Seattle Washington Building Expert Directory

General Contractor/Developer May Not Rely on the Homeowner Protection Act to Avoid a Waiver of Consequential Damages in an AIA Contract

August 04, 2011 — Higgins, Hopkins, McLain & Roswell, LLC

Recently, in Caribou Ridge Homes, LLC v. Zero Energy, LLC, et al., Case No. 10CV1094, Boulder County District Court Judge Ingrid S. Bakke entered a ruling and order on the Plaintiff’s Motion for Determination of Question of Law Pursuant to C.R.C.P. 56(h) on Issue of Damages. The Order found that the Plaintiff was not a homeowner intended to be protected by the Homeowner Protection Act (the “HPA”) and thus could not pursue its claims for consequential damages against Defendant.

By way of background, on June 18, 2008, Plaintiff Caribou Ridge Homes, LLC (“Caribou”) entered into a Standard Form Agreement Between Owner and Contractor AIA Document A114-2001 (the “Contract”) with Defendant Zero Energy, LLC (“Zero Energy”). Plaintiff hired Zero Energy to serve as a general contractor for the construction of a single-family home in the Caribou Ridge subdivision in Nederland, Colorado. A provision in the contract contained a mutual waiver of consequential damages (“Waiver”).

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Reprinted courtesy Higgins, Hopkins, McLain & Roswell, LLC

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Home Builders and Developers Beware: SC Supreme Court Beats Up Hybrid Arbitration Clauses Mercilessly

November 15, 2022 — Matthew Devries - Best Practices Construction Law
Today’s guest post is by one of my favorite construction lawyers and friends, Burr partner Ned Nicholson in our Columbia, SC office. Ned regularly represents clients in construction defect and compensation claims, manufacturer/dealer disputes, and insurance coverage lawsuits. He is also a South Carolina certified mediator. Ned can be reached at nnicholson@burr.com or (803) 799-9800. If you are a homebuilder, residential housing developer, construction industry insurer, or any one of the many participants in the industry providing affordable and decent housing for the citizens of South Carolina, you are already aware that South Carolina courts have for decades prioritized the promotion of consumer (i.e., home buyer) rights, usually at the expense of the providers of housing. There is nothing inherently wrong with that; the goal is laudable. But as in so many things, the implementation has been extremely costly for the residential construction industry as a savvy plaintiff’s bar has taken advantage of grey areas that are inevitably created in our judicial system. Read the court decision
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Reprinted courtesy of Matthew Devries, Burr & Forman LLP
Mr. Devries may be contacted at mdevries@burr.com

Render Unto Caesar: Considerations for Returning Withheld Sums

January 18, 2021 — William E. Underwood Partner, Jones Walker LLP - ConsensusDocs
Withholding sums during a dispute can be an effective and perfectly legitimate means to protect against the harms caused by another party’s breach. However, withholding too much money during a dispute can turn a position of strength into one of weakness. “Why should I fund the other side’s litigation war chest?” and “Isn’t this just a display of weakness?” are common questions raised by contractors when this issue is discussed. Often, the contractor is well within its contractual or legal rights to withhold money from a breaching subcontractor (another topic for another day). But it may not always be in a contractor’s best interest to withhold every single penny available. This article addresses some of the long-term implications for failing to return withheld sums, including the potential to recover attorneys’ fees, possible bad faith, accruing interest, and overall litigation costs. Admittedly, it can be hard to give money back in the middle of a dispute. But sometimes it can positively impact the overall outcome of the case. Read the court decision
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Reprinted courtesy of William E. Underwood, Jones Walker LLP (ConsensusDocs)
Mr. Underwood may be contacted at wunderwood@joneswalker.com

Real Estate & Construction News Roundup (9/4/24) – DOJ Sues RealPage, Housing Sales Increase and U.S. Can’t Build Homes Fast Enough

October 07, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, environmental regulations tighten for commercial properties, Wells Fargo sells most of its commercial mortgage services business, first-time home buyers struggle with housing affordability, and more!

