Seattle Washington Building Expert Directory

Do Engineers Owe a Duty to Third Parties?

June 10, 2015 — Craig Martin – Construction Contractor Advisor
A Texas Court of Appeals, in USA Walnut Creek, DST v. Terracon Consultants, Inc., recently ruled that an engineer owed a duty to the buyer of an apartment complex, even though the engineer had no contractual relationship with the buyer. This is an expansion of the duty professionals owe on construction projects and could signal a change in the law. In the case, Walnut Creek purchased a three year old apartment complex. A few years after taking possession, Walnut Creek noticed problems with the apartments, including cracking foundations, walls, breaking windows, and out of square door frames. Walnut Creek sued the developer and general contractor, alleging construction defects. The developer claimed that the engineer, Terracon, was at fault and Walnut Creek added Terracon to the lawsuit, asserting that Terracon was negligent in performing engineering services during construction. Terracon asked the court to dismiss the claim, arguing that it did not owe a duty to Walnut Creek. Walnut Creek in turn argued that engineers do owe a duty to subsequent owners. The trial court dismissed the case against the engineer and Walnut Creek appealed. The appellate court reversed the trial court, finding that the engineer did owe a duty to subsequent purchasers. The court seemed persuaded by the allegations that the engineer actually created the construction defects which were the basis for the litigation. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Congratulations to BWB&O’s Las Vegas Team on Obtaining Summary Judgment for the Firm’s Landowner Client!

August 03, 2022 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is proud to announce Partner Anthony Garasi, Senior Associate Madeline Arcellana, and Associate Laura Rios successfully won a Motion for Summary Judgment (“MSJ”), while also defeating two competing MSJs filed by Plaintiff, and ultimately obtaining a full dismissal of their landowner client against claims of premises liability. Plaintiff, who sued both BWB&O’s client (the landowner) and its tenant, alleged injury when he slipped and fell, while utilizing a temporary wooden board as a ramp that was placed on the subject property by the tenant, who was occupying the property subject to a lease-to-own arrangement with BWB&O’s client. In this Motion practice, the BWB&O team successfully obtained a ruling from the Court to find that BWB&O’s client had effectively contracted to delegate its maintenance responsibilities to its tenant, and also that the tenant owed BWB&O’s client full indemnity for Plaintiff’s alleged losses. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Louisiana District Court Declines to Apply Total Pollution Exclusion

December 15, 2016 — William S. Bennett – Saxe Doernberger & Vita, P.C.
The United States District Court for the Eastern District of Louisiana recently decided that a broad total pollution exclusion in a marine general liability policy did not bar coverage. The insurer could not unambiguously establish, based on the facts of the underlying case, that waste from a shipyard’s sandblasting activities met the requirements of the exclusion. The court found that the insurer could not meet Louisiana’s three-part test to determine whether the policy’s total pollution exclusion applied. The Doerr test requires an insurer to refer to the allegations in the underlying complaint to prove 1) the insured is a “polluter”, 2) the injury-causing substance is a “pollutant,” and 3) there was a “discharge, dispersal, seepage, migration, release or escape” of the pollutant. Total pollution exclusions are extremely prohibitive for policyholders because they eliminate coverage for virtually all pollution incidents, but this decision reinforces that policyholders may still have a path to coverage. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

With No Evidence of COVID-19 Being Present, DC Trial Court Finds No Claim for Business Interruption

