SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Colorado’s Three-Bill Approach to Alleged Construction Defect Issues

May 01, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Denver Post, two Colorado construction defect bills have “made their way out of the Senate Affairs Committee Wednesday, with a third reportedly on its way.” The two bills that have made it out of committee are SB 219 and SB 216: “SB 219 would require the Colorado Division of Housing to prepare a study to present to legislators before March 15, 2015, on why there isn't more affordable housing construction in the state,” the Denver Post reported. “SB 216 directs the Colorado Division of Housing to design a program to rebate a portion of the insurance premiums builders pay as a way to boost their willingness to build more projects.” However, a third bill would require “homeowners to pursue arbitration or mediation before litigation.” All three bills are sponsored by Sen. Jessie Ulibarri, D-Commerce City. Read the court decision
Read the full story...
Reprinted courtesy of

---

Sixth Circuit Finds No Coverage for Faulty Workmanship Under Kentucky Law

December 30, 2013 — Tred Eyerly — Insurance Law Hawaii
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013). Walmart hired a contractor to build a new store. The contractor hired Kay and Kay to perform site preparation work and construct the building pad for the new store. After Kay and Kay completed the building pad and the store was erected, cracks were noticed in the building's walls. Walmart contended there was settling in the some of the fill areas. Kay and Kay denied liability, but demanded coverage under its CGL policy with Liberty Mutual. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

FIFA May Reduce World Cup Stadiums in Russia on Economic Concern

July 16, 2014 — Tariq Panja – Bloomberg
FIFA may reduce the number of stadiums used to host the 2018 World Cup in Russia on concern that their economic viability after the monthlong event ends. FIFA President Sepp Blatter said a day after Germany’s 1-0 win over Argentina in the final that a delegation from soccer’s governing body will meet Russian tournament organizers in September to discuss plans for the next edition. Blatter gave a mark of 9.25 out of 10 to an “exceptional” Brazil World Cup, which cost $11 billion to stage. The tournament is a difficult challenge for organizers, Blatter said, illustrated by construction delays at almost all of the 12 arenas used for the 64 games in Brazil. “The World Cup has taken such a dimension that the organization is hard work for the organizing country and also for FIFA,” Blatter told reporters at Rio de Janeiro’s Maracana stadium, where Germany claimed a fourth title and became the first European country to win the tournament in South America. Read the court decision
Read the full story...
Reprinted courtesy of Tariq Panja, Bloomberg
Mr. Panja may be contacted at tpanja@bloomberg.net

---

Partner John Toohey is Nominated for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!

March 11, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is honored to share that Newport Beach Partner John Toohey is nominated for West Coast Casualty’s 2024 Jerrold S. Oliver Award of Excellence! Every year, West Coast Casualty recognizes an individual who is committed, trustworthy, and has contributed years to the betterment of the construction defect community. The award is named after the late Judge Jerrold S. Oliver who is considered a “founding father” in the alternate resolution process in construction claims and litigation. Each year, members of the construction community are asked to nominate individuals who invoke the same spirit as Judge Oliver. Read the court decision
Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

---

Coverage for Named Windstorm Removed by Insured, Terminating Such Coverage

August 15, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Over a series of policies, the insured had no coverage for named windstorms when it was removed from the policies in return for a reduced premium. Shiloh Christian Ctr. v. Aspen Sec. Ins. Co. 2022 U.S. Dist. LEXIS 100959 (M. D. Fla. May 9, 2022). Plaintiff had coverage from Aspen from 2014 through at least 2018 under several year-long policies, each of which renewed the prior year's policy. The premium for the 2014-2015 Policy was $50,000. In May 2015, plaintiff asked what the premium would be without hurricane coverage. He was informed this would reduce the premium to $32,000. The insured asked for the change in coverage to eliminate named windstorm coverage and a return premium was issued to the insured for $16,545. The 2016-2017 policy was issued for a premium of $22,500. The policy indicated it was a renewal of the prior policy. The revised quote made clear that the policy would exclude coverage for "Named Windstorm." Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Court Concludes That COVID-19 Losses Can Qualify as “Direct Physical Loss”

