SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Fourth Circuit Finds Insurer Reservation of Rights Letters Inadequate to Preserve Coverage Defenses Under South Carolina Law

January 17, 2023 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Stoneledge at Lake Keowee Owners Ass'n v. Cincinnati Ins. Co., 2022 U.S. App. LEXIS 34292 (D.S.C. Dec. 13, 2022), the Fourth Circuit Court of Appeals addressed the adequacy of reservation of rights letters issued by Builders Mutual Insurance Company (“Builders Mutual”) and Cincinnati Insurance Company (“Cincinnati”) to their insureds, Marick Home Builders, LLC (“Marick”) and Rick Thoennes (“Thoennes”), Marick’s managing member, for an underlying construction defect lawsuit. In short, the Fourth Circuit found that the reservation letters were inadequate to preserve the insurers’ coverage defenses because they did not sufficiently explain the basis of the carriers’ position.  Stoneledge, a homeowners association, managed a community of 80 townhomes on South Carolina’s Lake Keowee. In 2009, Stoneledge brought suit against Marick and Thoennes, among other defendants, alleging construction defects in the townhomes that resulted in water intrusion and other physical damage. Marick and Thoennes held commercial general-liability policies through Cincinnati and Builders Mutual covering, in relevant part, “property damage” as defined by the policies. Builders Mutual issued policies covering the period from January 2004 to October 2007, and Cincinnati issued policies covering the period from April 2008 to April 2012. After Marick notified the insurers of the underlying action, Builders Mutual sent Marick two reservation of rights letters, one in May 2009 and one in July 2009. Cincinnati sent Marick one reservation of rights letter in March 2010. In March 2014, Stoneledge brought a declaratory-judgment action against Cincinnati seeking coverage for a judgment entered in the underlying action. The insurers removed the case to federal court, and in September 2016, Stoneledge amended its complaint, adding Builders Mutual as a defendant and seeking coverage for additional damages pursuant to a settlement agreement entered into by Stoneledge, Marick, Thoennes. The district court granted Stoneledge's motion for  summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage. The insurers appealed to the Fourth Circuit, which affirmed. Read the court decision
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Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

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Construction Spending Had Strongest Increase in Four Years

January 13, 2014 — CDJ STAFF
The Commerce Department announced a 1% gain in construction spending, from October to November, which is the biggest gain that construction has seen since March 2009, according to The Spokesman-Review. The gain brought construction spending to an adjusted annual rate of $934.4 billion. The Spokesman-Review further reports that residential construction rose 1.9% in November, while commercial construction rose 2.7%. Government construction, on the other hand, fell 1.8%. Read the court decision
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Meet the Forum's In-House Counsel: ERIN CANNON-WELLS

June 26, 2023 — Jessica Knox - The Dispute Resolver
Company: Keller North America, Inc. Email: ecannon@keller-na.com Website: https://www.keller-na.com/ Under Grad: University of Delaware (Bachelor of Civil Engineering 2000) Grad School: The University of Texas (Master of Civil Engineering 2002) Law School: Howard University (JD 2008) States Where Company Operates/Does Business: Throughout the US and Canada Q: Describe your background and the path you took to becoming in-house counsel. A: I studied civil engineering in undergrad and finally found my "calling" when I took a construction course, prompting me to pursue a master's in construction engineering. I started my career at Turner, holding various engineering positions, the last of which introduced me to the "contracting" side of construction. I was inspired to go to law school (in hopes of becoming an in-house lawyer there). After law school, I joined BigLaw, but maintained my desire to practice construction law. I then jumped to a small construction practice group at a mid-size firm, and the mentoring and experience there was everything I could hope for (but for the looming business development and billable hour requirements). From there, I became the sole in-house counsel for a large cement manufacturer and was a true construction generalist. Now I am part of a great legal team for a leading geotechnical specialty contractor. My moves were strategic, and I'm pleased to say that this is the very career I went to law school to have. Read the court decision
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Reprinted courtesy of Jessica Knox, Stinson LLP
Ms. Knox may be contacted at jessica.knox@stinson.com

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Mixed Reality for Construction: Applicability and Reality

July 22, 2019 — A. Vincent Vasquez - Construction Executive
One technology available to the digital contractor for mapping what’s happening in the physical world with the 3D models is mixed reality. Mixed reality often includes both augmented reality and virtual reality. Preconstruction Phase During the preconstruction design phase, mixed reality can be used for a number of tasks, such as:

• conducting design iterations;
• communicating designs to owners;
• visualizing the impact of design changes;
• discovering design and coordination clashes; and
• mocking up virtual interior designs.

Marketing Mixed reality can also be used to create marketing material, such as a virtual showroom. Imagine being able to show a potential client what the building will look like. For example, the client, wearing mixed-reality glasses, can see the physical neighborhood with the building or can take a virtual “walk” through of an apartment before it it is even completed. Reprinted courtesy of A. Vincent Vasquez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Construction Defect Reform Dies in Nevada Senate

May 10, 2013 — CDJ STAFF
Nevada’s SB161 has failed to move out of the Senate Judiciary Committee. The bill would have reduced the time in which homeowners could file suits and also would have forbidden the inclusion of attorney’s fees as damages. A similar bill remains active in the Nevada House. Read the court decision
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Alert: AAA Construction Industry Rules Update

June 07, 2021 — Christopher G. Hill - Construction Law Musings
The American Arbitration Association has made some needed updates to their Construction Industry Arbitration and Mediation Rules, effective July 1, 2015. Among the changes listed at their website are:

• A mediation step for all cases with claims of $100,000 or more (subject to the ability of any party to opt out).
• Consolidation and joinder time frames and filing requirements to streamline these increasingly involved issues in construction arbitrations.
• New preliminary hearing rules to provide more structure and organization to get the arbitration process on the right track from the beginning.
• Information exchange measures to give arbitrators a greater degree of control to limit the exchange of information, including electronic documents.
• Availability of emergency measures of protection in contracts that have been entered into on or after July 1, 2015.
• Enforcement power of the arbitrator to issue orders to parties that refuse to comply with the Rules or the arbitrator’s orders.
• Permissibility of dispositive motions to dispose of all or part of a claim or to narrow the issue in a claim.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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U.K. Construction Unexpectedly Strengthens for a Second Month

March 05, 2015 — Bloomberg News
(Bloomberg) -- U.K. construction growth unexpectedly accelerated for a second month in February, led by a strengthening in homebuilding. Markit Economics said its Purchasing Managers’ Index rose to 60.1, the highest in four months, from 59.1 in January. It fell to a 17-month low of 57.6 in December. Economists forecast the gauge would slip to 59 in February, according to the median estimate in a Bloomberg News survey. Read the court decision
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Reprinted courtesy of Bloomberg News
Scott Hamilton may be contacted at shamilton8@bloomberg.net

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Luxury Homes Push City’s Building Permits Past $7.5 Million

December 30, 2013 — CDJ STAFF
The city of Ardmore, Oklahoma is seeing a building boom with the total value of building permits issued by the city in November slightly exceeded $7.5 million, reports Ardmoreite.com. Most of that total comes from residential construction, with the bulk of it coming from just three homes. While Lance Windel Construction plans on building 46 homes, the top value of those homes will be $153,000. The total value for the homes being built by three other firms is more $6.4 million, and those contractors are building just one home each. Read the court decision
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