Seattle Washington Building Expert Directory

No Concrete Answers on Whether Construction Defects Are Occurrences

February 14, 2013 — CDJ STAFF
Aaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.” Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences. Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction. Read the court decision
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Changes to the Federal Rules – 2024

November 18, 2024 — William L. Doerler - The Subrogation Strategist
Unless Congress moves quickly, several amendments to the Federal Rules of Civil Procedure and Evidence will take effect December 1, 2024. Below is a brief description of the amendments. Rules of Evidence Rule 107 is a new rule. This rule addresses illustrative aids, stating that, if such aid helps the trier of fact to understand the evidence or an argument, a party may use the aid if its utility is not substantially outweighed by the danger of, among other things, unfair prejudice. As noted under the discussion of Rule 1006, below, an illustrative aid - offered only to help the trier of fact understand the evidence - is generally not admissible into evidence. Rule 613 currently states that extrinsic evidence of a witness’s prior inconsistent statement is admissible only if the witness is given an opportunity to explain or deny the statement and the adverse party is given an opportunity to examine the witness about it, or if justice so requires. As amended, the court has the discretion to forego this requirement. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Deferred Maintenance?

December 17, 2024 — Daniel Lund III - Lexology
A Tennessee-based “outsourced maintenance vendor” to an engine company filed suit in Louisiana state court seeking to recover nearly $150,000 on “open account,” for work previously performed. The engine company removed the case to the Federal District Court in New Orleans and asserted as a defense that the vendor lacked a proper Louisiana construction contractor’s license. The engine company filed a motion for summary judgment based on the defense. Under Louisiana law, a contract between parties is “absolutely null”--considered to have never existed--where one of the parties performed services without a required Louisiana contractor’s license, and the combined work reaches a $50,000 threshold. The engine company asserted that the vendor performed typical construction contractor work, including plywood flooring, applied epoxy to concrete flooring, erected part of a commercial carport, undertook certain heavy demolition, and installed fences, guardrails, and wire racks. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

MGM Seeks to Demolish Harmon Towers

September 01, 2011 — CDJ STAFF

Citing public safety concerns and the cost of repair, MGM Resorts International is seeking to demolish the unfinished hotel tower. The company has a few hurdles to go through before they start laying the charges to implode the structure. Any plans would have to be approved by not only Clark County officials, but also the district court has an order blocking any activity during litigation between MGM and the general contractor on the project, Perini Building Company.

Architectural Record reports that MGM states it would take “approximately 18 months to conduct test and come up with an approved, permitted design to fix the Harmon.” MGM feels that repairs would then take another two to three years. Perini contends that they could “provide stamped drawings detailing all necessary repairs within three months.” They attribute MGM’s desire to demolish the building as “buyer’s remorse.”

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Let’s Get Surety Podcast – #126 Building the Future: AI, Construction and Law

December 31, 2024 — Denis Serkin - Peckar & Abramson, P.C.
Denis Serkin, partner in P&A’s New York and New Jersey offices, joins the latest episode of the NASBP podcast “Let’s Get Surety” to delve into the transformative impact of AI on the construction industry and construction law. In this insightful discussion, Denis explores how AI tools are already enhancing design and supply chains and shares his vision for AI’s eventual integration across every facet of the industry. Read the court decision
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Reprinted courtesy of Denis Serkin, Peckar & Abramson, P.C.
Mr. Serkin may be contacted at dserkin@pecklaw.com

Eight Things You Need to Know About the AAA’s New Construction Arbitration Rules

August 19, 2015 — Garret Murai – California Construction Law Blog
I just finished a construction arbitration this past week, which also explains my sporadic posts as of late, sorry. Coincidentally, on July 1, 2015, the American Arbitration Association (“AAA”) implemented their newly revised Construction Industry Arbitration and Mediation Procedures. For those of you who follow our blog, you know I’m not a big fan of arbitration, which, from my experience, doesn’t deliver on its promise of better, faster, or cheaper, and ends up being pretty much the same thing as trial without the benefit of discovery, the rules of evidence, or appealability. The AAA is trying to change all of that though and in a news release announced that its new “Rules” “directly address preferences of users for a more streamlined, cost-effective, and tightly managed arbitration process that avoids the high costs of litigation.” Which makes you wonder whether they had to survey their “users” to come to this realization. But I digress. With the AAA’s new Rules come eight new changes, as follows: 1.Fast Track Procedures: Newly revised Rule F-1 now applies to two-party cases where no party’s claim or counterclaim exceeds $100,000. Under old Rule F-1 the monetary cap was $75,000. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

With an Eye Already in the Sky, Crane Camera Goes Big Data

February 02, 2017 — Jeff Rubenstone - Engineering News-Record
It started simple enough: a wireless camera mounted on the hook block of a tower crane, allowing the operator in the cab to see the rigger on the ground and the area around the hook. But just a few years later, Netarus’ HoistCam is part of a method to generate point-cloud images of jobsites from the highest perch around. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

Estimate Tops $5.5B for Cost of Rebuilding After Maui Fires

August 21, 2023 — James Leggate - Engineering News-Record
Rebuilding after wildfires on the island of Maui in Hawaii could cost more than $5.5 billion, according to a preliminary assessment prepared by the University of Hawaii Pacific Disaster Center and local officials. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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