Seattle Washington Building Expert Directory

Additional Insured Coverage Confirmed

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Texas Court of Appeals found that Exxon Mobil Corporation was an additional insured under the CGL policy for Exxon's service provider. Liberty Surplus Ins. Corp. v. Exxon Mobil Corporation, 2015 Tex. App. LEXIS 12757 (Tex. Ct. App. Dec. 17, 2015). Exxon contracted with Wyatt Field Service Company to perform "services" as set forth in various work orders from Exxon's affiliates. The contract also required Wyatt to maintain $5 million of commercial general liability insurance. The contract provided that the policies must cover Exxon and its affiliates "as additional insureds in connection with the performance of Services." In 2008, Wyatt was assigned to work on a flexicoker unit at Exxon's refinery. Wyatt was to reinstall dummy nozzles and chains. It completed this service in October 2008. Three years later, one of the dummy nozzles pulled free, and the escaping steam and coke burned three individuals who were working on the unit. After the accident, it was discovered that the safety chain had been installed in the wrong location so that it did not properly secure the dummy nozzle. 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

Avoid Drowning in Data: Keep Afloat with ESI in Construction Litigation

May 15, 2023 — Steve Swart - The Dispute Resolver
Maybe it is another lawyer on your team, a client, the Court. Maybe it is you. Almost every lawyer has heard (or thought, felt, or anguished over) the following: Wait — What? Discovery is going to cost how much? The concern is real. Per a 2019 Southern District of New York opinion:

The average case can involve collection, review and production of 100 gigabytes of data (or 6.5 million pages of Word documents).
At a typical rate of review of 40-60 documents per hour, assuming 100,000 documents are collected, that is about 2,000 hours of attorney review time.
Adding in fees for forensic collection, storage, and processing to maintain metadata can result in a bill totaling $500,000.

Brown v. Barnes & Noble, Inc., 474 F. Supp. 3d 637, 645 & n.3 (S.D.N.Y. 2019). What's counsel to do? The following four points can help counsel streamline and reduce costs in discovery: (1) know your case, (2) know your data — understand it and document collection, (3) cooperate with counsel, and (4) implement a protocol for electronically-stored information ("ESI"). Read the court decision
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Reprinted courtesy of Steve Swart, Williams Mullen
Mr. Swart may be contacted at sswart@williamsmullen.com

Court Retained Jurisdiction to Enforce Settlement Under Code of Civil Procedure Section 664.6 Despite Dismissal of Complaint

October 21, 2024 — Garret Murai - California Construction Law Blog
Attorneys will commonly add a Code of Civil Procedure section 664.6 provision in their settlement agreements to ensure that courts have continuing jurisdiction to enforce the terms of a settlement, as opposed to having to file a new complaint in the event of a breach of a settlement agreement. Oral settlements before a trial court are also enforceable under Section 664.6, but as discussed in Eagle Fire and Water Restoration, Inc. v. City of Danuba, Case No. F086052 (May 30, 2024), in cases involving a complaint and multiple cross-complaints, questions can arise as to whether a trial court has in fact retained jurisdiction under Section 664.6 to enforce an oral settlement and even what the terms of the settlement were. The Eagle Fire Case Eagle Fire and Water Restoration, Inc. was hired by the City of Dinuba to reroof the City’s police station and courthouse building. The contract was for approximately $500,000. Before completion of the project, a rainstorm caused significant water damage to the interior of the building. The City incurred over $330,000 in clean-up and repair costs and withheld approximately $319,000 from Eagle as an offset. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Out of the Black

May 30, 2022 — John Drentlaw - Construction Executive
Even if you previously weren’t familiar with the term “black swan event,” you’ve likely become intimately familiar with what one looks like over the past two years. Coined by author Nassim Taleb in his book The Black Swan: The Impact of the Highly Improbable, the term refers to a rare, unpredictable event—perhaps, say, a pandemic—that has an extreme impact. “Extreme” certainly seems to be an accurate description of the impact that the COVID-19 pandemic has had on the construction industry, at nearly every level. The Commercial Construction Index (CCI) fell from 74 to 56 during Q2 2020 and remained statistically unchanged through Q3 of that year. Recovery has been slow, with the CCI remaining eight points below pre-pandemic levels through the end of 2021. Prices for raw materials such as lumber and steel have been extremely volatile, reaching historic highs and dramatic lows. March and April of 2020 alone saw 1.1 million jobs disappear from the industry—roughly half as many jobs as were lost throughout the entire Great Recession (although many of these jobs have since returned). While the industry has persevered through what should be the worst of these effects, many contractors and project owners are now wondering: How can we predict the next black swan event? Reprinted courtesy of John Drentlaw, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

