Seattle Washington Building Expert Directory

Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak

September 09, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024). Carbon monoxide leaked in a building addition to a middle school, prompting 23 lawsuits to be filed against the insured, Allied Design Consultants, Inc. Allied was retained to perform certain architectural services to the building addition. Pekin Insurance Company had issued a business owners liability policy and a commercial umbrella liability policy to Allied. Pekin denied a defense to Allied based upon the policies' professional services exclusions. Allied filed suit for declaratory relief against Pekin. Pekin filed a counterclaim, seeking a declaratory judgment that it had no duty to defend. The parties filed cross-motions for summary judgment. The parties agreed the allegations in the personal injury complaint filed by Ferguson were typical and representative of the allegations in the other 22 underlying lawsuits. 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

AIA Releases State-Specific Waiver and Release Forms

September 05, 2022 — Garret Murai - California Construction Law Blog
The American Institute of Architects (AIA) has released a new series of state-specific waiver and release forms including forms for California. The new California-specific forms are:

G901CA-2022 – California Conditional Waiver and Release on Progress Payment
G902CA-2022 – California Unconditional Waiver and Release on Progress Payment
G903CA-2022 – California Conditional Waiver and Release on Final Payment
G904CA-2022 – California Unconditional Waiver and Release on Final Payment

California is one of twelve states – including Arizona, Florida, Georgia, Massachusetts, Michigan, Mississippi, Missouri, Nevada, Texas, Utah and Wyoming – which regulate waiver and release forms on construction projects. California’s waiver and release statute, which is codified at Civil Code section 8120 et seq., sets forth specific language which should be used in waivers and releases. While the exact language set forth under California’s waiver and release statutes does not need to be used, the statute provides that the language must be “in substantially” the same form, and most people follow the statutory language exactly. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

No Coverage For Damage Caused by Chinese Drywall

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Florida Court of Appeals determined that there was no coverage for damage to the insured's home caused by the installation of Chinese drywall. Peek v. Am. Integrity Ins. Co., 2015 Fla. App. LEXIS 14147 (Fla. Ct. App. Sept. 25, 2015). Chinese drywall was installed in the Peek's new home. After moving in, the Peeks reported to American Integrity a sulfur odor caused by the Chinese drywall. The odor caused the Peeks to vacate their home. The Peeks also claimed corrosion and deterioration of copper coils in the air conditioning system were caused by the Chinese drywall. American Integrity denied coverage based upon policy exclusions for latent defects, corrosion, pollutants, and faulty, inadequate or defective constrution materials. The Peeks sued American Integrity. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Study Finds Construction Cranes Vulnerable to Hacking

May 20, 2019 — Jeff Rubenstone - Engineering News-Record
When securing a jobsite against malicious hackers, most go to protect computer files, and few look up and worry about the tower cranes. But many cranes—whether tower, mobile or industrial—can be remotely run via radio wireless controllers, a useful feature for when operators need a clearer view of the load from the ground. Unfortunately, these wireless signals are vulnerable to hijacking, according to a study released earlier this year by security research firm Trend Micro. It found that the radio signals these crane controllers use are not encrypted over the air in any way, and can be easily intercepted and spoofed using off-the-shelf equipment and a basic knowledge of electronics and radio engineering. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

California Court of Appeal Affirms Trial Court’s Denial of anti-SLAPP Motion in Dispute Over Construction of Church Facilities

March 27, 2023 — Garrett A. Smee & Lawrence S. Zucker II - Haight Brown & Bonesteel LLP
On February 28, 2023, the California Fourth District Court of Appeal, Division One, issued an opinion in Billauer v. Escobar-Eck (D079835), affirming the trial court’s denial of an anti-SLAPP motion stemming from a public debate over a Church construction project. The Appellant (Billauer) ran several social media sites as a “neighborhood activist.” The Respondent (Escobar-Eck) ran a land use and strategic planning firm in San Diego. The “All People’s Church” had hired Escobar-Eck’s company in 2019 to obtain City approval for a Church campus. During a Zoom presentation by Escobar-Eck to a Church planning group on November 11, 2020, Billauer, as a participant in the meeting sent a chat to Escobar-Eck stating: “I’m going to make sure you get sent back to where you came from.” Over the span of the next six months, from November 11, 2020 to April 8, 2021, Billauer continued the onslaught through a series of five posts on Instagram and Facebook, attacking Escobar-Eck. On December 10, 2020, Escobar-Eck fired back with a Twitter post to Billauer’s employer, Wells Fargo, labeling Billauer as a cyberbullying racist. Reprinted courtesy of Garrett A. Smee, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Mr. Smee may be contacted at gsmee@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Nevada Senate Bill 435 is Now in Effect

