SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Things You Didn't Know About Your Homeowners Policy

July 02, 2014 — Arthur Murray – Bloomberg
Think you know everything about your home insurance policy? Is that because you understand the difference between dwelling coverage and personal liability protection? Because you know that floods aren’t covered by standard home insurance? Think again. You might know more than most, but you probably don’t know everything about your policy — unless you’ve read the fine print and committed it to memory. And who’s got time for that? However you don’t want to find yourself stuck without coverage you thought you had. Here are some lesser known coverage nuances you likely weren’t aware of. Read the court decision
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Reprinted courtesy of Arthur Murray, Bloomberg

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#1 CDJ Topic: McMillin Albany LLC v Superior Court of California

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
Stephen A. Sunseria of Gatzke Dillon & Balance LLP discussed how the Fifth Appellate District court “issued a blistering criticism of the Fourth Appellate District’s prior opinion in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Ca.App.4th 98, which severely limited the reach of the Act to actions not involving property damage and allowing property damage claims to proceed freely under common law without any constraints posed by the Act.” Sunseri stated that “McMillin is a great victory for homebuilders, but battle lines are now clearly drawn between the two appellate districts.” Read the full story... In another article regarding the McMillin Albany LLC case, Garret Murai of Wendel Rosen Black & Dean LLP posted an article on his California Construction Law Blog that went over the legal debate of California’s Right to Repair Act including Liberty Mutual, Burch v. Superior Court, and KB Home Greater Los Angeles, Inc. v. Superior Court and concluded with a discussion of the McMillin Albany case. Murai predicted, rightly it turned out, that the case would see a “final round before the California Supreme Court.” Read the full story... In their December 2, 2015 article, authors Richard H. Glucksman, Glenn T. Barger, Jon A. Turigliatto, and David A. Napper of Chapman Glucksman Dean Roeb & Barger reported that the California Supreme Court granted the petition for review of the McMillin Albany decision: “The holdings in Liberty Mutual and McMillin Albany present a conflict of authority that the California Supreme Court has appropriately deemed worthy of review. The parties will now be permitted to file briefs on the merits and amicus briefs will certainly be submitted by the defense and plaintiff bars.” Read the full story... Read the court decision
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Reprinted courtesy of

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Real Estate & Construction News Roundup (7/31/24) – International Homebuying Shrinks Commercial Real Estate Focus on Sustainability, and U.S. Banks Boost Provisions for Credit Losses

September 09, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, mortgage rates drop to lowest levels since March, hotel construction activity highest since February 2023, Biden administration calls for legislation regarding property owners, and more!

• International buyers bought 54,300 existing homes from April 2023 to March 2024 – a 36% drop from the year before. (Diana Olick, CNBC)
• The Biden administration called on Congress to pass legislation penalizing property owners for rent increases above a certain level as part of its plan to lower housing costs through a series of administrative actions. (Mary Salmonsen, Multifamily Dive)
• U.S. banks have boosted their provisions for credit losses as deteriorating commercial real estate (CRE) loans and high interest rates fuel fears of defaults. (Manya Saini, Niket Nishant and Matt Tracy, Reuters)

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

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Know What’s Under Ground and Make Smarter Planning Decisions

July 29, 2019 — Aarni Heiskanen - AEC Business
A Finnish experimentation project developed a framework for classifying ground conditions for building and infrastructure construction. It will help anticipate the future cost of foundation laying during the early stages of city planning. The ground conditions of an area can have a substantial effect on the costs and the environmental impacts of constructing buildings and infrastructure. At early stage, urban designers don’t typically have enough data to make smart decisions about zoning in that respect as obtaining that data is time-consuming and hence also costly. Consequently, an experimentation project called MAKU-digi: Making the costs of land use visible devised a method for automating the analysis of ground conditions. I had the pleasure of interviewing Juha Liukas, Lead Advisor at Sitowise, and Hilkka Kallio, Geologist at Geological Survey of Finland (GTK), about the project. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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New Home Sales Slip, but Still Strong

