Seattle Washington Building Expert Directory

Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

June 15, 2011 — Haight Brown & Bonesteel, LLP

On June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.

Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.

A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.

The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.

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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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GRSM Named Among 2025 “Best Law Firms” by Best Lawyers

December 23, 2024 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has been recognized in the 2025 "Best Law Firms" survey published by Best Lawyers. To be eligible for a 2025 ranking, a law firm must have at least one lawyer recognized in the 2025 edition of the Best Lawyers in America in a "Best Law Firms" practice area and geographic jurisdiction. GRSM announced earlier this year that 166 lawyers were recognized in the 2025 edition of Best Lawyers in America®, while 74 lawyers were named to the 2025 edition of Best Lawyers: Ones to Watch. Explore the full list of GRSM recognized attorneys. No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Prior results do not guarantee a similar outcome. For details about Best Law Firms' methodology, please click here. The firm received National "Tier 1" rankings in the following areas:

Admiralty and Maritime Law
Commercial Litigation
Construction Law
Insurance Law
Litigation – Construction
Mass Tort Litigation / Class Actions – Defendants

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Reprinted courtesy of Gordon Rees Scully Mansukhani

Haight’s Sacramento Office Has Moved

April 17, 2019 — Haight Brown & Bonesteel LLP
Haight Brown & Bonesteel LLP has moved its Sacramento office to a new location. Effective March 18, 2019, Haight’s new Sacramento office address is: 500 Capitol Mall Suite 2150 Sacramento, CA 95814 916.702.3200 F: 916.570.1947 Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

Coverage for Construction Defects Barred By Exclusion j (5)

April 15, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Texas Court Appeal reversed a trial court judgment which found coverage in favor of the contractor based upon exclusion j(5). Dallas Nat'l Ins. Co. v. Calitex Corp., 2015 Tex. App. LEXIS 2002 (Tex. Ct. App. March 3, 2015). Turnkey Residential Group, Inc., was the contractor to construct a twelve-unit townhome complex in Dallas. The owner of the project was Calitex Corporation. Construction began on November 2006. The project was to be completed by Turnkey by October 27, 2007. Calitex filed suit against Turnkey and some of its subcontractors in February 2008. Calitex alleged problems with Turnkey's work included: (1) the stone exterior was not properly treated and leaked, and some areas were left uncovered with stone; and (2) windows leaked. It was further alleged that the quality of materials, labor and craftsmanship did not meet the standards of the contract and resulted in damages. Turnkey submitted a notice of claim to its insurer, Dallas National Insurance Company (DNIC). Coverage was denied. 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

NY Court Holds Excess Liability Coverage Could Never be Triggered Where Employers’ Liability Policy Provided Unlimited Insurance Coverage

February 28, 2018 — Theresa A. Guertin and Samantha M. Martino - SDV Blog
In a potentially significant development in New York insurance law, a recent appellate level decision held that an excess liability policy was not obligated to provide coverage where the underlying employer’s liability policy provided unlimited coverage pursuant to New York regulations. The Arthur Vincent & Sons Construction, Inc. v. Century Surety Insurance Co.1 case arose out of an underlying wrongful death claim. Fordham University hired Arthur Vincent and Sons Construction, Inc. (“AVSC”) to install a new roof on its Lewis Calder Center. As is typical of most construction contracts, AVSC agreed to indemnify the University against any claims arising out of its negligence, and to name the University as an additional insured on its commercial general liability policy. AVSC was insured by three policies: (1) a worker’s compensation and employer’s liability policy issued by Commerce and Industry Insur¬ance Company (“CIIC”); (2) a primary CGL policy issued by Century Surety Insurance Company (“Century”); and (3) an excess liability policy issued by Admiral Insurance Company (“Admiral”). Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and Samantha M. Martino, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at tag@sdvlaw.com Ms. Martino may be contacted at smm@sdvlaw.com Read the court decision
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Curtain Wall Suppliers Claim Rival Duplicated Unique System

February 28, 2022 — Annemarie Mannion - Engineering News-Record
Chicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects. Reprinted courtesy of Annemarie Mannion, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Federal Court Opinion Has Huge Impact on the Construction Industry

July 06, 2020 — Wally Zimolong - Supplemental Conditions
The United States District Court for the Eastern District of Pennsylvania in Philadelphia recently issued an opinion that should get the attention of any contractor or subcontractor performing work on a federal funded construction project. In U.S. ex rel IBEW Local 98 v. The Fairfield Company, the federal court held that a contractor on a SEPTA project could be held liable under the False Claims Act for failing to pay its workers under the Davis Bacon Act. The court found that liability was appropriate under the FCA even through the contractor did not knowingly violate the Davis Bacon Act. The court awarded the plaintiff over $1,000,000 in damages and an additional over $1,000,000 in attorneys fees. An Extremely Brief Primer on the FCA A full discussion of the FCA is beyond the realm of this blog post and you could write a book on FCA cases. But in a nutshell, the FCA prohibits a contractor from knowingly submitting a claim for payment to the federal government (or an entity receiving funding from the federal government, like SEPTA) that is false. Importantly, knowingly does not equal actual knowledge of the falsity of the claim. Rather, “reckless disregard of the truth or falsity” of the submission is sufficient. As explained below, this standard played an important role in the court’s decision and should give contractors performing work on federally funded projects pause. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Power to the Office Worker

September 03, 2019 — Aarni Heiskanen - AEC Business
Modern offices consist of variable spaces that cater to personal preferences and functional needs. The indoor air quality is typically not as adaptive to various tasks, which can lead to suboptimal worker performance and dissatisfaction. A pilot project led by Senate Properties used BIM and building data to develop an operational model that helps workers get a better grip on indoor conditions. Around 55,000 government employees work in the 9,000 premises managed by Senate Properties, a Finnish, state-owned enterprise. For decades, Senate has been at the forefront of digitalizing construction and property management. They routinely use BIM both in new building projects and in retrofitting. Over the last few years, Senate Properties has developed and piloted the use of BIM for the purpose of maintenance and operations. Testing BIM as a Property Management Platform “We want to improve the work conditions of office users, and consequently employee satisfaction and work productivity,” says Esa Halmetoja, Senior Expert at Senate Properties. “In this pilot project, we wanted to demonstrate how to use a building information model as a platform for locating service requests and performance monitoring in a three-dimensional environment.” 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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