Seattle Washington Building Expert Directory

Another Guilty Plea in Las Vegas HOA Scandal

December 20, 2012 — CDJ STAFF
A twenty-eighth person has plead guilty in the ongoing Las Vegas HOA scandal. Dax Louderman, who had been a construction company manager had acknowledged that he stole more than $495,000 from his former employers, Alpha 1 Construction and the Stone Canyon Homeowners Association, and further that he did not report this improper income on his tax returns. He has agreed to work with prosecutors and to pay $134,860 to the IRS. His actual sentencing will happen on June 24. Read the court decision
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Beyond Inverse Condemnation in Wildfire Litigation: An Oregon Jury Finds Utility Liable for Negligence, Trespass and Nuisance

July 10, 2023 — Marisa Miller, John Yacovelle & Kazim Naqvi - Sheppard Mullin
On June 10, 2023, a jury in Portland, Oregon found PacifiCorp and Pacific Power (collectively, “PacifiCorp”) liable for negligence, trespass, and nuisance based on a series of four wildfires that occurred during Labor Day weekend in 2020. PacifiCorp prevailed against the plaintiffs on the claim of inverse condemnation. With respect to the tort-based claims, the jury awarded approximately $72 million in compensatory damages to 17 plaintiffs. The jury later found PacifiCorp liable for $18 million in punitive damages, or one quarter of the compensatory damages that the jury awarded to the 17 plaintiffs. The jury’s liability findings apply to a broader class of owners, whose damages will need to be individually proven in a yet-to-be defined second phase of proceedings. Post-verdict motion practice and appeals may affect the jury’s findings. Reprinted courtesy of Marisa Miller, Sheppard Mullin, John Yacovelle, Sheppard Mullin and Kazim Naqvi, Sheppard Mullin Ms. Miller may be contacted at mmiller@sheppardmullin.com Mr. Yacovelle may be contacted at jyacovelle@sheppardmullin.com Mr. Naqvi may be contacted at knaqvi@sheppardmullin.com Read the court decision
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Another Municipality Takes Action to Address the Lack of Condominiums Being Built in its Jurisdiction

March 12, 2015 — Heather M. Anderson – Higgins, Hopkins, McLain & Roswell, LLC
Whether you are in the market to downsize or are looking to be a first time home buyer, you have likely noticed that your housing options in Colorado have become extremely limited over the course of the last several years. If you are a contractor and have worked on multi-family projects in the recent past, you know why the housing options are limited in the State of Colorado. In the past two years, there have been studies commissioned and articles published in local periodicals investigating the extreme slowdown seen in the construction of owner-occupied multi-family housing, namely condominiums and townhomes. Those of us involved in and with the construction industry are intimately familiar with the lengthy, complicated, and incredibly expensive construction defect litigation that has plagued multi-family construction in the State of Colorado and brought it to a virtual halt. And now, local municipalities and elected officials are starting to take notice. Most recently, the City of Lone Tree passed Ordinance No. 15-01, to become effective on April 1, 2015. According to the City of Lone Tree, Ordinance No. 15-01 is “aimed at encouraging the development of owner-occupied, multi-family residential projects through the adoption of regulations designed to balance the risk and exposure to builders and developers of such projects, while still protecting homeowners from legitimate construction defect claims.” Read the court decision
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Reprinted courtesy of Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Anderson may be contacted at Anderson@hhmrlaw.com

Construction Defect Case Not Over, Despite Summary Judgment

November 07, 2012 — CDJ STAFF
The Supreme Court of Oregon has concluded in an en banc decision that a motion to reconsider a summary judgment is not a motion for a new trial. In coming to their conclusion the court overturned an earlier Oregon Supreme Court case, Carter v. U.S. National Bank. Although the decision does not bear on construction defects, the underlying case did. Due to the decision, these claims can now be evaluated in a trial. The case, Association of Unit Owners of Timbercrest Condominiums v. Warren, came about after an apartment complex was converted into condominium units. The developers hired Big Al’s Construction for some of the remodeling work. The condominium association later sued the developer and the contractor over claims of construction defects. The defendants filed a motion for summary judgment, which the court granted. But that wasn’t the end of things. The plaintiff soon filed a “motion to reconsider,” noting that the summary judgment seemed to be in conflict with both law and other recent rulings, and additionally, the grounds for the decision were not in the order. The judge then notified the parties that the court had “pulled the trigger too quickly” and had seven questions for the parties to answer. The court dismissed all claims against the defendants. The defendants filed their responses, objecting that that “‘there is no such thing’ as a motion for reconsideration.” Further, while “the rules do allow for post-judgment review of pre-judgment rulings through a motion for a new trial,” the plaintiffs had not filed for a new trial. But did they need one? They did file an appeal. The judge in the case admitted that there was no such thing as a motion to reconsider, and felt bad about prematurely signing the judgment. The case was sent to the Court of Appeals to determine if the motion to reconsider was a request for a new trial. The Court of Appeals concurred. In reviewing the decision, the Oregon Supreme Court concluded that there were a maximum of three questions to address. Was the motion for reconsideration a motion for a new trial? If so, was the later notice of appeal premature? And if so, was the plaintiff required to file a new appeal? The court determined that the answer to the first question was no. Prior decisions pointed to the conclusion “that a motion for reconsideration of a summary judgment amounts to a motion for a new trial,” but here the court concluded that “our prior cases erred,” and turned to the summary judgment rule for clarification. The court noted that “the rule contemplates that summary judgment and trial are separate and distinct events.” With this conclusion, the Oregon Supreme Court remanded the case to the Court of Appeals for further proceedings. Read the court decision
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Indiana Court Enforces Contract Provisions rather than Construction Drawing Markings

