Seattle Washington Building Expert Directory

Appellate Court reverses district court’s finding of alter ego in Sedgwick Properties Development Corporation v. Christopher Hinds (2019WL2865935)

August 13, 2019 — Frank Ingham - Colorado Construction Litigation
Division V of the Colorado Court of Appeals addressed, for the first time, corporate veil-piercing in the context of a single-member, single-purpose LLC that is managed under a contract by another company. On July 3, 2019, the Court of Appeals reversed the order of the Honorable Ross B. Buchannan, Denver District Court Judge (17CA2102), who held that Plaintiff/Appellee Christopher Hinds satisfied the elements required to pierce the corporate veil of Sedgwick Properties Development Corporation (“Sedgwick”). Background Defendant 1950 Logan, LLC (“1950 Logan”) was the developer of a building located at 1950 Logan Street, in Denver, called The Tower on the Park (“Project”), which contained 141 individually owned condominium units. The Project was completed in 2006. 1950 Logan was a single-purpose entity created for the construction of the Project, which is a common practice in the construction industry. After the units were sold in 2006, the LLC wrapped up operations. Read the court decision
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Reprinted courtesy of Frank Ingham, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Ingham may be contacted at ingham@hhmrlaw.com

Construction Contractors Must Understand Retainage In 2021

May 24, 2021 — Ed Williams - Construction Executive
Retainage has become a vital part of the contracting and construction process. If defined precisely, retainage is a practice of withholding a particular percentage of the payment until the project is delivered. However, the practice can turn to be a challenge for small contractors, as it is laid over a lack of trust in the potential and abilities of a contractor, which might cause financial downtime at the later stages of the project when contractors need to pay bills. Since 2020 proved to be a tough year for the entire construction industry, project owners, general contractors and construction firms new to the industry must understand what exactly retainage is. It is equally important for small contractors and subcontractors to understand the right way to manage the retainage. Reprinted courtesy of Ed Williams, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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40 Year Anniversary – Congratulations Ed Doernberger

November 23, 2016 — Tracy Alan Saxe - Saxe Doernberger & Vita, P.C.
Forty years ago, on the Big Island of Hawaii, Edwin L. Doernberger was sworn in as an attorney. Fifteen years ago, Ed rejoined two former partners to help build an exciting new boutique insurance policyholder practice. Today, Saxe Doernberger & Vita is pleased to celebrate the 40th anniversary of its most distinguished partner. “Ed’s energy and enthusiasm are undiminished,” said co-founder and Managing Partner, Tracy Alan Saxe. “He’s still one of the firm’s most active litigators.” Ed has extensive appellate experience, having argued before the Connecticut and Hawaii Supreme and Appellate Courts, New York Appellate Courts, and the Second and Ninth Circuits. Read the court decision
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Reprinted courtesy of Tracy Alan Saxe, Saxe Doernberger & Vita, P.C.
Mr. Saxe may be contacted at tas@sdvlaw.com

Daily Reports – The Swiss Army Knife of Project Documentation

June 08, 2020 — Christopher A. Henry - ConsensusDocs
Project “Daily Reports” are some of the most important, yet overlooked aspects of a construction project. These reports serve many beneficial roles such as holding parties accountable to their obligations, providing the basis for an as-built schedule, recording manpower, documenting site conditions, and recording any other important and relevant information that happened on the job site that day. Daily reports can also provide information to help with claims or disputes that may arise in the future, such as noting weather delays, providing backup for future delay claims, and providing information to dispute claims made against your company. Finally, daily reports also serve as a useful communication tool during the project and a source of real time information for parties that want to know how the work is commencing on a day to day basis. Because daily reports are the “Swiss army knife” of project documentation, it is extremely important that a contractor puts for its best effort when creating them. It is no secret that a construction project can become more chaotic as the schedule progresses. Unfortunately, when that is the case, the effort put into creating these reports drops off and sometimes the responsibility of creating such reports is thrown aside altogether. I can speak from experience. Prior to entering the practice of law, I was a project engineer for a general contractor in Atlanta. As an engineer in the field, one of my many responsibilities was to enter the daily reports. Based off this experience, below are some thoughts on how to prepare useful daily reports. 1. Check the contract. The contract you entered may set forth specific requirements for the daily reports, such as where to file them, the required format, and specific information that must be included. Complying with contractual requirements is necessary for a successful project. One word of caution for subcontractors, a subcontract will often incorporate the prime contract. If that is the case, be sure to check the prime contract for any specific language relating to daily reports. Read the court decision
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Reprinted courtesy of Christopher A. Henry, Jones Walker LLP
Mr. Henry may be contacted at chenry@joneswalker.com

