Seattle Washington Building Expert Directory

Texas Supreme Court: Breach of Contract Not Required to Prevail on Statutory Bad Faith Claim

June 06, 2018 — Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
In USAA Texas Lloyds Company v. Menchaca, the Supreme Court of Texas clarified long-standing confusion regarding whether damages for bad faith are recoverable in the absence of a breach of contract under Texas law. The Menchaca case takes an in-depth dive into decades’ worth of Texas precedent and concludes that, under certain circumstances, an insured can recover policy benefits as damages for bad faith without finding that the insurer was in breach of contract. The story of this case begins with Hurricane Ike in September 2008. Homeowner Gail Menchaca contacted her homeowner’s insurance company, USAA Texas Llloyds Company (“USAA”) to report that the storm had damaged her home. USAA sent an adjuster to investigate the claim, and USAA determined that although the policy covered some of the damage, no benefits would be paid under the policy because the repair estimate did not exceed the policy deductible. Five months later, at Ms. Menchaca’s request, another USAA adjuster inspected the property and reached the same conclusion. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com

A Court-Side Seat: Flint Failures, Missed Deadlines, Toad Work and a Game of Chicken

October 05, 2020 — Anthony B. Cavender - Gravel2Gavel
The last few weeks have yielded a number of interesting developments in the Federal courts. FEDERAL COURTS OF APPEAL In re Flint Water Cases Several local and State of Michigan officials, including the former governor, requested dismissal from the civil litigation seeking damages for the massive failure of Flint, Michigan’s public drinking water system. On August 5, 2020, the U.S. Court of Appeals for the Sixth Circuit agreed that the plaintiffs, residents of Flint, have successfully pled a case that the conduct of the defendants so “shocked the conscience” that a claim for a violation of their substantive due process rights was appropriately alleged. The defendants, including the former governor, argued that they were entitled to a qualified immunity defense. The court rejected this argument on the basis of the earlier decisions made by the court in this matter. Judge Sutton concurred because he was bound by this precedent, but remarked that the evidence for the governor’s culpability was very thin; he was not intimately connected to the extraordinary error in judgment. The majority was very upset with this concurrence as indicted by their own opinion. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

7 Areas where Technology is Shifting the Construction Business

November 21, 2018 — Eric Weisbrot – JW Surety Bonds
The digital transformation of the last two decades has taken hold of the business environment in a powerful way. Companies in nearly all sectors are experiencing a significant shift in the way business is done, with a heavy focus on improved productivity, increase profitability, and enhanced product and service offerings. The construction industry has been historically slow to update its processes and business models in-line with other industries, but technology is currently making its long-awaited appearance in the sector. Construction professionals can embrace these new solutions to run more efficient businesses and keep a closer eye on profitability by reducing common costs over time. These are the seven major areas where technology is changing construction. 1 - Business Management One of the most apparent shifts taking place in the construction industry thanks to technology is the advancement of business processes and systems behind the scenes. Construction managers and job site owners have countless digital tools at their fingertips to help with managing all aspects of the business. This includes more efficient ways to manage material use and equipment inventory, logging subcontractor hours and pay, and maintaining reporting requirements from regulatory perspectives. Many software solutions integrate with older, legacy systems, making this change an easy one for construction businesses across the board. 2 – Jobsite Productivity Another area of transformation in construction is productivity on each job site. Technology has offered job owners and general contractors more efficient methods to keep track of project timelines as well as subcontractor progress from start to finish. The technology advancements in this arena come in the form of wearable devices that track work performed, as well as mobile devices that help keep the often mundane tasks necessary for a project’s success up to date and completed on time. 3 – Worker Safety Although wearables are being utilized in several different ways in the construction business, these devices are making a significant difference in the safety of workers. From smart helmets to digitally enhanced eyewear, workers are alerted to potential hazards on the job that they otherwise could not identify. Similarly, augmented and virtual reality solutions are being used to train workers before they arrive at a job, preparing them for safety concerns well in advance. Even though most licensed and bonded construction workers have appropriate training throughout their careers, the addition of these resources has the ability to further reduce the risks often associated with construction work. 4 – Surveying and Monitoring Unmanned aerial vehicles, also known as drones, are being used throughout construction. These digital tools are equipped with cameras to offer a bird’s eye view of a construction site to help with surveying and identifying potential hazards for workers. Drones also help with inspections throughout a project’s progression, offering some reduction in cost and improving efficiencies. 5 – Improved Materials Technology is also playing a role in the materials used on job sites. The addition of 3D printing has proven beneficial for construction companies, as concrete composites, plastics, and other materials are being printed and used to create structures on-site. This offers a more cost-effective and accurate way to complete a project. 6 – Self-operating Equipment Some technology firms are making waves in the construction industry because they are currently developing and implementing autonomous equipment solutions. Heavy machinery, like excavators, bricklayers, and bulldozers, are already being used on construction sites to help ease the burden of the labor shortage in the industry. While these machines are not yet mainstream, the benefits they offer mean they are likely to become a staple in construction in the years to come. 7 – Big Data Finally, technology is shifting the construction business by way of big data analytics. With the detailed information from new software solutions, wearable tech, and drones, construction site managers have more data than they have ever had. This influx of information offers a way to analyze job site progress, budgets, timelines, and efficiency for companies large and small. Author: Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog. Read the court decision
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Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update

