SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Additional Insured Not Entitled to Coverage for Post-Completion Defects

December 21, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The general contractor, an additional insured on the subcontractor's policy, was not entitled to coverage for construction defect claims that arose after completion of the project. Weitz Co. v. Acuity, 2016 U.S. Dist. LEXIS 150433 (S.D. Ohio Oct. 31, 2016). Weitz was the general contractor hired by Twin Lakes for construction of a residential community. One of the subcontractors, Miter Masonry, was insured by Acuity under a CGL policy. Work on the project began in 2002 and was substantially completed in 2005. In 2011, Twin Lakes notified Weitz that there were moisture infiltration issues at the project that may be related to work during the project. Twin Lakes filed a Demand for Arbitration against Weitz on November 30, 2012. Twin Lakes alleged that the defects included the building wrap, windows, doors, wood trim, aluminum wrap, vinyl siding, flashing and brick veneer not being installed in accordance with contract documents and/or industry standards. The arbitration panel awarded damages to Twin Lakes in the amount of $2,775,771.86. The panel found that Weitz breached sections of the contract which caused moisture intrusion and damage to all the units. The panel ultimately held that Weitz could recover from the subcontractors 100% of the $2,775,771.86 awarded. Acuity's insured, Miter Masonry, was determined to be 4% at fault for the damages. 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

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Alleging and Proving a Florida Deceptive and Unfair Trade Practices Act (FDUTPA) Claim

December 13, 2021 — David Adelstein - Florida Construction Legal Updates
When it comes to construction disputes, a Florida Deceptive and Unfair Trade Practices Act (known by its acronym “FDUTPA”) claim is not commonly asserted. A FDUTPA claim is a statutory claim under Florida Statute s. 501.201 en seq. This claim is NOT easy to prove, particularly in the construction context. Sometimes, a party will assert a FDUTPA claim to create a basis for attorney’s fees; however, that basis cuts BOTH ways, i.e., you can be liable for fees if you fail to prove the FDUTPA claim. In a construction dispute, a FDUTPA claim is one that really should be pled with caution after a party understands and fully considers what it MUST prove including the all-important consideration of how actual damages are determined under FDUTPA, which requires an actual loss. Nevertheless, it is good to know what you need to prove to support a FDUTPA claim in case you believe you have facts that can support a FDUTPA claim and actual damages under FDUTPA (known as benefit-of-the-bargain damages). Reprinted courtesy of David Adelstein, Kirwin Norris, P.A. Mr. Adelstein may be contacted at dma@kirwinnorris.com Read the full story... Read the court decision
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Texas Supreme Court Authorizes Exception to the "Eight-Corners" Rule

February 28, 2022 — Jared De Jong, Nathan A. Cazier & Scott S. Thomas - Payne & Fears
For decades, an insurer’s duty to defend under Texas law was determined exclusively by reviewing the insurance contract and the allegations of the complaint under the “eight-corners rule.” All of this changed last week when, in a long-awaited decision, the Texas Supreme Court ruled that courts may consider extrinsic evidence to determine the existence of coverage in certain limited situations. Monroe Guar. Ins. Co. v. BITCO Gen. Ins. Corp., No. 21-0232, 2022 WL 413940 (Tex. Feb. 11, 2022). In Monroe, a drilling contractor was sued for damages arising out of the allegedly botched drilling of an irrigation well. The underlying lawsuit alleged that negligent drilling caused damage to surrounding farmland. However, the complaint did not allege when the damage occurred. The contractor’s insurers, BITCO General Insurance Corporation (“Bitco”) and Monroe Guarantee Insurance Company (“Monroe”) disputed whether Monroe owed a duty to defend. Although Bitco agreed to provide a defense, Monroe refused, arguing that the property damage happened before its policy period. Bitco sued Monroe for contribution. In the trial court, the insurers stipulated that a drill bit became stuck before Monroe’s policy incepted, a fact that would have supported Monroe’s “prior damage” defense. On summary judgment, though, the trial court ruled this stipulated fact could not be considered under Texas’ eight-corners rule. Monroe appealed, and the Fifth Circuit, which had previously endorsed an exception to the eight-corners rule under Northfield Insurance Co. v. Loving Home Care, Inc., 363 F.3d 523, 531 (5th Cir. 2004), certified the question to the Texas Supreme Court. Reprinted courtesy of Jared De Jong, Payne & Fears, Nathan A. Cazier, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Jong may be contacted at jdj@paynefears.com Mr. Cazier may be contacted at nac@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Real Estate & Construction News Round-Up (11/02/22) – Flexible Workspaces, Sustainable Infrastructure, & Construction Tech

November 15, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up dives into digital transformation in the construction industry, renewed interest in flexible workspaces, and how the infrastructure sector can become more resilient and sustainable, both economically and environmentally.