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Timothy J. Abeska, a vice-chair of Barnes & Thornburg LLP’s Construction Law Practice Group, analyzed Goodrich Quality Theaters, Inc. v. Fostcorp Heating and Cooling, Inc., 16 N.E.3d 426 (Ind. Ct. App. 2014), which “provides an example of a court enforcing contract provisions rather than markings on construction drawings that are inconsistent with contract requirements.” The case evolved from a dispute on a construction of an IMAX theater, when the general contractor did not understand the architect’s markings for non-standard joist girders, and ordered standard joist girders, per the contract. The error created delays and other problems, which led to payment disputes and mechanic’s liens against the project. Abeska stated that “[t]his case shows the importance of making sure all documents which comprise a construction contract are consistent with each other, as courts will enforce contracts negotiated by the parties. The case also demonstrates that litigation is not a quick process, as the Court of Appeals Opinion was issued more than seven years after the project was completed.” Read the court decision
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Pennsylvania Federal Court Finds No Coverage For Hacking Claim Under E&O Policy

July 25, 2022 — Celestine Montague & Paul A. Briganti - White and Williams LLP
On June 9, 2022, the U.S. District Court for the Eastern District of Pennsylvania held, on summary judgment, that an insured was not entitled to coverage under a Professional Errors and Omissions (E&O) policy for loss allegedly resulting from a hacking incident. See Construction Fin. Admin. Servs., Inc. v. Federal Ins. Co., No. 19-0020, 2022 U.S. Dist. LEXIS 103042 (E.D. Pa. June 9, 2022). Applying North Carolina and Pennsylvania law, the court reasoned that: (1) coverage was barred by the policy’s unauthorized computer access, or “breach,” exclusions; and (2) the insured violated a condition in the policy that required the insurer’s consent to settlements and the violation prejudiced the insurer. The insured, Construction Financial Administration Services, Inc. (CFAS), was a third-party fund administrator for construction contractors. In April 2018, the CFAS received email requests from what it believed to be one of its clients, SWF Constructors (SWF), to disburse $1.3 million from an SWF account to a foreign company. CFAS authorized the payments, despite not having received a copy of any executed agreement between SWF and the foreign company. After the funds were disbursed, SWF advised that it had not authorized or requested the payments to the foreign company. In response, CFAS placed approximately $1.2 million of recovered and borrowed funds into the SWF disbursement account. SWF then sent a letter advising CFAS that the requests from the foreign company did not include documentation required under the contract between SWF and CFAS. It was later determined that the emails had been initiated by a fraudster who had gained unauthorized access to the sender’s email account. Reprinted courtesy of Celestine Montague, White and Williams LLP and Paul A. Briganti, White and Williams LLP Ms. Montague may be contacted at montaguec@whiteandwilliams.com Mr. Briganti may be contacted at brigantip@whiteandwilliams.com Read the court decision
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Construction Worker Falls to His Death at Kyle Field

January 15, 2014 — Melissa Zaya-CDJ STAFF
The family of Angel Garcia, a construction worker who fell to his death while working on Texas A&M’s football stadium (Kyle Field), has filed a $100 million lawsuit against six construction companies claiming inadequate safety policies, procedures, and negligence, Jordan Overturf of The Eagle reported. According to The Eagle, Garcia’s attorneys alleged, “[Garcia] was ‘catapulted off the edge of a fourth-floor ramp’ on the northeast side when a section of concrete fell onto the bucket of the skid steer-loader he was operating. The tractor hit a steel beam during the fall, which exerted enough force to eject Garcia from the tractor.” Garcia did not survive his injuries. The complaint claims the companies involved violated the Occupational Safety and Health Administration rules and regulations. The defendants in the suit were unavailable for comment, according to The Eagle. Read the court decision
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BofA Said to Near Mortgage Deal for Up to $17 Billion

August 06, 2014 — Tom Schoenberg – Bloomberg
Bank of America Corp. is nearing a $16 billion to $17 billion settlement with the U.S. Justice Department to resolve probes into sales of mortgage-backed bonds in the run-up to the financial crisis, a person familiar with the matter said. Under the proposed terms, the bank would pay about $9 billion in cash and the rest in consumer relief to settle federal and state claims, according to the person, who asked not to be named because the negotiations are private. Details of the proposed accord, such as the relief and a statement of facts, are still being negotiated, the person said. The outlines of the deal were reached last week after a phone call between Attorney General Eric Holder and Bank of America Chief Executive Officer Brian T. Moynihan, the person said. During the July 30 call, Holder said that the government was ready to file a lawsuit in New Jersey if the bank didn’t offer an amount closer to the department’s demand of about $17 billion, according to the person. Read the court decision
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Reprinted courtesy of Tom Schoenberg, Bloomberg
Mr. Schoenberg may be contacted at tschoenberg@bloomberg.net

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