December 11, 2018 — Timothy Carroll - White and Williams LLP
Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and insurance companies expect to provide” to construction industry professionals “unless the insured explicitly requests such coverage.” 2018 U.S. App. LEXIS 31666, at *9 (3d Cir. Nov. 8, 2018). In Hall, a stone masonry contractor was sued by its customer for causing over $350,000 in property damage resulting from “substandard and defective work” performed on the customer’s residence. The insurer sought a declaration that it owed neither a defense nor indemnity for those damages because, under Pennsylvania law, the policy did not cover property damage caused by faulty workmanship. Read the court decision
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Reprinted courtesy of Timothy Carroll, White and Williams LLP
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com

Steps to Defending against Construction Defect Lawsuits

July 21, 2011 — CDJ STAFF

Writing in Claims Journal, Bryan Rendzio notes that the decline in construction has not been matched by a decline in construction defect lawsuits over condominiums. He reviews the ways in which lawyers representing developers can help protect their clients. He identifies four important considerations in defending developers from claims of construction defects.

He advocates a careful review of the contract. “Under a breach of contract claim, the insured’s duties to the party who brought the claim against the insured flow from the contract. Commonly, construction contracts limit the scope of recoverable damages, such as by waiving consequential damages.’

The next step, according to Rendzio is to check of a settlement agreement is already in place, noting that these are “a familiar occurrence in the construction industry, regardless of any lawsuits having been filed.”

He considers the statute of repose “the single-most decisive weapon an insured possesses in its arsenal during a condo defect lawsuit.” He notes that no lawsuits can be brought for construction defects after the end specified by the statute of repose, and if a lawsuit is brought beforehand, no additional parties can be named once the statute has taken effect.

Finally, he warns adjusters to be suspicious when a condo association requests contractual indemnification. He notes that the pitfall in this is that developers and the subsequent condominium association often have similar names, given the theoretical example of a condo project built by “Fake Lakes LLC” and later run by the “Fake Lakes Condominium Association.” Writing in regards to Florida law, he notes that condominium associations do not have successor interest in contracts developers made with contractors.

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North Carolina Federal Court Holds “Hazardous Materials” Exclusion Does Not Bar Duty to Defend Under CGL Policy for Bodily Injury Claims Arising Out of Direct Exposure to PFAs

December 07, 2020 — Paul A. Briganti - White and Williams LLP
On October 19, 2020, the U.S. District Court for the Western District of North Carolina held that a “hazardous materials” exclusion contained in a CGL policy did not preclude a duty to defend the insured against claims alleging bodily injury resulting from direct exposure to perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAs).[1] In Colony Insurance Company v. Buckeye Fire Equipment Company, the insured was named a defendant in hundreds of underlying suits relating to its manufacture of fire equipment containing aqueous film-forming foam (AFFF), a fire suppressant.[2] The underlying plaintiffs alleged that: (a) the AFFF contained PFOS and PFOA; (b) PFOA and PFOS are highly carcinogenic; and (c) exposure to AFFF contained in the defendants’ products caused bodily injury or property damage. Around a third of the underlying complaints alleged harm from both direct exposure to the foam and exposure through the environment. Representative language from those complaints was: “[d]uring [underlying plaintiff’s] employment as a firefighter and firefighter instructor, he was significantly exposed to elevated levels of PFOS and PFOA in their concentrated form as a result of regular contact with [d]efendant’s AFFF products and through PFOS and PFOA having contaminated the FireCollege well system.” Read the court decision
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Reprinted courtesy of Paul A. Briganti, White and Williams LLP
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com

Construction Defects and Warranties in Maryland

November 27, 2013 — CDJ STAFF
Nicholas D. Cowie, a partner with Cowie & Mott, P.A., has started a blog focusing on construction defect claims in Maryland condominium complexes. In his first post, he writes about the statutory remedies in Maryland law for condominium owners. He notes that “four separate statutory warranties apply to the sale of condominiums.” He further discusses the varying duration of these warranties and when they come into effect, saying that “associations and unit owners are often incorrectly informed that their construction defect-related problems (such as leaks around windows) are ‘out of warranty’ because the problems did not occur during the warranty period.” Read the court decision
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