• Digital transformation in the construction industry is top of mind for many firms, but most are still in the beginning and intermediate phases of implementing new digital capabilities. (Ursula Cullen, PBC Today)
• Companies could mitigate climate hazards and build resilience into the life cycle of their infrastructure and capital projects by facilitating a comprehensive approach to understanding risk. (Brodie Boland and Daphne Luchtenberg, McKinsey & Company)
• The use of drones in project planning, as well as the incorporation of other technology, is proposed as an alternative solution to addressing the construction industry’s labor shortage. (Shaun Passley, For Construction Pros)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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With Historic Removal of Four Dams, Klamath River Flows Again Unhindered

October 21, 2024 — Tim Newcomb - Engineering News-Record
In a period of 16 months, four dams built between 1903 and 1962 came down as part of a monumental effort to clear 35 miles of the Klamath River spanning Oregon and California. The project owner, the Klamath River Renewal Corp., describes it as the largest dam removal effort in U.S.—and possibly world—history. Reprinted courtesy of Tim Newcomb, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Message from the Chair: Kelsey Funes (Volume I)

November 06, 2023 — Marissa L. Downs - The Dispute Resolver
I am so honored to assume the Division 1 mantle from my friend, Tom Dunn, and look forward to carrying on his good work. For those of you who don’t know me, I’d like to take this opportunity to share a bit about my background. I grew up in New Orleans and went to LSU for undergraduate and law school. (Geaux Tigers!) I started my practice in 1997 at Phelps Dunbar LLP in Baton Rouge, where I still practice today. I manage the litigation group in the Baton Rouge office of the firm. I practice as a construction lawyer full time and serve on the Construction Panel of the American Arbitration Association and serve as a mediator in construction cases. I am married to Dr. Chris Funes (the world’s best pediatrician) and we are the parents to two high schoolers. My son is a high school senior and my daughter is a sophomore. So, when I am not lawyering, I have been spending my time lately touring colleges, prepping for homecoming, and helping to teach my daughter to drive (all very relaxing!!). We also have a very sweet (and very hairy) rescue dog, Maggie, who makes sure we get lots of walks. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

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Struggling Astaldi Announces Defaults on Florida Highway Contracts

April 22, 2019 — Scott Judy - Engineering News-Record
Astaldi Construction Corp. announced on March 28 that it was voluntarily defaulting on four contracts with the Florida Dept. of Transportation. Included among those was a $108.3-million contract covering the 3.5-mile-long Section 7A for the $1.6-billion Wekiva Parkway project. Astaldi’s default on that project comes nearly a year after the contractor commenced work on April 1, 2018. Read the court decision
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Reprinted courtesy of Scott Judy, ENR
Mr. Judy may be contacted at judys@enr.com

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Wisconsin Court of Appeals Re-affirms American Girl To Find Coverage for Damage Caused by Subcontractors

September 20, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The trial court's finding of no occurrence and no property damage due to faulty workmanship was reversed by the appellate court. No. 5 Walworth v. Engerman Contracting, Inc., 2021 Wis. App. LEXIS 401 (Wis. Ct. App, July 30, 2021). Engerman was the general contractor on a construction project at a residence. Engerman was hired to build a poll complex. Engerman subcontracted the project to Downes Swimming Pool Co., Inc. Downes purchased shotcrete (sprayed concrete) from Otto Jacobs Company LLC for the swimming poll walls and base. After completion, the pool immediately began leaking. An investigation determined that the shotcrete material was not installed correctly, contributing to cracking in the pool walls and the steel reinforcing bars were not sufficient to prevent cracks in the pool walls. The owner demolished the pool and constructed a new one. Thereafter, the owner sued Engerman, its insurers (General Casualty Company of Wisconsin and West Bend Mutual Insurance Company) and Downes and its insurer. Downes filed a third-party complaint against Jacobs and its insurer (Acuity Mutual Insurance Company) alleging Jacobs negligently provided inferior shotcrete to Downes. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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