SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Insurance Client Alert: Denial of Summary Judgment Does Not Automatically Establish Duty to Defend

January 28, 2015 — Valerie A. Moore and Christopher Kendrick – Haight Brown & Bonesteel LLP
In McMillin Companies v. American Safety Indemnity (No. D063586, filed 1/20/15), a California appeals court ruled that an insurer's loss of a summary judgment motion on the duty to defend does not necessarily establish that a duty to defend existed. McMillin was the general contractor for a series of residential construction projects, sued in a construction defect action brought by 117 homeowners. McMillin tendered its defense to its subcontractors' insurers, including American Safety (ASIC), claiming status as an additional insured (AI). ASIC denied the tender. McMillin sued ASIC and other insurers alleging breach of contract and bad faith for the failure to defend McMillin as an additional insured. Eventually, all of the other insurers settled, leaving ASIC as the sole defendant. ASIC moved for summary judgment, but the trial court denied the motion, ruling that ASIC had failed to carry its burden of disproving coverage under a blanket additional insured endorsement in the policy. Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Christopher Kendrick, Haight Brown & Bonesteel LLP Ms. Moore may be contacted at vmoore@hbblaw.com, Mr. Kendrick may be contacted at ckendrick@hbblaw.com Read the court decision
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Manhattan Trophy Home Sellers Test Buyer Limits on Price

February 14, 2014 — Oshrat Carmiel – Bloomberg
Broker Alon Chadad’s client purchased a $14.3 million apartment on Manhattan’s Central Park South, then spent nine months seeking approval for plans to overhaul it. In January, the buyer changed course, listing the unit for sale at more than double what he paid just a year ago. “He filed all the documents for renovation and he was ready to go and he decided, ‘You know what? I see opportunity in the market,’” said Chadad, co-founder of Blu Realty Group and the agent for the 6,160-square-foot (572-square-meter) condominium, which has an asking price of $29.5 million. Luxury-apartment owners in New York are listing a record amount of properties for sale, testing the upper limits of what buyers are willing to pay even as median prices remain off their peak set almost six years ago. Sellers have taken notice of a handful of record-shattering deals, triggered by an $88 million purchase at 15 Central Park West, and demand for trophy homes by international investors seeking havens for their cash. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

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Developer Transition - Maryland Condominiums

June 21, 2017 — Nicholas D. Cowie - Maryland Condo Construction Defect Law Blog
INTRODUCTION “Developer transition” is the process by which the governance of a condominium association is transferred from developer to unit owner control. This article provides a brief overview of the legal requirements that govern the developer transition process for Maryland condominiums. This article also as well as a “transition checklist” for transitioning unit owner-controlled boards of directors. PERIOD OF DEVELOPER CONTROL A developer initially controls an association because it owns all unsold units in the newly created condominium community. As such, the developer has the controlling votes associated with majority ownership and can appoint its own employees as the initial members of the board of directors and thereby control how the condominium association conducts its affairs. This is referred to as the “period of developer control,” during which the developer makes all decisions on behalf of the association. The developer also creates an association’s governing documents, allowing it to dictate, subject to applicable law, the procedures and time periods under which control over the association’s board of directors will eventually be transferred to the homeowners. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie & Mott, P.A.
Mr. Cowie may be contacted at ndc@cowiemott.com

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Taylor Morrison v. Terracon and the Homeowner Protection Act of 2007

June 11, 2014 — Buck Mann – Colorado Construction Litigation
On January 30, 2014, the Colorado Court of Appeals decided the case of Taylor Morrison of Colorado, Inc. v. Bemas Construction, Inc. and Terracon Consultants, Inc. 2014WL323490. The case addressed a substantial issue of Colorado constitutional law, as well as a variety of procedural issues of potential importance to construction litigation attorneys. Of particular interest is the question of whether the provisions of the 2007 Homeowner Protection Act (“HPA”) are limited in application to contracts between residential homeowners and construction professionals, or whether they have broader application between commercial construction professional parties as well. As discussed below, the Court of Appeals stated that it would not answer the question, and then, separately, implied that the statute might only apply to homeowner transactions – with the resulting exclusion of commercial transactions. However, after its analysis, it left the actual decision of that issue to a future court in a later case. The factual background for the case involved claims of breach of a contract for soils engineering by Terracon Consultants, Inc. (“Terracon”) and negligent excavation work by Bemas Construction, Inc. (“Bemas”). Plaintiff was Taylor Morrison of Colorado (“Taylor Morrison”), the developer and general contractor for a residential subdivision called Homestead Hills. After it constructed many homes, Taylor Morrison began to receive complaints of cracking drywall resulting from foundation movement and it made repairs at significant expense. Taylor Morrison then filed suit against Terracon and Bemas in connection with their respective roles in the original construction. Read the court decision
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Reprinted courtesy of Buck Mann, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Mann may be contacted at mann@hhmrlaw.com