June 15, 2020 — Patrick McNamara - Porter Law Group
A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision typically found in subcontracts is contrary to the “reasonable time” statutory requirement and will not be enforced. This represents a major shift in California construction payment bond claim rights. Plaintiff Crosno Construction, Inc. (“Crosno) was a subcontractor to general contractor Clark Brothers (“Clark”), who was principal on a public works payment bond issued by Travelers. The owner was a public agency district (“District.”) Crosno had completed most of its subcontract work when a dispute between District and Clark arose, causing the project to stop. Crosno then sought payment through a payment bond claim against Travelers. Travelers denied the claim, relying on the subcontract’s payment provisions and asserting the defense that it had no obligation to pay on the bond claim because the litigation between Clark and the District had not yet reached its conclusion. Subcontract. The subcontract between Clark and Crosno contained a “pay-when-paid” provision stating that Clark would pay Crosno within a reasonable time after receiving payment from the District. In defining “a reasonable time,” the subcontract language provided that the time for payment “in no event shall be less than the time [Clark] and [Crosno] require to pursue to conclusion their legal remedies against [District] or other responsible party to obtain payment.” Read the court decision
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Reprinted courtesy of Patrick McNamara, Porter Law Group
Mr. McNamara may be contacted at pmcnamara@porterlaw.com

DIR Reminds Public Works Contractors to Renew Registrations Before January 1, 2016 to Avoid Hefty Penalty

December 17, 2015 — Garret Murai – California Construction Law Blog
I know. You’re busy. Perhaps even a bit overwhelmed. You’ve got trees to trim, halls to deck with boughs of holly, and when you throw in (the office, your kids’ school, and the bowling league’s) holiday parties, you’re at the point where you’ve got visions of sugar plums (although it may vary) dancing through your head. Well, the DIR has come to give you its own yuletide greeting. Think of it as a Christmas card of sorts. Merry Christmas. The Department of Industrial Relations (DIR) announced today that a mandatory renewal deadline is approaching for contractors who bid or work on public works projects in California. Contractors whose public works contractor registration expired June 30, 2015, and have ongoing public works projects or plan to bid on new ones, must pay the $300 renewal fee before January 1, 2016 or face an additional $2,000 late penalty after that date. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Hudson Tunnel Plan Shows Sign of Life as U.S. Speeds Review

April 19, 2021 — Elise Young - Bloomberg
The U.S. Transportation Department has committed to finishing an environmental review for a new Hudson River rail tunnel, after a three-year delay helped prevent the groundbreaking of one of the nation’s most urgently needed infrastructure projects. The evaluation of the new commuter link between New Jersey and New York City will be finished by May 28, according to an update to the federal government’s online permitting dashboard. If the study is cleared, the $11.6 billion Gateway project could potentially qualify for partial federal funding. Transportation Secretary Pete Buttigieg last month told lawmakers that the tunnel is among President Joe Biden’s priorities. Biden on Wednesday introduced a $2 trillion infrastructure plan, fed by a tax increase on the wealthy, that he called a “once-in-a-generation investment in America.” The proposal calls for rebuilt bridges and highways, a shift to cleaner energy and boosts for mass transit. Read the court decision
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Reprinted courtesy of Elise Young, Bloomberg

Highest Building Levels in Six Years in Southeast Michigan

December 11, 2013 — CDJ STAFF
Macomb Township in southeast Michigan has had $122 million in new development in 2013, all of which helped the region reach its highest building levels since 2007. The wider area saw 398 permits issued for single-family homes in the last twelve months, fifty-two more than in the twelve months prior. “The improvement is economically driven,” said Michael Stoskofa, the CEO of the Home Builders Association of Southeast Michigan. As employment improves in the area, “more people are willing and able to purchase a home,” he said. Home inventory in the area is also at a record low. As a result, projects that were put on hold in 2008 are active again. Read the court decision
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Virginia Tech Has Its Own Construction Boom

May 10, 2013 — CDJ STAFF
The last few years has been a tough time for the construction industry, unless you’re in the proximity to the campus of Virginia Tech. Since 1999, the school has seen more than $1 billion in construction projects. Charles Steger, the president of the university says that “we have no intention of slowing down.” Steger views some of the construction as vital to the school’s mission, noting that at Davidson Hall, which contains chemistry laboratories, “the wiring and other facilities were almost a health hazard.” The building is undergoing a $31 million renovation. In order to keep the campus walkable, parking lots are being replaced by parking garages. Four dormitory buildings will be demolished and replaced by new facilities. Funds for the development have come from a mix of student fees, donations, research revenues, bond issues, and taxpayer revenues. Read the court decision
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