or indemnity. Travelers Prop. Cas. Co. of Am. v. Mallcraft, Inc., 2023 Cal. Super. LEXIS 67568 (Cal. Super. Ct. Sept. 15, 2023). Mallcraft was the general contractor for a building project and was sued for construction defects. Travelers was an additional insured under a policy issued to a subcontractor, KitCor. Travelers defended Mallcraft in an arbitration. Travelers sought equitable contribution and equitable indemnity from Hartford, Mallcraft's insurer. Mallcraft and Travelers stiulated to a judgment agianst Mallcraft for all costs Travelers incurred in the arbitration. Travelers' insured, KitCor, was not implicated in the construction defect claims against Mallcraft. The judgment set forth findings, including the fact that the underlying plaintiff never made any claim that KitCor perfomred work on the project or casued property damage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Connecticut Gets Medieval All Over Construction Defects

February 10, 2012 — CDJ STAFF

The Hartford Courant reports that Connecticut is trying a very old tactic in a construction defect suit. The law library building at the University of Connecticut suffered from leaks which have now been repaired. The state waited twelve years after was complete to file lawsuit, despite that Connecticut has a six-year statute of limitations on construction defect claims. Connecticut claims that the statute of limitations does apply to the state.



The state is arguing that a legal principle from the thirteenth century allows it to go along with its suit. As befits a medieval part of common law, the principle is called “nullum tempus occurrit regi,” or “time does not run against the king.” In 1874, the American Law Register said that nullum tempus occurrit reipublicae “has been adopted in every one of the United States” and “is now firmly established law.”



In the case of Connecticut, Connecticut Solicitor General Gregory D’Auria said that “the statute of limitations does not apply to the state.” He also noted that “the state did not ‘wait’ to file the lawsuit. The lawsuit was filed only after all other options and remedies were exhausted.”



Connecticut also argued that “nullus tempus occurrit regi” applied in another construction defect case at the York Correctional Institution. The judge in that case ruled in December 2008 to let the case proceed. But in the library case, Judge William T. Cremins ruled in February 2009 that the statute of limitations should apply to the state as well. Both cases have been appealed, with the library case moving more quickly toward the Connecticut Supreme Court.

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Potential Pitfalls Under the Contract Disputes Act for Federal Government Contractors

February 28, 2018 — Sarah K. Carpenter – Smith Currie Publications
The Contract Disputes Act (CDA) governs monetary and non-monetary disputes arising out of contracts or implied-in-fact contracts between the federal government and contractors. Because the CDA is an exclusive remedy, it is important that contractors be wary of the many pitfalls that may be encountered by a contractor seeking to assert a claim against the government under the CDA. The pitfalls faced by a contractor under the CDA can arise before a contractor becomes aware of a potential claim. Pursuant to the Federal Acquisition Regulation (FAR) § 43.204(c), a contracting officer should include in any supplemental agreement, including any change order, a Contractor’s Statement of Release which requires a contractor to execute a broad release of the government from any and all liability under the contract. As a result of this FAR provision, in executing a routine change order, a contractor may inadvertently release its right to pursue a potential claim under the CDA. A contractor should always review any release language prior to executing a supplemental agreement or change order with the government. Read the court decision
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Reprinted courtesy of Sarah K. Carpenter, Smith Currie
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com

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White and Williams Obtains Reversal on Appeal of $2.5 Million Verdict Against Electric Utility Company

September 03, 2014 — Edward Koch, Mark Paladino, Luke Repici, & Andrew Susko – White and Williams LLP
PPL Electric Utilities successfully argued on appeal that the $2.5 million plaintiff’s molded verdict awarded to an injured painting subcontractor should be vacated because the alleged evidence was legally insufficient and therefore the utility was not liable. In Nertavich v. PPL Electric Utilities, the plaintiff argued that although the utility was a landowner out of possession of the worksite, the utility was liable because it controlled the work of the subcontractor both by contract and by conduct. PPL argued on appeal before the Superior Court of Pennsylvania that the alleged evidence of the utility company’s control was insufficient as a matter of law to constitute control over the means and methods of the subcontractor’s work, and thus, PPL was not liable as a landowner out of possession. Reprinted courtesy of White and Williams LLP attorneys Edward Koch, Mark Paladino, Luke Repici and Andrew Susko Mr. Koch may be contacted at koche@whiteandwilliams.com; Mr. Paladino may be contacted at paladinom@whiteandwilliams.com; Mr. Repici may be contacted at repicil@whiteandwilliams.com; and Mr. Susko may be contacted at suskoa@whiteandwilliams.com Read the court decision
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Property Owner Entitled to Rely on Zoning Administrator Advice

May 16, 2018 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In the recent case of In Re Langlois/Novicki Variance Denial, 175 A.3d 1222, 2017 VT 76 (2017), the Vermont court addressed the question of whether a property owner could enforce – by equitable estoppel principles – a representation by a town zoning administrator that no permit or variance was needed for the property owner’s proposed construction. In that case, a landowner wanted to add a pergola to an existing concrete patio on his land. During a social visit at the property, the property owner asked the town zoning administrator if he needed a permit. The town zoning administrator told the property owner that no permit was needed. The property owner thereafter showed the zoning administrator a sketch of the planned construction, and again asked if a permit was required. The town zoning administrator looked at the sketch and repeated his prior advice that no permit was needed. The property owner then spent $33,000 to build the pergola. After incurring the expense, the property owner was advised that the structure violated zoning regulations. The property owner requested a variance, which the zoning board denied. The Court held that the town was estopped from requiring removal of the pergola. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

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Another Reason to Love Construction Mediation (Read: Why Mediation Works)

December 02, 2015 — Christopher G. Hill – Construction Law Musings
I’ll bet you’re thinking by now that I have beaten the mediation drum to death and that I wouldn’t have any more praise for the process than I have heaped upon it here at this corner of the construction law “blawgosphere.” Well, just about every time I am involved with the process, whether acting in my capacity as a Virginia Supreme Court certified mediator, or as counsel to a client seeking to resolve a matter and move on with the business of making money, I become more convinced that mediation can work in even the most contentious of situations. What do I mean by “work?” The obvious answer is that mediation “works” when the parties come up with a solution to their problem. In most instances, the solution involves money changing hands. After all, it is money that is usually the tangible and outwardly driving force behind a dispute. Money is also what a court or arbitrator (in most cases) will be awarding to one side or the other at the end of what is likely to be an expensive process. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Navigating Casualty Challenges and Opportunities

October 07, 2024 — Kyle Sternadori - The Hartford
US casualty has arguably been the hottest topic in the sector over the last year amid growing concerns over deteriorating loss trends. E&S Insurer talks to Kyle Sternadori, head of wholesale excess casualty at Navigators, a brand of The Hartford. Featured in the July 2024 edition of E&S Insurer. How are you approaching current E&S excess casualty market dynamics? We are focusing on loss trends, such as rising loss costs, and staying ahead of those trends. As an excess market there are ways to do that: managing capacity and limits deployment across the portfolio; working internally amongst claims, actuarial, data science to stay ahead of that; and using your own data. Staying ahead of the curve is essentially what we're trying to do. It started for us probably even before the market hardened. You saw towers of coverage that used to be maybe three markets and nowadays it could be 10 to 15 markets for similar coverage, with each market minimizing its downside. Read the court decision
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Reprinted courtesy of Kyle Sternadori, The Hartford

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