Seattle Washington Building Expert Directory

Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District

August 17, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.). California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts. In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Cal/OSHA-Approved Changes to ETS Will Take Effect May 6, 2022

May 16, 2022 — Matthew C. Lewis & Nicole R. Kardassakis - Payne & Fears
A new, third revised version of the Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (“ETS”) has been approved by Cal/OSHA, and is expected to go into effect on May 6, 2022. This updated ETS will likely be in effect through Dec. 31, 2022. The language still needs to be reviewed, finalized, and filed with the Secretary of State by the Office of Administrative Law, but a redline of the proposed changes that Cal/OSHA has approved is available here. Much of the previous ETS (which took effect in January 2022, and we discussed here) will remain in effect. But the new version includes some key changes, including the following:

Employers will now have similar obligations toward employees who are fully vaccinated and employees who are not fully vaccinated with respect to testing and face coverings. Employers must make COVID-19 testing available at no cost to all symptomatic employees during the employee’s paid time, regardless of the employee’s vaccination status. Employers also must make respirators available to all employees upon request, again regardless of the employee’s vaccination status.

Reprinted courtesy of Matthew C. Lewis, Payne & Fears and Nicole R. Kardassakis, Payne & Fears Mr. Lewis may be contacted at mcl@paynefears.com Ms. Kardassakis may be contacted at nrk@paynefears.com Read the court decision
Read the full story...
Reprinted courtesy of

Coffee Beans, Mars and the 50 States: Civil Code 1542 Waivers and Latent Defects

March 19, 2015 — Garret Murai – California Construction Law Blog
A few years ago, Pulitzer Prize-winning reporter Charles Duhigg wrote a book that was on the New York Times bestseller list for over 60 weeks, The Power of Habit: Why We Do What We Do in Life and Business. As its title suggests, the book is about habits, but more importantly about how we can change our habits to make ourselves happier, healthier and more productive. In his book, Duhigg talks about how habits are “encoded into the structures of our brain” and how this is an advantage because, as an example, “it would be awful if we had to relearn how to drive after every vacation.” Duhigg’s driving example made me think about how much we assume as well, and how, from a practical perspective, it is almost essential that we do so. Using his car example, when we put our key into the ignition and turn it, we assume that the engine will start, and further assume that when we put our foot on the gas pedal that the car will move. If we didn’t or couldn’t assume this, and the many other things we assume in our daily lives, our brains would likely go into overload. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

What Do I Do With This Stuff? Dealing With Abandoned Property After Foreclosure

October 20, 2016 — Lyndsey Torp – Snell & Wilmer Real Estate Litigation Blog
You’ve successfully foreclosed on a commercial building in California, and, thankfully, the borrower moved out after foreclosure or after a period of tenancy. But the borrower left behind all sorts of property – furniture, filing cabinets, records, and other assorted property. While you may be tempted to just toss it all in the dumpster, doing so may subject you to liability. There are several statutes that you should consider when determining how to handle the abandoned property. Statutory Options for a Landlord A landlord-tenant relationship may arise following foreclosure if, for example, the owner of the property accepts rent from the former owner. If the tenant subsequently turns over possession of the commercial property but leaves personal property at the premises,[1] California Civil Code provides a landlord with statutory options to deal with “lost” (Cal. Civ. Code § 2080) or “abandoned” property (Cal. Civ. Code §1993). Read the court decision
Read the full story...
Reprinted courtesy of Lyndsey Torp, Snell & Wilmer
Ms. Torp may be contacted at ltorp@swlaw.com

No Coverage for Property Damage That is Limited to Work Completed by Subcontractor

April 25, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S. App. LEXIS 5412 (11th Cir. March 15, 2012).

Amelia Island Company contracted with Auchter Company, a general contractor, for construction of an inn and conference room. Auchter subcontracted with Register Contracting Company to install the Inn’s roof. Pursuant to the Florida Building Code, installation of the roof required that it be able to withstand 110 m.p.h. winds.

Register completed installing the roof tiles in January 1998. Beginning in 2002, the tiles began dislodging from the roof. During the 2004 hurricane season, three hurricanes caused more tiles to come off the roof. Some of these tiles hit other tiles, cracking them.

In 2006, the parties went to arbitration over the costs of repairs for the roof.

Read the full story…

Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

Read the court decision
Read the full story...
Reprinted courtesy of

America’s Factories Weren’t Built to Endure This Many Hurricanes

November 05, 2024 — Brooke Sutherland - Bloomberg
America’s factories aren’t built for the current cascade of extreme weather events. Dozens of industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by Honeywell International Inc., Johnson Controls International Plc, General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material. Read the court decision
Read the full story...
Reprinted courtesy of Brooke Sutherland, Bloomberg

Colorado Court of Appeals Confirms Senior Living Communities as “Residential Properties” for Purposes of the Homeowner Protection Act

November 06, 2023 — Hal Baker - Colorado Construction Litigation Blog
The Third Division of the Colorado Court of Appeals recently interpreted the Homeowner Protection Act of 2007 (the “HPA”) in Heights Healthcare v. BCER, 2023 COA 44, decided on May 25, 2023. The Court held that a senior living community that is located on a parcel zoned “commercial” or “mixed use” constitutes “residential property” that is protected by the HPA, regardless of the zoning designation. The claims in Heights Healthcare arose from a contract between BCER and Heights Healthcare for BCER to provide mechanical and electrical services relating to the installation of Packaged Terminal Air Conditioner units at the senior living community. The contract between the parties included a limitation of liability clause, limiting BCER’s liability to a total of $22,500 for the total cost of services rendered. After the installation, Heights Healthcare discovered that the air conditioner units were malfunctioning, causing too few of the eighty-four units to run and tripping the breaker—shutting down the entire system—when the outdoor temperature dropped too low. Following the discovery of the malfunction, Heights Healthcare filed suit against BCER for breach of contract under the Construction Defect Action Reform Act (“CDARA”). Read the court decision
Read the full story...
Reprinted courtesy of Hal Baker, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Baker may be contacted at baker@hhmrlaw.com

The Credibility of Your Expert (Including Your Delay Expert) Matters in Construction Disputes

October 03, 2022 — David Adelstein - Florida Construction Legal Updates
Here is a quote from a judge in an order after the bench trial of a complex construction dispute between a prime contractor and subcontractor on a federal project:

The evidence received in this case demonstrates the dynamic nature of complicated construction projects. At every step, the details matter, and coordination and cooperation among the companies tasked with performing the job is essential. Thankfully, as even this case shows, most disagreements that arise as projects evolve are handled during construction, far away from a courthouse, by the professionals who know best how to achieve the ultimate goal of a completed project.

U.S. f/u/b/o McKenney’s, Inc. v. Leebcor Services, LLC, 2022 WL 3549980, *1 (E.D. Va. 2022).

This is a true statement. A statement that parties should remember as they navigate the nuances of a complicated construction project and dispute. The facts of the case, however, would hardly be construed as a win for either party. Something else for parties to consider as they navigate the nuances of a complicated construction project and dispute. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES