SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Home Prices in 20 U.S. Cities Rose at Faster Pace in January

April 01, 2015 — Nina Glinski – Bloomberg
(Bloomberg) -- Home prices in 20 U.S. cities appreciated at a faster pace in the year ended in January, indicating the residential real-estate market continues to firm. The S&P/Case-Shiller index of property values increased 4.6 percent from January 2014, the biggest gain since September, after rising 4.4 percent the prior month, a report from the group showed Tuesday in New York. That matched the median projection of 28 economists surveyed by Bloomberg. On a national scale, prices rose 4.5 percent from January 2014. A dearth of supply will continue to drive up home prices heading into the busy spring selling season as demand is spurred by rising rents. Builders like KB Home expect to post strong revenue in the warmer months ahead, based on early signs of strength, particularly among first-time buyers. Read the court decision
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Reprinted courtesy of Nina Glinski, Bloomberg
Ms. Glinski may be contacted at nglinski@bloomberg.net

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The New Industrial Revolution: Rebuilding America and the World

March 04, 2019 — Drew Buechley - Construction Executive
Conventional thinking says the Industrial Revolution ended more than a century ago. Yet one crucial industry has lagged behind revolutionary changes stemming from the transition from hand production methods to the use of machines and rise of factory systems. In the 1800s, these transitions caused an influx of people to urban centers, where the majority of those changes were centered. The outcome? Not enough capital or time to build adequate housing, pushing low-income newcomers into overcrowded, unsanitary slums, resulting in increased death rates and endemic levels of contagious diseases. While other industries mechanized and surged, construction remained stagnant in comparison to demand. Fast forward to the 21st century where the U.S .benefits from a developed and industrialized world. Monumental gains in technology, combined with regulations designed to protect communities from polluted waters and disease, have drastically improved quality of life. Yet one similarity remains – the industry still struggles to build enough housing for a growing population. Urban centers have been neglected for decades while the rate of urbanization increases annually. Communities still have no access to clean drinking water and many suffer from crumbling infrastructure. Home ownership is out of reach for an entire generation, with metropolitan areas unable to keep up with demand for housing. At the very center of this lies the staid construction industry. Lagging behind the rest of the industrialized world in terms of technology advances, it has severely impacted the ability to maintain a livable nation and world. Reprinted courtesy of Drew Buechley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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California Supreme Court Declines Request to Expand Exceptions to Privette Doctrine for Known Hazards

January 17, 2022 — Garret Murai - California Construction Law Blog
First things first. Happy New Year! Hope you had a good one. To start things off in the new year we’ve got an employment-related case for you – Gonzalez v. Mathis, 12 Cal.5th 29 (2021) – a California Supreme Court case involving the Privette Doctrine. For those not familiar with the Privette Doctrine, the Privette Doctrine is named after the case Privette v. Superior Court, 5 Cal.4th 689 (1993), which held that project owners and higher-tiered contractors are not liable for workplace injuries sustained by employees of lower-tiered contractors. Since then, courts have carved out a few exceptions to the Privette Doctrine including the “retained control exception” (also known as the Hooker exception – that’s the name of the case not the occupation of the injured worker) whereby a “hirer,” that is, the higher-tiered party who hired the lower-tiered party whose employee is injured, can be held liable if the hirer: (1) retains control over any part of the lower-tiered party’s work; and (2) negligently exercises that control in a manner that affirmatively contributes to the worker’s injury. Another exception is the “concealed hazard exception” (also known as the Kinsman exception) whereby a hirer can be held liable if: (1) the hirer knew, or should have known, of a concealed hazard on the property that the lower-tiered contractor did not know of and could not have reasonably discovered; and (2) the hirer railed to warn the lower-tiered contractor of that hazard. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Disappearing Data: Avoid Losing Electronic Information to Avoid Losing the Case

February 01, 2022 — Daniel C. Wennogle & Jennifer Knight Lang - Construction Executive
It happens: A contractor on a delayed project ends up in litigation over liquidated damages, but the key communications regarding delays and approvals were sent and received by the project manager on a mobile device using text messages and personal email accounts. Unfortunately, the project manager left the company a year ago on bad terms and has changed phones. The information that would serve to mitigate the contractor’s liability has disappeared. With better awareness and policies for capturing and managing electronic information, this is avoidable. Proactive and effective management of electronically stored information on construction projects can not only reduce costs and discovery disputes should litigation arise but can also provide critical evidence in reducing liability exposure in such disputes. The Federal Rules of Civil Procedure (as well as most state rules, which often mirror federal rules), provide for sanctions if a party fails to preserve electronically stored information (ESI) that should have been preserved in anticipation of litigation but is lost due to the failure to take reasonable steps to preserve it. Even in arbitration, where discovery and disclosure obligations are often more limited than in the court setting, preservation of ESI can help strengthen claims and defenses, avoiding accusations of spoliation that can derail a case. Arbitrators can also fashion appropriate sanctions for destruction of relevant evidence, not to mention the impact that apparent spoliation can have on a party’s credibility. Reprinted courtesy of Daniel C. Wennogle & Jennifer Knight Lang, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Lang may be contacted at jennifer.lang@moyewhite.com Mr. Wennogle may be contacted at daniel.wennogle@moyewhite.com Read the court decision
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When to use Arbitration to Resolve Construction Disputes

