Seattle Washington Building Expert Directory

Insurers Dispute Sharing of Defense in Construction Defect Case

May 13, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024). Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a "Subcontract Agreement" under which Broadway was to perform plumbing work at the project. The agreement required Broadway to maintain general liability insurance naming McNerney as an additional insured for work performed on the project, including completed operations. The subcontract also required Broadway to indemnify and hold McNerney harmless with respect to all claims for damage to property arising out of work performed by Broadway. Broadway completed its work on the project in September 2007. Broadway issued a one-year warranty for its work on the project. 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

Fifth Circuit Concludes Government’s CAA Legal Claims are Time-Barred But Injunctive-Relief Claims are Not

November 28, 2018 — Anthony B. Cavender - Gravel2Gavel
In another recent U.S. Court of Appeals for the Fifth Circuit decision, on October 1, 2018, the Fifth Circuit affirmed, in part, the District Court’s ruling that the general federal statute of limitations, 28 U.S.C. § 2462, required the dismissal of the government’s civil enforcement action in the case of U.S., et al., v. Luminant Generation Co., LLC, et al. The Fifth Circuit agreed that the statute barred the imposition of any civil fine for the alleged unlawful construction operations regarding the modification of major emitting facilities contrary to Section 7475(a) of the Clean Air Act (CAA). But, the Fifth Circuit remanded the injunctive-relief claims to the District Court for further consideration. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

SunCal Buys Oak Knoll Development for the Second Time

May 19, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the San Francisco Business Times, “Irvine-based SunCal has now bought the same site twice: once in 2005 for $100.5 million and again last week from the Lehman Brothers estate.” Suncal’s original plan to develop the 167-acre Oakland Hills, California project “fell apart after Lehman declared bankruptcy in 2008.” The San Francisco Business Times reported that the “former naval hospital site” has “the potential for more than 900 homes.” The former design included “960 homes, 82,000 square feet of commercial and retail space, and 50 acres of parks and open space.” Read the court decision
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Reprinted courtesy of

Apartment Construction Ominously Nears 25-Year High

August 27, 2014 — Karen Weise – Bloomberg
If you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before … who knows what? Monthly building data released earlier this week by the Census Bureau and the Department of Housing and Urban Development showed that new home construction overall posted strong gains in July, with the highest number of new home starts in eight months. The comeback largely manifested in an uptick in apartment buildings with five or more units, which saw an almost 50 percent increase in new starts in July over a year earlier. By comparison, starts on single-family homes were up only about 10 percent over the same period. That’s part of the reason that the Northeast, with its large, dense cities, saw the biggest monthly increase, up 44 percent from June. That matches the analysis by Trulia (TRLA) Chief Economist Jed Kolko, who found that among metro areas, Boston and New York are building more than in the past. Read the court decision
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Reprinted courtesy of Karen Weise, Bloomberg
Ms. Weise may be contacted at kweise@bloomberg.net

