SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

First-Time Homebuyers Make Biggest Share of Deals in 17 Years

February 22, 2018 — Prashant Gopal – Bloomberg
Millennials are playing homeownership catch-up. First-time buyers rushed into the market last year, making 38 percent of all U.S. single-family home purchases, the biggest share since 2000, data released Thursday by Genworth Mortgage Insurance show. The 2.07 million new or existing homes bought by first-timers was 7 percent more than in 2016, according to the insurer, part of Genworth Financial Inc. Read the court decision
Read the full story...
Reprinted courtesy of Prashant Gopal, Bloomberg

---

Association Insurance Company v. Carbondale Glen Lot E-8, LLC: Federal Court Reaffirms That There Is No Duty to Defend or Indemnify A Builder For Defective Construction Work

December 20, 2017 — David M McLain - Colorado Construction Litigation Blog
In a case that squarely confronts the juxtaposition of an insurer’s duty to defend or indemnify its insured for construction related defects, the United States District Court for the District of Colorado recently granted an insurer’s motion for summary judgment on both matters against a construction subrogee, in Ass’n Ins. Co. v. Carbondale Glen Lot E-8, LLC, No. 15-cv-02025-RPM, 2016 WL 9735743, at *1 (D. Colo. Oct. 10. 2017). Mountainview Construction Services, LLC (“MCS”) served as the general contractor for the construction of a residence on a lot owned by Glen Lot E-8, LLC (“E-8”). MCS took out a Commercial General Liability Policy (“Policy”) with Association Insurance Company (“AIC”) that provided coverage to MCS for the relevant time period for the construction of the residence. E-8 then asserted a series of claims against MCS, based on the allegation that MCS and its subcontractors defectively constructed the home by, among other things, building the residence two feet too high in violation of applicable codes. E-8 also argued that MCS and its subcontractors made significant alterations and/or deviations from the original project specifications without obtaining E-8’s consent or approval from relevant authorities. MCS tendered the claim to AIC for defense and indemnity. In turn, AIC declined coverage on the argument that the Policy precluded any coverage for defective work MCS may have performed on the project, absent damage to person or other property. Read the court decision
Read the full story...
Reprinted courtesy of David M McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

---

School System Settles Design Defect Suit for $5.2Million

October 01, 2013 — CDJ STAFF
A school district in New York State has settled a dispute with its architectural and engineering firm for $5.2 million. Greece School District alleged that the multi-million dollar remodel lead to a variety of problems due to design defects. The problems included leaking roofs, malfunctioning drainage systems, and problems with heating systems. Tetra Tech had one work at 20 schools in the district. The state Comptroller audited the $119.5 million renovation project and concluded that haste in the planning resulted in costly changes. Prior to the lawsuit, the architectural and engineering firm managed to recoup about $200,000 on behalf of the school district for work that was defective. Read the court decision
Read the full story...
Reprinted courtesy of

---

How is Negotiating a Construction Contract Like Buying a Car?

January 04, 2018 — Christopher G. Hill - Construction Law Musings
Originally Published by CDJ on March 1, 2017 I know, you’re probably looking for a punchline, and likely thinking something along the lines of “only a construction attorney would be sitting in his office and come up with such an analogy,” but I really do think it’s a good one. When you are buying a car, you look for priorities. Is the color what you want? Is the motor a hybrid or a v-6? Does it have Android Auto? What is the fuel mileage? All of these things may be more or less important to you. If you can get your priorities for a price that is attractive, you will likely let some other less important items, e. g. trunk space or rear seat leg room, slide and purchase the car anyway. Furthermore, you may use these minor items as negotiating points to either get one of the priorities or a lower price. Of course the dealership will want to get its priorities, likely a sale and a profit, when negotiating and will have certain items that it won’t move on just as you have terms that you won’t move on. Much like when you walk onto the car lot, and particularly as a subcontractor looking at a contract from a general contractor, or a GC looking at the contract from the owner of a project, a construction contract presented to you is the starting point. When looking at the contract, be sure to have some non-negotiable items in mind when taking a critical eye to the terms of that contract. Some of these terms may be more or less negotiable depending on your experience with the other party to the construction contract. For instance, striking a pay if paid clause may be less important with a paying party with whom you have a 10 year history without payment problems. On the other hand, if it is your first contract with the other party, a stricter list may be required. So, much like a dealer that you know will stand behind its cars, you may be more willing to take more “risk” in entering a construction contract with a trusted/known owner or GC. Read the court decision
Read the full story...
Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

---

Warning! Danger Ahead for Public Entities

July 30, 2019 — Michael J. Baker - Snell & Wilmer Under Construction Blog
Public entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding. The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA. Read the court decision
Read the full story...
Reprinted courtesy of Michael J. Baker, Snell & Wilmer
Mr. Baker may be contacted at mjbaker@swlaw.com

---

City of Seattle Temporarily Shuts Down Public Works to Enforce Health and Safety Plans

April 13, 2020 — Masaki J. Yamada - Ahlers Cressman & Sleight Blog
The Governor’s Stay Home, Stay Safe Order mandates that essential businesses must establish and implement social distancing and sanitation measures established by OSHA and the WA State DOH:

• OSHA and the OSHA Guidelines for Employers;
• Washington State DOH (referring to the CDC guidance).

With construction work continuing on essential construction projects, some jurisdictions, such as the City of Seattle, are taking additional steps to enforce and oversee the establishment and implementation of updated Health and Safety plans on construction projects. The City of Seattle’s Mayor Jenny Durkan announced yesterday a two-day temporary suspension of Public Works construction beginning on Thursday, April 9th, to conduct health and safety training for workers and update protocols. The announcement may be viewed here. The City of Seattle also sent a letter in this regard and asked all contractors and owners provide project-specific responses to the Washington Building Trades COVID-19 Construction Industry Emergency Requirements. Herein are the links to the letter and attached requirements. Read the court decision
Read the full story...
Reprinted courtesy of Masaki J. Yamada, Ahlers Cressman & Sleight
Mr. Yamada may be contacted at masaki.yamada@acslawyers.com

---

Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

Read the full story…

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

Read the court decision
Read the full story...
Reprinted courtesy of

---

Brazil’s Former President Turns Himself In to Police

July 22, 2019 — Mario Sergio Lima - Bloomberg
Brazil’s former President Michel Temer handed himself in to police following a court ruling that’s unlikely to cause upheaval in domestic politics. Temer turned himself in on Thursday afternoon, after federal court judges ordered his detention on charges of corruption, embezzlement, money laundering and conspiracy. The former head of state was initially arrested on March 21 but released four days later. Temer’s lawyers did not immediately respond to a request for comment. The 78-year old’s party, the MDB, issued a note condemning the “unreasonable” decision. Read the court decision
Read the full story...
Reprinted courtesy of Mario Sergio Lima, Bloomberg

---