SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Congress Considers Pandemic Risk Insurance Act to Address COVID-19 Business Interruptions Losses

May 18, 2020 — Richard W. Brown & Andres Avila - Saxe Doernberger & Vita, P.C.
The draft legislation, entitled the Pandemic Risk Insurance Act of 2020 (“PRIA”), would establish a Federal Pandemic Risk Reinsurance Fund and Program (the “Program”), that is intended to provide a system of shared public and private compensation for business interruption (“BI”) losses resulting from a pandemic or outbreak of communicable disease. PRIA, in its current draft form, is modeled after and in many ways mirrors the Terrorism Risk Insurance Act that was enacted to address catastrophic losses resulting from acts of terrorism. PRIA effectively mandates that participating insurers provide coverage for any business interruption loss resulting from an outbreak of infectious disease or pandemic that is declared an emergency or major disaster by the President and certified by the Secretary of Treasury (the “Secretary”) as a public health emergency. PRIA would be triggered in the case of certified public health emergencies upon the aggregate industry insured losses exceed $250 million dollars, and include an annual aggregate limit capped at $500 billion dollars. The draft bill provides that the Secretary would administer the Program and pay the Federal share of compensation for insured losses, which would be 95% of losses in excess of an applicable insurer annual deductible, once the Program is triggered. The compensation would benefit those insurers that elect to participate in the Program in exchange for a premium paid by the participating insurer for reinsurance coverage under the Program. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Andres Avila, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Mr. Avila may be contacted at ara@sdvlaw.com Read the court decision
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Preserving your Rights to Secure Payment on Construction Projects (with Examples)

March 22, 2017 — David Adelstein – Florida Construction Legal Updates
All participants across the construction industry should understand what efforts they should take to maximize and collateralize payment. No one wants to work for free and, certainly, no one in the construction industry wants to work without ensuring there is some mechanism to recover payment in the event they remain unpaid. Being proactive and knowledgeable can go a long way when it comes to recovering your money. Your Contract – It starts with the contract. You should understand those risks that are allocated to you and those that are allocated to another party. And, you should understand the contractual mechanism to resolve claims and disputes and whether your contract has a prevailing party attorney’s fees provision. In addition to contractual rights, there are tools for you to maximize your collection efforts. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Contractor Underpaid Workers, Pocketed the Difference

February 10, 2012 — CDJ STAFF

Property Casualty 360 reports that the owner of a construction company in California’s Bay Area has been arraigned in San Francisco Superior Court. The fifty-seven felony counts include charges of payroll theft and insurance fraud.



San Francisco District Attorney, George Gascon is quoted as saying that Doherty’s actions “hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”



Frances Ann Doherty, owner of Doherty Painting & Construction has been charged with submitting false documentation as to what wages she paid her workers. It is alleged that over three years she pocketed $600,000. Additionally, she is charged with underpaying her insurer by more than $100,000 by submitting to them the fake payroll information.

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The Brooklyn Condominium That’s Reinventing Outdoor Common Space

October 24, 2022 — Alexandra Lange - Bloomberg
Courtyard apartments have a long history in the US, particularly in temperate climes, where shaded outdoor corridors and centralized playspaces can be year-round amenities. New York City, however, has only selectively embraced this approach, with private yards and public parks taking up the slack. A new 18-unit condominium, 450 Warren — one of four planned Brooklyn collaborations between architects SO-IL and developers Tankhouse — aims to change that relationship, while also twisting the idea of common outdoor space into something that gets used. Rather than creating one large courtyard, with the open space protected from the street by an L-shaped plan, SO-IL chopped up the outdoor amenities, betting that smaller, more carefully shaped and planted terraces would be more popular than a large undifferentiated expanse of grass. The building’s plan reads as three towers connected by curvy concrete walkways. The building sits across the street from the Gowanus Houses, a public housing development, completed in 1949 with towers of up to 14 stories. The area was rezoned for denser mixed-use development in 2021, but when SO-IL and Tankhouse were developing the plans, regulations limited building heights to a maximum of five stories. Read the court decision
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Reprinted courtesy of Alexandra Lange, Bloomberg

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CA Supreme Court Rejects Proposed Exceptions to Interim Adverse Judgment Rule Defense to Malicious Prosecution Action

August 24, 2017 — David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Parrish v. Latham & Watkins (No. S228277 - August 10, 2017) (“Parrish”), the California Supreme Court examined the “interim adverse judgment rule” in a different context than previous decisions on the subject. The rule provides that if an earlier action succeeds after a hearing on the merits, this success establishes the existence of probable cause and precludes a subsequent malicious prosecution action. In a typical case applying the rule, a plaintiff in the underlying action defeats the defendant’s motion for summary judgment but then loses the case at trial leading to a subsequent malicious prosecution claim. In Parrish, the Court addressed whether the rule applies when the trial court had denied the defendant’s summary judgment motion but concluded after the defense prevailed at a bench trial that the suit had been brought in “bad faith” due to a lack of evidentiary support. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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Your “Independent Contractor” Clause Just Got a Little Less Relevant

January 12, 2015 — Garret Murai – California Construction Law Blog
Construction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon. When subcontracting work, parties usually make it clear in their contracts that the party performing work is acting as an “independent contractor.” Here’s a fairly typical provision from the AIA A201 General Conditions:

The parties agree that the contractual relationship on Contractor to Owner is one solely of an independent contractor in all respects and that the Contract Documents do not in any way create a partnership, joint venture or any other relationship between Owner and Contractor other than the contractual relationship as specified in this Agreement.

These provisions are intended to shield the contracting party from claims that it is responsible for workers’ compensation premiums, retirement contributions, health care insurance, or other benefits provided for the benefit of employees of the company performing the work. Fair enough. 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

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Excess-Escape Other Insurance Provision Unenforceable to Avoid Defense Cost Contribution Despite Placement in Policy’s Coverage Grant

April 20, 2016 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel, LLP
In Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co. (No. C072500; filed 4/11/16), a California appeals court found an “other insurance” provision unenforceable to excuse defense contribution between successive primary insurers, regardless of the fact that the limiting language was contained in the policy’s coverage grant. Certain Underwriters and Arch each insured Framecon over successive policy periods. Framecon was sued by a developer in a series of construction defect actions, and tendered to both insurers. Underwriters agreed to defend under a reservation of rights but Arch declined, citing the wording of its insuring agreement, which stated: Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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What You Need to Know About Additional Insured Endorsements

August 30, 2017 — Gary Barrera - California Construction Law Blog
A well-drafted insurance clause is an integral part of a construction contract because it sets forth a subcontractor’s obligations to add the general contractor to its policies of insurance as an additional insured and identifies the manner by which the general contractor will qualify as an additional insured. In a typical construction contract, the general contractor will be an additional insured via a scheduled endorsement or a blanket endorsement. Scheduled Endorsements A scheduled endorsement contains a “schedule” in which the person or organization that is named in the schedule is added to the policy as an additional insured. The following scheduled endorsements are commonly used in construction contracts. Read the court decision
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Reprinted courtesy of Gary Barrera, Wendel Rosen Black & Dean LLP
Mr. Barrera may be contacted at gbarrera@wendel.com

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