Motions to Dismiss, Limitations of Liability, and More

January 23, 2023 — Christopher G. Hill - Construction Law Musings
Remember BAE Sys. Ordnance Sys. V. Fluor Fed. Sols? I examined that case on two occasions previously here at Construction Law Musings. Previously the discussions were about the mix (or lack thereof) between fraud and contract and about how careful contract drafting is key. In the most recent opinion in this ongoing litigation from March of 2022, the Court examined various motions to dismiss the Complaint and Counterclaim in the matter. As a reminder, the basic facts are as follows. The US Army Joint Munitions Command (“Army”) contracted with BAE Systems OrdnanceSystems, Inc. (“BAE”) to operate and maintain the Radford Army Ammunition Plant (“RFAAP”)under a basic ordering agreement (“BOA”). Under BOA Task Order 002, BAE contracted to replace the legacy NC facility at the RFAAP with a newer one (the “NC Project”). Initially, BAE subcontracted the NC Project to Lauren Engineers & Constructors (“Lauren”), but later terminated Lauren. Despite terminating Lauren, BAE’s timeline to complete the NC Project remained unchanged and BAE was required to use Lauren’s design for the NC Project. BAE gave interested bidders access to the Lauren design and other related documents and required the selected subcontractor to perform in accordance with the 85% complete Lauren design, that the Lauren design could be relied on for accuracy, and the selected subcontractor only had to complete the unfinished parts. Fluor Federal Solutions, LLC (“Fluor”) submitted a request for information (“RFI”) asking BAE about the standards referenced in the SOW. Fluor was unable to determine the completeness of the Lauren design but relied on BAE’s assertion that the design was 85% complete. BAE rejected Fluor’s initial bid as being too high given what BAE had already paid Lauren for its design and told Fluor to lower its bid because the design was close to complete. Fluor lowered its price and submitted another bid proposal that outlined a firm-fixed-price design/build that forecasted 32 months to complete the NC Project. BAE awarded Fluor an Undefinitized Contract Action (“UCA”) in the amount of $9 million dollars, later increased to $32 million. Under the UCA, Fluor began procuring materials and physical construction before a formal subcontract was agreed upon. On December 17, 2015, BAE and Fluor agreed to a fixed-price design and build subcontract (the “Subcontract”) in which Fluor agreed to design, construct, and partially commission the NC Project for $245,690,422.00, which included money spent already in the UCA. When this litigation began, Fluor was scheduled to complete its work by December 2020, 2.5 years beyond the originally agreed-upon completion date. 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

Los Angeles Delays ‘Mansion Tax’ Spending Amid Legal Fight

April 25, 2023 — Laura Curtis - Bloomberg
Los Angeles plans to hold off spending most of the money collected from a voter-approved “mansion tax” until legal challenges against the initiative are resolved. Mayor Karen Bass revealed in her 2023-24 budget plans that the city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month to fund the construction of more affordable housing. The decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount. Read the court decision
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Reprinted courtesy of Laura Curtis, Bloomberg

Albert Reichmann, Builder of NY, London Finance Hubs, Dies at 93

January 17, 2023 — Laurence Arnold - Bloomberg
Albert Reichmann, the longtime president of his family’s Olympia & York Developments Ltd., builder of the World Financial Center in New York and the first phase of Canary Wharf in London, has died. He was 93. He died on Dec. 17, according to the National Post and a notice on the website of Steeles Memorial Chapel, a Toronto-area funeral home. As the eldest of the three Orthodox Jewish brothers behind Olympia & York, Reichmann held the title of president. In practice, his brother Paul — who died in 2013 — was the company’s “idea man and deal-doer,” in the words of Anthony Bianco, a former Businessweek writer whose book on the family called Olympia & York “the greatest property development company in Western history.” Before its 1992 bankruptcy, it was the largest private owner of commercial property in New York City. Forbes magazine calculated the brothers’ cumulative net worth at $9.2 billion at its height in 1988, making them among the world’s richest people. Read the court decision
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Reprinted courtesy of Laurence Arnold, Bloomberg

NY Attorney General to Propose Bill Requiring Climate Adaptation for Utilities

May 21, 2014 — Gerald B. Silverman – Bloomberg
Bloomberg BNA — New York Attorney General Eric T. Schneiderman (D) has proposed legislation to require that New York's electricity and gas utilities assess their vulnerability to the impacts of climate change and prepare a plan for adapting to severe weather. Schneiderman May 19 said the proposed legislation would build on a February decision by the state Public Service Commission (PSC), which approved a plan by Consolidated Edison to spend $1 billion over the next four years for storm hardening and resiliency projects. A spokeswoman for the attorney general told Bloomberg BNA that he is working with members of the Legislature to have the bill formally introduced. The PSC decision also required that all New York utilities integrate the potential impacts of climate change into their system planning and construction forecasts and budgets. Read the court decision
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Reprinted courtesy of Gerald B. Silverman, Bloomberg

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