SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Contractor Removed from Site for Lack of Insurance

October 28, 2011 — CDJ STAFF

The MetroWest Daily News reports that a demolition firm was told to leave the construction site at Natick High School since their failure to have workers compensation insurance makes them unable to work on the project. The contractor, Atlantic Dismantling and Site Construction, Inc. may have been working illegally since September.

The equipment that Atlantic had rented for the job was repossessed in August. Brait Builders Corp, the general contractor for the site had rented equipment so Atlantic could continue their work.

Their lack of insurance was discovered when a worker had a minor job-related injury. The state had issued a stop-work order for the firm and they could not legally bid on public projects. The school system did not receive any notice of this, and the school’s facilities director said of the general contractor, “chances are Brait never heard of anything either.”

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Congratulations to Nine Gibbs Giden Partners Selected to the 2023 Southern California Super Lawyers List

January 23, 2023 — Gibbs Giden Locher Turner Senet & Wittbrodt, LLP
Nine Gibbs Giden partners have been selected to the 2023 Southern California Super Lawyers list for the third year in a row! Congratulations to partners Jason Adams Barbara Gadbois Sara Kornblatt William Locher Christopher Ng (Managing Partner) Glenn Turner, III Ted Senet Richard Wittbrodt Philip Zvonicek Read the court decision
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Guarantor’s Liability on Partially Secured Debts – The Impacts of Pay Down Provisions in Serpanok Construction Inc. v. Point Ruston, LLC et al.

October 24, 2021 — Margarita Kutsin - Ahlers Cressman & Sleight
In Serpanok Construction, Inc. v. Point Ruston, LLC, Division Two of the Washington Court of Appeals decided an issue of first impression in Washington—whether a guarantor of a partially secured debt remains liable until the last dollar of the entire debt is paid off. After examining cases from other jurisdictions, the court held that that a guarantor is liable until the underlying debt is paid in full unless the agreement contains an express pay down provision. A pay down provision sets forth the guarantor’s right to reduce its obligation to the extent of any payment toward the debt, and it establishes that the guaranty applies only until an amount equivalent to the guaranteed amount is paid off. The Serpanok decision addressed several other issues, but the published portion of this part-published case focused on whether an entity involved in a real estate development, Point Ruston LLC, was discharged from its guaranty obligation following a foreclosure sale where the proceeds did not cover the entire debt owed to a subcontractor. Point Ruston LLC, Point Ruston Phase II LLC (“Phase II”), and Century Condominiums (“Century”) were affiliated entities (collectively “Point Ruston parties”) that constructed retail and residential structures on a site in Point Ruston. Serpanok Construction Inc. (“Serpanok”) entered into subcontract agreements with Phase II and Century to perform concrete and steel work on a parking garage and movie theater for the project. Point Ruston LLC was not a party to either subcontract. Read the court decision
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Reprinted courtesy of Margarita Kutsin, Ahlers Cressman & Sleight
Ms. Kutsin may be contacted at margarita.kutsin@acslawyers.com

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Catch 22: “If You’re Moving Dirt, You Need to Control Your Dust” (But Don’t Use Potable Water!)

February 18, 2015 — Stephen McKae – California Construction Law Blog
Returning from an Oregon vacation this past Summer along I-5, I found frequent reminders of the extraordinary drought conditions prevailing across California. A grey smoky gloom blanketed the California-Oregon border from Ashland to Weed from at least five wildfires. The prediction of rains in the north state was more curse than blessing as lightning threatened to touch off tender-dry fuel in the forests and start more fires. Farmers tilling fields produced massive dust clouds. And under the I-5 bridge along the Sacramento River arm of Lake Shasta, the lake had receded to the original streambed. On NOAA’s Palmer Drought Severity Index, nearly all of California is listed as in a condition of extreme or severe drought, and the Governor has issued a Proclamation of Continued State of Emergency requiring water conservation measures affecting all California residents. Indeed, early August news reports indicate that hopes of relief from an El Nĩno year are waning. The State Water Resources Control Board’s Emergency Regulation No. 2014 issued July 15 mandates action to reduce water use and require larger water suppliers to activate their Water Shortage Contingency Plan. The emergency regulation will remain in effect until April 25, 2015 unless extended due to ongoing drought conditions. Read the court decision
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Reprinted courtesy of Stephen McKae, Wendel Rosen Black & Dean LLP
Mr. McKae may be contacted at smckae@wendel.com

