SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Building Codes Evolve With High Wind Events

November 14, 2018 — William L. Coulbourne - Construction Executive
Designs for wind loads have been in building codes for a long time. Prior to the creation of the International Building Code, the three primary legacy codes had wind load provisions but they mostly dealt with wind loads on the building frame and had little load information about the building components or the exterior cladding. Since Hurricane Andrew in 1992, building codes include more wind design information that comes from disaster investigations and wind engineering research conducted primarily at the university level. In 2000, the legacy building codes were replaced with the International Building Code (IBC). Residential buildings must comply with the International Residential Code (IRC). Both of these building code documents reference the engineering load standard, ASCE 7 Minimum Design Loads and Other Criteria for Buildings and Other Structures. This load standard has also been in existence for a long time; it now is revised every six years and the building codes revised every three years (IBC and IRC) reference ASCE 7 so the provisions in ASCE 7 become part of the building code requirements. Reprinted courtesy of William L. Coulbourne, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured

January 15, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf. In Engel, a homeowners association filed a construction defect action against the developer, Westlake. Travelers defended Westlake as an additional insured on the policy of a subcontractor. After the case settled, Travelers brought a subrogation action against another subcontractor for contribution to the defense costs. However, Westlake had its corporate status suspended for failure to pay taxes, and the subcontractor moved for judgment on the pleadings, which was granted. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Fraud, the VCPA and Construction Contracts

November 26, 2014 — Christopher G. Hill – Construction Law Musings
I’ve discussed the economic loss rule here at Musings on several occasions. The economic loss rule basically states that where one party assumes a duty based in contract or agreement, the Virginia courts will not allow a claim for breach of that duty to go forward as anything but a contract claim. This doctrine makes fraud claims nearly, though not absolutely, impossible to maintain in a construction context. In a majority of instances, fraud and construction contracts are very much like oil and water, leaving parties to fight it out over the terms of a particular contract despite actions by one party or the other that non-lawyers would clearly see as fraud. However, a recent case decided by the Virginia Supreme Court gives at least some hope to those who are seemingly fooled into entering a contract that they would not other wise have entered into. In Philip Abi-Najm, et. al, v Concord Condominium, LLC, several condominium purchasers sued Concord under for breach of contract, breach of the Virginia Consumer Protection Act (VCPA) and for fraud in the inducement based upon flooring that Concord installed that was far from the quality stated in the purchase contract. Based upon these facts, the Court looked at two questions: 1. Did a statement in the contract between Concord and the condo buyers create a situation in which the merger doctrine barred the breach of contract claim, and 2. Did the economic loss rule bar the VCPA and fraud claims? 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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Truck Hits Warning Beam That Falls, Kills Motorist at Las Vegas Bridge Project

July 11, 2022 — Doug Puppel - Engineering News-Record
A truck carrying an oversized load in northwest Las Vegas on Friday struck a steel beam near a bridge construction site, sending the beam crashing onto a following vehicle and killing its driver, according to the Nevada Dept. of Transportation. Reprinted courtesy of Doug Puppel, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Force Majeure Recommendations

August 15, 2022 — Denise Motta - Gordon & Rees Construction Law Blog
This Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by a force majeure event. Contract Protection Tips: A force majeure event is defined as an unforeseeable circumstance that prevents someone from fulfilling a contract. Because many events arising on a construction project could be arguably unforeseen, it is imperative that the contract contain a Force Majeure provision. Examine all contracts for the applicable Force Majeure provision. Look for a clause like this:

§ 8.3.3 Any failure or omission by Owner or Contractor in performance of its obligation shall not be deemed a breach or create any liability for damages or other relief (other than additional time) if it arises from any cause beyond the reasonable control of such party, including, without limitation, acts of God, floods, fire, explosions, storms, earthquakes, acts of public enemy, war, terrorism, rebellion, insurrection, riot, sabotage, invasion, epidemic, quarantine, strikes, lockouts, labor disputes or other industrial disturbances, or any order or action by any governmental agency, or causes of similar nature.

