SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Warranties: Have You Seen Me Lately?

February 07, 2022 — Christopher D. Cazenave - ConsensusDocs
A construction contract typically contains many different types of warranties. Owners expect contractors to explicitly warrant their workmanship, contractor-provided materials and equipment, and in many instances to assume other warranty risks that may obligate the contractor years after the project is completed. No contractor wants to be surprised years after a project is completed by the existence of warranty obligations that were not considered or negotiated at the outset of the project. To help avoid this situation, warranties should be treated similar to other critical risk-sharing provisions in the contract in concert with other bargained-for provisions, including for example price and schedule. This article provides a brief overview of warranty obligations found in typical construction contracts followed by a few practical considerations for contractors to consider when negotiating warranty obligations. Reprinted courtesy of Christopher D. Cazenave, Jones Walker, LLP (ConsensusDocs) Mr. Cazenave may be contacted at ccazenave@joneswalker.com Read the court decision
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A Lot of Cheap Housing Is About to Get Very Expensive

October 21, 2015 — Patrick Clark – Bloomberg
Urban Institute fellow Erika Poethig has a poster in her office showing 22 apartment buildings along Chicago's Lake Shore Drive. They were all built with U.S. government dollars to provide affordable housing to thousands of low-income households—and have since been converted to market-rate apartments and condominiums. For Poethig, a former official at the Department of Housing and Urban Development, those apartments are a warning. There are currently about 1.34 million units of affordable housing created by a HUD program known as Section 8 project-based rental assistance, according to a blog post published on Wednesday by Poethig and her Urban Institute colleague Reed Jordan. More than 30 percent of those units are kept affordable by contracts that are set to expire by the end of 2017. Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

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Newmeyer & Dillion Appoints Partner Carol Zaist as General Counsel

June 22, 2016 — Newmeyer & Dillion LLP
NEWPORT BEACH, Calif. – June 21st, 2016 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that partner Carol Zaist has been named the firm’s General Counsel. Zaist will report to the Managing Partner, Executive Committee and other senior level management as it relates to the firm’s governance and policy matters. Zaist’s appointment is effectively immediately. “We are excited to have appointed Carol as the firm’s General Counsel,” said Jeff Dennis, Newmeyer & Dillion’s Managing Partner. “As we continue to expand across markets, this is another proactive measure to ensure our strategic growth and success.” Zaist is a partner in the Newport Beach office of Newmeyer & Dillion, concentrating her practice on business litigation, real estate litigation, and probate litigation. She has significant experience advising clients in contract disputes, business and property torts, and trademark and trade secret disputes in both federal and state jurisdictions. Zaist also serves as strategic counsel, advising clients on the impact of multiple litigation matters in different jurisdictions, and integrating strategy and tasks efficiently and cohesively. She will lend this variety of experience to her new role as General Counsel for the firm. “I am honored and thrilled to work with our managing partner and Executive Committee to assist the firm in its strategic growth and development,” said Zaist. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com. Read the court decision
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What’s the Best Way to “Use” a Construction Attorney?

January 04, 2023 — Christopher G. Hill - Construction Law Musings
The question in the title of this post is one I think about a lot. I have also discussed some aspects of this topic previously here at Musings. As 2022 winds down and we head into 2023, my thoughts have landed back on how I as a construction lawyer can help my clients and how my construction industry clients can help me to be more effective. This post will focus on the latter aspect of the representation process. The first key aspect to helping your construction counsel more effectively assist you with any aspect of your construction business is to communicate. Attorneys are only as good as the information that we have. Always remember that while you as the contractor lived the project about which you called your attorney, that attorney is just hearing about it for the first time. Construction lawyers spend a lot of time playing catch-up and trying to get familiar with all aspects (good and bad) of your claim or issue. Do not assume that even the most knowledgeable construction attorney can anticipate how the evidence and facts will come out over the course of a representation. Attorneys apply law to facts, it is up to the client to give the attorney the initial facts. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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When is a Residential Subcontractor not Subject to the VCPA? Read to Find Out