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Arizona Supreme Court Clarifies Area Variance Standard; Property Owners May Obtain an Area Variance When Special Circumstances Existed at Purchase

October 19, 2017 — Nick Wood, Adam Lang, Noel Griemsmann, & Brianna Long – Snell & Wilmer Real Estate Litigation Blog
In Pawn 1st v. City of Phoenix, the Arizona Supreme Court rejected a Court of Appeals rule that would have unduly restrained alienation of property in Arizona. The Court of Appeals found that the City of Phoenix Board of Adjustment acted beyond its authority when it granted an area variance to a pawn shop where the special circumstances causing a need for the variance existed before the pawn shop purchased the property. Under Arizona law, boards of adjustment cannot grant an area variance where the special circumstances requiring the variance are self-imposed. The Court of Appeals adopted a rule that knowledge of special circumstances at the time of purchase made the special circumstances self-imposed, foreclosing the purchaser’s ability to obtain a variance. This rule would have severely restricted property purchasers’ ability to obtain area variances in Arizona and by extension likely strained property transactions. The underlying case involved a pawn shop that was proposed in southeast Phoenix. After the property purchaser obtained approval for a required use permit (for a pawn shop) and a variance (for a 500 foot residential setback) from the City of Phoenix Board of Adjustment, a competing pawn shop filed a special action arguing that the variance was a use variance, not an area variance, beyond the board of adjustment’s authority. Reprinted courtesy of Snell & Wilmer attorneys Nick Wood, Adam Lang, Noel Griemsmann and Brianna Long Mr. Wood may be contacted at nwood@swlaw.com Mr. Lang may be contacted at alang@swlaw.com Mr. Noel may be contacted at ngriemsmann@swlaw.com Ms. Brianna may be contacted at bllong@swlaw.com Read the court decision
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Court Rejects Anti-SLAPP Motion in Construction Defect Suit

September 01, 2011 — CDJ STAFF

The California Court of Appeals has upheld the denial of an anti-SLAPP motion in Claredon American Insurance Company v. Bishop, Barry, Howe, Haney & Ryder. This case was triggered by a water intrusion problem at a condominium complex, the Terraces at Emerystation, built and sold by Wareham Development Corporation. The insurer, Claredon, retained Risk Enterprise Management as the third party claims administrator. REM retained the law firm Bishop, Barry, Howe, Haney & Ryder. The construction defect case was settled in 2007 and the condo owners moved back by early 2008.

Due to issues with the claims settlement, Claredon filed against REM for “professional negligence, indemnity, apportionment and contribution,” with a cross-complaint that the cross-defendants negligently defended the developer, Wareham.

In response, the cross-defendants filed a motion to strike the cross-complaint under the anti-SLAPP statute. The trial court denied this motion and now this has been upheld by the appeals court.

The court noted that “The fundamental thrust of the cross-complaint is not protected litigation-related speech and petitioning activity undertaken on another’s behalf in a judicial proceeding.”

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Commentary: How to Limit COVID-19 Related Legal Claims

January 11, 2021 — Joshua Lindsay, Crowell & Moring & Meagan Bachman, Crowell & Moring - ENR
We are 10 months into the global pandemic. Given the magnitude of additional costs and upended expectations and risk-allocation, we foresee a wave of disputes coming soon. Whether it is large or small depends heavily on how well project team members handle the COVID-19 project impacts now. Reprinted courtesy of Joshua Lindsay, Crowell & Moring (ENR) and Meagan Bachman, Crowell & Moring (ENR) Ms. Bachman may be contacted at mbachman@crowell.com Mr. Lindsay may be contacted at joshlindsay@crowell.com Read the full story... Read the court decision
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Manhattan Luxury Condos Sit on Market While Foreign Buyers Wait

January 21, 2015 — Prashant Gopal, Oshrat Carmiel and John Gittelsohn – Bloomberg
Manhattan real estate agent Lisa Gustin listed a four-bedroom Tribeca loft for $7.45 million in October, expecting a quick sale. Instead, she cut the price this month by $550,000. “I thought for sure a foreign buyer would come in,” said Gustin, a broker at Brown Harris Stevens who is still marketing the 3,800-square-foot (353-square-meter) apartment at 195 Hudson St. “So many new condos are coming up right now. They’ve been building them for the past few years and now they’re really hurting the resales.” Mr. Gopal may be contacted at pgopal2@bloomberg.net; Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Reprinted courtesy of Prashant Gopal, Oshrat Carmiel and John Gittelsohn, Bloomberg

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