SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New York High Court: “Issued or Delivered” Includes Policies Insuring Risks in New York

December 20, 2017 — Bethany Barrese & Samantha Martino - Case Alert Blog
On November 20th, the New York Court of Appeals reinstated a case seeking more than six million dollars in damages against the insurers for DHL Worldwide Express Inc. (“DHL”), originating from a fatal head-on car crash between Claudia Carlson and a truck owned by MVP Delivery and Logistics Inc. (“MVP”), a DHL contractor. The truck, which bore DHL’s logo, was owned by MVP and driven by an MVP employee. The MVP employee was running an errand unrelated to his job at the time of the accident. Mrs. Carlson’s husband sued the employee, DHL, and MVP. The jury award of $20 million was reduced to $7.3 million by the Appellate Division. MVP’s insurer paid Mr. Carlson just over $1 million, and the employee assigned his rights to any other insurance coverage to Mr. Carlson Mr. Carlson sued DHL and its insurers, seeking the balance of the outstanding judgment pursuant to New York Insurance Law § 3420. The defendants successfully moved to dismiss Mr. Carlson’s claims, which dismissal was affirmed by the Appellate Division on the basis that § 3420 did not apply since the policies in question were not “issued or delivered” in New York; they had been issued in New Jersey and delivered in Washington and Florida. The Court of Appeals was subsequently presented with two questions: (1) whether the DHL policies fell within the purview of Insurance Law § 3420 as policies “issued or delivered” in New York; and (2) whether MVP was an “insured” pursuant to the “hired auto” provisions of DHL’s policies. Reprinted courtesy of Bethany Barrese, Saxe Doernberger & Vita, P.C. and Samantha Martino, Saxe Doernberger & Vita, P.C. Ms. Barrese may be contacted at blb@sdvlaw.com Ms. Martino may be contacted at smm@sdvlaw.com Read the court decision
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Real Estate & Construction News Round-Up (05/11/22)

May 30, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The supply of homes for sale is on the uptick, the White House releases a plan to improve the permitting process for infrastructure projects, cryptocurrency opens the door to a new class of property owners, and more.

• Though the number of active listings is still down 67% from pre-pandemic levels, the supply of homes for sale is finally showing signs of improvement. (Diana Olick, CNBC)
• Large corporations and institutional investors are flocking to buy digital real estate, with parcels being bought faster than they can be created. (Dan Patterson, CBS News)
• London-based company, Admix, has been purchasing real estate in various Metaverse platforms and leasing them to companies interested in becoming involved in the online virtual space. (Nate Berg, Fast Company)

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

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How Technology Reduces the Risk of Façade Defects

March 20, 2023 — Ori Aphek - Construction Executive
The shell of the building is an onlooker’s first impression and crafts the architectural aesthetic, but it also plays a crucial role in enabling energy efficiency and protecting against the elements. Because façades are in direct contact with the elements, issues with water intrusion are the most common problem and the costliest to remedy, with anywhere from 30% to 70% of lawsuits related to water intrusion, half of it through the façade. Additionally, improperly installed façades pose significant safety risks because unsecured parts can fall and hit people below. All these factors contribute to the façade being one of the most complex and costly aspects of a building to construct and inspect, making up 205 of the total project cost. Installing these systems correctly the first time is the most effective way to mitigate these threats. Teams should utilize data-informed technology that ensures plan adherence, reducing risk and avoiding errors during installation. The Challenges of Façade Installation Façade installation and subsequent inspection are inherently challenging, particularly for high-rise buildings. When performing post-installation verification manually, inspectors must review every element, joint by joint, window by window, stone by stone and brick by brick, which can take months to complete. Inspections of the entire building system are limited by this process, as inspectors can only access one portion of the building façade at a time and often have to inspect from indoors, on balconies or at the ground level, which doesn’t paint a complete picture. As a result, teams typically only perform spot checks on the façade and are rarely inspected to their fullest. This leaves many installation errors and defects, which serve as ticking bombs for future water intrusion or safety hazards. Reprinted courtesy of Ori Aphek, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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How to Remove a Mechanics Lien from Your Property

March 21, 2022 — Hannah Kreuser - Porter Law Group
It sometimes happens that a contractor or material supplier records a mechanics lien on your property that becomes expired. Other times, the mechanics lien may be wrong, invalid and unenforceable for some reason, serving no legitimate purpose. The contractor or material supplier may be reasonable and release the mechanics lien once these issues are brought to its attention, but the contractor or material supplier may very well refuse to release the mechanics lien when requested. When this happens, what are your options? In California, there are various ways to bring this type of mechanics lien to a court’s attention in the hopes that the court will cause it to be released. Three of the more common methods are: (1) a petition under California Civil Code (“CCC”) § 8480; (2) a petition under California Code of Civil Procedure (“CCP”) § 765.010; or (3) a Lambert motion. This article will briefly discuss each of these methods. Read the court decision
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Reprinted courtesy of Hannah Kreuser, Porter Law Group
Ms. Kreuser may be contacted at hkreuser@porterlaw.com

