Seattle Washington Building Expert Directory

Quick Note: Aim to Avoid a Stay to your Miller Act Payment Bond Claim

February 23, 2017 — David Adelstein – Florida Construction Legal Updates
Strategy is important. This is especially true if you are trying to avoid arbitration. In a recent federal district court case, a subcontractor sued the prime contractor and the Miller Act payment bond surety. The subcontractor, however, had an arbitration provision in its subcontract with the prime contractor. The prime contractor moved to compel arbitration pursuant to the subcontract and moved to stay the subcontractor’s Miller Act payment bond claim. The last thing, and I mean the last thing, the subcontractor wanted to do was to stay its claim against the Miller Act payment bond. However, the district court compelled the subcontractor’s claim against the prime contractor to arbitration and stayed the subcontractor’s Miller Act payment bond claim pending the outcome of the arbitration. See U.S. v. International Fidelity Ins. Co., 2017 WL 495614 (S.D.Al. 2017). This is not what the subcontractor wanted. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Want to Make Your Jobsite Safer? Look to the Skies.

October 10, 2022 — Rory San Miguel - Construction Executive
New York Gov. Kathy Hochul is set to sign Carlos’ Law for worker protection. The law would set a national precedent for construction site safety, substantially raising the minimum fines for construction companies found liable for onsite injuries. Worksites are very complex, and many factors go into creating a safe space. Following suit, innovative operators are looking at advanced technologies to boost onsite safety, including drone data visualization, which involves flying a drone over a site to capture a highly accurate 3D model of current conditions in close to real time. Using drones can't solve every problem, but it can help not only protect workers but also encourage new ones to join your team. How drone surveying improves jobsite safety 3D mapping a worksite with a drone keeps workers out of harm’s way, helping surveyors avoid potentially dangerous areas filled with constantly moving heavy equipment and machinery. Drone mapping also means surveyors can stay out of the heat, avoiding the risk of excess sun exposure by sending the drone out in their stead to traverse the terrains and slopes of the site. Reprinted courtesy of Rory San Miguel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Miller Act Payment Bond Surety Bound to Arbitration Award

December 29, 2020 — David Adelstein - Florida Construction Legal Updates
Here is an interesting case binding a Miller Act payment bond surety to an arbitration award against its prime contractor (bond principal) that it received sufficient notice of. Notice is the operative word. The surety could have participated in the arbitration, elected not to, and when its prime contractor (bond principal) lost the arbitration, it was NOT given another bite out of the apple to litigate facts already been decided. In BRC Uluslararasi Taahut VE Ticaret A.S. v. Lexon Ins. Co., 2020 WL 6801933 (D. Maryland 2020), a prime contractor was hired by the federal government to make security upgrades and interior renovations to a United States embassy in the Czech Republic. The prime contractor hired a subcontractor to perform all of the installed contract work. The prime contractor terminated the subcontractor for default during the course of construction. The subcontractor demanded arbitration in accordance with the subcontract claiming it was wrongfully terminated. The subcontractor also filed a lawsuit asserting a Miller Act payment bond claim against the prime contractor’s surety (as well as a breach of contract action against the prime contractor). The subcontractor made clear it intended to pursue its claims in arbitration and hold the payment bond surety jointly and severally liable. The parties agreed to stay the lawsuit since the facts were identical to those being arbitrated. The arbitration went forward and an award was entered in favor of the subcontractor and against the prime contractor for approximately $2.3 Million. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Survey: Workers Lack Awareness of Potentially Hazardous Nanomaterials

December 11, 2018 — Scott Van Voorhis – Engineering News-Record
Microscopic nanoparticles are part of the mix in nearly 600 construction products. The particles add strength, durability and other desired characteristics. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Updates to Residential Landlord Tenant Law