December 01, 2017 — Christopher G. Hill - Construction Law Musings
The Virginia Consumer Protection Act (VCPA) can and often does apply to residential construction. The transaction between a residential contractor and an homeowner has been held to fall under the consumer transaction language of the VCPA and on occasion been used to avoid the issues with the economic loss doctrine in Virginia. However, there are limits to how far down the contractual chain the VCPA applies, particularly in the case where a supplier or subcontractor does not provide the services or materials for a personal, consumer purpose. An example of this fact is found in the case of Johnston v. Stephan. In that case, a couple hired a general contractor to build a home and the general contractor hired Cole Roofing System, Inc. to provide the roof of the home. The first couple subsequently sold the home and the second homeowners sought further work on the roof from Cole Roofing. After Cole Roofing refused further work, the homeowners brought an action seeking to enforce a warranty and for a violation of the VCPA. For the warranty claim, the homeowners relied on the contract between them and the prior homeowners that referenced a 10 year warranty on the roof and the subcontract between the homebuilder and Cole Roofing. Cole Roofing sought dismissal of the VCPA and warranty claims by demurrer and further sought by demurrer to have the matter dismissed as being filed after the running of the statute of limitations. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear” Damages

March 14, 2022 — Blake A. Dillion, Jared De Jong & Scott S. Thomas - Payne & Fears
Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue there is no coverage for so-called “tear-out” or “rip-and-tear” damages, where fixing property damage requires replacing defective work that has not itself been damaged. Fortunately, in a newly decided case, a Texas federal district court rejected both arguments by an insurer. Amerisure Mutual Insurance Company v. McMillin Texas Homes, LLC, No. SA-20-CV-01332-XR, 2022 WL 686727 (W.D. Tex. Mar. 8, 2022). As with most construction-defect claims, this case involved homeowner claims against a residential developer, McMillin Texas Homes (“McMillin”). After the homes were completed, homeowners complained about defects in the artificial stucco exterior finish and filed suit. McMillin tendered to its insurer, Amerisure Mutual Insurance Company (“Amerisure”). Amerisure then sued McMillin for declaratory relief, arguing that it had no duty to defend or indemnify the homeowner claims. McMillin filed a counterclaim alleging Amerisure breached its policies by refusing to defend or indemnify McMillin. Reprinted courtesy of Blake A. Dillion, Payne & Fears, Jared De Jong, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Dillion may be contacted at bad@paynefears.com Mr. De Jong may be contacted at jdj@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Real Estate & Construction News Roundup (04/18/23) – Clean Energy, Critical Infrastructure and Commercial Concerns

April 25, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In today’s roundup, construction waxes and wanes, energy goals are set, and concerns abound for the commercial real estate market in the United States and Europe.

• A new AI-driven real estate platform, Land on Earth, will use their ChatGPT-powered HomeMatch technology to match house hunters with their ideal properties. (Business Wire)
• Following a strong show in February, new construction decreased in March, with an 8.8 percent decrease in permits. (Tim Smart, U.S. News)
• The UK’s construction industry made a strong performance this winter, but strikes have offset gains, dimming hopes of economic revival. (Paul Godfrey, UPI)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Toronto Skyscraper With $1.2 Billion of Debt Has Been Put in Receivership

November 16, 2023 — Ari Altstedter - Bloomberg
A landmark condominium project in one of Toronto’s ritziest neighborhoods has been put into receivership after construction delays and cost overruns. Construction of the 85-story tower will be taken over by a court-appointed receiver after its owners, developer Sam Mizrahi and investor Jenny Coco, defaulted on part of the project’s nearly C$1.7 billion in debt ($1.2 billion), according to a Wednesday order from the Ontario Superior Court of Justice. Two funds run by South Korea-based IGIS Asset Management Co. applied for the receivership. Another IGIS fund will extend at least another C$315 million to continue work on the project, court documents said. Read the court decision
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Reprinted courtesy of Ari Altstedter, Bloomberg

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