Seattle Washington Building Expert Directory

Where Breach of Contract and Tortious Interference Collide

January 11, 2022 — Christopher G. Hill - Construction Law Musings
Claims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy. In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts: In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Surfside Condo Collapse Investigators Uncover More Pool Deck Deviations

September 12, 2023 — James Leggate - Engineering News-Record
The investigation into the 2021 collapse of the Champlain Towers South condominium in Surfside, Fla., has uncovered more deviations between the as-built conditions of the pool deck and the building’s design. But investigators emphasize their data are still preliminary as they continue to gather and test evidence from the collapse that killed 98 people. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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What Made the Savannah Harbor Upgrade So Complicated?

May 10, 2017 — Jim Parsons - Engineering News-Record
Of all the East Coast port upgrade programs aimed at luring cargo traffic from the newly widened Panama Canal, the Savannah Harbor Expansion Project (SHEP) may well be the most ambitious, and complex. Elements of the joint effort by the U.S. Army Corps of Engineers’ Savannah District and the state of Georgia—originally estimated to cost $706 million, but subsequently increased to $973 million—range from 40 miles of channel dredging and new water quality mitigation facilities to the addition of an upstream fish passage and the recovery of a Civil War-era relic. Read the court decision
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Reprinted courtesy of Jim Parsons, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Illinois Insureds are Contesting One Carrier's Universal Denial to Covid-19 Losses

May 11, 2020 — Anna M. Perry - Saxe Doernberger & Vita
In response to the large number of COVID-19-related losses that businesses are experiencing, insurers have begun issuing statements informing their insureds of whether their policies will respond to the losses, and if so, what coverage will be afforded. Insurers cannot take a “one-size-fits-all” approach to the COVID-19 losses because, besides factual differences, the losses are occurring within all fifty states which means 50 different state law interpretations will apply. Recently, on March 27, 2020, a number of restaurants and movie theaters located in and around Chicago (the “Insureds”) filed a declaratory judgement action, titled Big Onion Tavern Group, LLC et al. v. Society Insurance, Inc., against their property insurance carrier, Society Insurance, Inc. (“Society”), seeking coverage for business interruption resulting from the shutdown order issued by the governor of Illinois. The suit alleges that Society improperly denied their business interruption claims by using a boiler plate denial. The denial issued by Society is allegedly used for all COVID-19 losses regardless of the applicable jurisdiction’s interpretation of the policy language and the specific coverage purchased by the insured. Further, in its denial, Society takes the position that any loss related to a government-issued closure order is uncovered, even though the Insureds specifically purchased business interruption coverage and their policies did not contain an exclusion for losses caused by viruses. Read the court decision
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Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita
Ms. Perry may be contacted at amp@sdvlaw.com

America’s Factories Weren’t Built to Endure This Many Hurricanes

November 05, 2024 — Brooke Sutherland - Bloomberg
America’s factories aren’t built for the current cascade of extreme weather events. Dozens of industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by Honeywell International Inc., Johnson Controls International Plc, General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material. Read the court decision
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Reprinted courtesy of Brooke Sutherland, Bloomberg

Construction Litigation Roundup: “You Have No Class(ification)”

May 13, 2024 — Daniel Lund III - Lexology
In fact, you didn’t even have a license. A federal court in Alabama was tasked with determining whether an unlicensed contractor could recover from an Alabama project owner for in excess of $1.7 million in construction infrastructure and site work performed. In fact, the contractor “did not have a valid general contractor’s license” in the state of Alabama when it “assumed work on the project from its predecessor company.” During the course of work on the project, the principals of an original contractor decided to go their separate ways, whereupon one of those principals announced that his new company would take over ongoing work. Roughly two months after the new company began working at the project, the contractor applied for a license with the Alabama Licensing Board of General Contractors – the license was issued within about 45 days. Then, some eight months later, the contractor added a “municipal and utilities” classification to its contractor license. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Construction Defect Dispute Governed by Contract Disputes Act not yet Suited to being a "Suit"

June 25, 2019 — William S. Bennett - Saxe Doernberger & Vita, P.C.
The Southern District of California recently held that a series of demands for a general contractor to investigate and repair several construction defects at a U.S. Army facility did not constitute a “suit” within the meaning of the general contractor’s commercial general liability (“CGL”) policy. In Harper Construction Co., Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa., the U.S. Government hired Harper Construction Company (“Harper”) to construct a U.S. Army training facility for the Patriot Missile System in Fort Sill, Oklahoma. No. 18-cv-00471-BAS-NLS (S.D. Cal. Mar. 28, 2019). During the project, Harper hired Harper Mechanical Contractors (“Harper Mechanical”), an independent company, as a subcontractor “to perform demolition, grading, and other work at the Project.” After Harper completed the project, the government informed Harper of property damage at the project, “including, but not limited to, gypsum wallboard cracks and binding doors.” Harper attempted to repair the issues, but the problems continued. The issues were apparently the result of Harper Mechanical’s grading work. Subsequently, the government sent two letters requesting an investigation and asking Harper to “propose a plan to correct the issues.” As Harper undertook an investigation spanning multiple years, the government became increasingly frustrated with the delays. The government threatened to initiate “formal administrative recourse” and to demolish the project, forcing Harper to re-build from the ground up. It also sent Harper another letter requesting Harper submit a formal proposal to correct the issues. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

A Year Later, Homeowners Still Repairing Damage from Sandy

October 01, 2013 — CDJ STAFF
The New York and New Jersey coastal communities are still in the thick of rebuilding and repairing after hurricane Sandy struck almost a year ago. Newsday reports that in the eight months following the October 2012 storm, more than 23,000 building permits were issued in Long Island communities, an 11 percent rise over the previous year. The town of Long Beach, New York has waived fees and hired more staff in order to encourage people to rebuild, in order to rebuild the town’s tax base. Homeowners aren’t going it alone, New York expects to fund more than $1 billion of rebuilding for homeowners who are unable to afford repairing their homes. At this point, the state is still processing more than five thousand requests for grants. The money is still in the state’s coffers. Other homeowners are still filing insurance claims. While towns are busy issuing building permits, contractors are busy too. Bill Sims of Sims Steel said that his business has changed from commercial construction to raising homes higher to put them above future floods. “There’s probably been more homes raised this last year than in the previous 20 years,” he told Newsday. Another contractor, Pat Gordon said that he is “only taking what we can handle.” He described Long Beach as “a traffic jam of construction trucks that has never been seen before.” Read the court decision
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