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Reprinted courtesy of Denise Motta, Gordon Rees Scully Mansukhani, LLP
Ms. Motta may be contacted at dmotta@grsm.com

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Nevada HOA Criminal Investigation Moving Slowly

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Six years have passed since the FBI started investigating “allegations of the sweeping scheme to take over valley homeowners associations” in Nevada, according to Jeff German writing for the Las Vegas Review-Journal, however, “the public still doesn’t have the full story of how the scheme unfolded.” Defendants who plead guilty are still awaiting sentencing and no trial has been set for “former construction company boss Leon Benzer, the accused mastermind of the scheme” despite that he and ten others have already been indicted. The trial had been set for March, however, defense lawyers stated “they were overwhelmed by the massive amount of evidence and won’t be prepared for trial until well into 2015.” Benzer, Nancy Quon (late construction defect attorney), and others allegedly “funneled more than $8 million through secret bank accounts to land the lucrative legal and construction defect contracts from the homeowners associations,” according to the Las Vegas Review-Journal. Quon committed suicide in 2012, and therefore was never charged in the case. Read the court decision
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Arizona Supreme Court Clarifies Area Variance Standard; Property Owners May Obtain an Area Variance When Special Circumstances Existed at Purchase

October 19, 2017 — Nick Wood, Adam Lang, Noel Griemsmann, & Brianna Long – Snell & Wilmer Real Estate Litigation Blog
In Pawn 1st v. City of Phoenix, the Arizona Supreme Court rejected a Court of Appeals rule that would have unduly restrained alienation of property in Arizona. The Court of Appeals found that the City of Phoenix Board of Adjustment acted beyond its authority when it granted an area variance to a pawn shop where the special circumstances causing a need for the variance existed before the pawn shop purchased the property. Under Arizona law, boards of adjustment cannot grant an area variance where the special circumstances requiring the variance are self-imposed. The Court of Appeals adopted a rule that knowledge of special circumstances at the time of purchase made the special circumstances self-imposed, foreclosing the purchaser’s ability to obtain a variance. This rule would have severely restricted property purchasers’ ability to obtain area variances in Arizona and by extension likely strained property transactions. The underlying case involved a pawn shop that was proposed in southeast Phoenix. After the property purchaser obtained approval for a required use permit (for a pawn shop) and a variance (for a 500 foot residential setback) from the City of Phoenix Board of Adjustment, a competing pawn shop filed a special action arguing that the variance was a use variance, not an area variance, beyond the board of adjustment’s authority. Reprinted courtesy of Snell & Wilmer attorneys Nick Wood, Adam Lang, Noel Griemsmann and Brianna Long Mr. Wood may be contacted at nwood@swlaw.com Mr. Lang may be contacted at alang@swlaw.com Mr. Noel may be contacted at ngriemsmann@swlaw.com Ms. Brianna may be contacted at bllong@swlaw.com Read the court decision
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Louisiana Court Holds That Application of Pollution Exclusion Would Lead to Absurd Results

October 21, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
A Louisiana court recently denied an excess insurer’s bid for summary judgment, finding that the insurer’s interpretation of a pollution exclusion would lead to “absurd results.” Central Crude, Inc., a crude oil transporter company, experienced an oil pipeline leak, allegedly causing damage to property belonging to Columbia Gas Transmission Company. Columbia Gas sued Central Crude seeking compensatory damages and injunctive relief to compel remediation of the site. Central Crude sought coverage under a CGL primary insurance policy issued by Liberty Mutual. The insurer initially agreed to cover Central Crude’s “reasonable and necessary costs” relating to the incident, but later refused to defend or indemnify Central Crude for any costs incurred from the incident. As a result, Central Crude brought suit against Liberty Mutual and its excess insurer, Great American, to enforce coverage. Great American moved for summary judgment arguing coverage was excluded by the excess policy’s pollution exclusion, which precludes coverage for injury “arising out of a discharge of pollutants.” Central Crude responded arguing that the exclusion’s applicability was invalidated or at least rendered ambiguous by the Following Form Endorsements, which reflect an intent to mirror the coverage afforded under the primary Liberty Mutual policy, and because coverage appears to be specifically authorized through the Premises Operations Liability Endorsement. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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