October 18, 2021 — Lawrence S. Glosser - Ahlers, Cressman & Sleight
Over the past several months, there have been major updates to the residential landlord tenant laws in Washington State and Seattle. There are also some remaining moratoria or eviction restrictions in Washington and Seattle. The following is a general overview of the changes. Eviction Moratoria: Washington State Governor Inslee’s state-wide eviction moratorium technically ended on June 30, 2021. However, in late June 2021, Governor Inslee announced a “bridge” proclamation between the eviction moratorium and the housing stability programs put in place by the Washington State Legislature. The bridge is effective July 1 through September 30. The goal of the bridge period was to protect tenants from evictions for non-payment of rent to allow local governments to set up distribution programs for funds. More than $650 million of federal relief dollars allocated to assist renters was predicted to be available beginning in July. This is in addition to the $500 million previously released by the Department of Commerce to local governments for rental assistance and will help more than 80,000 landlords and renters. However, insofar as many localities have not established distribution protocols, the bridge period was instituted to allow time for those programs to be set up in various parts of the state. Read the court decision
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Reprinted courtesy of Lawrence S. Glosser, Ahlers, Cressman & Sleight
Mr. Glosser may be contacted at larry.glosser@acslawyers.com

Green Energy Can Complicate Real Estate Foreclosures

November 30, 2016 — Bob L. Olson – Snell & Wilmer Real Estate Litigation Blog
A quick drive through almost any newer residential community in the Southwest will show that a lot of residents are embracing “Green Energy” or renewable energy by placing solar panels on their properties. While most people would agree that increasing the use of alternative energy is socially responsible, there are a number of real estate investors that may view it as an opportunity to make additional profits by purchasing distressed properties with solar panels and then reselling those properties for more than they would be worth without solar panels. The theory is relatively straight forward as many believe that foreclosure of a deed of trust that was recorded before the solar panels were installed would extinguish any liens in favor of the vendor that sold or financed the sale of the solar panels. After all, it is generally held that “a valid foreclosure of a mortgage terminates all interest in the foreclosed real estate that are junior to the mortgage being foreclosed.” See SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. Adv. Op. 75, 334 P.3d 408, 412 (2014) (quoting Restatement (Third) of Property, Mortgages §7.1 (1997)). NOT SO FAST! While the general rule is that foreclosure of a senior lien terminates junior liens, most purveyors of solar panels do not encumber the property with mortgages or deeds of trust to secure payment of amounts they are owed. Rather, they typically either lease the solar panels to the property owner or secure repayment of the purchase price of the solar panels with a fixture filing under the Uniform Commercial Code (the “UCC”). Read the court decision
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Reprinted courtesy of Bob L. Olson, Snell & Wilmer
Mr. Olson may be contacted at bolson@swlaw.com

Exploring Architects’ Perspectives on AI: A Survey of Fears and Hopes

March 19, 2024 — Aarni Heiskanen - AEC Business
RIBA, the Royal Institute of British Architects, ran a survey in late 2023 with 500 respondents on the impact of AI on their profession. The study also explored the near-term outlook for AI adoption and use. The results reveal divided opinions among architects. A popular view is that AI threatens the profession, even though a larger portion sees tools like AI as necessary in the coming years. The Present Use of AI The respondents were asked, for the projects they are currently working on, how often their practice used AI in any way. In all, 41% said that they use AI to some degree. Of those, 43% agree that AI has improved efficiency in the architectural design processes, while 24% disagree. 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

Florida Extends Filing Time for Claims Subject to the Statute of Repose

June 13, 2018 — William L. Doerler - The Subrogation Strategist
Under Florida’s construction-related statute of repose, Fla. Stat. § 95.11, actions based on the design, planning or construction of an improvement to real property are barred if not commenced within 10 years after the later of several possible dates, including the date of actual possession by the owner and the date of the issuance of a certificate of occupancy. The Florida Legislature recently amended the statute to extend the time within which defendants subject to a suit filed close to the end of the 10-year period can file claims. Under the revised law, a defendant can file “counterclaims, cross-claims and third-party claims up to 1 year after the pleading to which such claims relate is served.” Regardless of when the cause of action at issue accrued, the law applies to actions commenced on or after July 1, 2018, except that any action that would not have been barred under Fla. Stat. § 95.11(3)(c) prior to the amendment may be commenced before July 1, 2019. The revised law provides relief to defendants because, under the prior law, they had to file claims against other potentially responsible third parties before the expiration of the statute of repose. Under the new law, defendants can bring third parties into the action after the expiration of the 10-year statute of repose period. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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