SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

COVID-19 Response: Environmental Compliance Worries in the Time of Coronavirus

April 20, 2020 — Karen Bennett, Jane Luxton, William Walsh & Amanda Tharpe - Lewis Brisbois
Earlier this week, a rumor made the rounds that a forthcoming Presidential Executive Order would impose a nationwide mandate that all employees work remotely. While the rumor proved baseless, it raised questions about manufacturers’ abilities to comply with environmental permit obligations in the event of a COVID-19 precipitated operational shutdown due to federal or state mandates or workforce depletion resulting from widespread illness. Previous emergencies offer some insights on what to expect as companies and their counsel assess environmental business risk. In the wake of Hurricane Katrina, several bills were introduced in Congress that would have allowed the Environmental Protection Agency (EPA) to waive or modify requirements, issue emergency permits, or expedite permits as needed to respond to disaster and recovery needs. In the end, no new legislation was enacted, because existing emergency powers under environmental statutes proved sufficient to allow for waiver of regulatory requirements or exercise of enforcement discretion. Key provisions include the following:

• The Clean Water Act’s (CWA) affirmative defense for “upset” conditions. This provision excuses non-compliance with technology-based permit effluent limitations due to factors outside the permittee’s control. Criteria for establishing the defense include: 1) the upset occurred and the permittee can identify the cause, 2) the permitted facility was at the time being properly operated, 3) the permittee submitted notice of the upset (24 hour notice), and 4) the permittee complied with any remedial measures required under 40 C.F.R. §122.41(d).

Reprinted courtesy of Lewis Brisbois Bisgaard & Smith attorneys Karen Bennett, Jane Luxton, William Walsh and Amanda Tharpe Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com Mr. William may be contacted at William.Walsh@lewisbrisbois.com Ms. Amanda may be contacted at Amanda.Tharpe@lewisbrisbois.com Read the court decision
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Avoiding Construction Defect “Nightmares” in Florida

November 27, 2013 — CDJ STAFF
Describing it as a “nightmare,” Larry Tolchinsky writes about construction defects at the Willowbrook condominium complex in Florida. Writing on the website of his firm, Sackrin & Tolchinsky, Mr. Tolchinsky gives the history of the Willowbrook condo case, in which condo owners suffered problems with water intrusion and subsequent damage to their units. The builder has agreed to make repairs, though they are still suing owners who put up a website critical of the company. Mr. Tolchinsky notes that this is not “the usual way things happen in construction defect lawsuits,” and he gives the usual process. Under Florida law, homeowners must first notify those responsible of a “problem and its need for repair.” After this notice, the homeowner “will know within about 6 weeks’ time after sending that formal notice what the contractor’s position is going to be on things.” Read the court decision
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Subcontractors Found Liable to Reimburse Insurer Defense Costs in Equitable Subrogation Action

August 03, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Pulte Home Corp. v. CBR Electric, Inc. (No. E068353, filed 6/10/20), a California appeals court reversed the denial of an equitable subrogation claim for reimbursement of defense costs from contractually obligated subcontractors to a defending insurer, finding that all of the elements for equitable subrogation were met, and the equities tipped in favor of the insurer. After defending the general contractor, Pulte, in two construction defect actions as an additional insured on a subcontractor’s policy, St. Paul sought reimbursement of defense costs solely on an equitable subrogation theory against six subcontractors that had worked on the underlying construction projects, and whose subcontracts required them to defend Pulte in suits related to their work. After a bench trial, the trial court denied St. Paul’s claim, concluding that St. Paul had not demonstrated that it was fair to shift all of the defense costs to the subcontractors because their failure to defend Pulte had not caused the homeowners to bring the construction defect actions. The appeals court reversed, holding that the trial court misconstrued the law governing equitable subrogation. Because the relevant facts were not in dispute, the appeals court reviewed the case de novo and found that the trial court committed error in its denial of reimbursement for the defense fees. The appeals court found two errors: First, the trial court incorrectly concluded that equitable subrogation requires shifting of the entire loss. Second, the trial court applied a faulty causation analysis – that because the non-defending subcontractors had not caused the homeowners to sue Pulte, thereby necessitating a defense, St. Paul could not meet the elements of equitable subrogation. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Construction Contracts and The Uniform Commercial Code: When Does it Apply and Understanding the Pre-Dominant Factor Test

November 01, 2022 — Keith Sparks - Ahlers Cressman & Sleight PLLC
The Uniform Commercial Code (“UCC”) replaces the common law in many commercial transactions, providing provisions and a framework governing the conduct of business. The UCC attempts to develop uniformity among state laws on commercial matters as many of these contracts involve parties from different states. The UCC has been adopted in almost all states, including Washington, and substantially mirror each other throughout the country. The question that is most commonly presented, in the Construction law context, is when does the UCC apply and control? Read the court decision
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Reprinted courtesy of Keith Sparks, Ahlers Cressman & Sleight PLLC
Mr. Sparks may be contacted at keith.sparks@acslawyers.com

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It’s All a Matter of [Statutory] Construction: Supreme Court Narrowly Interprets the Good Faith Dispute Exception to Prompt Payment Requirements in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co.