September 28, 2020 — Lorelie S. Masters & Jorge R. Aviles - Hunton Andrews Kurth
In a victory for policyholders, a federal district court found that COVID-19 can cause physical loss under business-interruption policies. In Studio 417, Inc., et al. v. The Cincinnati Insurance Co., No. 20-cv-03127-SRB (W.D. Mo. Aug. 12, 2020), the court rejected the argument often advanced by insurers that “all-risks” property insurance policies require a physical, structural alteration to trigger coverage. This decision shows that, with correct application of policy-interpretation principles and strategic use of pleading and evidence, policyholders can defeat the insurance industry’s “party line” arguments that business-interruption insurance somehow cannot apply to pay for the unprecedented losses businesses are experiencing from COVID-19, public-safety orders, loss of use of business assets, and other governmental edicts. The policyholders in Studio 417 operate hair salons and restaurants asserting claims for business interruption. In suing to enforce their coverage, the policyholders allege that, over the last several months, it is likely that customers, employees, and/or other visitors to the insured properties were infected with COVID-19 and thereby infected the insured properties with the virus. Their complaint asserts that the presence of COVID-19 “renders physical property in their vicinity unsafe and unusable.” Unlike some other complaints seeking to enforce such coverage, it also alleges that the presence of COVID-19 and government “Closure Orders” “caused a direct physical loss or direct physical damage” to their premises “by denying use of and damaging the covered property, and by causing a necessary suspension of operations during a period of restoration.” Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Jorge R. Aviles, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Aviles may be contacted at javiles@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Insurer Not Required to Show Prejudice from an Insured’s Late Notice When the Parties Contract for a Specific Reporting Period

September 09, 2019 — Christopher Raney - Gordon & Rees Insurance Coverage Law Blog
The Fifth Circuit Court of Appeals recently affirmed an order granting summary judgment in favor of the Firm’s insurer client on an issue of first impression in Texas. The issue before the trial court was whether, under Texas law, an insurer is required to demonstrate prejudice resulting from an insured’s failure to comply with an agreed term set in an endorsement to the parties’ insurance contract establishing a specific time limit for an insured to give the insurer notice of a claim. The case involved alleged damage to an insured’s commercial property from a hailstorm. The insured did not report the alleged loss to its insurer until approximately 17 months after the date of loss. The insurer denied the claim based on a one-year notice requirement in a policy endorsement. The Texas Windstorm or Hail Loss Conditions Amendment Endorsement stated that:

In addition to your obligation to provide us with prompt notice of loss or damage, with respect to any claim where notice of the claim is reported to us more than one year after the reported date of loss or damage, this policy shall not provide coverage for such claims.

The insured sued the insurer in Houston federal court, alleging causes of action for breach of contract and violations of the Texas Insurance Code. The insured argued the insurer was required to show prejudice from the insured’s late notice; the insurer argued that a showing of prejudice was not required. The trial court recognized that this issue had not been decided by the Texas Supreme Court of the Fifth Circuit Court of Appeals. Read the court decision
Read the full story...
Reprinted courtesy of Christopher Raney, Gordon & Rees Scully Mansukhani
Mr. Raney may be contacted at craney@grsm.com

---

To Sea or Not to Sea: Fifth Circuit Applies Maritime Law to Offshore Service Contract, Spares Indemnity Provision from Louisiana Oilfield Indemnity Act

March 29, 2017 — Richard W. Brown & Afua Akoto – Saxe Doernberger & Vita, P.C.
Faced with the issue of whether maritime or state law should be applied to determine the validity of an indemnity clause in a Master Services Contract (MSC), the Fifth Circuit affirmed that where there is no historical treatment of the contract in question (1), it would consider six factors established in Davis (2). In Doiron, the Apache Corporation and STS (3) entered a broad-form blanket MSC, under which STS agreed to perform flow-back services, a process designed to dislodge solid objects from inside a well, on Apache’s well located off shore of Louisiana. The MSC also contained an indemnification provision, which required STS to defend and indemnify Apache and its company groups against all claims of property injury or bodily injury. During the flow-back operation, Larry Doiron Inc. (LDI), one of the Apache Company groups, supplied a crane barge for use by STS employees. Subsequently, the crane knocked over an STS employee, causing him to suffer severe injuries. LDI then made a formal demand to STS for defense and indemnification. STS rejected the demand and argued that the Louisiana Oilfield Indemnity Act applied to the MSC instead of maritime law. Pursuant to the Act, indemnity clauses in agreements pertaining to wells for oil, gas or water are void as against public policy. But, under maritime law, the enforcement of such provisions is not barred. Therefore, if the MSC was construed under the Act, STS had no duty to defend or indemnify LDI. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Afua S. Akoto, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Ms. Akoto may be contacted at asa@sdvlaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---