Seattle Washington Building Expert Directory

Insurance Agent Sued for Lapse in Coverage after House Collapses

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
Property Casualty 360 reported a Hawaii case where the court ruled that an “insurance brokerage firm is responsible for the wrongful conduct of its employees, agents and independent contractors as long as they give the public the appearance that the individual is working as an agent of the brokerage.” The case involved a home that collapsed “during an attempted structural renovation.” The original insurance policy had lapsed, and the “application used to procure the second policy stated that there was no renovation work underway on the property, and thus contained a material misrepresentation which voided the second policy, the [homeowners] were left without insurance on the house.” Read the court decision
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Bad Faith and a Partial Summary Judgment in Seattle Construction Defect Case

February 10, 2012 — CDJ STAFF

The US District Court of Washington has issued a ruling in the case of Ledcor Industries v. Virginia Surety Company, Inc. Ledcor was the builder of a mixed-use real estate project in Seattle called the Adelaide Project. Ledcor purchased an insurance policy from Virginia Surety covering the project. After the completion of the project, Ledcor received complaints of construction defects from the homeowners, which they forwarded to Virginia Surety.

Virginia Surety denied coverage on several grounds. Absent any lawsuit, Virginia claimed that there was “not yet any duty to defend or indemnify.” Further, as the policy commenced ten days after work on the project was substantially completed, Virginia cited a provision in the policy that excluded coverage for damage that occurred before the policy began. As problems included water intrusion, Virginia noted an exclusion for fungal damage. Finally, Virginia noted that it was not clear whether damage was due to Ledcor’s own actions.

The homeowners sued over the construction defects. Ledcor settled these suits before trial. In this, they were defended by, and settlements were paid by American Home, another of Ledcor’s insurers. Ledcor claims that Virginia Surety acted in bad faith by denying coverage and by its failure to investigate the ongoing nature of the work at the project.

The judge determined that Virginia Surety acted in bad faith when it invoked the fungus exclusion. Virginia noted that fungal damage “‘would have been’ referenced in the list of construction defects,” however, the HOAs claimed only “water stains” and “water damage,” and made no mention of mold or fungus. The court found that Virginia Surety “was not entitled to deny coverage simply because it may have suspected that mold or fungus damage existed.” The court noted that further proceedings would be needed to determine what portion of the settlement Virginia is obligated to pay.

The court found that there were matters of fact to be determined on the further issues in the case. The judge wrote that although Virginia acted in bad faith in invoking the fungus exclusion, it still had to be determined if they were in breach of contract by failing to defend Ledcor. Ledcor still needs to show that the damages claimed by the HOA were due to work actually covered by Virginia Surety.

Ledcor made an additional claim that Virginia Surety violated Washington’s laws concerning the insurance industry. Here, the court noted that the improper exclusion for fungus issues “constitutes a per se unfair trade practice.” Six other claims were made under this law. The court found that Virginia Surety did not misrepresent “pertinent facts or insurance policy provisions.” It also issued its denial letter promptly, satisfying the fifth provision. However, Virginia Surety did violate the second provision, in that it failed “to acknowledge and act reasonably promptly upon communications with respect to claims.” Two other issues could not be determined.

Judge Martinez’s decision granted a summary judgment to Ledcor on the issue of bad faith. An additional summary judgment was granted that Virginia Surety violated Washington’s Insurance Fair Conduct Act. Judge Martinez did not grant summary judgment on any of the other issues Ledcor raised.

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Engineer Pauses Fix of 'Sinking' Millennium Tower in San Francisco

September 13, 2021 — Richard Korman - Engineering News-Record
Engineers paused work for at least two weeks on the $100-million foundation upgrade for San Francisco's 645-ft-tall Millennium Tower high-rise residential condominium after measurements showed increased settlement during the installation of pile casings for the new piles. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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This Times Square Makeover Is Not a Tourist Attraction

July 28, 2016 — Alisa Zevin - Engineering News-Record
The 80-year-old Bow Tie Building in the heart of New York City’s Times Square is undergoing a major renovation of retail space, but the tens of thousands of daily passersby will not see any construction activities: A 53-ft-tall dark-green plywood wall completely hides the 167,000-sq-ft structure. Read the court decision
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Reprinted courtesy of Alisa Zevin, Engineering News-Record
Ms. Zevin may be contacted at zevina@enr.com

Canada to Ban Foreigners From Buying Homes as Prices Soar

April 25, 2022 — Brian Platt & Ari Altstedter - Bloomberg
Canada will ban most foreigners from buying homes for two years and provide billions of dollars to spur construction activity in an attempt to cool off a surging real-estate market. The measures will be contained in Finance Minister Chrystia Freeland’s budget on Thursday, according to a person familiar with the matter, asking not to be named because the matter is private. The move signals that Prime Minister Justin Trudeau is becoming more assertive about taming one of the developed world’s most expensive housing markets -- and that the government is growing more concerned about the political backlash to inflation and the rising cost of housing. Reprinted courtesy of Brian Platt, Bloomberg and Ari Altstedter, Bloomberg Read the court decision
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Manhattan Developer Wants Claims Dismissed in Breach of Contract Suit

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
The Real Deal reported that Savannah, the developer of the condo conversion at 141 Fifth Avenue, “has filed to dismiss a number of claims in a $7.5 million breach of contract lawsuit by the property’s board of managers, while alleging professional negligence against several of its own contractors.” Savanah’s lawyers stated, according to The Real Deal, that whether or not construction defects exist, their client isn’t responsible: “However to the extent that any of the alleged defects exist at the building, sponsor cannot be held liable for the existence of such defects.” Read the court decision
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Yet ANOTHER Reminder to Always Respond

July 11, 2021 — Christopher G. Hill - Construction Law Musings
You would think I wouldn’t have to discuss the absolute need to respond to any served pleadings, particularly after some of the prior examples of what can happen if you fail to respond. Of course, I wouldn’t be starting a post like this if those that were sued contacted an experienced attorney in a timely fashion and followed this advice. Yet another example of the disastrous results that can occur simply from failing to file responsive pleadings occurred last year in the Eastern District of Virginia federal court in Alexandria, VA. In Pro-Telligent, LLC v. Amex Int’l, Inc. the Court considered a claim for breach of contract (among other causes of action) by Pro-Telligent against Amex. The operative facts are that Pro-Telligent was a subcontractor to Amex that claimed it was unpaid in the amount of $279,660.27, its Complaint was served on January 7, 2021, and Amex did not respond within the required 21-day window. The Court then held a hearing on February 28, 2020, regarding the validity of the Clerk of Court’s entry of default per the rules of court. 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

Haight Brown & Bonesteel Attorneys Named Best Lawyers in America ® 2016

February 23, 2016 — Haight Brown & Bonesteel LLP
January 21, 2016 - The Best Lawyers in America® 2016, is the oldest and most respected peer-review publication in the legal profession. Haight Brown & Bonesteel attorneys earning this honor for 2016 include the following: William G. Baumgaertner - Personal Injury Litigation Denis J. Moriarty - Insurance Law Since its inception in 1983, Best Lawyers has become regarded as the definitive guide to legal excellence. Because Best Lawyers is based on an exhaustive peer-review survey in which more than 39,000 leading attorneys cast almost 3.1 million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.” Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES