SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

September 17, 2015 — Garret Murai – California Construction Law Blog
Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage, and in the case of builder’s risk insurance, insures against first party claims during construction. Indemnity, on the other hand, shifts liability from one party to another and can be broader than the types of claims covered by insurance although anti-indemnity statutes can limit the breadth of those claims. Sometimes though insurance and indemnity work in ways you might never have expected, like in the next case, Valley Crest Landscape Development, Inc. v. Mission Pools of Escondido, Inc., Case No. G049060 (July 2, 2015), in which the California Court of Appeals for the Fourth District held a subcontractor liable in the face of both an indemnity claim brought by a general contractor as well as a subrogation claim brought by the general contractor’s insurance company. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Insurer’s Discovery Requests Ruled to be Overbroad in Construction Defect Suit

October 28, 2011 — CDJ STAFF

The US District Court has ruled in the case of D.R. Horton Los Angeles Holding Co. Inc. v. American Safety Indemnity, Co. D.R. Horton was involved in a real estate development project. Its subcontractor, Ebensteiner Co., was insured by ASIC and named D.R. Horton as an additional insured and third-party beneficiary. D.R. Horton, in response to legal complaints and cross-complaints, filed for coverage from ASIC under the Ebensteiner policy. This was refused by ASIC. ASIC claimed that “there is no potential coverage for Ebensteiner as a Named Insurer and/or D.R. Horton as an Additional Insured.” They stated that “the requirements for coverage are not satisfied.”

The case same to trial with the deadline for discovery set at March 1, 2011. ASIC stated they were seeking the developer’s “job file” for the Canyon Gate project. D.R. Horton claimed that ASIC’s discovery request was overbroad and that it would be “unduly burdensome for it to produce all documents responsive to the overbroad requests.”

D.R. Horton did agree to produce several categories of documents, which included:

“(1) final building inspection sign-offs for the homes that are the subject of the underlying litigation;(2) an updated homeowner matrix for the underlying actions; (3) the concrete subcontractor files; (4) the daily field logs for D.R. Horton’s on-site employee during Ebensteiner’s work; (5) documents relating to concrete work, including documents for concrete suppliers; (6) documents relating to compacting testing; (7) documents relating to grading; and (8) D.R. Horton’s request for proposal for grading”

The court found that the requests from ASIC were overbroad, noting that the language of the ASIC Request for Production of Documents (RFP) 3-5 would include “subcontractor files for plumbing, electric, flooring, etc. - none of these being at issue in the case.” The court denied the ASIC’s motion to compel further documents.

The court also found fault with ASIC’s RFPs 6 and 7. Here, D.R. Horton claimed the language was written so broadly it would require the production of sales information and, again, subcontractors not relevant to the case.

Further, the court found that RFPs 8, 10, 11, and 13 were also overbroad. RFP 8 covered all subcontractors. D.R. Horton replied that they had earlier complied with the documents covered in RFPs 10 and 11. The court concurred. RFP 13 was denied as it went beyond the scope of admissible evidence, even including attorney-client communication.

The court denied all of ASIC’s attempts to compel further discovery.

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Florida’s “Groundbreaking” Property Insurance Reform Law

April 18, 2023 — Bradley S. Fischer & Laura Farrant - Lewis Brisbois
Fort Lauderdale, Fla. (April 18, 2023) – On December 16, 2022, Florida Governor Ron DeSantis signed into law Senate Bill 2-A (S.B. 2-A, or the Act). Widely touted as “groundbreaking,” S.B. 2-A reforms many aspects of the claims process, including the timing for paying and adjusting claims, eliminating one-way attorneys’ fee awards, and banning assignment-of-benefits agreements. This alert provides an overview of the key provisions of S.B. 2-A. Unless otherwise stated in each amended statute, December 16, 2022 appears to be the effective date of the Act. I. Assignment of Benefits – Section 627.7152 (effective January 1, 2023)

• A policyholder may not assign any post-loss insurance benefits under any residential or commercial property insurance policy. Any attempt to assign such benefits is void, invalid, and unenforceable.

