SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Wells Fargo, JPMorgan Vexed by Low Demand for Mortgages

April 15, 2014 — Zachary Tracer – Bloomberg
Slack demand for home loans continued to drag on earnings at Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) as the two largest U.S. mortgage lenders grappled for pieces of a shrunken market. Even as interest rates hovered near historically low levels, new home loans tumbled 67 percent to $36 billion in the first quarter at San Francisco-based Wells Fargo, the biggest originator. JPMorgan posted a 68 percent drop to $17 billion, and the bank predicted it would lose money on mortgage production for the full year. Both lenders are paring staff to keep expenses in line with demand for loans, which has waned as investors and cash buyers dominate some sales. New York-based JPMorgan said jobs at its mortgage business declined 14,000, or 30 percent, since the start of last year. Wells Fargo set plans to cut 1,100 positions in the most recent three months, which ranked as its worst first quarter for mortgage revenue since 2008. Read the court decision
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Reprinted courtesy of Zachary Tracer, Bloomberg
Mr. Tracer may be contacted at ztracer1@bloomberg.net

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Seattle Condos, Close to Waterfront, Construction Defects Included

February 11, 2013 — CDJ STAFF
There's a cluster of eight condominium projects in Seattle, some within easy walking distance of each other, that are either in construction defect lawsuits, arbitration, or mediation. Jeff Reynolds, contributing a Seattle PI.com reader blog, notes that as Seattle condo projects have neared the end of the four-year warranty period, condo boards are being targeted by attorneys. Reynolds writes that "once [the attorneys] are hired by the associations, they retain specialists that test for any and all construction defects with the building envelope." The problem that Reynolds sees is that that "major lending institutions stay away from condos with lawsuits." And so homeowners dealing with construction defects have apartments they can't sell to anyone who might want to use financing. This tightens Seattle's already limited inventory, leading to both frustrated sellers and frustrated buyers. Read the court decision
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When is Forum Selection in a Construction Contract Enforceable?

September 29, 2021 — Christopher G. Hill - Construction Law Musings
If there is one mantra that is repeated often here at Construction Law Musings, it is that your construction contract will be strictly construed and Virginia Courts will enforce the provisions as written. This rule includes forum selection clauses. For those that aren’t attorneys, this means that absent a statute to the contrary, the parties can pick the location of any litigation or arbitration by contract. However, the timing of signing that contract makes a difference as a relatively recent Eastern District of Virginia case points out. Marathon Res. Mgmt Grp v. C. Cornell, Inc. examined what happens when work is performed by one party to the contract prior to the execution of the written contract that contains the forum selection provision. In this case, the defendant C. Cornell, Inc. obtained a default judgment in Texas for non-payment by Marathon for painting and cleaning of rooms at Texas A & M University for work invoiced on August 22, 2017, and September 11, 2017. Upon receipt of the garnishment from the Texas Court, Marathon sued C. Cornell in Virginia state court and the defendant removed the case to federal court. Marathon alleged two separate breaches of contract, the first was that C. Cornell violated the forum selection clause of a Master Services Agreement (“MSA”) executed on September 23, 2017. The second was a violation of another clause of the MSA that barred direct communication with any of Marathon’s customers. The second breach was alleged to be by virtue of the garnishment summons to one of Marathon’s customers. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Real Estate & Construction News Roundup (12/4/24) – Highest Rate of Office Conversions, Lending Caps for Fannie Mae and Freddie Mac and Affordability Challenges for Homebuyers

December 23, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, infrastructure-related ballot initiatives, U.S. Green Building Council’s success stories, support for sustainable building, and more!

