SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Experts: Best Bet in $300M Osage Nation Wind Farm Dispute Is Negotiation

March 11, 2024 — Daniel Tyson - Engineering News-Record
Nearly two months after a federal judge ruled that renewables developer Enel Green Power North America must deconstruct 84 land-based wind turbines because it did not secure mineral rights on Osage Nation land in northern Oklahoma, two energy sector attorneys say the unit of an Italy-based company must negotiate with the tribe. Reprinted courtesy of Daniel Tyson, Engineering News-Record Mr. Tyson may be contacted at tysond@enr.com Read the full story... Read the court decision
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Important New Reporting Requirement for Some Construction Defect Settlements

April 17, 2019 — Ian Williamson - Gordon & Rees Construction Law Blog
In response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22. What types of Projects: This requirement applies only if all of the following apply:

A) Residential B) Multi-Family; and C) Rental property

Limitations on Claims – The reporting requirement only applies if all of the following are true:

A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor; B) The claim is for a structural defect; C) The total claim is valued at $1 million (not including investigation costs); D) SB800 does not apply; E) The action was filed after January 1, 2019; and F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).

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Reprinted courtesy of Ian Williamson, Gordon & Rees
Mr. Williamson may be contacted at igwilliamson@grsm.com

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Pennsylvania Commonwealth Court Holds that Nearly All Project Labor Agreements are Illegal

February 18, 2019 — Wally Zimolong - Supplemental Conditions
In what is nothing short of a monumental decision, on January 11, 2019, the Pennsylvania Commonwealth Court in Allan Myers L.P. v. Department of Transportation ruled that nearly all project labor agreements in Pennsylvania are illegal under the Commonwealth’s procurement code. What are Project Labor Agreements? In short, Project Labor Agreements (PLAs) are pre-hire agreements that set the working conditions for all employees of contractors working on a construction project. Typically, a PLA is entered into between an public or private construction project owner and certain local building trade unions. PLAs require the use of union labor that is to be hired exclusively through the hiring halls of the unions who are parties to the PLA. PLAs are controversial because, among other reasons, while not expressly excluding non-union contractors from performing work on the project, they require non-union firms to use union members instead of their regular employees. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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Courthouse Reporter Series: Nebraska Court of Appeals Vacates Arbitration Award for Misconduct

November 18, 2024 — Brendan J. Witry - The Dispute Resolver
Vacating an arbitration award is often seen as an uphill battle. Indeed, the U.S. Supreme Court has stated that “courts may only vacate an arbitrator’s decision ‘only in very unusual circumstances.’” Oxford Health Plans, LLC v. Sutter, 569 U.S. 564, 568 (2013). The Federal Arbitration Act provides limited grounds to seek the vacatur of an arbitration award. In Lund-Ross Constructors v. Duke of Omaga, LLC, ___ N.W.3d ___, 33 Neb.App.73, the Nebraska Court of Appeals found that an arbitrator’s conduct warranted the partial vacatur of the award, which granted relief to a subcontractor who filed a counterclaim after the arbitration hearing had closed. Lund-Ross contracted with Duke of Omaha to build an apartment complex in Omaha. Lund-Ross, in turn, sub-contracted with A Raymond Plumbing. Following completion of the building, Owner withheld payment from Lund-Ross, who in turn, withheld payment from Raymond. Both Lund-Ross and Raymond filed mechanics liens and initiated suits; Raymond’s suit ultimately was dismissed for want of prosecution. Lund-Ross proceeded to arbitration with Owner, naming Raymond as a respondent. Raymond did not participate in the arbitration as a claimant at the time of the hearing. Read the court decision
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Reprinted courtesy of Brendan J. Witry, Laurie & Brennan LLP
Mr. Witry may be contacted at bwitry@lauriebrennan.com

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A Win for Policyholders: California Court of Appeals Applies Vertical Exhaustion for Continuous Injury Claims