Reprinted courtesy of Bradley S. Fischer, Lewis Brisbois and Laura Farrant, Lewis Brisbois Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com Read the court decision
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Insurer Need Not Pay for Rejected Defense When No Reservation of Rights Issued

November 08, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Massachusetts Appeals Court reversed the trial court's order that defense costs be paid for a period during which the insured rejected the defense even though no reservation of rights was issued. OneBeacon Am. Ins. Co. v. Celanese Corp., 2017 Mass. App. LEXIS 140 (Mass. App. Ct. Oct. 16, 2017). Celanese was sued over many years for claims of bodily injury due to asbestos and chemicals allegedly contained in its products and facilities. For many years, Celanese had an agreement with its insurer, OneBeacon, for defense cost-sharing. In April 2009, Celanese terminated this agreement and demanded that OneBeacon defend the cases under the policies previously issued. OneBeacon agreed to defend without a reservation of rights. OneBeacon also agreed to waive any issues of coverage and to indemnify Celanese from any settlements of judgments up to ts full liability limits. However, OneBeacon also sought to assume full control of the defense of claims against Celanese. 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

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New Recommendations for Healthy and Safe Housing Conditions

May 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The National Center for Healthy Housing (NCHH) and the American Public Health Association (APHA) jointly “released the National Healthy Housing Standard, which provides recommendations for the maintenance and condition of occupied dwellings,” reported Big Builder. According to Big Builder, “The standard's provisions aim to fill gaps where there are no property maintenance policies and to complement the International Property Maintenance Code and other federal, state, and local policies in place regarding the upkeep of existing homes.” Some of the recommendations included room access to daylight, no or low-VOC building materials, and water management. Read the court decision
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Colorado Homes Approved Despite being Too Close Together

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
ABC 7 reported that more than a dozen homes in Adams County, Colorado were inspected and approved by Building and Safety despite being built too close together. The problem was discovered by an inspector who cited a new home for being “4 inches too close to adjoining property.” Jim Williamette, the Adams County Chief Building Official told ABC 7, “It’s a fire issue for the separation of buildings.” The county may have solved the issue, according to ABC 7. Williamette stated that the properties “will be modified with fire-resistant windows” and combined with the “already-installed fire-resistant siding, the windows will satisfy the international building code.” Currently, the parties are in verbal agreement, and a “signed design proposal” is expected no later than January 21st. Read the court decision
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Curtain Wall Suppliers Claim Rival Duplicated Unique System

February 28, 2022 — Annemarie Mannion - Engineering News-Record
Chicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects. Reprinted courtesy of Annemarie Mannion, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Virtual Jury Trials: The Next Wave of Remote Legal Practice

July 13, 2020 — David R. Zaslow & Mark Paladino - White and Williams
One of the most obvious and unavoidable results of the COVID-19 crisis has been the postponement of jury service and, by extension, all jury trials. Given the inherent difficulties of convening juries in a world of social distancing, it is likely that multiple jurisdictions will be unable to conduct live jury trials for at least the next several months. Recognizing the mounting delay and substantial docket backlog that is attendant to several months without jury trials, one court most recently permitted the litigants, upon consent, to try a new innovation – the nation’s first virtual jury trial conducted entirely on the Zoom platform. More than two dozen potential jurors in Collin County, Texas attended jury selection from home by smartphone, laptop, and tablet, a process that was streamed live on YouTube. The presiding judge occasionally provided prospective jurors technical advice on how to best use their devices. Once selected, the jurors virtually attended a one-day, “summary jury trial” of an insurance dispute in which they heard a condensed version of the case and delivered a non-binding verdict. The parties were then able to gauge how their cases would fare before a jury in a full-scale trial and, with that insight, agreed to proceed to a mediation in an attempt to reach a resolution. Court officials further touted the abbreviated, non-binding experience as an ideal test for the viability of remotely holding jury trials that would result in a final judgment. This real-world test, albeit in a non-binding exercise, may be an indication of things to come, as courts in Indiana and Arizona have already communicated an intention to conduct jury trials remotely once able. Reprinted courtesy of David R. Zaslow, White and Williams and Mark Paladino, White and Williams Mr. Zaslow may be contacted at zaslowd@whiteandwilliams.com Mr. Paladino may be contacted at paladinom@whiteandwilliams.com Read the court decision
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