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How to Drop a New Building on Top of an Old One

December 05, 2022 — Kriston Capps - Bloomberg
Façadectomy. That’s the tongue-in-cheek term for a widely unloved architectural compromise that developers sometimes strike: saving the historic veneer of an existing building while demolishing and replacing its internal structure. Façade preservation is especially popular in Washington, DC, where a federal cap on the height of buildings and the strength of the preservationist cause locally makes the case for adapting existing structures, even at great expense. Façadism is rarer where cheaper tear-downs are possible, but over the last 40 years, this trend hit its stride on the East Coast. Prominent examples include the Spanish Embassy in DC and the Penn Mutual tower in Philadelphia. A new condo tower in Boston’s South End isn’t a typical façadectomy. The development at 100 Shawmut Avenue looks as if a glassy modern building had been plopped down on top of an old warehouse. According to Tom Schultz, associate for The Architectural Team, the Boston-area firm behind the project, the case for incorporating a six-story warehouse into a new residential project wasn’t merely aesthetic. The site and structure lent itself to building up. Read the court decision
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Reprinted courtesy of Kriston Capps, Bloomberg

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Florida Condo Collapse Shows Town’s Rich, Middle-Class Divide

August 04, 2021 — The Associated Press (Terry Spencer & Freida Frisaro) - Bloomberg
The condo tower collapse in Surfside could exacerbate the division that already exists between the tiny Florida town’s new luxury buildings built for the global elite and those constructed decades ago for the middle class. It is already creating headaches for some small businesses. The town has seen the construction of numerous new condos in recent years, where large oceanfront units exceeding 3,000 square feet (280 square meters) with modern amenities can fetch $10 million and up. Meanwhile, small units of 800 square feet (75 square meters) in neighboring condo buildings constructed decades ago can be had for $400,000. Ana Bozovic, a South Florida real estate broker, said the June 24 collapse of the 40-year-old, middle-class Champlain Towers South will exacerbate this division. At least 46 people were killed and more than 90 remain missing. Read the court decision
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Reprinted courtesy of Bloomberg

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Mechanic’s Liens and Leases Don’t Often Mix Well

May 03, 2021 — Christopher G. Hill - Construction Law Musings
As those who read my “musings” here at this construction law blog are well aware, the topic of Virginia mechanic’s liens is one that is much discussed. From the basic statutory requirements to the more technical aspects of these tricky beasts. One aspect of mechanic’s liens that I have yet to discuss in detail it how these liens attach in the situation where the contractor does work for a lessee and not for the owner of the underlying fee interest in the property. A recent case out of the Western District of Virginia federal court, McCarthy Building Companies Inc. v. TPE Virginia Land Holdings LLC, discusses the interaction of Va. Code 43-20, work on a leasehold, and parties necessary to any litigation relating to a lien for the work on that leasehold. The basic facts, outlined more thoroughly in the linked opinion, are these. MBC provided certain work to TPE Kentuck Solar, LLC on property leased from TPE Virginia Land Holdings, LLC. The lease was for a fixed term and for a fixed amount regardless of the work performed at the property. MBC was unpaid by the Kentuck entity and then recorded a lien on the property and then sued to enforce that lien and for unjust enrichment against TPE Land Holdings. TPE Land Holding filed a motion to dismiss the mechanic’s lien and unjust enrichment counts. 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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Lakewood Introduced City Ordinance to Battle Colorado’s CD Law

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
According to The Denver Post, the Lakewood City Council “introduced an ordinance that would make it more difficult for homeowners associations to sue developers for construction defects and give builders more opportunity to fix problems before litigation begins.” A hearing and final vote is scheduled for October 13th. "If there are defects, we want to get them fixed rather than dragging this through the courts for years," Lakewood Mayor Bob Murphy told The Denver Post. Murphy believes the ordinance will bring “more diverse housing options to Lakewood, especially around stations along the Regional Transportation District’s West Rail Line.” Lakewood’s City Planner Travis Parker also declared that the defects law is to blame for the lack of condos in the area. However, some believe that “Lakewood is overstepping its bounds as a home-rule city,” according to The Denver Post. "What they're trying to do is use an ordinance to circumvent state law in order to make it impossible for homeowners to seek redress against builders for defects," Molly Foley-Healy an attorney who serves as legislative liaison for the Community Associations Institute's Legislative Action Committee told the Post. “Mayor Murphy needs to incentivize quality construction in Lakewood instead.” Read the court decision
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