August 24, 2020 — Celia B. Waters - Saxe Doernberger & Vita
Fresh off the heels of the California Supreme Court’s landmark decision in Montrose Chemical Corp. v. Super. Ct. of L.A. Cty. (“Montrose III”),1 policyholders scored another victory as another California court rejected horizontal exhaustion in the context of continuous injury cases. The Court of Appeal of the State of California, First Appellate District, Division Four, in SantaFe Braun Inc. v. Ins. Co. of N. Am., adopted a rule of vertical exhaustion, holding that “[absent an explicit policy provision to the contrary] the insured becomes entitled to the coverage it purchased from the excess carriers once the primary policies specified in the excess policy have been exhausted.”2 The dispute in SantaFe Braun began in 1992 when asbestos-related claims were first filed against Braun. In 1998, Braun’s three primary insurers agreed in writing to defend and settle the underlying claims against Braun while resolving allocation among themselves. In 2004, Braun filed the current suit against its excess insurers, seeking a declaration that the excess insurers were obligated to help cover the costs of the underlying asbestos-related lawsuits. Read the court decision
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Reprinted courtesy of Celia B. Waters, Saxe Doernberger & Vita
Ms. Waters may be contacted at cbw@sdvlaw.com

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Subcontractors Aren’t Helpless

July 26, 2017 — Christopher G. Hill - Construction Law Musings
As a construction attorney here in Virginia, I often have the pleasure of assisting subcontractors seeking advice on their all important contracts with general contractors. I often sense that these subcontractors feel that they are at the bottom of the food chain and don’t have the “clout” necessary to push back at all against the myriad clauses in these contracts that seek to push the risk downhill. “Pay if Paid” clauses, subordination of lien clauses (which may or may not be enforceable), indemnification language that seems to make the subcontractor liable for way too much, and the dreaded incorporation clauses , would seem to make the subcontractor hold one big “bag of risk” on any construction project. While this may seem bleak, never fear, as a subcontractor you are not totally helpless. Remember, you don’t have to take a job from a general contractor that you get a bad feeling about. Often the best indicator of whether you want to move forward is your “spidey sense” that something seems a bit off or that the GC is trying to cram too much down your throat. Use your experience in the construction industry to guide your contracting activities. It is better to avoid the bad job than to take it in the long run. If you are a quality subcontractor (and I know you are or you wouldn’t be reading this), other work will come along because general contractors need good subs to get their work done. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Are Contracting Parties Treated the Same When it Comes to Notice Obligations?

June 25, 2019 — G. Scott Walters - Smith Currie
Overview Experienced project delivery team members know too well the importance of timely and proper notice during a construction project. Ideally, contractual notice provisions, and any penalties for non-compliance, should apply equally to all of the contracting parties. For example, failure to comply with a notice provision concerning contract changes could bar a party from pursuing claims. And, untimely or improper notice can, likewise, prevent certain defenses to claims. Nowhere is notice more scrutinized than in the federal government contracting arena. Recently, the United States Court of Federal Claims issued two separate decisions involving the same construction project and the same parties and dealing with two specific aspects of notice in the federal government contracting process. The court’s decisions on the notice issues may, at first, appear to contradict each other or to favor one party over the other. A closer look at these two decisions reveals that notice requirements, in the context of federal government construction contracts, can come in multiple forms and notice is not a “one size fits all” proposition. Read the court decision
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Reprinted courtesy of G. Scott Walters, Smith Currie
Mr. Walters may be contacted at gswalters@smithcurrie.com

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A New AAA Study Confirms that Arbitration is Faster to Resolution Than Court – And the Difference Can be Assessed Monetarily

June 05, 2017 — John P. Ahlers - Ahlers & Cressman PLLC
There has been a perception among some litigators that arbitration is more expensive than court due to several factors. Among them:

• The “upfront” costs are higher in that filing fees for arbitration exceed those in court. Arbitrators are paid, whether hourly or a flat rate, and the three arbitration panels can become very expensive.
• Some arbitration clauses preserve statutory discovery rights, basically defeating the advantage of a simplified arbitration process. Discovery wars are extremely expensive. Depositions are the most costly of discovery, and in arbitration, as opposed to court, depositions are limited or do not exist.
• Some arbitration clauses integrate the statutory rules of civil procedure, making arbitration almost equivalent to litigation. These types of clauses do the parties no favors.

These notions are all dispelled in a recent American Arbitration Association (AAA) study comparing the length of time in court, based on published federal court statistics, to the length of time in arbitration, based on data from the AAA. The study demonstrates that federal courts take much longer to resolve cases by trial and appeal than arbitration by AAA. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

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