SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Difficulty in Defending Rental Supplier’s Claim Under Credit Application

October 11, 2021 — David Adelstein - Florida Construction Legal Updates
In construction, one of the easiest claims to prove from a burden of proof standpoint is that of a supplier, particularly a rental equipment supplier. Oftentimes, these claims are more in the realm of a collection claim because a rental supplier will generally be able to establish that a party opened an account with them, signed a credit application and personal guaranty, and equipment was rented and even delivered to a specific jobsite during set dates. Defending these claims is not so easy. And even if there is a defense as it relates to some amounts, there needs to be an upside challenging those amounts when factoring in the attorney’s fees, costs, and interest on the other amounts and on continuing the dispute. An example of the difficulty in defending these claims from rental suppliers can be found in the recent case of Custom Design Expo, Inc. v. Synergy Rents, Inc., 2021 WL 4125806 (Fla. 2d DCA 2021). Here, a contractor rented equipment (e.g, forklifts) from a supplier. The equipment was rented on an open account and the contractor signed a personal guaranty. The supplier sued the contractor for about $81,000 that remained unpaid. The supplier appeared to waste no time and moved for summary judgment with an affidavit from its credit manager. The credit manager affirmed that the contractor executed a credit application for purposes of renting equipment on an open account, the application contained a personal guaranty, and the credit application formed the basis of a contract. The credit manager authenticated the credit application and affirmed that the contractor owed it about $81,000 in unpaid amounts for rental equipment that was furnished under the credit application. 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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Forethought Is Key to Overcoming Construction Calamities

February 10, 2020 — Mitch Cohen - Construction Executive
Without warning, an under-construction structure in the southern United States suffered a catastrophic collapse. The tragedy resulted in the death of several people. As a result, engineering and construction post-collapse forensics experts engaged in an 18-month investigation. Those involved in the design and build project included the general contractor hired by the owner, a prime engineer, a consulting peer-review engineer and a prime structural design firm supported by a sub-consulting structural engineer. Although significant cracking was noticed several weeks before the failure, no one sounded the alarm or deemed the cracking worthy of corrective action. In their findings, forensic experts found the collapse resulted from the combined failure of the general contractor, engineers and even the owner, who all failed to shut down the work once the cracking reached unacceptable levels and/or take the appropriate actions needed to secure the public safety and mitigate the risk. This was even after the general contractor requested that the engineer-of-record and design manager assess the structure’s extreme cracking. Consequently, the choice to not seriously investigate the crack or seek an independent peer review to design a rectification plan contributed directly to the tragedy. This is typically referred to within the industry as a “negligent professional design error.” Reprinted courtesy of Mitch Cohen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Cohen may be contacted at mitch.cohen@rtspecialty.com

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Court Requires Adherence to “Good Faith and Fair Dealing” in Construction Defect Coverage

September 30, 2011 — CDJ STAFF

The California Court of Appeals has ruled in the case of Allied Framers, Inc. v. Golden Bear Insurance Company. Allied had been sued in a construction defect case and its primary insurer had become insolvent. Coverage for Allied’s defense was paid for by the California Insurance Guarantee Association through June 8, 2006. When warned that CIGA’s involvement was ending, Allied notified Golden Bear, which declined to provide coverage.

In the matters that followed, Golden Bear claimed that Allied had not exhausted its $1 million in primary insurance. Allied then showed that $1 million had already been paid out in the case. A few months thereafter, Golden Bear offered a $500,000 settlement on behalf of Allied which was rejected. Thereafter, Golden Bear hired new counsel to defend Allied. Golden Bear received, but allegedly did not pay, invoices Allied sent from their former counsel. Golden Bear finally settled the construction defect case for $2 million.

Allied’s original counsel sued Allied for payment. Golden Bear declined coverage. Allied then claimed that Golden Bear liable on several counts, arising from its failure to settle the construction defect action earlier than it did and its failure to pay Allied’s counsel. Golden Bear demurred, arguing that Allied had now exhausted is coverage with the $2 million settlement. The lower court sustained Golden Bear’s demurrer, dismissing Allied’s complaints.

