Seattle Washington Building Expert Directory

Two Years, Too Late: Time-Barred Hurricane Loss is Timely Reminder to Insureds

November 01, 2021 — Michael S. Levine & Yaniel Abreu - Hunton Insurance Recovery Blog
It happens every year. A clearly covered loss occurs and for one reason or another, the policyholder delays in notifying its insurer of the loss. Usually, the cause for the delay is innocent. It may even appear to be justified, such as where the insured prioritizes steps to save its property, inventory or assist dependent customers. But no matter the reason, insurers can be hard-lined in their refusal to accept an untimely claim. This is especially true in states that presume prejudice to the insurer, or where the insurer need not show prejudice at all. In LMP Holdings, Inc. v. Scottsdale Ins. Co., (Case No. 20-24099-CIV) (S.D. Fla.), a twenty‑seven month delay in notifying the insurer of damage from Hurricane Irma proved fatal to the claim. LMP owns a building in Miami, Florida insured under an all-risk commercial property policy issued by Scottsdale. On September 10, 2017, Hurricane Irma struck South Florida and caused extensive damage to LMP’s building, including punctures to the roof and water damage. LMP identified the damage shortly after the storm. Then, in 2018, LMP identified other storm-caused damage, including a water stain on the ceiling. It again identified additional storm damage in 2019. LMP submitted a claim to its insurer on December 10, 2019—about twenty-seven months after it first noticed the damage. Scottsdale agreed to inspect the property but reserved its rights to deny coverage based on late notice. On July 10, 2020, Scottsdale denied coverage for the damage to the property. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Will the Hidden Cracks in the Bay Bridge Cause Problems During an Earthquake?

June 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Despite a “no cracks” welding code and contract provision for the San Francisco-Oakland Bay Bridge, in 2008 Caltrans proceeded with the project despite welding cracks created by the Chinese firm hired to build the roadway, according to the Sacramento Bee. By the time the cracks had been discovered, the costs were at $6.5 billion and climbing, and fixing the cracks would be time-consuming and expensive. However, there is some dispute as to rather the welding “cracks represent a hazard to the traveling public.” “Examine history,” Brian Maroney, Caltrans’ chief engineer for the bridge, said in a recent interview by the Sacramento Bee. “… Caltrans reviewed major quakes around the globe and never found a case in which weld cracks caused bridge-roadway fractures.” However, the Sacramento Bee reported that there was a case where welding cracks led to fractures. For instance, after the southern California earthquake in 1994 centered in Northridge, the Santa Clara River Bridge “suffered several fractures in steel girders. The breaks were traced to tiny cracks in welds, likely present before the quake, and worsened by vibrations of heavy trucks passing overhead. When the quake struck, the girders fractured.” The Santa Clara bridge did not collapse. Sacramento Bee claimed it remained standing because the I-beam-shaped girders were “not fracture-critical.” However, the Bay Bridge’s “roadway consists of box-girder segments welded together. In effect, they create one contiguous, fracture-critical girder,” Abolhassan Astaneh-Asl, UC Berkeley engineering professor told the Sacramento Bee. “If welds crack and grow rapidly during a large quake, the entire roadway could fail.” Read the court decision
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New York Building Boom Spurs Corruption Probe After Death

August 19, 2015 — Chris Dolmetsch & David M. Levitt – Bloomberg
New York’s building boom has spurred the formation of a task force to probe corruption in the construction industry. The group of prosecutors and inspectors plan to go after companies that ignore or hide safety violations or commit other crimes including bid rigging and extortion. The formation of the task force was announced the same day two men and their companies were indicted for causing a worker’s death in April by failing to address repeated warnings about safety at a construction site in Manhattan’s Meatpacking District. Reprinted courtesy of Chris Dolmetsch, Bloomberg and David M. Levitt, Bloomberg Read the court decision
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Sixth Circuit Finds No Coverage for Property Damage Caused by Faulty Workmanship

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit affirmed the lower court's order granting summary judgment to the insurer who denied a defense for a construction defect claim. Steel Supply & Eng'g Co. v. Illinois Nat'. Ins. Co., 2015 U.S. App. LEXIS 14363 (6th Cir. Aug. 13, 2015). Steel Supply contracted with the Carmel Redevelopment Corporation to fabricate and erect steel for a construction project in Carmel, Indiana. After the steel was erected, an iron worker at the site discovered defects in the steel. Subsequent investigations revealed additional defects. Carmel filed suit against Steel Supply for breach of contract. The complaint alleged that a critical connection that Steel Supply designed was inadequate to handle the forces coming onto it. Carmel claimed that the immediate need to remediate the steel damaged Carmel directly, and that other contractors sought damages from Carmel for harm caused by the delays. 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

