Seattle Washington Building Expert Directory

Arbitration Clause Found Ambiguous in Construction Defect Case

October 28, 2011 — CDJ STAFF

The California Court of Appeals ruled on September 28 in the case of Burch v. Premier Homes. Ms. Burch bought a home after negotiating various addendums to the contract. The contract was a standard California Association of Realtors contract to which both the buyer and seller made additions. At issue in this case was paragraph 17 of the contract which included that “Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration.”

The seller/defendant’s Addendum 2 “included provisions relating to the arbitration of disputes that may arise.” Ms. Burch’s realtor, Lisa Morrin, told Burch that “she had never seen a proposed contractual provision that would require a home buyer to agree to arbitrate with a builder over construction defects.” Ms. Burch told Morrin that she did not want to buy the property if she would have to give up her rights under California law.

As part of Addendum 2, the buyer had to buy a warranty from the Home Buyers Warranty Corporation. The sale was held up for a while, as Ms. Burch waited for a copy of the warranty. When she received it, she took further exception to Addendum 2. Scott Warren of Premier Homes said he could not sell the property without Addendum 2. Ms. Burch told her realtor that despite the claims made by Mr. Warren that this was for her benefit, she felt it was more to the benefit of Premier Homes. Don Aberbrook of HBW agreed to the clause, contained in the final sentence of Addendum 2, being struck.

Subsequent to buying the home, Burch submitted a claim concerning construction defects. HBW denied the claim and Burch began an action against the defendants. Premier filed a motion to compel arbitration which Burch opposed.

The trial court ruled that the striking out of the arbitration clause at the end of Addendum 2 “created a conflict with respect to the parties’ intent as to the scope of arbitration.” The trial court found that “the parties’ intention was to preserve Burch’s right to make state law claims including her right to a jury trial for any non-warranty claims against the builder.”

The appeals court in their ruling looked at the standard of review and concluded that the purchase agreement was ambiguous and that extrinsic evidence was required to resolve that ambiguity. As the contract contained contradictory provisions as to whether or not arbitration was required, it was necessary for the trial court to examine these claims. The appeals court found that the evidence supported the conclusions of the trial court.

Finally, the appeals court found that “there was no valid agreement to arbitrate disputes.” The court noted that arbitration can only happen by mutual consent and “it is clear that Burch did not enter into an agreement to arbitrate any construction defect disputes she might have.”

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Nine ACS Lawyers Recognized as Super Lawyers

August 15, 2022 — Cassidy Ingram - Ahlers Cressman & Sleight
ACS is very honored and pleased to announce nine members of our firm were awarded the distinction of top attorneys in Washington. Our blog articles usually cover Construction Legal News, but we feel this is a newsworthy accolade to be shared with friends and clients. To become candidates to receiving the Super Lawyer nomination, lawyers are nominated by a peer or identified by research. After completing this first step in the process, Super Lawyers’ research department analyzes 12 indicators, such as experience, honors/awards, verdicts/settlements, and others. As for the third step, there is a peer evaluation by practice area. Finally, for step four, candidates are grouped into four firm-size categories. In other words, solo and small firm lawyers are compared only with other solo and small firm lawyers, and large firm lawyers are compared with other large firm lawyers. The process is very selective and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers. Read the court decision
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Reprinted courtesy of Cassidy Ingram, Ahlers Cressman & Sleight
Ms. Ingram may be contacted at cassidy.ingram@acslawyers.com

No Repeal Process for Rejected Superstorm Sandy Grant Applications

February 12, 2014 — Beverley BevenFlorez-CDJ STAFF
Even though it’s been revealed that “faulty data” was used to reject many New Jersey recovery grants for victims of Superstorm Sandy, the state has announced that it’s too late to appeal, according to The Wall Street Journal. “The applicants were informed by letter that they weren't eligible,” state officials told The Wall Street Journal, “and it should have been clear that they needed to appeal last year, so the application process won't be reopened.” The majority of the rejected applicants that did appeal within the open period were found to be eligible for the grant: “Nearly 80% of people who appealed their rejections ended up winning their cases, according to data released by the Fair Share Housing Center, a public-interest law firm critical of the Christie administration. And of the 8,007 applicants rejected from both programs, 5,583 didn't appeal, or 70%, according to Fair Share Housing Center's analysis.” U.S. Representative Bill Pascrell called for “an independent monitor” to be “appointed to oversee the state’s storm spending ‘to ensure there isn’t further mismanagement.’” Read the court decision
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Governor Inslee’s Recent Vaccination Mandate Applies to Many Construction Contractors and their Workers

