Seattle Washington Building Expert Directory

Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose

May 11, 2020 — Rahul Gogineni - The Subrogation Strategist
As discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose. For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat. § 558.004(d). Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

Shoring of Ceiling Does Not Constitute Collapse Under Policy's Definition

November 12, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Despite the need to shore up the ceiling, the building was not in a state of collapse under the language of the policy. Ravinia Vouge Cleaners v. Travelers Cas. Ins. Co. of Am., 2019 U.S. Dist. LEXIS 123594 (N.D. Ill. July 24, 2019). Ravinia Cleaners held a property policy issued by Travelers for the building from which it operated its dry-cleaning business. On February 2, 2015, there was heavy snowfall. On February 4, Ravinia reported to Travelers a leak coming from the ceiling. A temporary "shoring " was placed on the ceiling. Ravinia reported to Travelers that there was damage to the roof on February 25, 2015. Travelers hired an engineer who observed a buckling truss and roof displacing downward. The inspector recommended that the building be vacated and not occupied until adequate shoring was in place. Travelers denied coverage because the building was in a state of imminent collapse which was caused by the weight of ice and snow, and defective construction of the truss system. The policy excluded damage relating to a "collapse of a building." Collapse was defined by the policy as "an abrupt falling down or caving in of a building or any part of a building," such that the building could not be occupied for its intended purpose. There were exceptions to the exclusion, however, if the cause of the collapse was: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred after construction. The policy also excluded damage from a building being in a state of imminent collapse unless the damage was caused by: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred during construction. 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

New York Assembly Reconsiders ‘Bad Faith’ Bill

May 31, 2021 — Copernicus T. Gaza, Robert S. Nobel, Craig Rokuson, Eric D. Suben - Traub Lieberman
The New York State Assembly is considering A07285, which creates a private right of action for bad faith “if the insurer unreasonably refuses to pay or unreasonably delays payment without substantial justification.” The bill was first introduced in 2013 but was reintroduced on May 3, 2021 and has received some recent attention. According to the bill, an insurer acts unreasonably when it (among other things):

Fails to provide the claimant with accurate information regarding policy provisions relating to the coverage at issue; or
Fails to effectuate in good faith a prompt, fair, and equitable settlement of a claim or portion of a claim and where the insurer failed to reasonably accord at least equal or more favorable consideration to its insured's interests as it did to its own interests, and thereby exposed the insured to a judgment in excess of the policy limits or caused other damage to a claimant; or
Fails to provide a timely written denial of a claimant's claim, or portion thereof, with a full and complete explanation of such denial, including references to specific policy provisions wherever possible; or
Fails to act in good faith by compelling such claimant to initiate a lawsuit to recover under the policy by offering substantially less than the amounts ultimately recovered in such suit; or
Fails to timely provide, on request of the policy holder or the policy holder's representative, all reports or other documentation arising from the investigation of a claim; or
Refuses to pay a claim without conducting a reasonable investigation prior to such refusal.

Reprinted courtesy of Copernicus T. Gaza, Traub Lieberman, Robert S. Nobel, Traub Lieberman, Craig Rokuson, Traub Lieberman and Eric D. Suben, Traub Lieberman Mr. Gaza may be contacted at cgaza@tlsslaw.com Mr. Nobel may be contacted at rnobel@tlsslaw.com Mr. Rokuson may be contacted at crokuson@tlsslaw.com Mr. Suben may be contacted at esuben@tlsslaw.com Read the court decision
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Real Estate & Construction News Roundup (1/30/24) – Life Science Construction to Increase, Overall Homeownership Is Majority Female, and Senators Urge Fed Chair to Lower Interest Rates

February 26, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, hospitality and real estate companies create living options, SEC questions some financial institutions on exposure to risks from CRE, renting shows signs of overtaking buying in the housing market, and more!

For generations, buying has almost always been favored over renting when it comes to housing, but with a tough real estate market, that might be changing. (Geoff Bennett and Dorothy Hastings, PBS)
Single women own more homes than single men, and overall homeownership is now majority female. (Brianna Crane and Alice Feng, Axios)
The SEC is asking smaller financial institutions, including community and regional banks, about their exposure to risks from commercial real estate in their loan portfolios. (S.J. Steinhardt, The New York State Society of CPAs)

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

Business Risk Exclusions Bar Coverage for Construction Defect Claims

August 27, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014). The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable. The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for 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

Contractors Sued for Slip

June 28, 2013 — CDJ STAFF
A man on his way to a safety meeting slipped fell on a gangway. He’s saying that the roofing paper on the gangway was improperly secured and is now suing the contractor for negligence. Donald Methvien claims that his damages exceed $50,000. Read the court decision
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Open & Known Hazards Under the Kinsman Exception to Privette

February 15, 2018 — Frances Ma & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP Publications & Insights
Gonzalez v. Mathis, 2018 WL 718528 confirms the difficulties a defendant will face when trying to overcome the Kinsman exception to the Privette doctrine on a dispositive motion when dealing with an open and obvious hazard. There, a professional window washer fell off a roof while walking along a parapet wall constructed by the owner of a home. The window washer filed suit against the homeowner and alleged three dangerous conditions on the roof: (1) the parapet wall forced those who needed to access a skylight to walk along an exposed two-foot ledge that lacked a safety railing; (2) dilapidated and slippery roof shingles; and (3) the lack of tie off points that would allow maintenance workers to secure themselves with ropes or harnesses. The homeowner filed a motion for summary judgment under Privette v. Superior Court (1993) 5 Cal.4th 689 and its progeny which prohibits an independent contractor from suing his or her hirer for workplace injuries (“Privette doctrine”). There are two exceptions to the Privette doctrine. First, a hirer cannot avoid liability when he or she exercises control over the manner and means in which a contractor does his or her work and that control contributes to the injuries sustained – known as the “Hooker exception” (premised on the holding of Hooker v. Department of Transportation (2002) 27 Cal.4th 198). Second, a hirer may be found liable if he or she fails to warn the contractor of a concealed hazard on the premises – known as the “Kinsman exception” (premised on the holding of Kinsman v. Unocal Corp. (2005)). Reprinted courtesy of Frances Ma, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Ma may be contacted at fma@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Caveat Emptor (“Buyer Beware!”) Exceptions

May 10, 2021 — David Adelstein - Florida Construction Legal Updates
There is value to a seller when it comes to entering into an as-is transaction and stating that the seller has NOT made any representation or warranty, all such representations or warranties are disclaimed, the buyer is NOT relying on any representation of the seller, and that the buyer is relying on its own inspection of the property. This shifts the onus to the buyer to undertake the inspection or due diligence it needs to take relating to the property it wants to buy. With respect to commercial property transactions:

The doctrine of caveat emptor, which Florida courts continue to apply, “places the duty to examine and judge the value and condition of the property solely on the buyer and protects the seller from liability for any defects.” There are, however, three exceptions to this doctrine, including: “1) where some artifice or trick has been employed to prevent the purchaser from making independent inquiry; 2) where the other party does not have equal opportunity to become apprised of the fact; and, 3) where a party undertakes to disclose facts and fails to disclose the whole truth.” Florida Holding 4800, LLC v. Lauderhill Mall Investment, LLC, 46 Fla. L. Weekly D785b (Fla. 4th DCA 2021).

These three exceptions to caveat emptor, or the doctrine of buyer beware, are not easy to prove because it places a burden on a buyer to prove an active effort from the seller to conceal a material fact to skirt around the as-is language. Again, this is not an easy burden to prove. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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