Seattle Washington Building Expert Directory

The Devil is in the Details: The Texas Construction Trust Fund Pitfalls Residential Remodelers (and General Contractors) Should Avoid

December 26, 2022 — Rochelle Cabe & Roni Most - Kahana Feld
A tale of Texas Construction Trust Account woe. You’re a contractor running a business doing interior remodels for clients in a major metropolitan Texas area. You sign up clients with a contract developed by our friends at LegalZoom and get your team to work. Three months into your remodeling project with Mr. and Mrs. “you thought they were happy” Clients, you get this letter: “Consistent with the requirements of §162.006 and §162.007 of the Texas Property Code, Mr. and Mrs. “you thought they were happy” Clients demand a full and complete accounting of all funds you have received from any source relating to this project.” What should you do? Should you ignore it? Should you respond? Fear sets in, you call your crew, and you stop the work. Mr. and Mrs. “you thought they were happy” Clients become Mr. and Mrs. “irate and angry” Clients and they sue you alleging breach of fiduciary duty, breach of contract, and perhaps fraud. Reprinted courtesy of Rochelle Cabe, Kahana Feld and Roni Most, Kahana Feld Ms. Cabe may be contacted at rcabe@kahanafeld.com Mr. Most may be contacted at rmost@kahanafeld.com Read the court decision
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Illinois Court Assesses Factual Nature of Term “Reside” in Determining Duty to Defend

October 30, 2023 — James M. Eastham - Traub Lieberman
In State Farm Fire & Cas. Co. v. Guevara, 2023 IL App (1st) 221425-U, P2, the Illinois First District Court of Appeals addressed an insurance carrier’s duty to defend under a homeowners insurance policy. The underlying suit stemmed from an alleged injury suffered at a residence located in Berwyn, Illinois and owned by named insured Luz Melina Guevara, a defendant in the suit. After Guevara tendered the suit, State Farm filed a complaint for declaratory judgment seeking a declaration that it had no duty to defend or indemnify Guevara because Guevara did not “reside” at the insured premises. The policy defined the "insured location" as the "residence premises," and residence premises was defined as "the one, two, three or four-family dwelling, other structures, and grounds or that part of any other building; where you reside and which is shown in the Declarations." In response to the underlying lawsuit, Guevara had filed an answer and affirmative defenses in which Guevara denied the allegation that "At all relevant times, [Guevara] resided in Berwyn, Cook County, Illinois." Guevara admitted that she owned the Berwyn property but denied that she "resided in, maintained and controlled the property". The declaratory judgment complaint alleged (among other things) that, based on admissions by Guevara in her answer, the Berwyn residence was not an "insured location" under the State Farm policy. State Farm moved for summary judgment at the trial court level on this ground and summary judgment was granted in State Farm’s favor. An appeal ensued wherein the parties disagreed as to whether there is a genuine issue of material fact that, under the language of the policy, State Farm had no duty to defend because the Berwyn property was not an "insured location" because she did not "reside" there. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Pillsbury Insights – Navigating the Real Estate Market During COVID-19

July 06, 2020 — Caroline A. Harcourt - Gravel2Gavel Construction & Real Estate Blog
Until COVID-19 officially took hold in the U.S. in March of 2020, the U.S. real estate market was active, even robust. Starting in March, however, the possible scope of the pandemic and the sudden imposition of stay-at-home orders resulted in deal volume falling precipitously—with sales, leasing and lending transactions being put on temporary “wait and see” pause or terminated altogether. The impact of COVID-19 on the real estate market has not been felt evenly. Hotels have been hit extremely hard, with many hotels shuttered altogether and many others only open at staggeringly low occupancy rates. Retail likewise has been virtually shut down in various parts of the country—with retailers across the country asking for rental forbearance or lease surrenders and others, such as J Crew, Neiman Marcus and Pier 1, pursuing bankruptcy reorganizations or liquidation. Multifamily has also been relatively hard hit, and landlords are having to navigate a web of local, state, and even federal regulations regarding tenant protections, such as non-eviction orders. The least affected sector so far has been office—however employers and office space users who are becoming facile with zoom and “working at home” may well re-examine their usage of office space—and it is within the realm of possibility to imagine that even this sector may come under pressure over time. Read the court decision
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Reprinted courtesy of Caroline A. Harcourt, Pillsbury
Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com