December 30, 2013 — CDJ STAFF
Economists say that prospective home buyers have adjusted to the increase in mortgage rates, according to AZCentral.com. And while there was a 2.1 percent drop in new home sales in November, estimates for the preceding months were revised upwards, beating estimates. October new home sales were at the highest they had been since the beginning of the recession. The Federal Reserve plans to taper off of economic stimulus, which should send interest rates even higher. This may have prompted some home buyers to get in the market sooner, rather than later, according to Sara Watt House, and economist with Wells Fargo. “It’s not really derailing people’s purchase plans,” said Ms. House. With reduction in inventory has come an increase in prices, which also could slow down sales of new homes. Read the court decision
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Reprinted courtesy of

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Express Warranty Trumping Spearin’s Implied Warranty

March 06, 2022 — David Adelstein - Florida Construction Legal Updates
Be mindful of that express warranty provision in your contract. It could result in an outcome that you did not consider or factor when submitting your proposal or agreeing to your contract amount. An express warranty could have the effect of eviscerating the argument that you performed your scope of work pursuant to the plans and specifications. In other words, the applicability of the Spearin doctrine could be rendered moot based on express warranty language in your contract that is fully within your control because you do not have to agree to that language. Under the Spearin doctrine:

[W]hen a ‘contractor is bound to build according to plans and specifications prepared by the owner, the contractor will not be responsible for the consequences of defects in the plans and specification.’ Spearin and its progeny set forth a default rule of fundamental fairness that when a general contractor requires a subcontractor to follow certain plans and specifications, the general contractor impliedly warrants that those plans and specifications are ‘free from design defects.’ Put simply, Spearin protects subcontractors from liability for simply following the general contractor’s direction and requirements. However, the implied warranty set forth in Spearin and its progeny may be overcome by express agreement. Where a general contractor and subcontractor expressly agree to allocate the risk of a defective product to the subcontractor, that express agreement must prevail over Spearin’s implied warranty. Lighting Retrofit International, LLC v. Consellation NewEnergy, Inc., 2022 WL 541156 (D. Md. 2022) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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California Appellate Court Confirms: Additional Insureds Are First-Class Citizens

May 04, 2020 — Scott S. Thomas - Payne & Fears
Many businesses shift risk by requiring others with whom they do business – e.g., vendors, subcontractors, suppliers, and others – to procure insurance on their behalf by making the business an “additional insured” under the other person’s liability insurance policy. Unfortunately, insurance companies sometimes treat these additional insureds as second-class citizens, refusing to acknowledge that the additional insured has the same rights as the policyholder, who paid the premium. In Philadelphia Indemnity Insurance Company v. SMG Holdings, a California appellate court removes any doubt whether these additional insureds are third-party beneficiaries entitled to the same rights – and bound by the same duties – as the entity that bought the policy. While the dispute at issue in SMG Holdings was a narrow one – i.e., whether the additional insured was bound by the policy’s arbitration clause – the implications of its holding are far ranging in ways that, in some instances, may benefit the additional insured. For example, because the additional insured is an intended beneficiary under the policy, neither the insurer nor the policyholder may do anything to impair the additional insured’s rights under the policy; if they do, they may be liable for tortiously interfering with the additional insured’s contract rights. This means that (again, by way of example) if the insurer attempts to rescind, or cancel, or amend the policy in a way that impairs the additional insured’s rights, the additional insured may have recourse. It also means that if the policyholder does something untoward that jeopardizes the additional insured’s rights under the policy, the policyholder may be liable to the additional insured for any resulting harm. Read the court decision
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Reprinted courtesy of Scott S. Thomas, Payne & Fears
Mr. Thomas may be contacted at sst@paynefears.com

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Saudi Arabia Awards Contracts for Megacity Neom’s Worker Housing

September 16, 2019 — Vivian Nereim - Bloomberg
Saudi Arabia has awarded to two Saudi firms contracts to build worker housing for its futuristic mega-city called Neom, as plans for the $500 billion project move forward despite skepticism from investors. Tamimi Group and Saudi Arabian Trading & Construction Co. won contracts to finance, build and operate three residential areas with capacity to house 30,000 people, Neom said in a statement on Sunday. The areas will be part of a so-called “Construction Village,” which Neom later plans to expand to accommodate more than 100,000 residents, it said. Neom did not say how much the contracts were worth. Read the court decision
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Reprinted courtesy of Vivian Nereim, Bloomberg

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