SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Smart Contracts Poised to Impact the Future of Construction

November 12, 2019 — Frederick D. Cruz and Seth Wamelink - Construction Executive
In August 2018, the State of Ohio passed legislation making it easier for businesses in Ohio, including the construction industry, to use blockchain technology in business transactions, which can result in significant savings and increased efficiency if used correctly. Specifically, Senate Bill 220 amends the Uniform Electronic Transactions Act (Ohio Rev. Code. 1306.01, et seq.) and ensures that records (or signatures) secured through blockchain are legally binding. With the enactment of this bill, Ohio has joined several other states to allow their businesses to take advantage of this budding technology. While the implications of this enactment are widespread, the use of “smart contracts” utilizing blockchain technology is particularly helpful in the construction industry to streamline certain processes and increase efficiency. What is Blockchain? While blockchain technology is most commonly associated with cryptocurrency (e.g., Bitcoin), the technology has far greater applications as it can be used to “eliminate the middle-man” in a variety of transactions across a broad spectrum of industries. At its core, blockchain is a decentralized ledger that allows transacting parties to interact directly (i.e., peer-to-peer) in a secure manner. Essentially, the blockchain “ledger” is where users record transactions. These transactions are then verified, viewed, and shared with others in the network. The information is stored across a peer network and allows for approved users to view the data simultaneously. It is often analogized to using GoogleDocs, where multiple people can access and edit the same document simultaneously. While that is an easy comparison, blockchain itself is a bit more complex. Reprinted courtesy of Frederick D. Cruz & Seth Wamelink, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Cruz may be contacted at frederick.cruz@tuckerellis.com Mr. Wamelink may be contacted at seth.wamelink@tuckerellis.com Read the court decision
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Design Professional Asserting Copyright Infringement And Contributory Copyright Infringement

May 01, 2019 — David Adelstein - Florida Construction Legal Updates
Standard form construction contracts between an owner and design profesional will address copyright protection, as well as other contractual protections, associated with a design professional’s “instruments of service.” An owner negotiating an agreement with a design professional should consider alternative language that broadens the scope of the contractual license given to it with respect to the use of the design. Regardless, a design professional’s copyright infringement claim is still a challenging claim to ultimately prevail on. While a design professional may likely survive the motion to dismiss stage in a copyright infringement claim, whether it survives the summary judgment stage is another, more challenging, story. “To state a claim for copyright infringement a plaintiff [design professional] must assert [and prove the following two prongs]: ‘(1) ownership of a valid copyright, and (2) copying of constituent elements of the work that are original.’” Robert Swedroe Architect Planners, A.I.A., P.A. v. J. Milton & Associates, Inc., 2019 WL 1059836, *3 (S.D.Fla. 2019) quoting Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991). In the first prong, the design professional must establish it complied with statutory formalities to own a valid copyright. Id. In the second prong, the design professional must establish that the defendant copied constituent elements that are original. Id. There is also a claim known as contributory copyright infringement. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Direct Contractors In California Should Take Steps Now To Reduce Exposure For Unpaid Wages By Subcontractors

February 07, 2018 — Nora Stilestein, Candace Matson , and Mercedes Cook - Construction & Infrastructure Law Blog
As of January 1, 2018, direct contractors in California who make or take a contract “for the erection, construction, alteration, or repair of a building, structure, or other private work” are jointly and severally liable with their subcontractors for any unpaid wages, fringe benefits and other benefit payments or contributions owed to wage claimants. Governor Brown approved AB 1701 on October 14, 2017. The new law puts the onus on direct contractors to not only monitor their own payroll practices, but to ensure that their subcontractors and lower tier subcontractors are engaging in proper payroll practices. Reprinted courtesy of Sheppard Mullin attorneys Nora Stilestein, Candace Matson and Mercedes Cook Ms. Stilestein may be contacted at nstilestein@sheppardmullin.com Ms. Matson may be contacted at cmatson@sheppardmullin.com Ms. Cook may be contacted at mcook@sheppardmullin.com Read the court decision
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The Importance of the Recent Amendment to Rule 702 of the Federal Rules of Evidence

January 22, 2024 — Andrew G. Vicknair - The Dispute Resolver

Every litigator understands that expert witnesses play a key role in litigation, especially when dealing with construction issues. Expert testimony at trial can be a deciding factor in persuading a judge or jury in your client’s favor. It is so important that, as parties get closer to trial, litigators often spend considerable time filing motions to limit or disqualify certain aspects of expert testimony in an effort to gain an advantage at trial. Because experts are a key aspect of the trial process, it is important to understand the various rules governing use of expert testimony, primarily Rule 702 of the Federal Rules of Evidence.