• 2024 is expected to see the highest rate of office conversions since CBRE began tracking them in 2016. (Nish Amarnath, SmartCities Dive)
• The Federal Housing Finance Agency has established lending caps of $73 billion each for Fannie Mae and Freddie Mac, allowing them to purchase a total of up to $146 billion in multifamily loans in 2025. (Leslie Shaver, Multifamily Dive)
• A number of infrastructure-related initiatives with the potential to impact facilities managers were on the ballot during the 2024 U.S. presidential election. (Joe Burns, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Texas Jury Finds Presence of SARS-CoV-2 Virus Causes “Physical Loss or Damage” to Property, Awards Over $48 Million to Baylor College of Medicine

September 26, 2022 — Michael S. Levine & Kevin V. Small - Hunton Insurance Recovery Blog
A Texas jury has found that the presence of SARS-CoV-2 virus on the property of Baylor College of Medicine (BCM) caused “physical loss or damage” and resulting economic loss, triggering coverage under BCM’s commercial property insurance program. The jury awarded BCM over $48 million following a three-day trial; the award consisted of $42.8 million in business interruption, $3.3 million in extra expense, and $2.3 million in damage to research projects. The verdict came after the court denied the insurers’ pre-trial motion for summary judgment, rejecting the insurers’ contention that a virus cannot—as a matter of law—cause physical loss or damage to property. In denying the motion, the court held that whether the presence of the virus causes physical loss or damage presents a question of fact for the jury to resolve; a copy of the order rejecting the insurers’ summary judgment argument can be found here. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Kevin V. Small, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Small may be contacted at ksmall@HuntonAK.com Read the court decision
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Colorado Senate Revives Construction Defects Reform Bill

March 01, 2017 — Beverley BevenFlorez-CDJ STAFF
A re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate. SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.” However, it is almost identical to the failed measures that were introduced in 2014 and 2015. Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.” Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.” Read the court decision
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OSHA’s COVID-19 Emergency Temporary Standard Is in Flux

December 06, 2021 — Megan E. Baroni & Jonathan H. Schaefer - Construction Executive
On Friday, Nov. 5, 2021, Occupational Safety and Health Administration’s COVID-19 Vaccination and Testing Emergency Temporary Standard was issued, with most requirements set to go into effect on Dec. 5. The ETS applies to employers with a total of 100 or more employees company-wide. Employers covered by the ETS would be required to develop, implement and enforce a mandatory vaccination policy, subject to limited exemptions, or allow unvaccinated employees to test regularly and be subject to a mask policy, among other associated recordkeeping, reporting and training requirements. Almost immediately, the ETS was hit with a number of legal challenges in various courts across the country. On November 6, just a day after the ETS was issued, the U.S. Circuit Court of Appeals for the Fifth Circuit issued an order staying the implementation of the ETS until further notice. The Court’s order was not a final ruling on the validity of the ETS but has halted implementation of the ETS, at least for the time being. Other legal challenges are already in process, further complicating the issue of if and when the ETS will become effective. As of November 2021, the ETS is on hold, at least temporarily. That could change any day and the ETS could be back in effect, in whole or in part, or permanently halted. The legal challenges to the ETS are unlikely to end, or diminish, until the Supreme Court has weighed in, making for a few uncertain months ahead. Reprinted courtesy of Megan E. Baroni and Jonathan H. Schaefer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Baroni may be contacted at mbaroni@rc.com Mr. Schaefer may be contacted at jschaefer@rc.com Read the court decision
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The Choice Is Yours – Or Is It? Anti-Choice-of-Laws Statutes Applicable to Construction Contracts

October 03, 2022 — Tiffany Raush & Tanya McGill - ConsensusDocs
During contract negotiations and review, the parties make choices about what risks they are willing to accept and at what cost. But one often overlooked choice—the choice of law applicable to the contract—can undermine carefully negotiated construction contracts and expose contractors to risks they never intended to accept. Choice-of-law provisions are standard provisions in most contracts. These provisions allow the parties to the contract to decide which state’s laws will apply to their contract. Often, choice-of-law in the construction contract is the law of the state where the project is located and there will be no issue. But, if the project is located in an unfamiliar, the owner or prime contractor may prefer the laws of the state where the owner or prime contractor is primarily located over the laws of the state where the project is located. Generally, most states will enforce the parties’ choice of law in a contract. But that may not be the case for construction contracts. States like Texas, California, New York, Florida, Louisiana, and others may prohibit parties from agreeing to the application of another state’s law for construction projects in their states. Reprinted courtesy of Tiffany Raush, Jones Walker LLP (ConsensusDocs) and Tanya McGill, University of Mississippi School of Law Student, 2023 Graduate (ConsensusDocs) Ms. Raush may be contacted at traush@joneswalker.com Read the court decision
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