SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Pre-Covid Construction Contracts Unworkable as Costs Surge, Webuild Says

October 17, 2022 — Angus Whitley - Bloomberg
Infrastructure construction contracts signed before the pandemic have become widely unworkable because of the surging cost of labor and materials, supply-chain blockages and difficulties in securing manpower, according to builder Webuild SpA. Milan-based Webuild is wrestling with a 2019 agreement with the Australian government to construct the country’s largest hydroelectric power station for A$5.1 billion ($3.2 billion). It’s meant to be completed by 2026. The Snowy 2.0 project, in the Snowy mountains about six hours’ drive south of Sydney, has come to highlight the challenges of completing large-scale projects on terms that were struck before Covid-19, and before Russia invaded Ukraine. Webuild’s Asia-Pacific director, Marco Assorati, said the value of the Snowy contract, as well as certain other parameters, need to be changed to reflect the current market. He declined to comment specifically on media reports that the consortium has asked the Australian government for an extra A$2.2 billion to complete the work and that the project is 18 months behind schedule. “It is challenging,” Assorati said. “I think clients understand this conversation must happen and there must be a way to cope with unforeseen increases in cost,” Assorati said. “It’s not needed only on the Snowy project. It’s affecting projects everywhere globally.” Read the court decision
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Reprinted courtesy of Angus Whitley, Bloomberg

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Real Estate & Construction News Roundup (05/23/23) – Distressed Prices, Carbon Removal and Climate Change

June 05, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In this week’s roundup, we consider distressed property bonds and loans, cities that are sinking under their own skyscrapers, efforts to lower carbon emissions, the unexpected potential of dirty diapers as a building material, and so much more. Globally, more than $190 billion of property bonds and loans are trading at distressed prices, a result of China’s real estate woes. (Alice Huang and Erin Hudson, Bloomberg) PacWest Bancorp sees a stock market boost as it announces the sale of its real estate loans, valued at around $2.6 billion. (Jaiveer Shekhawat and Chibuike Oguh, Reuters) New construction home sales exceeded expectations for April while existing home sales dropped. (Anna Bahney, CNN) Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Attorneys' Fee Clauses are Engraved Invitations to Sue

April 19, 2021 — David M. McLain – Colorado Construction Litigation
As we start another trip around the sun, hopefully you are in the process of updating your form contracts, including purchase and sale agreements and express written warranties. Because the law and litigation landscape continually changes, it is a good practice to periodically update the forms you use in order to give yourself a fighting chance if and when the plaintiffs' attorneys come knocking on your door. As you engage in this process, I hope that you will take a critical look at whether your contracts include a prevailing party attorneys' fees clause and, if so, whether you should leave it in there. In Colorado, parties are entitled to recover attorneys' fees only if provided for by statute or by contract. Historically, plaintiffs' attorneys relied on two statutes, the Colorado Consumer Protection Act and Colorado's Statutory Interest statute, to recover attorneys’ fees in construction defect cases. In 2003, the Colorado legislature capped treble damages and attorneys' fees under the Colorado Consumer Protection Act at $250,000, effectively restricting plaintiffs' attorneys from relying on the CCPA to recoup their attorneys' fees, especially in large cases. In 2008, the Colorado Supreme Court issued its decision in Goodyear v. Holmes, stating that plaintiffs can only claim prejudgment interest under Colorado's Statutory Interest statute, in cases where they have already spent money on repairs, not when they are suing for an estimate of what repairs will cost in the future. Without either the CCPA or the prejudgment interest statute to recover attorneys' fees, plaintiffs' attorneys most often now rely on the prevailing party attorney fee clause in contracts between the owner and builder, or in the declaration of covenants, conditions and restrictions in situations where a claim is prosecuted by an HOA. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Excess Policy Triggered Once Retention Paid, Even if Loss Not Covered By Excess

July 23, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Fifth Circuit determined that the Umbrella policies took effect once the primary insurance was exhausted by claims not covered by the Umbrella policies. Indem. Ins. Co. of N. Am. v. W&T Offshore, 2014 U.S. App. LEXIS 11775 (5th Cir. June 23, 2014). W&T had primary and Umbrella/Excess coverage to protect its offshore oil rigs from hurricane damage. The primary policies covered property damage and third party claims. The Umbrella policies only covered third-party claims. All policies covered Removal of Debris (ROD). In September 2008, Hurricane Ike caused damage to 150 offshore platforms in which W&T had an interest. W&T submitted over $150 million in claims for property damage to the primary carriers. The primary policies had a $10 million self-insured retention (SIR). The primary policies covered $150 million in coverage over the $10 million SIR. Anticipating that W&T would submit all of its ROD claims, which were estimated to exceed $50 million, the Umbrella carriers filed suit for a declaratory judgment. 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

