Seattle Washington Building Expert Directory

Couple Gets $79,000 on $10 Million Construction Defect Claim

September 24, 2013 — CDJ STAFF
A Florida couple who sought more than $10 million in damages in a construction defect suit, has received a jury verdict of only $79,000. Leo and Kathryn Vecellio bought the 25,000 square-foot home in 2008, after which they discovered water intrusion issues. They sued both the builder and couple from whom they had bought the house. Although the Vecellios spent more than $11 million to repair their home, the jury concluded that the builder did not know about the construction defects. The jury did determine that the builder, Dan E. Swanson, did either lie about or conceal certain facts about the construction. He was ordered to pay the $79,000 in damages to the Vecellios. Lawyers for the defendants argued that the leaks were not from the original construction of the home, but were instead caused by the renovations made by the Vecellios. The Vecellios are pursuing whether they are entitled to money from home warranties. “There will be more evidence to be considered. I’m determined to see this through,” said Leo Vecellio. Read the court decision
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California Court Invokes Equity to Stretch Anti-Subrogation Rule Principles

June 18, 2019 — Gus Sara & William L. Doerler - The Subrogation Strategist
In Western Heritage Ins. Co. v. Frances Todd, Inc. 2019 Cal. App. Lexis 299, the Court of Appeals of California, First Appellate District, addressed whether a commercial condominium association’s carrier could subrogate against the tenants (aka lessees) of one of its member unit owners. After examining the condominium association’s declarations, as well as the lease terms between the owner and the lessees, the court held that the association’s carrier could not subrogate against the lessees because they were implied co-insureds on the policy. To reach its decision, the court explained that an insurer steps into the shoes of its insured, not the party with whom it is in privity. Although the first-party property portion of the association’s insurance policy did not, as required by the association’s declarations, have the owner listed as an additional named insured, the court held that it would be inequitable to treat the association as the sole insured for purposes of determining Western Heritage’s right to bring a subrogation action. In Western Heritage, William R. de Carion d/b/a Surfwood Properties (de Carion or Lessor), owned a commercial unit within a multi-unit commercial building. The building was managed by the East Shore Commercial Condominiums Owners’ Association (the Association). As a unit owner, de Carion was a member of the Association. The Association’s Declarations of Codes, Covenants and Restrictions (CC&Rs) required the Association to procure fire insurance for the commercial units by adding the unit owners as additional named insureds. The CC&Rs also prohibited owners and their “tenants” from procuring their own fire insurance policies for the premises. In 2013, de Carion leased his commercial space to Frances Todd, Inc. d/b/a The Wooden Duck, Eric Todd Gellerman and Amy Frances Feber (Lessees). Reprinted courtesy of Gus Sara, White and Williams LLP and William L. Doerler, White and Williams LLP Mr. Sara may be contacted at sarag@whiteandwilliams.com Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com Read the court decision
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No Collapse Coverage Where Policy's Collapse Provisions Deleted

July 26, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court found there was no coverage for the homeowners' collapse claim because the collapse provisions were deleted from the policy. Gueng-Ho Kim v. State Farm Fire & Cas. Co., 2017 U.S. Dist. LEXIS 97871 (D. Conn. June 26, 2017). The homeowners purchased their home in 2004. They also purchased a homeowners policy from State Farm. In the policy, State Farm deleted the additional coverage for collapse.Also deleted from the policy was language excluding coverage for "collapse, except as specifically provided in Section I - Additional Coverages, Collapse." The homeowners discovered a problem with the property's foundation when they attempted to sell the house in 2014. The homeowners hired an engineer who found that the interior and exterior foundation had numerous spider-web cracks and the foundation walls in several locations bowed inward by as much as one and a half inches. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Unpaid Hurricane Maria Insurance Claims, New Laws in Puerto Rico, and the Lesson for all Policyholders

