Seattle Washington Building Expert Directory

Natural Disasters’ Impact on Construction in the United States

December 14, 2020 — Robert S. Peckar & Crystal T. Dang - Construction Executive
In these times of easy and instant access to news from around the globe, the effects of major earthquakes in Indonesia and Mexico, cyclones in Southeast Asia, Tsunamis around the world, volcanoes in Europe in unexpected places and, of course, raging forest fires and hurricanes in the United States are frequently in the news. Accompanying each of these disasters are immediate threats to construction projects, both physical and those affecting the safety and health of personnel. However, after the dust settles or the waters recede, myriad issues will become obstacles to the road to recovery for a contractor to navigate. In 2020 alone, the volume of strong storms and forest fires have focused so much attention on the impact of disasters. The purpose of this article is to provide guidelines in anticipation of disasters, for reviewing the impact of a disaster as it is happening, and developing a mitigation plan to limit losses. Anticipating Disasters The best time to prepare for a disaster on a project is before the project starts. Reviewing contract rights, insurance policies and company disaster response protocols while a category 3 hurricane is a day away is not a best practice. To avoid falling into that situation, a contractor should follow the following guidelines. Doing so facilitates proper action during the actual disaster itself and in the aftermath. Reprinted courtesy of Robert S. Peckar & Crystal T. Dang, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Peckar may be contacted at rpeckar@pecklaw.com Ms. Dang may be contacted at cdang@pecklaw.com Read the court decision
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2017 Legislative Changes Affecting the Construction Industry

November 21, 2017 — Melinda S. Gentile – Peckar & Abramson, P.C.
Originally published by CDJ on July 13, 2017 The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement. The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor. Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017. Read the court decision
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Reprinted courtesy of Melinda S. Gentile, Peckar & Abramson, P.C.
Ms. Gentile may be contacted at mgentile@pecklaw.com

Seventh Circuit Finds Allegations of Occurrence and Property Damage Require a Defense

January 28, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The Seventh Circuit reversed the district court's finding that the insured architecture firm was not entitled to a defense. Cornice & Rose International, LLC v. Acuity, 2024 U.S. App. LEXIS 29925 (7th Cir. Nov. 25, 2024). Cornice, an architectural firm, oversaw the construction of a building in Iowa. Under the contract with the building owner, Cornice agreed to "prepare drawings setting forth in detail the quality levels of materials and systems and other requirements for the construction" of the building. Cornice also agreed to evaluate the project regularly to become "familiar with the progress and quality of the work completed." 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

Terminating A Subcontractor Or Sub-Tier Contractor—Not So Fast—Read Your Contract!

May 24, 2018 — John P. Ahlers - Ahlers Cressman & Sleight PLLC Blog
Every few months I receive a call from a general contractor or subcontractor who has just terminated a subcontractor or sub-tier contractor for non-performance and is “checking in with me to see if there are any liability issues.” After the termination has taken place, if the termination is wrongful, there are serious legal consequences. Calling your lawyer after the fact will not cure missteps in the termination process. Termination for non-performance is a common term in most contract documents. As courts interpret contracts, however, the right to earn revenue from a contract is a substantial interest, and courts generally “abhor” forfeitures (termination) of that right. In other words, the courts will strictly determine whether the terminating party to a contract has complied with the termination process to the letter. A recent example from Connecticut is instructive in this regard. [1] The general contractor on a large hospital project in Connecticut terminated its electrical subcontractor, hired others to finish the electrical subcontractor’s work, and then sued the electrical subcontractor for $26 million. The electrical subcontractor countersued the general contractor for $3.6 million of work that it had completed at the time of the termination which had not been paid for. The subcontractor claimed that due to the many changes that had occurred on the project, it stopped work because the changes altered the contract to the point that it was no longer the same contract. The subcontractor walked off the project and the general contractor then terminated the subcontractor and re-procured the work from other subcontractors. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Florida’s Fourth District Appeals Court Clarifies What Actions Satisfy Florida’s Construction Defect Statute of Repose

November 14, 2018 — Rahul Gogineni - The Subrogation Specialist
In Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal recently concluded that the date on which the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., is the date on which the plaintiff commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect statute of repose, Florida Statue § 95.11(3)(c). Thus, reversing the decision of the trial court, the Fourth District held that the plaintiffs timely-filed their construction defect action against the defendants. Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

No Signature, No Problem: Texas Court Holds Contractual Subrogation Waiver Still Enforceable

April 10, 2023 — Gus Sara - The Subrogation Strategist
In Chubb Lloyds Inc. Co. of Tex. v. Buster & Cogdell Builders, LLC, No. 01-21-00503-CV, 2023 Tex. App. LEXIS 676, the Court of Appeals of Texas, First District (Court of Appeals) considered whether the lower court properly dismissed the plaintiff’s subrogation case by enforcing a subrogation waiver in a construction contract which was not fully executed. The contract was signed by only one of the two subrogors and was not signed by the defendant general contractor. The Court of Appeals affirmed the trial court’s decision, holding that despite the lack of signatures, the evidence established mutual assent to the contractual terms by all parties. The plaintiff’s subrogors, Jeffrey and Mary Meyer (collectively, the Meyers), retained defendant Buster & Codgell Builders (BCB) to expand their residence. BCB drafted a contract using the American Institute of Architects (AIA) standard form contract for residential construction. The AIA contract included, by reference, a subrogation waiver that applied to BCB and its subcontractors. Prior to beginning the work, BCB emailed Jeffrey Meyer a version of the contract that only had one signature block for both Jeffrey and Mary Meyer. Minutes later, BCB sent a second version of the contract which had a signature line for each of the Meyers. However, Jeffrey Meyer signed the first version of the contract and emailed it back to BCB. In the subject line of his email, Mr. Meyers asked that BCB countersign and return the contract. BCB did not sign and return the contract. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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

The Case For Designers Shouldering More Legal Responsibility

November 21, 2018 — Richard Korman - Engineering News-Record
Ujjval Vyas is dignified, articulate and persistent. In past years he earned a law degree and a PhD where his thesis concerned Philip Johnson and architectural modernism. He is a founder of a hydrogen energy company. He is also leading a crusade, largely by himself, advocating that designers should be held to a "clients come first" approach applied to other professionals—an idea that would burden engineers and architects with the weight of vastly increased legal liability. The reactions to his ideas in the past have ranged from scornful to sympathetic. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

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