Seattle Washington Building Expert Directory

Equitable Subrogation Part Deux: Mechanic’s Lien vs. Later Bank Deed of Trust

September 15, 2016 — Kevin J. Parker – Snell & Wilmer Real Estate Litigation Blog
This post follows, almost two years to the day, Rick Erickson’s post of August 29, 2014. As noted by Rick Erickson in his August 29, 2014 post, the Arizona Supreme Court in the Weitz case (2014) had determined that equitable subrogation principles were applicable to enable an earlier-recorded mechanic’s lien to be trumped by a later-recorded bank deed of trust, if the loan secured by the later deed of trust paid off a lien that had been ahead of the mechanic’s lien. In a decision filed August 9, 2016, the Arizona Court of Appeals further clarified the scope of such equitable subrogation. In Markham Contracting Co., Inc. v. FDIC, No. 1 CA-CV 14-0752 (August 9, 2016), the Arizona Court of Appeals addressed a situation where a first-recorded deed of trust was followed by a second-recorded mechanic’s lien; and then, after the mechanic’s lien was recorded, a new lender made a secured construction loan that was used, in part, to pay off the loan that was secured by the first-position deed of trust. The key being “in part.” The subsequent lender loaned $4.8 million, but only $2.9 million went to pay off the balance owing on the first-position deed of trust. Read the court decision
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Reprinted courtesy of Kevin J. Parker – Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

No Duty To Defend Additional Insured When Bodily Injury Not Caused by Insured

July 26, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court found there was no duty to defend a suit for bodily injury against the additional insured where the injury was not caused by the insured. Consigli Constr. Co. v. Travelers Indem. Co., 2017 U.S. Dist. LEXIS 95339 (D. Mass. June 21, 2017). Consigli was the general contractor for a renovation project at a high school. Among the subcontractors was American Environmental, Inc., who was responsible for demolishing concrete floors within the existing structures, and Costa Brothers, who did the masonry work. Wellington M. Ely was an employee of Costa Brothers and worked as a mason on the project. Costa Brothers had a CGL policy with Travelers. As a subcontractor, Costa Brothers agreed to name Consigli as an additional insured on its policy. 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

Is Ohio’s Buckeye Lake Dam Safe?

March 12, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Columbus Business First, a report by the U.S. Army Corps of Engineers that “assessed the structural integrity of the Buckeye Lake Dam [located in Ohio] and found serious problems that present significant risks to the public.” Problems arose, allegedly, from “construction of homes [and] pools and patios that have been built into the earthen embankment.” The U.S. Army Corps of Engineers report stated (according to Columbus Business First) “there was a potential for an eight-foot wave of water, mud and debris that would inundate an area as far as Hebron, more than two miles away.” Read the court decision
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Reprinted courtesy of

School District Settles Construction Lawsuit

November 07, 2012 — CDJ STAFF
The Franklin County, Pennsylvania Public Opinion reports that an area school is coming to an end with its construction lawsuit. The school district was sued by its contractors for a combined $1.4 million, which the school district withheld when the project was not completed on schedule. Lobar Inc. claimed that the district additionally owed interest and should pay attorney fees. The school claimed that only $1.15 million was due under the contract. Under the settlement, they will be paying $1.136 million. Read the court decision
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Reprinted courtesy of

Appraisal May Include Cause of Loss Issues

March 21, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court determined that an appraisal can include causation issues when determining the amount of loss. B&D Inv. Grp., LLC v. Mid-Century Ins. Co., 2021 U.S. Dist. LEXIS 246853 (N.D. Ill. Dec. 28, 2021). B&D commercial building was damaged by hail. B&D submitted a claim to Mid-Century, but the parties disagreed as to the damage. Mid-Century found there was hail damage to metal vents on the roof and estimated the repair costs to be $4,271.95. Mid-Century found no hail damage to the roof itself. B&D disagreed and insisted that there was additional damage to the property, specifically the roof. B&D requested an appraisal, but Mid-Century denied the request. Mid-Century found that the condition of the roof was due to wear and tear and therefore constituted an excluded cause under the policy. B&D filed suit seeking a declaratory judgment compelling the parties to proceed with an appraisal. 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

Preserving Your Construction Claim

February 18, 2015 — Craig Martin – Construction Contractor Advisor
A recent article in the Construction Executive discussed the importance of preserving your claim, both in terms of timeliness of submitting your claim and making sure that you aren’t waiving portions of your claim when executing releases. These are all excellent points and bear some follow-up. Timing Your Claim I often review construction contracts that contain deadlines by which claims must be submitted. It may seem counter intuitive to think that you need to submit a claim when you are discussing the basis for the claim with an upstream contractor or the owner. But, there are more cases than I care to count where a contractor’s claim has been denied because the claim was not timely submitted. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Maryland Finally set to Diagnose an Allocation Method for Progressive Injuries

February 18, 2020 — William S. Bennett - Saxe Doernberger & Vita, P.C.
Maryland’s highest court recently heard arguments regarding the proper method of allocation of the covered damages from a slowly progressing asbestos injury amongst insurance policies in place over a period of years. Rossello v. Zurich American Insurance Company, Case No. 2436 (Md. 2019). The court may also be forced to determine what the proper trigger of coverage is for latent bodily injury claims, although the plaintiff has not framed the issue in that manner. In Rossello, the plaintiff, Patrick Rossello, worked for a period of years for the now-defunct Lloyd E. Mitchell, Inc. (“Mitchell”), a construction company operating until 1976. In 1974 he was exposed to and inhaled asbestos fibers. He was ultimately diagnosed in 2013 with malignant mesothelioma as a result of that exposure. Rossello obtained a judgment for approximately $2,700,000 against Mitchell and secured the right to pursue its insurance. As relevant to this dispute, Mitchell carried liability insurance policies, which provide coverage for asbestos related claims, from 1974 to 1977. Rossello seeks to hold Zurich, as successor to Maryland Casualty Company, accountable for the full value of his award, based on the 1974 policy. Although this contention actually implicates two separate issues, plaintiff’s counsel passed over the initial trigger of coverage issue and focused instead on the issue of allocation of coverage. 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

The Anatomy of a Construction Dispute- The Claim

January 12, 2015 — Christopher G. Hill – Construction Law Musings
A new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist. In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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