Revisiting OSHA’s Controlling Employer Policy

December 21, 2017 — Wally Zimolong - Zimolong LLC
The United States Court of Appeals for the 5th Circuit has been asked to review OSHA’s twenty year old “controlling employer” policy. As many contractors are surprised to learn, under OSHA’s controlling employer policy, you can be given an OSHA citation even when your own employee is not exposed to the alleged hazard. A. The Controlling Employer Policy OSHA’s current controlling employer policy has been effective since 1999. That policy applies to multi-employer worksites, which means virtually all construction sites. Under the policy, OSHA can cite the creating, exposing, correcting, or controlling employer. A creating employer is one who creates the hazard to which workers are exposed. The exposing employer is one who permits his employees to be exposed to the hazard, whether it created the hazard or not. The correcting employer is one who is responsible with correcting known hazards. Finally, the controlling employer is one “who has general supervisory authority over the worksite, including the power to correct safety and health violations itself or require others to correct them.” Most general contractors and CM’s are controlling employers. Under OSHA’s policy, a contractor’s OSHA safety obligations hinges on whether it is a creating, exposing, correcting, or controlling employer. The creating, exposing, and correcting contractors obligations are fairly straightforward. However, the controlling contractors obligations are more nuisanced. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Addenda to Construction Contracts Can Be an Issue

March 30, 2016 — Christopher G. Hill – Construction Law Musings
We’ve all been there. Your client either has a well drafted standard subcontract (with any luck in consultation with an experienced construction attorney) that it presents to its subcontractors and suppliers or your client is presented with a construction contract that has some provisions that it would prefer were either different or gone altogether. In the first of these scenarios, your client often gets push back from a subcontractor to change certain provisions. Such a response is not necessarily a bad thing depending on the provisions that the potential subcontractor may have. The construction contract documents will govern the way that the project moves forward and will be strictly enforced in Virginia and elsewhere so some early give and take is not unusual or unwanted. In the second scenario, your client is likely to be reading a fairly one sided document. The General Contractor has drafted the contract and is “north” of your client in the payment chain. Like it or not, they will in most instances leave it to you and your attorney to root out the particularly egregious on sided terms and seek to negotiate them to some sort of equality. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

"Your Work" Exclusion Bars Coverage for Contractor's Faulty Workmanship

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The West Virginia Supreme Court of Appeals found there was no coverage for the contractor's faulty workmanship in constructing a home. State of W. Virginia ex rel. Nationwide Mut. Ins. Co. v. The Honorable Ronald E. Wilson, 2015 W. Va. LEXIS 963 (W. Va. Oct. 7, 2015). In July 2009, Fred Hlad contracted to build a home for the Nelsons and complete construction by November 2009. The Nelsons sued when the house was not timely completed. Nationwide defended under a reservation of rights, but then filed a declaratory judgment action.The circuit court denied Nationwide's request for declaratory relief, determining that the defective workmanship was an "occurrence." Nationwide petitioned the Supreme Court for a writ of prohibition. On appeal, Nationwide argued that eight of the nine counts in the Nelsons' complaint were not caused by his defective workmanship. These allegations included breach of contract claims and intentional torts. Nationwide submitted it was not obligated to indemnify Hlad for damages that may be recovered on those counts. The court agreed that Nationwide's duty to indemnify was limited only to those claims that triggered coverage. Accordingly, Nationwide had no duty to indemnify for the eight counts alleging breach of contract and intentional torts. 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

Low Interest Rates Encourages Homeowners to become Landlords

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
CNN Money reported that more homeowners are deciding to keep their homes rather than sell, and become landlords instead. "Clients tell us all the time, 'We're never going to sell our home, even after we buy a new one,'" Glenn Kelman, CEO of the brokerage, Redfin, told CNN Money. “The math works in most landlords' favor these days,” according to CNN Money. “Rents have risen by about 20% nationwide since mid-2006, the housing bubble peak, while home prices are still about 21% below what they were at that time.” Read the court decision
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