Seattle Washington Building Expert Directory

BofA Said to Near Mortgage Deal for Up to $17 Billion

August 06, 2014 — Tom Schoenberg – Bloomberg
Bank of America Corp. is nearing a $16 billion to $17 billion settlement with the U.S. Justice Department to resolve probes into sales of mortgage-backed bonds in the run-up to the financial crisis, a person familiar with the matter said. Under the proposed terms, the bank would pay about $9 billion in cash and the rest in consumer relief to settle federal and state claims, according to the person, who asked not to be named because the negotiations are private. Details of the proposed accord, such as the relief and a statement of facts, are still being negotiated, the person said. The outlines of the deal were reached last week after a phone call between Attorney General Eric Holder and Bank of America Chief Executive Officer Brian T. Moynihan, the person said. During the July 30 call, Holder said that the government was ready to file a lawsuit in New Jersey if the bank didn’t offer an amount closer to the department’s demand of about $17 billion, according to the person. Read the court decision
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Reprinted courtesy of Tom Schoenberg, Bloomberg
Mr. Schoenberg may be contacted at tschoenberg@bloomberg.net

Miller Act Claim for Unsigned Change Orders

June 30, 2016 — David Adelstein – Florida Construction Legal Updates
Contracts and subcontracts often contain language that requires change orders to be in writing and that no change order work shall be performed unless agreed to in advance in a signed change order. Oftentimes change order work is performed but the parties have not complied with the strict requirements of the contract by having this work signed off by the parties in a change order prior to the commencement of the work. Well, can such requirements be waived? If so, can such change orders form the basis of a Miller Act claim? The answer is generally yes provided the party arguing waiver can support the waiver with evidence (that the other party voluntarily relinquished the requirements through its course of conduct / actions). Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Federal Lawsuit Accuses MOX Contractors of Fraud

March 04, 2019 — Scott Judy - Engineering News-Record
A subcontractor employee working on the now-canceled MOX project in South Carolina used football tickets, automobile tires, barbecue grills and other gifts to persuade employees of CB&I AREVA MOX Services and other vendors to help approve thousands of fraudulent invoices cumulatively valued at more than $6.4 million, according to a Dept. of Justice lawsuit filed Feb. 14 that names both companies as defendants. The controversial project at the Savannah River Site in Aiken, S.C., originally scheduled for completion in 2016, was canceled in January after cost and schedule estimates increased significantly. Read the court decision
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Reprinted courtesy of Scott Judy, ENR
Mr. Judy may be contacted at judys@enr.com

The Vallagio HOA Appeals the Decision from the Colorado Court of Appeals

August 04, 2015 — David M. McLain – Colorado Construction Litigation
As highlighted in our most recent post, the Colorado Court of Appeals’ Vallagio decision upheld a declaration provision that prohibited the amendment of a mandatory arbitration clause without the consent of the developer/declarant. Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al., 2015COA65 (Colo. App. May 7, 2015). This case protects a developer/declarant’s ability to arbitrate construction defect claims with a well-crafted declaration that requires declarant consent in order to amend the mandatory arbitration provisions for construction defect actions. However, the Vallagio ruling still hangs in the balance while the Colorado Supreme Court considers the condominium association’s petition for certiorari review, filed June 18, 2015. In its petition, the association argues that the declarant consent requirement violates public policy and four separate sections of the Colorado Common Interest Act (“CCIOA”). For instance, the association argued in the courts below that a declarant consent requirement violates section 217 of CCIOA, which governs unit owners’ voting percentage requirements and provides that declarations may not require more than 67% affirmative vote for amendments. The Court of Appeals rejected this argument, reasoning that other provisions of section 217 contemplate consent requirements by parties other than unit owners, such as first mortgagees. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?

September 19, 2022 — William L. Porter - Porter Law Group
It is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes. California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Housing Gains Not Leading to Hiring

October 25, 2013 — CDJ STAFF
Although construction spending has been rising steadily, the Labor Department noted that most of the 20,000 jobs added by the construction industry in September were for nonresidential construction. In a year that saw an 18% gain in residential construction spending, there was only an increase of 4.8% in employment. The lack of hiring seems to indicate a lingering lack of confidence in the homebuilding market. Employers are having workers do overtime, rather than employ additional people. Read the court decision
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Reprinted courtesy of

Does the Russia Ukraine War Lead to a Consideration in Your Construction Contracts?

April 04, 2022 — David Adelstein - Florida Construction Legal Updates
Material costs are still affecting the construction industry. Supply chain impacts too. The volatility started with COVID-19 (and, in certain cases, before with the imposition of tariffs) and has continued through present date. But what about the war between Russia and Ukraine and the impact this has had or may have on the supply chain? I think the spillover from the war (with oil, gas, the energy sector, etc.), including the imposition of any sanctions, is not fully realized other than the concern exists in an economy that is already battling through material costs and supply chain disruptions. How does this affect you? It may not. Or you may regularly enter into construction contracts in which you would be smart to address material costs and supply chain impacts. The reason being is that everything from a risk standpoint should begin with your construction contract. Not addressing an issue does not actually mitigate the risk. Confronting the issue does mitigate the risk because you are contractually addressing a concern and know where the other party stands relating to that concern so that business decisions can be made. 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

Consultant’s Corner: Why Should Construction Business Owners Care about Cyber Liability Insurance?

July 13, 2017 — David Adelstein - Florida Construction Legal Updates
Recently, I wrote an article on the importance of cyber liability insurance for design professionals. The reality, however, is that this is important insurance for all professionals in today’s day and age. A modern, online insurance broker called Embroker was kind enough to submit a guest post on cyber liability insurance. Check it out!!! According to the Cybersecurity Ventures Report, the cost of cybercrime could reach $6 trillion by 2021. That same report predicts that cybercrime will expand into new sectors, such as the construction industry. Assuming your construction business has moved beyond pencil and paper drawings, paper invoices and mailed checks, this prediction is cause for concern. In fact, it’s already come true, as the 2013 Target cyber breach which led to a $39 million court settlement came through a HVAC contractor, a development which underscores the need for Cyber Liability insurance. Considering the numerous issues facing construction business owners — from budget and time constraints to production methods to fire hazards — Cyber Liability insurance may seem like a low priority. But f you expect to stay in business and be profitable, that’s simply not the case. 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

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