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Jean Nouvel’s NYC ‘Vision Machine’ Sued Over Construction Defects

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
The Telegraph reported that the developers of famed architect Jean Nouvel’s futuristic building are being sued over alleged window pane defects. The building contains a customized, “curving curtain wall of different sized panes of colorless glass—each set in a unique angle and torque,” according to Nouvel’s firm. However, some residents reported “wind whistling through the panes of glass, and water seeping in.” Furthermore, “[t]he draft is so severe in some places that hydronic heating pipes have frozen and burst, according to court papers.” Attorney for the developer told the Telegraph, “Our clients will be vigorously defending this matter and we believe we will prevail in the case.” Read the court decision
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Reprinted courtesy of

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The Hunton Policyholder’s Guide to Artificial Intelligence: SEC’s Recent AI-Washing Claims Present D&O Risks, Potential Coverage Challenges

July 08, 2024 — Geoffrey B. Fehling, Michael S. Levine & Alex D. Pappas - Hunton Insurance Recovery Blog
We have previewed in prior posts the ways artificial intelligence is rapidly changing the way business operate, including the many ways AI has influenced the insurance market, creating both opportunities and risks for policyholders. We later highlighted, based on a recent securities lawsuit, how corporate management may be at risk for the alleged use or misuse of AI and how companies should evaluate their directors and officers (D&O) and management liability policies to ensure that they are prepared to respond to and mitigate AI-driven risks, including claims alleging that a company or its officers and directors made misrepresentations about AI. That potential risk now has regulatory teeth, as the US Securities and Exchange Commission recently charged the founder of an AI hiring startup with fraud based on claims about using AI to help clients find diverse and underrepresented candidates to fulfill diversity, equity, and inclusion hiring goals. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Alex D. Pappas, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Pappas may be contacted at apappas@HuntonAK.com Read the court decision
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Non-compliance With Endorsement Means No Indemnity Coverage

January 15, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The insured's failure to verify that subcontractors had CGL policies and to provide a contract stating that the subcontractors would indemnify the insured as required by the policy's endorsement meant there was no coverage for the insured. Cincinnati Spec. Underwriters Ins. Co. v. Milionis Constr., Inc., 2018 U.S. Dist. LEXIS 199658 (E.D. Wash. Nov. 26, 2018). The homeowners filed suit against Milionis, the general contractor for construction of a home. The underlying suit alleged that Milionis breached the parties' agreement by leaving the home unfinished. Cincinnati defended Milionis under a reservation of rights. 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

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Temporary Obstructions Are a Permanent Problem Under the Americans with Disabilities Act

March 12, 2015 — Max W. Gavron and Keith M. Rozanski – Haight Brown & Bonesteel LLP
Boxes, ladders, furniture or other objects commonly placed in aisles, walkways or paths may not be temporary obstructions and may be actionable under the Americans with Disabilities Act (ADA) according to a recent ruling by the Ninth Circuit Court of Appeals in Chapman v. Pier 1 Imports (U.S.), Inc. DBA Pier 1 Imports #1132, No. 12-16857 (filed March 5, 2015). Many property and business owners have long operated under the assumption that they are not violating ADA regulations requiring minimum clear widths for accessible routes (“[t]he minimum clear width of an accessible route shall be 36 in[ches]” (28 C.F.R. pg. 36, app. A, § 4.3.3)) when they place objects that can easily be removed in aisles or pathways such as trash cans, ladders, plants, signs and the like because temporary obstructions are not considered violations of the ADA (28 C.F.R. § 36.211(b)). Reprinted courtesy of Max W. Gavron, Haight Brown & Bonesteel LLP and Keith M. Rozanski, Haight Brown & Bonesteel LLP Mr. Gavron may be contacted at mgavron@hbblaw.com Mr. Rozanski may be contacted at krozanski@hbblaw.com Read the court decision
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