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
On the blog Construction Contractor Advisor, Craig Martin answers the question of whether arbitration is always the best choice for resolving construction claims. His answer: “Some claims may benefit from arbitration, but the benefit is not always clear.” Martin brings forth four points to consider. First, AIA Contracts do not “push Arbitration.” Second, the cost of arbitration may be expensive: “You could well spend over $5,000 just to have the arbitrator decide your case—again, not to mention your own attorneys fees.” Third, arbitration doesn’t avoid discovery. And finally, “mediation is always an option, regardless of which way you pursue your claim.” Read the court decision
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NYC Supertall Tower Condo Board Sues Over Alleged Construction, Design 'Defects'

October 04, 2021 — James Leggate - Engineering News-Record
The condominium board at a 1,396-ft-tall residential tower on New York City’s Billionaires’ Row has sued the building’s developers, claiming to have identified more than 1,500 construction and design defects in common areas alone. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Pre-Judgment Interest Not Awarded Under Flood Policy

January 17, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion to dismiss state law and extracontractual claims, including pre-judgment interest. Hurley v. Wright Nat'l Flood Ins. Co., 2022 U.S. Distl. LEXIS 203803 (W.D. La. Nov. 8, 2022). The insured suffered damage from Hurricane Delta. He filed suit, alleging that Wright National Flood Insurance Company breached the Standard Flood Insurance Policy (SFIP). The insured sought damages for state law claims for bad faith, diminution in value, actual repair costs, attorney's fees , litigation costs, and interest. Wright moved to dismiss the extracontractual state law causes of action for bad faith and various claims for damages, other than the damages sought for the alleged breach of the SFIP. The court explained that the Write-Your-Own (WYO) Program carriers issuing flood insurance under the National Flood Insurance Program (NFIP) arranged for the adjustment, settlement, payment, and defense of all claims arising from the policy. Congress underwrote all operations of the NIFP, including claims adjustment, through United States Treasury funds. A judgment against a WYO Program carrier constituted a judgment against FEMA, and consequently, a direct charge on the United States Treasury.  Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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SEC Approves New Securitization Risk Retention Rule with Broad Exception for Qualified Residential Mortgages

November 26, 2014 — Neil P. Casey & Lori S. Smith – White and Williams LLP
The Securities and Exchange Commission (SEC) and five other federal agencies recently approved a joint rule (the “Risk Retention Rule”) mandating that sponsors of certain types of securitizations retain a minimum level of credit risk exposure in those transactions and prohibiting such sponsors from transferring or hedging against that retained credit risk.[i]The final Risk Retention Rule will be effective one year after its publication in the Federal Register for securitizations of residential mortgages, and two years after publication for securitizations of all other asset types. The SEC vote was 3-2, with sharp dissents from Commissioners Gallagher and Piwowar concluding that the adopting agencies had missed a prime opportunity to rein in risky mortgage lending practices that had precipitated the 2008 financial crisis. Background Following the meltdown of the securitization markets in 2007 (particularly subprime residential mortgage-backed securities), and the resulting global financial crisis, the Dodd-Frank Act mandated that the U.S. federal banking, securities and housing agencies adopt and implement rules to require sponsors of most new securitizations to retain not less than five percent of the credit risk of any assets that the securitizer, through the issuance of an asset-backed security, transfers, sells or conveys to a third party. It was thought that requiring securitization sponsors to keep “skin in the game” would align the interests of the sponsors with the interests of investors and thereby incentivize the sponsors to ensure the quality of the assets underlying the securitization through appropriate due diligence and underwriting procedures when selecting assets for securitization. Although the Dodd-Frank Act explicitly exempted securitizations of certain types of mortgage loans called “qualified residential mortgages” (or “QRMs”) from this risk retention requirement, it invited the rulemaking agencies to define that key term, provided that their definition could be no broader than the definition of “qualified mortgage”adopted by the Consumer Financial Protection Bureau (CFPB) pursuant to the Truth in Lending Act.[ii] In considering how to define QRM, the rulemaking agencies were directed by the Dodd-Frank Act to take into consideration “underwriting and product features that historical loan performance data indicate result in a lower risk of default.”[iii] Reprinted courtesy of Neil P. Casey, White and Williams LLP and Lori S. Smith, White and Williams LLP Mr. Casey may be contacted at caseyn@whiteandwilliams.com; Ms. Smith may be contacted at smithl@whiteandwilliams.com Read the court decision
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