Seattle Washington Building Expert Directory

Specific Performance of an Option Contract to Purchase Real Property is Barred Absent Agreement on All Material Terms

December 20, 2017 — Richard H. Herold - Real Estate Litigation Blog
On November 14, 2017, the Court of Appeals (Division 1), in Offerman v. Granada, LLC, 2017 WL 5352664, reversed a trial court order directing specific performance of an alleged option to purchase real property, holding that the alleged option was too indefinite to be specifically performed because the parties did not agree to all of the material terms of the option. Tenant-Purchaser Offerman executed a two-year lease with Landlord-Seller Granada, which granted Offerman “the option to purchase [the] property…for a sales price to be determined at that time by an independent appraiser acceptable to both Tenant and Landlord. (Terms and Conditions to be stipulated by both parties at such time).” (emphasis added). Offerman timely advised Granada he intended to exercise the option, asked Granada to name an appraiser, and, when Granada did not respond, Offerman tendered a $240,000 appraisal to exercise the option. Granada did not retain an appraiser but instead simply demanded $350,000 to close the sale. After a bench trial, the Court determined that Offerman was entitled to specific performance, and, as the parties had not agreed to certain terms, held a second evidentiary hearing to resolve the form of judgment, therein naming a title agency to handle the escrow, setting a closing date, allocating the transaction fees between the parties, and ordering Granada to pay for the property inspection. Read the court decision
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Reprinted courtesy of Richard H. Herold, Snell & Wilmer
Mr. Herold may be contacted at rherold@swlaw.com

Liquidated Damages Clause Not Enforced

October 02, 2023 — David R. Cook Jr. - Autry, Hall & Cook, LLP
A liquidated-damages clause was not enforced in a recent case before the Georgia Court of Appeals. The clause did not contain standard provisions that would normally allow a trial court to enforce the clause as written. As a result, the trial court looked beyond the contract to determine whether the City satisfied the requirements for enforcement of the liquidated-damages clause. Below are the relevant excerpts. City of Brookhaven v. Multiplex, LLC, A23A0843, 2023 WL 4779591 (Ga. Ct. App. July 27, 2023) Here, the Contract provides for “Liquidated Damages at the rate of $1,000.00 per calendar day” in the last paragraph of the Scope of Work addendum. The Contract lacks, however, any language indicating that the liquidated damages were not intended to be a penalty. See Fuqua Const. Co. v. Pillar Dev., Inc., 293 Ga. App. 462, 466, 667 S.E.2d 633 (2008) (rejecting use of parol evidence where the parties “explicitly agreed” in “unambiguous contract language” that the liquidated damages were not a penalty). Absent such language, the court can look to parol evidence in the record to determine the effect the provision was intended to have. See J.P. Carey Enterprises, 361 Ga. App. at 391-392 (1) (b), 864 S.E.2d 588 (looking to “extrinsic evidence” such as emails, documents, and deposition testimony to determine whether the damages provision at issue was a penalty); see also Gwinnett Clinic, Ltd. v. Boaten, 340 Ga. App. 598, 602-603, 798 S.E.2d 110 (2017) (“Shah’s testimony also suggested that one purpose of the liquidated damages provision was to deter employees from breaching the agreement”). Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse

April 28, 2016 — Beverley BevenFlorez-CDJ STAFF
According to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others. The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.” Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News. Read the court decision
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The Increasing Trend of Caps in Construction Contracts and Negotiating Them

November 27, 2023 — Jarred Trauth - ConsensusDocs
Risks are inherent in every construction project and all parties involved face them: owners, designers, general contractors/builders, subcontractors, suppliers…. Equitably allocating such risks is one of the most important and most negotiated areas of any construction related contract. Limitations of liability provisions are key to risk allocation. These provisions include no damage for delay provisions and caps on delay damages, warranty limitations and exclusions, indemnity limitations, and consequential damage waivers. Another, and the focus of this article, is a liability cap fixing the total amount of damages for which a party may be liable under the contract (the “Liability Cap”). Liability Caps have become more and more common in construction and construction related contracts, including major component supply agreements and design agreements. This article will discuss Liability Caps generally and considerations of an owner or contractor negotiating them, including carve-outs (i.e. exceptions) to them. Read the court decision
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Reprinted courtesy of Jarred Trauth, Jones Walker LLP
Mr. Trauth may be contacted at jtrauth@joneswalker.com

Cold Weather Causes Power Blackouts, Disruptions on Jobsites

February 22, 2021 — Autumn Cafiero Giusti - Engineering News-Record
A February cold snap in the central U.S. has created record power demand, resulting in outages from Texas to North Dakota and contractors bracing for delays and damage from weather impacts. Reprinted courtesy of Autumn Cafiero Giusti, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Properly Trigger the Performance Bond

January 04, 2018 — David Adelstein - Florida Construction Legal Updates
Originally Published by CDJ on January 5, 2017 A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract. A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why? Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Examining Construction Defect as Occurrence in Recent Case Law and Litigation

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
In Lexology, Stephen M. Prignano and Nora A. Valenza-Frost of Edwards Wildman Palmer LLP examined recent case law and litigation to discuss whether or not construction defects are construed as an occurrence in the current legal climate. Prignano and Valenza-Frost stated, “The determination of whether there is coverage under a CGL policy for a construction defect claim requires an insurer to carefully examine the law of the relevant jurisdiction. Courts and legislatures continue to reach different conclusions respecting coverage, and some states have a more well-developed body of law on these issues than others.” Read the court decision
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Construction Feb. Jobs Jump by 61,000, Jobless Rate Up from Jan.

March 22, 2018 — Tom Ichniowski – ENR
Construction jobs soared by 61,000 in February, and the industry's unemployment rate improved year over year, but last month's rate did rise from January's level, the federal Bureau of Labor Statistics reported. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

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