Replacement of Defective Gym Construction Exceeds Original Cost

January 22, 2013 — CDJ STAFF
Austin, Texas has torn down a school gym, the Turner-Roberts Recreation Center at the Overton Elementary School, due to structural problems which became evident after the gym was completed four years ago. The cost of the new gym is $6.4 million, more than the cost of building the gym in the first place. The city is paying $3 million in repair costs with the rest of the money coming from the companies that designed and built the now demolished gym. According to the Austin Statesman, the total cost to the city will be about $8.6 million. The Turner-Roberts Recreation Center cost $5.6 million to build, but soon after it opened, structural problems were discovered. Cracks formed in walls and glass doors buckled. The settlement with the designer, contractor, and engineering firm did not require the firms to admit fault as they paid $3.4 million to fix the situation. The Statesman was unable to get a breakdown of how much each firm paid. Tom Cornelius, president of the GSC, the architectural firm on the project told the Statesman that "the foundation issues were not caused by design defects." Initially, the city sought to repair the gym, but early excavation determined that the defects were too extensive. In addition to the structural flaws, it was also determined that the HVAC system was faulty. Excavation also damaged plumbing work. Tearing down the gym turned out to be the most cost-effective response. Read the court decision
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Ready, Fire, Aim: The Importance of Targeting Your Delay Notices

November 08, 2021 — Bradley Sands, Jones Walker LLP - ConsensusDocs
Providing written notice of delay to subcontractors when a project is behind schedule is a regular part of good project documentation practices. A properly targeted delay notice is an important, project correspondence that is an appropriate response to a subcontractor’s specific delay or ongoing delays. However, when a project falls behind schedule and the project management team is in the fog of war, it could seem like a good idea to start firing off project delay notices to any and every subcontractor. While these delay notices may provide a short term burst of productivity, you could find that those same notices are aimed back at you in a future litigation. This article identifies two potential unintended consequences of sending delay notices that a contractor should keep in its sights and then provides recommendations for properly calibrating future delay notices in light of these potential consequences. Acceleration: You Might Get What You Ask For A delay notice to a subcontractor could be interpreted as—or expressly state—direction to the subcontractor to accelerate its work. When a subcontractor is directed to accelerate its work, it may incur additional costs for premium, extended, or overtime labor, additional crews, increased supervision costs, increased overhead costs, and losses due to productivity impacts from the acceleration (e.g., stacking of trades and fatigue). A subcontractor may be entitled to recover these increased costs that are caused by a direction to accelerate. Read the court decision
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Reprinted courtesy of Bradley Sands, Jones Walker LLP
Mr. Sands may be contacted at bsands@joneswalker.com

The Miller Act: More Complex than You Think

October 07, 2016 — Beverley BevenFlorez-CDJ STAFF
Keith Bremer, senior partner of Bremer Whyte Brown & O’Meara LLP, has a feature article in the Fall 2016 issue of Construction Claims Magazine, and discusses how the Miller Act has been slowly changing: “This is a complex piece of legislation that is evolving and has been decided differently depending on the federal district a case is heard in,” Bremer wrote. Bremer explained how the courts continue to rule differently in regards to the Miller Act. “Currently it seems jurisdictions are split on the issue of whether or not subcontractors should be allowed to bring both a federal and state cause of action stemming from payment by a Miller Act bond. Therefore, any surety writing these bonds should pay strict attention to how broad or narrow the federal district that would hear the claim has interpreted the scope of a subcontractor’s remedies for Miller Act claims.” Read the court decision
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New York Court Rejects Owner’s Bid for Additional Insured Coverage

September 06, 2021 — Eric D. Suben - Traub Lieberman
Tenders for additional insured coverage in construction accidents are frequently litigated in New York courts. Although the past few years have seen changes in the law regarding the causal nexus between the named insured’s work and coverage for the purported additional insured, courts often find there is at least a duty to defend the additional insured where there are allegations of the employer/subcontractor’s presence at the site. An exception is the recent decision in Gemini Insurance Company v. Certain Underwriters at Lloyd’s, London, Index No. 652669/20 in the Supreme Court of the State of New York, County of New York (Lebovits, J.). In that case, Gemini insured the owner and general contractor of a construction project, and Lloyd’s insured the injured claimant’s employer under a policy endorsed to provide additional insured coverage to entities who “have agreed in writing in a contract or agreement” with the named insured that they must be “added as additional insured.” Although the court found that the contracts here satisfied this requirement for additional insured coverage, the court’s analysis did not end there. Noting that even where such contract exists, the Lloyd’s policy would not provide additional insured coverage “in all circumstances” (emphasis in original), the court next considered whether the underlying injury was “caused in whole or in part by: 1. [The named insured’s] acts or omissions, or 2. The acts or omissions of those acting on [the named insured’s] behalf,” as required under the endorsement’s wording. Read the court decision
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Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

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