February 24, 2020 — Bremer Whyte Brown & O'Meara LLP
ATTENTION: Nevada liability departments and auto insurance carriers! Nevada Senate Bill No. 435 was recently signed into law and there are two key points to be aware of: Disclosure of Policy Limits Demand and Voiding Releases. These both deal with pre-litigation situations. 1) Nevada law now requires a motor vehicle insurer to disclose the limits of the policy if the claimant provides a HIPAA authorization which allows the carrier to “receive all medical reports, records and bills related to the claim from the providers of health care.” This is a change from the previous Nevada statute which required the disclosure of policy limits only after litigation was commenced. However, it appears from the language of the statute that there are limits to this new mandate. Section 4 of the new law is written in such a way to allow the argument that the new law applies only to accidents that occurred after 10/1/19, and that the insurance company has to request the HIPAA waiver from the claimant in order for the disclosure requirement to apply. The plaintiff’s bar is already attempting to address this language in the legislature. As written, subsection (4) is governed by subsection (1) which states that the insurance company “may require the claimant … to provide … a written authorization.” The following subparts all appear to be triggered only by the act of the insurance company requesting a HIPAA waiver. The plaintiff’s bar is pushing for clarifying language that would make it clear that once the claimant sent a HIPAA waiver, irrespective of whether the document was requested by the insurance company or not, the insurance company is required to disclose policy limits. This is not how the law reads on its face, and the change would make a significant difference from a practical perspective. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Death of Subcontractor’s Unjust Enrichment Claim Against Project Owner

April 12, 2021 — David Adelstein - Florida Construction Legal Updates
In a previous article, I discussed a subcontractor’s unjust enrichment claim against a project’s owner and the death of this equitable claim if the owner fully paid the general contractor or paid the general contractor for the subcontractor’s work. This can be best summarized from a very short 1995 opinion out of the Fourth District Court of Appeal: “Unjust enrichment is equitable in nature and cannot exist where payment has been made for the benefit conferred. [Owner] paid [General Contractor] the full amount of its contract for the construction project. Accordingly, there can be no unjust enrichment claim to support [Subcontractor’s] claim.” Gene B. Glick Co., Inc. v. Sunshine Ready Concrete Co., Inc., 651 So.2d 90 (Fla. 4th DCA 1995). Reprinted courtesy of David Adelstein, Kirwin Norris, P.A. Mr. Adelstein may be contacted at dma@kirwinnorris.com Read the full story... Read the court decision
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The Connecticut Appellate Court Decides That Construction Contractor Was Not Obligated To Continue Accelerated Schedule to Mitigate Its Damages Following Late Delivery of Materials by Supplier

April 11, 2022 — Robert M. Barrack - Gordon & Rees
In United Concrete Prods. v. NJR Constr., LLC, 207 Conn. App. 551, 263 A.3d 823 (2021), the Connecticut Appellate Court has issued a decision that should be of interest to the Connecticut construction industry and the construction bar. The lawsuit arose out of the late delivery of materials on a construction project, which is a frequent problem on construction projects. In United Concrete Products, the defendant general contractor, NJR Construction, LLC (“NJR”) was retained by the State of Connecticut Department of Transportation (“DOT”) to replace a bridge over the Hockanum River (“Project”). Id. at 555-58 (2021). The Prime Contract provided that NJR with an eight-week time-frame to perform the work, at which time the road would be closed to traffic. Id. The Prime Contract also provided for a bonus of $3,000 for each day the road was opened to traffic prior to the eight week deadline of August 8, 2016, and for liquidated damages of $3,000 for each day the road remained closed beyond the deadline. Id. NJR subsequently entered into a purchase order (“Subcontract”) with the plaintiff, United Concrete Products, Inc. (“United”), whereby United agreed to provide certain concrete components for the Project, including ten pre-stressed concrete beams. Id. The Subcontract required that United deliver the concrete beams by June 7, 2016, but, NJR did not actually schedule the delivery until June 29, 2016. Id. Nevertheless, even with that schedule NJR could have reopened the road by July 19, 2016, which would have allowed it to receive the full $60,000 incentive bonus. However, United did not deliver the concrete beams until July 26, 2016, which caused NJR to lose the incentive bonus, be assessed liquidated damages by the DOT, and to incur additional delay damages. Id. After deducting the amount of $179,500 in damages that it incurred due to United’s late delivery of the beams, NJR paid United the balance of $66,074.75. Id. Read the court decision
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Reprinted courtesy of Robert M. Barrack, Gordon Rees Scully Mansukhani, LLP
Mr. Barrack may be contacted at rbarrack@grsm.com

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