SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

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
Read the full story...
Reprinted courtesy of

---

“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay

August 20, 2019 — Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLP
On May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim, demand or suit.” C.M.S. Investment Ventures, Inc. v. American European Insurance Company, No. A-2056-17T3, 2019 N.J. Super. Unpub. LEXIS 1215, at *8-9 (N.J. Super. Ct. App. Div. May 28, 2019) (CMS). The CMS case is also notable because the Appellate Division held that a 20-month delay in disclaiming coverage was unreasonable and therefore warranted estoppel. In CMS, the insured was allegedly warned by its tenant about a faulty ground-floor window that failed to lock properly. Afterward, an intruder broke into the tenant’s apartment and sexually assaulted the tenant, who sued the insured on a premises liability claim. Before she filed suit, the tenant sought payment from the insured’s CGL insurer directly. The insurer denied coverage based on the assault-and-battery exclusion and closed the file, but never informed the insured. Later, the tenant sued the insured, which sought a defense and indemnity from its insurer, which again denied coverage based on the exclusion. The insured then sought a declaration of coverage on grounds that the exclusion was ambiguous, and the insurer “was estopped from denying coverage, because it waited [20] months to inform CMS of its coverage decision.” The trial court ruled in the insured’s favor which led to the appeal in CMS. Reprinted courtesy of Timothy Carroll, White and Williams LLP and Anthony Miscioscia, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Real Estate & Construction News Roundup (05/17/23) – A Flop in Flipping, Plastic Microbes and Psychological Hard Hats

May 29, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we look at a downturn in home-flipping and a continuing overabundance of commercial office space, plus psychological support for construction workers and surging demand for industrial space materials.

• The golden days of home flipping may be coming to an end, as U.S. real estate investors take a hit. (Bethan Moorcraft, Yahoo Finance)
• In a shift, only one in five Americans think it’s a good time to purchase a house. (Alicia Adamczyk, Fortune)
• Empty office towers continue to pose a risk to the economy. (Arezou Rezvani, NPR)

Read the court decision
Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

---

Scotiabank Is Cautious on Canada Housing as RBC, BMO Seek Action

April 12, 2021 — Shelly Hagan & Erik Hertzberg - Bloomberg
Bank of Nova Scotia, Canada’s third-largest lender, waded into the burgeoning debate over whether Justin Trudeau’s government should take immediate steps to cool the nation’s hot housing market, issuing a report that cautioned against rushing to implement new constraints. In a report released Sunday, Scotiabank’s chief economist Jean-Francois Perrault said the recent run-up in home prices nationally over the past year was in large part driven by sluggish supply that failed to keep up with higher demand -- a trend that could reverse itself as new sellers enter the market in coming weeks. If the government does decide to take action, it should target housing speculators, he said. Reprinted courtesy of Shelly Hagan, Bloomberg and Erik Hertzberg, Bloomberg Read the court decision
Read the full story...
Reprinted courtesy of

---

Waiver of Subrogation Enforced, Denying Insurers Recovery Against Additional Insured in $500 Million Off-Shore Oil Rig Loss

September 30, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
The United States District Court for the Southern District of Texas recently rejected a claim by a group of insurance companies (“Underwriters”) against American Global Maritime Inc. for more than $500 million that the Underwriters paid the named insured under an Off-Shore Construction Risk insurance policy for losses resulting from the an alleged off-shore oil rig failure. The action arose out of alleged construction defects related to Chevron’s “Big Foot” oil-drilling platform in the Gulf of Mexico. Chevron hired American Global to be the marine warranty surveyor responsible for reviewing and certifying the project’s specifications and materials. American Global issued the certificate of approval required for the project to proceed; however, during the attempted installation of the platform in 2015, it was alleged that parts from the structure fell to the sea floor. The Underwriters paid more than $500 million in connection with the incident under an Off-Shore Construction insurance policy they had issued to Chevron. After paying the claim, the Underwriters filed a negligence action against American Global and other contractors involved in the project. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews & Kurth and Daniel Hentschel , Hunton Andrews & Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Boston Team Obtains Complete Defense Verdict for Engineering Firm in Professional Liability Matter

June 08, 2020 — Kenneth Walton & Oliver Vega - Lewis Brisbois
Boston, Mass. (June 5, 2020) - Boston Partner Kenneth B. Walton and Associate Oliver J. Vega recently obtained a complete defense verdict after a 10-day bench trial in the U.S District Court for the District of South Carolina. The plaintiff in this matter, who is the owner of a newly acquired food processing facility, alleged breach of contract and breach of fiduciary duty claims against our client, a Massachusetts engineering firm, arising out of allegedly defective design and construction management services provided during the renovation of and addition to said facility. Reprinted courtesy of Kenneth Walton, Lewis Brisbois and Oliver Vega, Lewis Brisbois Mr. Walton may be contacted at Ken.Walton@lewisbrisbois.com Mr. Vega may be contacted at Oliver.Vega@lewisbrisbois.com Read the court decision
Read the full story...
Reprinted courtesy of

---

American Arbitration Association Revises Construction Industry Rules and Mediation Procedures

April 08, 2024 — Dennis Cavanaugh & Larry Grijalva - Construction Law Zone
The American Arbitration Association (AAA), one of the longest-standing and experienced alternative dispute resolution (ADR) administrators, has unveiled a significant update to its Construction Industry Rules and Mediation procedures. This update, last revised in 2015, became effective March 1, 2024. Changes to the AAA Construction Industry Rules are significant as these rules are incorporated by default in American Institute of Architects standard construction forms, which are widely used in the industry. Advancements in remote access technology drive a substantial number of new changes. Others are designed to streamline the arbitrator appointment process and certain prehearing procedures and to make arbitration more cost-efficient by enhancing the arbitrator’s case management authority. Some of the more notable changes are: Fast Track F-1: The limit for cases eligible for AAA’s Fast Track Procedures has been increased from $100,000 to $150,000 so long as no claim or counterclaim exceeds that amount. Reprinted courtesy of Dennis Cavanaugh, Robinson & Cole and Larry Grijalva, Robinson & Cole Mr. Cavanaugh may be contacted at dcavanaugh@rc.com Mr. Grijalva may be contacted at lgrijalva@rc.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Housing Starts Rebound in U.S. as Inflation Eases: Economy

August 20, 2014 — Lorraine Woellert and Victoria Stilwell – Bloomberg
Home construction rebounded in July and the cost of living rose at a slower pace, showing a strengthening U.S. economy has yet to generate a sustained pickup in inflation. A 15.7 percent jump took housing starts to a 1.09 million annualized rate, the strongest since November, and halted a two-month slide, the Commerce Department said in Washington. The consumer price index increased 0.1 percent after rising 0.3 percent in June, the Labor Department also reported. An improving job market and cheaper borrowing costs are helping revive residential real estate, helping boost sales at companies such as Home Depot Inc. (HD) As inflation continues to run below the Federal Reserve’s target, it gives the central bank room to keep interest rates low well after the projected end of its bond-buying program in October. Read the court decision
Read the full story...
Reprinted courtesy of Lorraine Woellert and Victoria Stilwell, Bloomberg

---