Seattle Washington Building Expert Directory

National Demand Increases for Apartments, Refuting Calls for Construction Defect Immunity in Colorado

September 08, 2016 — Jesse Witt – The Witt Lawfirm
For the last four years, the homebuilders’ lobby has been aggressively pushing the idea that consumer protection laws are stifling condominium construction in Colorado. The lobbyists claim that the fear of liability for construction defects has forced many local developers to build apartments instead of condominiums. They have dismissed the notions that the shift to apartments merely reflects supply and demand, or that modern families might actually prefer to rent rather than buy. To support this theory, they have touted high condominium sales in other states. A new story from NPR’s Here & Now refutes this claim, however. Contrary to what the lobbyists have been saying, data now confirm that large numbers of Americans prefer to rent, not buy, their homes. NPR reported today that home ownership in the U.S. fell to its lowest rate since 1965, while the share of U.S. households who rent is nearing a 50-year high. This trend appears nationwide and can hardly be blamed on consumer protection laws in Colorado. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Read the full story... Read the court decision
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Mr. Witt welcomes comments at www.witt.law

A Relatively Small Exception to Fraud and Contract Don’t Mix

April 06, 2016 — Christopher G. Hill – Construction Law Musings
Remember all of my posts about how fraud and contract claims don’t usually play well in litigation? Well, as always with the law, there are exceptions. For instance, a well plead Virginia Consumer Protection Act claim will survive a dismissal challenge. A recent opinion out of the Alexandria division of the U. S. District Court for the Eastern District of Virginia sets out another exception, namely so called fraudulent inducement. In XL Specialty Ins. Co. v. Truland et al, the Court considered the question of whether both a tort and contract claim can coexist in the same lawsuit when the tort claim is based upon the information provided to the plaintiff when that information proves false. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Construction Law Musings
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Mediation is (Almost) Always Worth a Shot

October 17, 2022 — Christopher G. Hill - Construction Law Musings
As Hurricane Ian is bearing down on Florida the economy is sputtering, it is easy to lose track of things that construction professionals (among others) can control. One of those things is how to resolve your construction dispute. When initial, and hopefully business-oriented, discussions break down and the construction lawyers get involved, often more formal means are required. One “formal” possibility that should always be considered and almost always attempted is the mediation of your dispute. I know, I pound this particular gavel often. Why? Because not only are litigation and arbitration expensive and time-draining, you are putting your fate in the hands of a judge or arbitrator to decide. Let’s face it, most contractors (and solo construction lawyers for that matter) want as much control over their businesses and projects as possible. Mediation is the only third-party dispute resolution process that allows the parties to decide their own mutual fate. This is one of the primary reasons I almost always recommend that my clients try mediation before or after filing their lawsuit or arbitration demand. 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

Conn. Appellate Court Overturns Jury Verdict, Holding Plaintiff’s Sole Remedy for Injuries Arising From Open Manhole Was State’s Highway Defect Statute

June 14, 2021 — Christy Jachimowski - Lewis Brisbois
Section 13a-149 of the Connecticut General Statutes, commonly known as Connecticut’s highway defect statute, provides that claims arising from injuries or damages to people or property resulting from a defective road or bridge can be asserted against a party responsible for maintaining that road or bridge. Conn. Gen. Stat. §13a-149. The statute also extends to sidewalks and further provides that written notice of an alleged injury must be given to a defendant municipality within ninety days of the injury. Recently, in Dobie v. City of New Haven, 2021 Conn. App. LEXIS 162 (App. Ct. May 1, 2021), the Connecticut Appellate Court overturned the trial court’s denial of a municipal defendant’s post-trial motion to dismiss. The court held that even though the plaintiff attempted to assert allegations of negligence against the defendant municipality, Connecticut’s highway defect statute was the plaintiff’s exclusive remedy. Since the plaintiff failed to meet the requisite notice requirements, pursuant to the statute, the Appellate Court held that the trial court erred in denying the municipality’s motion to dismiss for lack of subject matter jurisdiction. The Underlying Case In February of 2013, Plaintiff William Dobie filed suit against the City of New Haven alleging injuries and damages as a result of the negligence of a City of New Haven snowplow operator. Dobie’s claims arose from an incident that occurred on January 21, 2011, in which he was driving behind the City snowplow driver, who was in the process of plowing snow from a municipal street located in New Haven, Connecticut. As the defendant employee was operating his snowplow, he knocked off a manhole cover, causing Dobie’s vehicle to drive over the open manhole. Dobie claimed personal injuries as a result of his vehicle dropping into the open manhole, including injuries to his jaw. Read the court decision
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Reprinted courtesy of Christy Jachimowski, Lewis Brisbois
Ms. Jachimowski may be contacted at Christy.Jachimowski@lewisbrisbois.com