On December 1, 2023, amendments to Rule 702 of the Federal Rules of Evidence went into effect which added the language in underline below and removed the language which is crossed out:

Rule 702. Testimony by Expert Witness

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:

(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;

(b) the testimony is based on sufficient facts or data;

(c) the testimony is the product of reliable principles and methods; and

(d) the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.

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Reprinted courtesy of Andrew G. Vicknair, D'Arcy Vicknair, LLC
Mr. Vicknair may be contacted at agv@darcyvicknair.com

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Renovate or Demolish Milwaukee’s Historic City Hall?

July 02, 2014 — Beverley BevenFlorez-CDJ STAFF
Milwaukee, Wisconsin’s City Hall, which according to the New York Times is “one the largest of its kind in the country,” is “slowly sinking.” However, residents are debating whether it is worth the millions to renovate—especially considering that despite $76 million spent in 2006 to restore the building’s exterior, a terra cotta urn fell into the street in 2011 resulting in a lawsuit against the contractor. The main problem with the building is that “old wooden pilings that support the base of City Hall, timbers anchored deep into the marshy soil more than a hundred years ago, are decaying,” the New York Times reported. “So far, the northeast corner of the aging structure has ‘settled’ 2.16 inches over the past three decades — a small change, but serious enough to raise concerns about the possibility of more structural problems.” However, proponents of renovation mention the building’s rich history. In 1895 when the City Hall was built, it was “the third-tallest structure in the country at the time, behind the Philadelphia City Hall and the Washington Monument.” The German Renaissance Revival building features a 400-foot clock tower, which “is most fondly remembered for its role in the opening credits of the sitcom ‘Laverne & Shirley.’” “Buildings like this are salvageable,” Dennis Barthenheier, a contractor who has used concrete to reinforce the pilings of nearly two dozen sinking structures in downtown Milwaukee, told the New York Times. “But it’s not a cheap date.” Read the court decision
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Eighth Circuit Affirms Finding of Bad Faith, Award of Costs and Prejudgment Interest

October 25, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Eighth Circuit affirmed the district court's finding of bad faith and award to the insured of taxable costs and prejudgment interest. Selective Ins. Co. v. Sela, 2021 U.S. App. LEXIS 26062 (8th Cir. Aug. 30, 2021). The insured suffered two hail storms that damaged his home. In 2010, the first storm caused over half a million dollars in loss. Before submitting a claim to his original insurer or beginning any repairs, the insured secured a new policy with Selective. The policy did not exclude pre-existing damage, it did preclude coverage if the insured "willfully and with intent to defraud, concealed or misrepresented any material fact or circumstance relating to the insurance." Before issuing the policy, Selective appraised the property and assigned a $1.6 million value to the home. The insured then filed a claim with his original insurer and received $510,787.23 for actual cash value of his loss. Neither the terms of this settlement nor this new policy with Selective required the insured to repair all of the 2010 damage. 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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SunTrust Will Pay $968 Million to Resolve Mortgage Probes

June 18, 2014 — Tom Schoenberg – Bloomberg
SunTrust Banks Inc. (STI) agreed to pay $968 million to resolve federal and state claims that a unit misrepresented the quality of mortgages the bank originated and deceived homeowners on loans it serviced. The agreement covers loans SunTrust Mortgage made from January 2006 through March 2012 that were backed by the Federal Housing Administration even though they didn’t meet agency requirements, the Justice Department said in a statement today. Atlanta-based SunTrust disclosed the agreement in an October regulatory filing and has already accounted for the payment. “SunTrust’s conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis,” Attorney General Eric Holder said in a statement. “We will continue to hold accountable financial institutions that, in the pursuit of their own financial interests, misuse public funds and cause harm to hardworking Americans.” Read the court decision
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Reprinted courtesy of Tom Schoenberg, Bloomberg
Mr. Schoenberg may be contacted at tschoenberg@bloomberg.net

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Texas exclusions j(5) and j(6).

April 27, 2011 — CDCoverage.com

In Evanston Ins. Co. v. D&L Masonry of Lubbock, Inc., No. 07-10-00358-CV (Tex. Ct. App. April 18, 2011), insured masonry subcontractor D&L sued its CGL insurer Evanston to recover costs incurred by D&L for the replacement of window frames damaged by D&L while performing masonry work adjacent to the window frames. The trial court granted summary judgment for D&L.



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Reprinted courtesy of CDCoverage.com

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