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California Fire Lawyers File Suit Against PG&E on Behalf of More Than 50 Wildfire Victims

November 15, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Digital Journal reports that the California fire lawyers are comprised of four law firms, Baron & Budd, Singleton Law Firm, Dixon Diab & Chambers LLP, and Thornes Bartolotta McGuire. These firms filed suit against PG&E (Pacific Gas and Electric Company) on October 27th alleging that the brutal wildfires that swept through Northern California started when electrical infrastructure encountered vegetation. According to Digital Journal, more than 50 plaintiffs are being represented in this case who endured damages including “wrongful death, personal injuries, damage to or destruction of property, loss of cherished possessions, medical bills, evacuation expenses and lost wages.” John Fiske, an attorney at Baron & Budd stated, “through our team’s investigation to date, we believe that PG&E may have played a role in causing these fires.” Holding PG&E accountable for the 40 people killed, 8,400 structures destroyed, and 210,000 acres burned is their goal. Read the court decision
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Ahlers & Cressman’s Top 10 Construction Industry Contract Provisions

July 02, 2014 — Beverley BevenFlorez-CDJ STAFF
James R. Lynch of Ahlers & Cressman, PLLC, has published the first two parts of the four-part “Top 10 Construction Contract Provisions” series: “As a powerful mechanism to control contract risk, increase predictability, and reduce the cost and complexity of potential disputes, we frequently recommend that our clients’ contracts include a mutual waiver of consequential damages.” The first part “explains the significance of such a clause and the risk a contractor assumes without it,” while the second part discusses “the various categories of damages flowing from a breach of contract and conclude[s] with examples of how parties can limit these damages to reflect their agreed allocation of risk.” Read the full story, Part 1... Read the full story, Part 2... Read the court decision
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Supreme Court Rejects “Wholly Groundless” Exception to Question of Arbitrability

February 06, 2019 — Justin Fortescue - White and Williams LLP
In newly appointed Supreme Court Justice Brett Kavanaugh’s first opinion, the United States Supreme Court held that the “wholly groundless” exception to arbitrability, which some federal courts had relied on as justification to decide questions of arbitrability over the express terms of a contract, was inconsistent with the Federal Arbitration Act and Supreme Court precedent. Based on this decision, where a contract delegates the question of arbitrability to an arbitrator, courts must respect the parties’ contract and refer the question to the arbitrator. Schein v. Archer & White, 586 U.S. __ (2019). In Schein, Archer & White brought a lawsuit against Henry Schein alleging violations of federal and state antitrust laws and seeking both monetary damages and injunctive relief. The relevant contract between the parties contained an arbitration provision that provided:

“Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief . . .) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association.”

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Reprinted courtesy of Justin Fortescue, White and Williams LLP
Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com

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Just Because I May Be An “Expert” Does Not Mean I Am Giving Expert Testimony

January 17, 2022 — David Adelstein - Florida Construction Legal Updates
On a construction project, it’s hard to argue that the involved parties — whether an architect, engineer, contractor, subcontractor, developer, etc. — are not experts in their field, i.e., they all some scientific, technical, or specialized knowledge or skill particular to their industry. However, this does NOT mean when they testify in trial, at an arbitration, or at a deposition regarding the construction project they are offering expert opinions / testimony as it pertains to that project. Testifying as to facts based on personal knowledge or involvement on a project makes you a fact witness and is different than evaluating and rending an after-the-fact opinion as to the work of others. This does not minimize your knowledge or expertise; it simply means that relative to the construction project you are involved with, your testimony is that of a fact witness and not of an expert. (It is possible to wear both the fact witness and expert witness hat, but that depends on your subsequent role in the litigation or arbitration.) 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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