September 13, 2021 — Brett M. Hill - Ahlers Cressman & Sleight PLLC
This month Governor Jay Inslee enacted COVID vaccination requirements that apply to certain construction contractors and their workers in Washington state. Inslee’s vaccine proclamation becomes effective October 18, 2021 and requires construction contractors, subcontractors, and their workers to be fully vaccinated to perform work onsite on certain covered projects. The following are types of covered projects where the vaccine mandate applies:

State agencies: All contractors working at projects for Washington state agencies (including WSDOT, DES, DNR, etc.) if the work is required to be performed in person and onsite, regardless of the frequency or whether other workers are present. The vaccine mandate applies to indoor and outdoor settings and there is no exemption even if social distancing requirements can be met.
Education/Higher Education/Child Care: All contractors performing work onsite for K-12, higher education (community colleges, technical colleges, and 4-year universities), child care and other facilities where students or persons receiving services are present. New and unoccupied projects are exempt but it does apply to public and private projects.
Medical facilities: All contractors performing work at a “healthcare setting” where patients receiving care are present. “Healthcare setting” is defined as any public or private setting that is primarily used for the delivery of in-person health care services to people. “Healthcare setting” includes portions of a multi-use facility, but only the areas that are primarily used for the delivery of health care, such as a pharmacy within a grocery store. Additional information is on the state’s Q&A page.

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Reprinted courtesy of Brett M. Hill, Ahlers Cressman & Sleight PLLC
Mr. Hill may be contacted at brett.hill@acslawyers.com

Home Buyer Disclosures, What’s Required and What Isn’t

February 05, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Sandy Gadow of the Washington Post, while all states require a property disclosure statement, “the extent of what must be revealed can vary from state to state, county to county and even city to city.” Gadow stated that while, “Federal law requires certain disclosures, such as the existence of asbestos or lead-based paint in the home or other known health or safety risks. But the enforcement of other disclosures (such as reporting certain environmental conditions pertinent to the area, or the existence of Megan’s Law offenders) will be determined by local ordinance or law.” Gadow recommends home buyers go to their state’s Department of Real Estate to discover the Seller Disclosure requirements. Read the court decision
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Flawed Welding Faulted in Mexico City Subway Collapse

October 04, 2021 — Jim Parsons - Engineering News-Record
Faulty structural welds have been blamed for the deadly May 3 collapse of an elevated section of Mexico City’s Line 12 subway, according to a report issued Sept. 7 by Norwegian risk management firm DNV. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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How the Election Could Affect the Housing Industry: Steven Cvitanovic Authors Construction Today Article

October 07, 2016 — Steven M. Cvitanovic – Haight Brown & Bonesteel LLP
Though non-policy issues dominating the news cycle have set this presidential election apart, both Hillary Clinton and Donald Trump have recognized the importance of housing and infrastructure investment. In an article for Construction Today, Partner Steven Cvitanovic outlines several challenges facing the real estate development industry, and analyzes how Clinton and Trump might benefit or harm the industry. Read the court decision
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Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

FAA Plans Final Regulation on Commercial Drone Use by Mid-2016

June 17, 2015 — Rachel Adams-Heard and Alan Levin – Bloomberg
The Federal Aviation Administration intends to issue final regulations for operating small commercial drones by the middle of 2016, a top administrator told a U.S. House committee Wednesday. “The rule will be in place within the year,” FAA Deputy Administrator Michael Whitaker said at the House Oversight Committee hearing. He said, “hopefully before June 17, 2016.” While the FAA has previously said it was seeking to complete the rule as swiftly as possible, Whitaker’s comments in answering lawmakers’ questions are the most specific yet about timing. Reprinted courtesy of Rachel Adams-Heard, Bloomberg and Alan Levin, Bloomberg Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES