Seattle Washington Building Expert Directory

Steps to Defending against Construction Defect Lawsuits

July 21, 2011 — CDJ STAFF

Writing in Claims Journal, Bryan Rendzio notes that the decline in construction has not been matched by a decline in construction defect lawsuits over condominiums. He reviews the ways in which lawyers representing developers can help protect their clients. He identifies four important considerations in defending developers from claims of construction defects.

He advocates a careful review of the contract. “Under a breach of contract claim, the insured’s duties to the party who brought the claim against the insured flow from the contract. Commonly, construction contracts limit the scope of recoverable damages, such as by waiving consequential damages.’

The next step, according to Rendzio is to check of a settlement agreement is already in place, noting that these are “a familiar occurrence in the construction industry, regardless of any lawsuits having been filed.”

He considers the statute of repose “the single-most decisive weapon an insured possesses in its arsenal during a condo defect lawsuit.” He notes that no lawsuits can be brought for construction defects after the end specified by the statute of repose, and if a lawsuit is brought beforehand, no additional parties can be named once the statute has taken effect.

Finally, he warns adjusters to be suspicious when a condo association requests contractual indemnification. He notes that the pitfall in this is that developers and the subsequent condominium association often have similar names, given the theoretical example of a condo project built by “Fake Lakes LLC” and later run by the “Fake Lakes Condominium Association.” Writing in regards to Florida law, he notes that condominium associations do not have successor interest in contracts developers made with contractors.

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Improper Means Exception and Tortious Interference Claims

August 14, 2023 — David Adelstein - Florida Construction Legal Updates
Last week, I discussed a case (here) that involved a federal district court (trial court) denying a motion to dismiss on a negligent supervision claim. In this same case, the plaintiff, a subcontractor/fabricator, also sued the defendants–parent company of a prime contractor and two entities the prime contractor hired to inspect the subcontractor’s fabricated units–for tortious interference of the subcontractor’s contract with the prime contractor. The defendants moved to dismiss this tortious interference claim which gave rise to another interesting discussion by the trial court relating to the burden to plead and prove tortious interference claims. This discussion is worthy to remember the next time you not only want to plead a tortious interference claim, but want to be in a position to put on evidence to prove the claim at trial.

“Under Florida law, the elements of a tortious-interference-with-contract claim are: ‘(1) the existence of a contract, (2) the defendant’s knowledge of the contract, (3) the defendant’s intentional procurement of the contract’s breach, (4) absence of any justification or privilege, and (5) damages resulting from the breach.’” Bautech USA, Inc. v. Resolve Equipment, 2023 WL 4186395 (S.D.Fla. 2023) (citation omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Ensuing Loss Provision Found Ambiguous

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

After the insurer denied coverage in a homeowner’s policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous.Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).

After purchasing a home from the sellers, the insureds noticed problems with the deck of the home. Massive cracking appeared, causing lifting and leaking on the deck and water running through the exterior foundation wall into the home. There was also damage to the roof and crawlspace.

The insureds had a homeowner’s policy with American Family, which covered accidental direct physical loss to property described in the policy unless the loss was excluded. They requested coverage for "conditions, defects and damages." American Family denied coverage because wear and tear, as well as damage to foundations, floors and roofs were excluded. The policy did provide coverage, however, for "any resulting loss to property described . . . above, not excluded or excepted in this policy.

When coverage was denied, the insureds sued American Family.

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

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New Addition to the ASCE/SEI 7-22 Standard Protects Buildings from a 500-year Flood Event

June 05, 2023 — The American Society of Civil Engineers
Reston, VA — The American Society of Civil Engineers (ASCE) released a new update to their most widely used standard today, ASCE/SEI 7-22 Minimum Design Loads and Associated Criteria for Building and Other Structures. As the increasing frequency of severe storms puts strain on communities across the globe, the design standard's new flood load provisions will protect against 500-year flood events, which is a significant improvement to the 100-year flood hazard referenced in the previous version. The update — which is available in a supplement as a free download — is a significant revision of the design provisions in Chapter 5 to strengthen building resilience against the flood hazard. The ASCE 7 national loading standard is an integral part of building codes in the United States and around the globe. "For more than 30 years, the ASCE 7 standard has been the authoritative source for the specification of minimum design loads and related criteria in the civil engineering community," said Tom Smith, ASCE Executive Director. "To ensure structures continue to be safe for the public, it is imperative that the standards we rely on are updated to account for emerging risks to the built environment. This Supplement is the most significant change to the standard's flood load provisions since the inception of ASCE 7 and will improve the safety and reliability of structures across the globe." ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Reminder About the Upcoming Mechanic’s Lien Form Change

August 26, 2019 — Christopher G. Hill - Construction Law Musings
As July 1, 2019 approaches with its inevitable changes to the Virginia Code, I wanted to remind you once again that the statutory form for a Virginia mechanic’s lien will change as of that date. HB2409 passed both houses of the General Assembly and has been signed by the Governor. This bill reconciled the language found in Virginia Code Sec. 43-4 with the various forms for general contractor, subcontractor and sub-subcontractor/supplier forms found in later sections of the code. As you will see if you download the .pdf of the bill as signed, this involved some tweaks to 43-4 and some updates to the mechanic’s lien forms that are in the code. The recent Desai case from the Virginia Supreme Court made it clear that such action was necessary. 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

ICC/ASHRAE/USGBC/IES Green Model Code Integrates Existing Standards

December 04, 2018 — Nadine M. Post - Engineering News-Record
The release this month of the 2018 edition of the International Green Construction Code marks the first time two sustainability standards developers have joined to foster green buildings and streamline code adoption. The model IgCC is now integrated with ASHRAE’s standard for high-performance buildings. And to reduce green-standard confusion even further, the 2018-IgCC is aligned with the LEED rating system program. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Partner Vik Nagpal is Recognized as a Top Lawyer of 2020

June 29, 2020 — Bremer Whyte Brown & O'Meara LLP
Please join us in congratulating San Diego Partner Vik Nagpal for being recognized as a Top Lawyer of 2020 by San Diego Magazine! San Diego Magazine works with Martindale-Hubbell to choose top lawyers who have reached the highest level of ethical standards and professional excellence. Vik Nagpal was evaluated and given the highest ratings by the colleagues using a peer reviewed Vik Nagpal is the managing partner of Bremer Whyte Brown & O’Meara LLP’s San Diego offices, as well as directing the firm’s business development. Read the court decision
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Trump’s Infrastructure Weak

June 21, 2017 — Garret Murai - California Construction Law Blog
This past week was President Trump’s “Infrastructure Week.” A week dedicated, according to the White House’s official blog, “to addressing America’s crumbling infrastructure” and to try to build support for the President’s campaign promise to invest “at least” $1 trillion on improving the nation’s infrastructure. For the construction industry it was going to be an exciting week. Not only because it could mean new opportunities for the industry but from a policy perspective our nation’s infrastructure, which recently received a grade of D+ from the American Society of Engineers, is in dire need of investment. But Infrastructure Week ended up being more like Infrastructure Weak. No infrastructure bills were signed or introduced, no executive orders were issued, and no new departments or commissions were created, although at the end of the week President Trump promised to form a “council” and “office” to review the environmental permitting process. 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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