The U.S. Department of Justice announced that it is suing the real estate company RealPage, saying it engaged in a price-fixing scheme to drive up rents. (Jennifer Ludden, NPR)
As environmental regulations for commercial buildings and properties tighten across the U.S., green leases and technologies offer owners and operators opportunities to reduce their portfolios’ carbon footprints, generate cost savings and further align with ESG goals. (Nish Amarnath, Construction Dive)
Wells Fargo & Co. agreed to sell most of its commercial mortgage servicing business to Trimont LLC, ceding the title of biggest US commercial and multifamily mortgage servicer to the Atlanta-based firm. (Hannah Levitt and Scott Carpenter, Yahoo)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Nondelegable Duty of Care Owed to Third Persons

May 29, 2023 — David Adelstein - Florida Construction Legal Updates
Although a personal injury case, the recent opinion in Garcia v. Southern Cleaning Service, Inc., 48 Fla.L.Weekly D977a (Fla. 1stDCA 2023) raises an interesting issue regarding nondelegable duties owed to third persons applicable in negligence actions. Remember, in order for there to be a negligence claim, the defendant MUST owe a duty of care to the plaintiff. No duty, no negligence claim. What if a defendant’s duty was delegated to, say, an independent contractor?

[A] party that hires an independent contractor may be liable for the contractor’s negligence where a nondelegable duty is involved. Such a duty may be imposed by statute, contract, or the common law. In determining whether a duty is nondelegable, the question is whether the responsibility at issue is so important to the community that an employer should not be allowed to transfer it to a third party. Garcia, supra, (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Netflix Plans $900M Facility At Former New Jersey Army Base

January 23, 2023 — The Associated Press (Wayne Parry) - Bloomberg
(AP) -- Netflix said Wednesday it plans to build a state-of-the-art production facility at a former Army base at the Jersey Shore that will cost more than $900 million, and create thousands of jobs. The subscription video streaming company will pay $55 million for a 292-acre site on the former Fort Monmouth military base in Eatontown and Oceanport. The California-based company plans an additional $848 million worth of investments in 12 sound stages and for other uses related to the film industry. “We’re thrilled to continue and expand our significant investment in New Jersey and North America,” said Ted Sarandos, the company's co-CEO and chief content officer. “We believe a Netflix studio can boost the local and state economy with thousands of new jobs and billions in economic output, while sparking a vibrant production ecosystem in New Jersey.” Read the court decision
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Reprinted courtesy of Bloomberg

WSHB Expands to Philadelphia

July 28, 2016 — Beverley BevenFlorez-CDJ STAFF
Wood Smith Henning & Berman LLP (WSHB) announced “the opening of its newest regional office at One Liberty Place, 1650 Market Street, 36th Floor, Philadelphia, Pennsylvania 19103,” according to a press release. Elizabeth Chalik will be the managing partner at the new location. Chalik is “a highly regarded litigator with close to 15 years of trial experience” and her practice has focused on products liability, casualty, toxic tort and transportation litigation. Furthermore, Chalik is admitted to practice law in both New Jersey and Pennsylvania. “It is fitting that as we celebrate WSHB’s 19th year, we are opening our 19th office,” said Daniel Berman, Firm Chairman and Co-founder. “With this expansion, we continue our pattern of strategic long term growth. That, coupled with Liz’s proven track record and many years in Philadelphia, further expands our ability to better serve our clients in the Northeast.” Chalik has been recognized on the Super Lawyers List of Rising Stars for three years running. “I am thrilled to be joining Wood Smith Henning & Berman. WSHB’s long-standing reputation and dedication to their clients drew me to them and I knew that this would be the right place for me,” said Chalik. “I could not be more excited about the opportunity to manage WSHB’s new Philadelphia office!” WSHB also has offices located in Connecticut, Denver, Fresno, Glendale, Las Vegas, Los Angeles, Miami, New Jersey, New York, Northern California, Orange County, Phoenix, Portland, Rancho Cucamonga, Riverside, San Diego, Seattle and Tampa. Read the court decision
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Florida Court Puts the Claim of Landlord’s Insurer In The No-Fly Zone

March 06, 2023 — William L. Doerler - The Subrogation Strategist
In United States Aviation Underwriters v. Turnberry Airport Holdings, LLC, No. 3D22-270, 2023 Fla. App. LEXIS 1207 (U.S. Aviation), the Court of Appeal of Florida, Third District (Appellate Court) considered whether the insurer for a commercial landlord could pursue subrogation against the landlord’s tenant. Based on the terms of the lease between the landlord and the tenant, the Appellate Court held that the landlord’s insurer could not pursue subrogation. In U.S. Aviation, the defendant, Turnberry Airport Holdings, LLC (Turnberry Airport) leased space to an insured aircraft owner. The lease contained the following provision: TENANT agrees that all policies of insurance obtained by it in connection with the Space or as required hereunder shall contain appropriate waiver of subrogation clauses. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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