Seattle Washington Building Expert Directory

Thoughts on New Pay if Paid Legislation

March 28, 2022 — Christopher G. Hill - Construction Law Musings
Recently, the Virginia General Assembly closed its session having passed legislation essentially banning “pay if paid” clauses in construction contracts, both public and private. Assuming that Governor Youngkin signs the bill into law on or before his deadline of April 11, 2022, the following new requirement will be grafted into any Virginia construction contract:

Such contract shall require such higher-tier contractor to pay such lower-tier subcontractor within the earlier of (i) 45 days of the satisfactory completion of the portion of the work for which the subcontractor has invoiced or (ii) seven days after receipt of amounts paid by the owner to the general contractor or by the higher-tier contractor to the lower-tier contractor for work performed by a subcontractor pursuant to the terms of the contract.

This is the main operative language (the 45-day payment requirement is also applied to project owners), but the legislation also imposes certain other notice duties upon both the owner and any higher-tier contractor on a construction project. Interestingly, the legislation does not include a provision making it only effective for those contracts entered into after its effective date. More on that later. 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

Sales of New U.S. Homes Rose More Than Forecast to End 2014

January 28, 2015 — Bloomberg News
(Bloomberg) -- Purchases of new homes in the U.S. jumped in December to the highest level in more than six years, a sign the industry is poised to keep expanding in 2015. Sales increased 11.6 percent to a 481,000 annualized pace, exceeding all estimates in a Bloomberg survey of economists and the most since June 2008, figures from the Commerce Department showed Tuesday in Washington. Demand increased in three of four regions. Gains in employment, borrowing costs close to historically low levels and easing credit may prompt more prospective buyers to enter the housing market. The improving outlook is driving up confidence among builders, and companies such as D.R. Horton Inc. and Lennar Corp. project the recovery will be sustained. Read the court decision
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Reprinted courtesy of Bloomberg News

Summary Findings of the Fourth National Climate Assessment

January 02, 2019 — Anthony B. Cavender - Gravel2Gavel
On November 23, the latest National Climate Assessment, Fourth National Climate Assessment (NCA4), was released by the U.S. Global Research Program, as required by the Clean Air Act. The Assessment, comprising three volumes and 1600 pages, contains some rather bleak findings which the Report usefully summarizes. Here’s a description of these findings. 1. Communities. The report states that “climate change creates new risks and exacerbates existing vulnerabilities in communities across the United States.” In particular, “more frequent and intense extreme weather and climate-related events” will continue to damage infrastructure , ecosystems and social systems. However, “global action” to significantly cut greenhouse gas emissions can substantially reduce these risks. 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

The Legal Landscape

June 17, 2024 — David McMillin - Construction Executive
The construction industry continues to change as new technologies reshape jobsites and new generations of leaders rethink the way companies should operate. But one piece of the puzzle remains very much the same: Everyone needs a good lawyer. According to the most recent edition of the Arcadis Construction Disputes Report, the average value of a dispute in the industry has soared to $42.8 million—a 42% year-over-year increase between 2021 and 2022. And based on how busy the attorneys at Construction Executive’s 2024 Top 50 Construction Law Firmshave been this year, there is no sign of legal issues becoming less important to builders and contractors. Every construction leader wants to spend more time and energy doing what they do best—building projects safely, efficiently and profitably—and less time thinking about the things that might land them in court. How can you best avoid big disputes bound for mediation, arbitration or litigation? What emerging rules and regulations should be on your radar as you develop strategies for success? While legal issues will never disappear, listening to what some of the best construction lawyers in the country—all members of 2024 Top 50 Construction Law Firms—are thinking about offers a helpful perspective on future-proofing your business against risk, liability and worse. Reprinted courtesy of David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Discussion of the Discovery Rule and Tolling Statute of Limitations