The appeal court reviewed Allied’s seven complaints and sustained most of them. However, the court did reverse the trial court’s order in regard to Allied’s complaint that Golden Bear breached an implied covenant of good faith and fair dealing. The appeals court was not convinced that Golden Bear properly evaluated the settlement demand in the underlying construction defect case. The court found three other ways in which Golden Bear’s actions might show bad faith, in refusing to pay defense fees “after promising [Allied] such costs would be paid in full,” “failing to advise Allied about ‘actual or potential negative consequences of agreeing to the proposed settlement,’” and that their choice of counsel “failed to protect [Allied’s] interests in the negotiation.”

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North Carolina, Tennessee Prepare to Start Repairing Helene-damaged Interstates

October 07, 2024 — Derek Lacey - Engineering News-Record
Damage from Hurricane Helene to interstates between North Carolina and Tennessee includes washed-out roads and bridges, landslides and extensive flooding—creating a long list of repair work needed for state transportation agencies as they prepare to rebuilding critical highways across the Appalachian Mountains. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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Solar and Wind Just Passed Another Big Turning Point

October 21, 2015 — Tom Randall – Bloomberg
Wind power is now the cheapest electricity to produce in both Germany and the U.K., even without government subsidies, according to a new analysis by Bloomberg New Energy Finance (BNEF). It's the first time that threshold has been crossed by a G7 economy.1increase click area But that's less interesting than what just happened in the U.S. To appreciate what's going on there, you need to understand the capacity factor. That's the percentage of a power plant's maximum potential that's actually achieved over time. Consider a solar project. The sun doesn't shine at night and, even during the day, varies in brightness with the weather and the seasons. So a project that can crank out 100 megawatt hours of electricity during the sunniest part of the day might produce just 20 percent of that when averaged out over a year. That gives it a 20 percent capacity factor. One of the major strengths of fossil fuel power plants is that they can command very high and predictable capacity factors. The average U.S. natural gas plant, for example, might produce about 70 percent of its potential (falling short of 100 percent because of seasonal demand and maintenance). But that's what's changing, and it's a big deal. Read the court decision
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Reprinted courtesy of Tom Randall, Bloomberg

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The Greenest U.S. Cities & States

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
ECOBUILDING Pulse discussed the results of the 2014 U.S. Clean Tech Leadership Index, which “tracks clean tech progress by state, and in the 50 largest metro areas.” The top three states with the highest Clean Tech Index score were California, Massachusetts, and Oregon. Out of the top 10 cities, 5 were located in California. The top three cities with the highest score were San Francisco, San Jose, and San Diego. Read the court decision
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Phillips & Jordan Awarded $176M Everglades Restoration Contract

March 01, 2021 — Thomas F. Armistead - Engineering News-Record
Construction of the next major project for the Everglades Agricultural Area Reservoir south of Lake Okeechobee is set to begin in April following the South Florida Water Management District's award of a $175.8-million lump-sum contract to Phillips and Jordan Inc. Reprinted courtesy of Thomas F. Armistead, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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The Construction Lawyer as Problem Solver

October 21, 2015 — Christopher G. Hill – Construction Law Musings
As a construction attorney here in Virginia I “wear many hats.” Counselor, mediator, adviser, risk manager, litigator, and others depending upon the situation. I take each and every one of these roles seriously and at times take on more than one depending on a client’s situation. One “role” that I try to keep in mind every day when I come to work is that of problem solver. In response to the various attacks on an attorney’s role in the construction world, I have written that your friendly neighborhood construction lawyer can and should be part of the solution, and not part of the problem. A big part of this in my mind is the need to focus on the fact that any construction dispute is a problem to be solved, preferably earlier rather than later. By the time that a construction matter reaches my desk, the parties to that dispute have likely reached some sort of impasse in need of an efficient solution. 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

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