May 30, 2018 — Erinn Contreras & Joy O. Siu - Sheppard Mullin Construction & Infrastructure Law Blog
On May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good faith” exception to the general rule that a direct contractor must make retention payments to its subcontractors within 10 days of receiving any retention payment. The exception provides that “[i]f a good faith dispute exists between the direct contractor and a subcontractor, the direct contractor may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” Cal. Civ. Code section 8814(c). Reprinted courtesy of Erinn Contreras, Sheppard Mullin and Joy O. Siu, Sheppard Mullin Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
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Philadelphia Enacts Commercial Property Assessed Clean Energy (C-PACE) Program

October 21, 2019 — Timothy Davis & Willliam Johnston - White and Williams LLP
On August 14, 2019, Mayor Jim Kenney signed a bill authorizing, through C-PACE loans, the financing of clean energy, alternative energy and water conservation projects for eligible commercial properties in Philadelphia. Philadelphia City Council unanimously voted to approve the C-PACE program on June 20, 2019. The program will be administered by the Philadelphia Energy Authority. Third-party capital providers (not the Philadelphia Energy Authority) will originate C-PACE financings for qualified projects. C-PACE “assessments” will encumber the applicable property in a first lien position akin to a real estate tax. Documentation among the property owner, the City of Philadelphia, and the third party capital provider (identified in the ordinance as the “financial institution”) will provide, among other things, that the assessments will be payable and fully amortize over the term of the financing (i.e., 30 years) and will not be accelerated during its term. Importantly, before a C-PACE financing can be originated and the underlying property assessed, notice of the property owner’s desire to secure C-PACE financing under the program must be provided to the holder of a mortgage on the subject property and the holder of the mortgage must provide the property owner and the City of Philadelphia with its written consent. Without the mortgage lender’s consent, the C-PACE financing cannot be consummated. Reprinted courtesy of Timothy Davis, White and Williams LLP and William Johnston, White and Williams LLP Mr. Davis may be contacted at davist@whiteandwilliams.com Mr. Johnston may be contacted at johnstonw@whiteandwilliams.com Read the court decision
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Wildfire Insurance Coverage Series, Part 2: Coverage for Smoke-Related Damages

July 03, 2022 — Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery Blog
For many policyholders, smoke emanating from wildfire causes as much if not more damage than the fire itself. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss damages caused by smoke emanating from wildfires. Some insurers argue that policies are limited to fire damage to the insured property and do not include smoke damage associated with nearby fires. A treatise frequently cited by insurers states otherwise: “The concept that fire insurance covers non-fire damage which is the proximate result of fire finds application also when the fire occurs on other property and causes harm to the insured property. In such case, the harm to the insured property, even though it is a non-fire harm, has long been recognized to be the result of fire, and, therefore, within the policy coverage.”[1] Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Kahana Feld Partner Jeff Miragliotta and Senior Associate Rachael Marvin Obtain Early Dismissal of Commercial Litigation Cases in New York and New Jersey

August 26, 2024 — Rachael Marvin - Kahana Feld
KF attorneys Jeff Miragliotta and Rachael Marvin recently secured early dismissal for a commercial real estate client on pre-answer motions to dismiss for two cases involving disputes over commercial properties in Union County, New Jersey and Suffolk County, New York. Plaintiff argued it was entitled to damages in excess of 50 million dollars, including punitive damages, for claims involving trade libel, defamation, conspiracy, and tortious interference with contract and prospective economic advantage for reports that were prepared in connection with the use of a commercial building in Union County, New Jersey. KF attorneys successfully argued that the statute of limitations had run for each of plaintiff’s claims by utilizing a decision from the Supreme Court of New Jersey in an underlying case filed against Union County. Read the court decision
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Reprinted courtesy of Rachel Marvin, Kahana Feld
Ms. Marvin may be contacted at rmarvin@kahanafeld.com

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