September 28, 2020 — Tred R. Eyerly - Insurance Law Hawaii
A D.C. Superior Court rejected a business interruption claim due to closures related to the COVID-19 pandemic. Rose's 1, LLC v. Erie Ins. Exchange, Civil Case No 2020 CA 002424 B (Order dated Aug. 8, 2020). The decision is here. Plaintiffs owned a number of restaurants in the District of Coiumbia. Plaintiffs had commercial property coverage in a policy issued by Erie. The policy provided coverage for loss of income sustained due to interruption of business resulting directly from "loss or damage" to the insured property. DC Mayor Bowser issued a series of orders in March 2020 which closed all non-essential businesses, including plaintiffs' restaurants. Plaintiffs filed claims with Erie. When coverage was denied, plaintiffs filed suit. Both sides moved for summary judgment. The dispute centered on whether the closure of the restaurants due to the mayor's orders constituted a "direct physical loss" under the policy. Plaintiffs argued that the loss of use of the restaurants was "direct" because the closures were the direct result of the mayor's orders without intervening action. The court reasoned, however, that the orders were governmental edicts that commanded individuals and businesses to take certain actions. Standing alone and absent intervening actions by individuals and businesses, the orders did not effect any direct changes to the properties. 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

California Mechanics’ Lien Case Treads Both Old and New Ground

July 27, 2020 — Garret Murai - California Construction Law Blog
People do the darnedest things. The next case, Carmel Development Company v. Anderson, Case No. H041005, 6th District Court of Appeals (April 30, 2020), involving a 10-plus year oral design and construction contract, inconsistent accounting practices, two mechanics liens, and side-agreements, takes us down some well traveled paths but also covers some new ground. Carmel Development Company v. Anderson Carmel Development Company, Inc. provided design and construction services at a luxury subdivision known as Monterra Ranch located in Monterey under an oral contract with developer Monterra LLC which spanned over more than a decade. Between 1996 and 2008, Carmel was involved in the infrastructure design and construction of the subdivision including lot design and layout, the location of building envelopes on each lot, water and sewage system layout and design, and roadway design, construction and repair. When roughly half of the lots were developed and sold Monterra ran out of money and Carmel sued. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Appeal of an Attorney Disqualification Order Results in Partial Automatic Stay of Trial Court Proceedings

October 11, 2017 — Howard M. Garfield & Renata L. Hoddinott - Haight Brown & Bonesteel LLP
In URS Corporation v. Atkinson/Walsh Joint Venture (No. G055271 filed September 26, 2017), Division Three of the Fourth Appellate District dealt with, for the first time, the question of whether an appeal of an attorney disqualification order results in an automatic stay of the trial proceedings and, if so, how far the automatic stay extends. The underlying action involved a construction dispute between a contractor and subcontractor. During the pendency of that action, one party’s counsel filed a motion to disqualify another party’s counsel based on an alleged misuse of mediation-privilege protected documents. The trial court granted the disqualification motion and the disqualified counsel promptly filed a notice of appeal. The trial court then denied an application to stay proceedings pending the appeal, rejecting the assertion that the appeal automatically stayed the underlying proceedings. Reprinted courtesy of Howard M. Garfield, Haight Brown & Bonesteel LLP and Renata L. Hoddinott, Haight Brown & Bonesteel LLP Mr. Garfield may be contacted at hgarfield@hbblaw.com Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com Read the court decision
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Five-Year Peak for Available Construction Jobs

December 11, 2013 — CDJ STAFF
There are more job openings in construction now than there have been since 2008. The October jobs report from the Bureau of Labor Statistics reported 124,000 job openings in construction. With the demand for workers, some builders have experienced labor shortages, according to the National Association of Home Builders. The NAHB expects the trend to continue into 2014, “if firms can find workers with the right skills.” Read the court decision
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Negligence Per Se Claim Based Upon Failure to Pay Benefits Fails

December 21, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Ninth Circuit affirmed the district court's issuance of the insurer's motion for summary judgment, thereby rejecting the insureds' negligence per se claim for failure to pay benefits. Braun-Salinas v. Am Family Ins. Group, 2016 U.S. App. LEXIS 19555 (9th Cir. Oct. 28, 2016). The insureds argued that Oregon recognized a negligence per se claim based on an insurer's failure to pay benefits in violation of the statutory standard under state law. Oregon appellate courts, however, only allowed a negligence per se claim only where a negligence claim otherwise existed. The Oregon courts had previously rejected a statutory theory, holding that a violation of the statute did not give rise to a tort action. 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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