So You Want to Arbitrate? Better Make Sure Your Contract Covers All Bases

August 16, 2021 — Stephanie Nolan Deviney - ConsensusDocs
As a General Contractor, you may prefer to arbitrate any contractual disputes rather than engage in protracted litigation. Many Courts favor arbitration clauses and will enforce them if there is a sufficient reason to do so. However, there are several issues that a General Contractor should consider when including an arbitration clause in its construction agreement with its client. When an arbitration clause is not properly crafted, questions can arise as to who must arbitrate? Who decides whether to arbitrate? Who selects the arbitrator? What will the subject matter of the arbitration be? A look at a recent case in Pennsylvania highlights the need for properly crafted arbitration clauses. A Recent Case Highlights The Importance Of Arbitration Clauses In TEC Construction, LLC v. Greg Rich and Lora Rich filed in the Court of Common Pleas, Allegheny County, Pennsylvania, TEC Construction, LLC (“TEC”) and Greg and Lora Rich (the “Riches”), entered into a Construction Agreement with an arbitration clause. Specifically, the parties to the Construction Agreement, TEC and the Riches, agreed to arbitrate any disputes with the American Arbitration Association. Five subcontractors completed the work under the Construction Agreement but none of the subcontractors agreed to arbitrate. Read the court decision
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Reprinted courtesy of Stephanie Nolan Deviney, Fox Rothschild LLP (ConsensusDocs)
Ms. Deviney may be contacted at sdeviney@foxrothschild.com

Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.

November 21, 2022 — Christian Fernandez - Snell & Wilmer Real Estate Litigation Blog
Liquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated damages may be referred to in a variety of ways, such as “earnest money,” a “good-faith deposit,” or a “non-refundable deposit,” but each typically denote a negotiated amount of money that a seller is entitled to retain should a buyer breach a purchase and sale agreement. The purpose of liquidated damages is to provide the parties with certainty when actual damages arising from a breach of contract may be difficult to calculate. Accordingly, liquidated damages provisions alleviate the need for potentially expensive litigation associated with proving damages. While parties are free to negotiate the amount of liquidated damages, the amount must approximate the loss anticipated at the time of contracting, or the loss that actually occurs as a result of a breach. Arizona courts have held that where the amount of liquidated damages is unreasonably large when compared to the anticipated loss or actual loss, the liquidated damages provision is unenforceable as a penalty. A breaching party faced with high liquidated damages will often seek to invalidate the provision as a penalty. If a court agrees, the non-breaching party may still recover damages, but must go through the process of proving such damages. Therefore, when negotiating a real estate contract, consideration should be given as to whether a liquidated damages amount is arbitrarily high when compared to an anticipated loss in the event of a breach. Read the court decision
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Reprinted courtesy of Christian Fernandez, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com

The Prompt Payment Act Obligation is Not Triggered When the Owner Holds Less Retention from the General Contractor

October 27, 2016 — John P. Ahlers – Ahlers & Cressman PLLC
Most states have laws known as “prompt payment” statutes which govern the timing of payments on public works projects[i] from project owners to general contractors, and from general contractors to subcontractors.[ii] The purpose of these statutes is to ensure that contractors and subcontractors who may have less leverage than the project owners and prime contractors, respectively, are paid for their work on a timely basis. Prompt Payment Act cases are rare, and, since many of the prompt payment statutes are founded on the same principles, when we come across a Prompt Payment Act case, it is “blog worthy.” This dispute arose from the construction of the Exposition Light Rail Line Project connecting downtown Los Angeles with Culver City on which FCI/Fluor/Parsons (“FFP”) was the prime contractor, and Bloise Construction, Inc. (“Bloise”) was the excavation subcontractor to FFP. Under the prime contract, Expo,[iii] the owner, was permitted to withhold ten percent of the payments owed to FFP, and FFP, pursuant to its subcontract with Bloise, was entitled to also withhold ten percent of the payments to Bloise as retention. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman, PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

Nevada Update: Nevada Commissioner of Insurance Updates Burning Limits Statute with Emergency Regulation

September 06, 2023 — William S. Bennett - Saxe Doernberger & Vita, P.C.
Following significant backlash in reaction to its enactment of legislation prohibiting enforcement of any provisions in liability insurance policies dictating that defense costs are included within the limits of insurance, the Nevada Division of Insurance issued an emergency regulation further clarifying the law.1 The regulation modifies two key aspects of the original law:

The term “policy of liability insurance,” as used in the statute, shall only mean those casualty insurance policies offered by insurers authorized under NRS 680A.060 and NRS 694C.230 to issue third-party liability insurance. In other words, the statute’s restrictions on eroding limits will no longer apply to “non-admitted” insurers.

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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

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