January 09, 2019 — Walter J. Andrews & Cary D. Steklof - Hunton Andrews Kurth
Puerto Rico’s dire insurance situation more than a year after Hurricane Maria remains a constant reminder of why policyholders must diligently pursue their property and business interruption claims in the immediate aftermath of a storm. The numbers are staggering. On an island the approximate size of Connecticut, Hurricane Maria caused an estimated $100 billion in damage. According to the Office of the Insurance Commissioner of Puerto Rico, the hurricane resulted in more than 287,000 insurance claims. Roughly 11,000 of those claims, representing an estimated $2 billion in losses, remain unresolved. Reprinted courtesy of Walter J. Andrews , Hunton Andrews Kurth and Cary D. Steklof , Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Mr. Steklof may be contacted at csteklof@HuntonAK.com Read the court decision
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Condo Building Hits Highest Share of Canada Market Since 1971

December 10, 2015 — Theophilos Argitis – Bloomberg
It’s the year of the condo for Canada’s housing market. Construction of multiple units as a share of total new housing starts is at the highest level since 1971, data from Canada Mortgage & Housing Corp. show, as builders in Toronto and Vancouver press ahead with new development. The condo boom -- fueled in part by affordability issues in Canada’s two priciest markets -- is helping offset a slump in construction of single detached homes across the country. Read the court decision
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Reprinted courtesy of Theophilos Argitis, Bloomberg

Skanska Found Negligent for Damages From Breakaway Barges

January 11, 2022 — Jim Parsons - Engineering News-Record
A federal district court judge in Pensacola, Fla., has ruled that Skanska USA was negligent in preparing the Pensacola Bay Bridge construction site for the approach of Hurricane Sally, a September 2020 event that caused dozens of construction barges to break free of their moorings. The barges severely damaged the partly finished new crossing, closing it for months, and later washed ashore on nearby waterfront properties. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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More on the VCPA and Construction

February 01, 2023 — Christopher G. Hill - Construction Law Musings
I have posted before regarding the intersection between the Virginia Consumer Protection Act (VCPA) and construction contracting in regard to residential construction projects. A case out of the Eastern District of Virginia District Court further discusses this intersection as it relates to design contracts that also include the procurement and installation of certain design elements post-design. The basic facts of Marcus v Dennis are as follows: In October of 2018, Defendant Marlene Dennis, the owner of Marlene Dennis Design, LLC (“MDD”), operating out of Virginia, entered into a contract to provide design services and the procurement and installation of certain design elements for the Plaintiffs, Gregory and Jamie Marcus, at their Maryland home. The Marcuses agreed to $175 per hour to Dennis with a cap of a total of $100,000.00 for design consultation and furniture selection and procurement. The Marcuses also agreed that they would pay no more than $250,000.00 for furnishings, rugs, artwork, decorative lighting, and accessories. In November 2020, Dennis sent an invoice for $68,000.00 and informed the Plaintiffs that the total contract fees would be more than the $100,000.00 cap. After paying $124,722.41 in design fees, the Plaintiffs received an invoice for $255,5560.72 in January of 2021. Despite the cap of $250,000.00, the Plaintiffs wired $255,000.00 to Dennis while requesting the backup invoices for the material charges. After much effort and a threat of litigation, the Plaintiffs received documents from Dennis showing that Dennis inflated the costs of the materials prior to passing the costs along to the Marcuses. The Plaintiffs’ home was unfurnished and empty as of April 10, 2021, and the Marcuses had to hire and pay another design team over $85,000.00 to finish Dennis’ work. Needless to say, the Marcuses sued both Dennis and her firm for breach of contract, breach of fiduciary duty, and for violation of the VCPA. Dennis moved to dismiss the Complaint. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Taking Care of Infrastructure – Interview with Marilyn Grabowski

February 06, 2019 — Aarni Heiskanen - AEC Business
Marilyn Grabowski leads Atlantic Infrared with a mission to protect and improve infrastructure. In this interview, we discuss her professional background, the technologies that her team uses, and why more women should consider construction as a career. Marilyn Grabowski, known as “The Lady in Red”, and her team Atlantic Infra employees dubbed “The Red Crew” have been seamlessly filling potholes across the state of New Jersey since 2002. Under her leadership, The Red Crew uses infrared technology and unfailing attention to detail to expertly repair potholes, failed utility cuts and sunken trenches with no break in the road – creating safe and aesthetically pleasing repairs statewide, at a clip of 15,000 potholes per year. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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