February 26, 2015 — Beverley BevenFlorez-CDJ STAFF
Attorney Clay Olson analyzed a recent South Carolina appeals case that “discussed the threshold for ‘notice’ as it pertains to statute(s) of limitations in construction defect cases. At the root of this action was a 2003 forensic report obtained by the HOA which was not acted upon until 2009.” Olson presented the background of the case as well as the case progression. Olson concluded, “It is well settled that an expert’s findings, when presented to a claimant, trigger the statute of limitations as to the specific defective conditions and locale where defects are present. This case is interesting in its treatment of the initial report as a trigger of all defects in not only the main building which was subject of the 2003 report, but additional structures.” Read the court decision
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Reprinted courtesy of

Extrinsic Evidence, or Eight Corners? Texas Court Sheds Light on Determining the Duty to Defend

December 18, 2022 — Nathan A. Cazier - Payne & Fears
Last year, the Texas Supreme Court adopted a narrow exception to the state’s eight-corners rule, and allowed the consideration of extrinsic evidence to determine the duty to defend. The exception arguably raised more questions than it resolved. Last month, a Texas federal court answered some of these questions by rejecting an insurer’s attempt to introduce extrinsic evidence under the newly minted exception. Texas permits few, if any, deviations from its eight-corners rule, which determines an insurer’s duty to defend by only considering the operative pleading and the terms of the policy, without any regard to extrinsic evidence or facts. This protects policyholders by erring on the side of defending claims, even if coverage is questionable. In Monroe Guar. Ins. Co. v. Bitco Gen. Ins. Corp., 640 S.W.3d 195, 199 (Tex. 2022) (“Monroe”), the Texas Supreme Court adopted an exception to the eight-corners rule, holding that extrinsic evidence may be considered when an “information gap” between the pleading and the policy makes it impossible to determine coverage, but only in limited scenarios where the extrinsic evidence (1) goes solely to an issue of coverage and does not overlap with the merits of liability, (2) does not contradict facts alleged in the pleading, and (3) conclusively establishes the coverage fact to be proved. Read the court decision
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Reprinted courtesy of Nathan A. Cazier, Payne & Fears
Mr. Cazier may be contacted at nac@paynefears.com

Expired Contract Not Revived Due to Sovereign Immunity and the Ex Contractu Clause

September 15, 2016 — David R. Cook Jr. – AHHC Construction Law Blog
A few months ago, a decision by the Supreme Court of Georgia in Georgia Department of Labor v. RTT Associates, Inc. provided a strict rule for contractors who work with state agencies to determine whether a state agency has waived its sovereign immunity. The issue as framed by the Court was “whether an agency’s waiver of immunity from a breach of contract claim as a result of entering into a written contract remains intact in the event the contract is extended without a written document signed by both parties expressly amending the contract, as required by its terms.” The case involved a contract executed on March 1, 2012, by a contractor, RTT Associates, Inc. (RTT), and the Georgia Department of Labor (DOL), whereby RTT was to develop certain computer software for the DOL by the completion date, June 30, 2012. The contract required that amendments be in writing and fully executed by both parties. Time was of the essence and RTT’s obligation under the contract survived the expiration or termination of the contract. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Insurer Incorrectly Relies Upon "Your Work" Exclusion to Deny Coverage

June 10, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit reversed the district court's determination that there was no coverage based upon the policy's "your work" exclusion. Southern-Owners Ins. Co. v. Mac Contractors of Fla, LLC, 2019 U.S. App. LEXIS 10689 (11th Cir. April 11, 2019). Mac Contractors contracted with the homeowners to custom build their home. After construction began, Mac left the site before completing the project and before the issuance of a certificate of occupancy. The homeowners sued, alleged damage to wood floors and the metal roof. Southern-Owners originally agreed to defend under the CGL policy, but later withdrew the defense and filed this action for declaratory relief. The parties cross-filed motions for summary judgment. Southern-Owners argued that the "your work" exclusion applied to bar coverage. The "your work" exclusion barred coverage for "'property damage' to 'your work' arising out of it or any part of it and included in the 'products' completed operations hazard.'" The "products' completed operations hazard" included all "'property damage' occurring away from premises you own or rent and arising out of . . . 'your work' except . . . (1) products that are still in your physical possession; or (2) work that has not yet been completed or abandoned." 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

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