Best Lawyers® Recognizes 29 White and Williams Lawyers

October 07, 2019 — White and Williams LLP
Twenty-nine White and Williams lawyers were recognized in The Best Lawyers in America© 2020. Inclusion in Best Lawyers® is based entirely on peer-review. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Best Lawyers® employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of quality legal services. In addition, Randy Maniloff was named the Best Lawyers® 2020 Insurance Law "Lawyer of the Year" in Philadelphia. Read the court decision
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Reprinted courtesy of White and Williams LLP

No Coverage for Contractor's Faulty Workmanship

July 10, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Kentucky Supreme Court determined there was no coverage for the contractor's faulty workmanship in digging the existing basement of a building to make it deeper. Martin v. Acuity, 2018 Ky. LEXIS 188 (Ky. April 26, 2018). Martin Elias/Properties, LLC (MEP) purchased an older home to renovate and resell for profit. MEP hired Tony Gosney to renovate and expand the basement. Gosney agreed to dig the existing basement deeper, pour new footers and pour a new concrete floor. While performing his work, Gosney failed to support the existing foundation adequately before digging around it. Within days, the old foundation began to crack and eventually the entire structure began to sag. Gosney stopped work and notified his insurer, Acuity. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Where Mechanic’s Liens and Contracts Collide

July 02, 2018 — Christopher G. Hill - Construction Law Musings
Today at Construction Law Musings, we’re back to a discussion of mechanic’s liens. This past week, the Loudoun County Circuit Court here in Virginia had an opportunity to discuss the interaction between mechanic’s liens, contracts and the law of fixtures. In TWP Enters. v Dressel, the Court considered a provision of a contract between the TWP Enterprises, a supplier of materials to the construction project, and the builder for the defendant. The provision between the supplier and builder essentially stated that until such time as TWP’s materials were paid for in full, TWP kept title to them (check out the case link above for the full text of the provision). Needless to say, the builder did not pay and TWP filed a mechanic’s lien then sued to enforce that lien. The owners demurred to the complaint and asked the Court to dismiss the claim on several grounds, among them that the contractual provision described above precluded the enforcement of the lien because TWP retained title to the materials despite the fact that they had been incorporated into the structure of the building and were therefore part of the realty. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

City Wonders Who’s to Blame for Defective Wall

February 14, 2013 — CDJ STAFF
A wall along a beach trail in Treasure Island, Florida is cracking, and opinions are divided over it. One city commissioner, Alan Bildz, said “it looks like somebody was doing their first concrete job.” An engineer from the design firm described it as a “cosmetic issue.” Bildz was overruled on his suggestion that the wall be torn down and rebuilt. In later sections of the wall, expansion joints seem to have remedied the problem. But while the architect has offered to pay for filling the cracks with epoxy and polyurethane caulk, there’s still the question of adding expansion joints to the project. City Commissioner Phil Collins noted that the city has allocated more than $50,000 to add expansion joints, yet he feels the city should not be responsible for the expense, noting that the design could be considered defective, and under the terms of the contract, “the contractor shall bear the cost.” Read the court decision
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Wall Street’s Favorite Suburban Housing Bet Is Getting Crowded

February 15, 2021 — Patrick Clark - Bloomberg
Wall Street’s zest for a corner of suburban real estate long left to small landlords is reaching new heights, attracting institutional investors, homebuilders and apartment managers during a pandemic that has ignited demand for larger homes. The pension manager for the Canadian Mounties is the latest investor in single-family rentals, joining JPMorgan Chase & Co.’s asset-management arm and Nuveen Real Estate in a bet that there are lots of Americans who want spare bedrooms and backyards, but don’t have cash for down payments. “It’s really an inflection point in SFR,” said Michael Carey, a senior director for Altus Group, an advisory firm. “It used to be an alternative asset class. Now people look at it as a solution.” Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

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