SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

What is Bad Faith?

April 04, 2022 — Stacy M. Manobianca - Saxe Doernberger & Vita, P.C.
As a policyholder, you may have heard the term “bad faith” in the context of litigation against your insurer. Bad faith in the insurance context is a catch-all term for a broad category of claims that can be brought against your insurer. Bad faith claims are common in insurance coverage litigation, and they can be a powerful tool in a policyholder’s arsenal. This post will serve as an introduction to some basic concepts surrounding bad faith litigation.

Table of Contents
• Bad Faith Defined:
• Statutory vs. Common Law Bad Faith Claims
• Breach of Contract vs. Tort Bad Faith Claims
• Substantive vs. Procedural Bad Faith Claims
• Best Practices Throughout the Claims Process:
• Involve an Experienced Coverage Attorney
• Conclusion

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Reprinted courtesy of Stacy M. Manobianca, Saxe Doernberger & Vita, P.C.
Ms. Manobianca may be contacted at SManobianca@sdvlaw.com

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Broker Not Liable for Failure to Reveal Insurer's Insolvency After Policy Issued

March 28, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Faced with an issue of first impression in California, the Court of Appeals held that a broker was not liable for failing to reveal the insurer's insolvency occurring after issuance of the policy. Pacific Rim Mechanical Contractors, Inc. v. Aon Risk Ins. Serv. West, Inc., 2012 Cal. App. LEXIS 232 (Cal. Ct. App. Feb. 28, 2012).



The developer for a construction project in downtown San Diego retained Aon as its broker to secure coverage. Aon procured a general liability policy for the project with Legion Indemnity Company. Legion was solvent when it issued the policy.



The developer hired Pacific Rim (“PacRim”) as one of several subcontractors on the project. The parties entered into a contract in which the developer agreed to provide PacRim with liability insurance through an Owner Controlled Insurance Program (“OCIP”). Aon was not a party to the contract and PacRim was never its client. PacRim, however, enrolled in the OCIP by contacting Aon and providing all necessary paperwork.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Sometimes, Being too Cute with Pleading Allegations is Unnecessary

June 06, 2018 — David Adelstein - Florida Construction Legal Updates
There are times where being too darn cute with your pleading allegations is unnecessary and does not work. But, the point is really that the cuteness is unnecessary. In a Miller Act payment bond dispute in Boneso Brothers Construction, Inc. v. Sauer, Inc., 2018 WL 2387833 (N.D.Cal. 2018), a claimant asserted claims against a Miller Act payment bond surety for breach of the payment bond, breach of a subcontract, open account, and account stated. The question is why would the claimant sue the payment bond surety for breach of subcontract (when the subcontract was not with the surety), and open account and account stated. I have no clue, other than such claims appeared quite unnecessary when the claimant asserted an action on the Miller Act payment bond (which is what the surety is liable under — actions under the statutory payment bond). Such claims were dismissed. And, they should have been. 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

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Existence of “Duty” in Negligence Action is Question of Law

February 06, 2019 — David Adelstein - Florida Construction Legal Updates
In a negligence action, the issue of whether a duty applies is a question of law. See Limones v. School Dist. of Lee County, 161 So.3d 384, 389 (Fla. 2015) (“[T]he existence of a duty is a legal question because duty is the standard to which the jury compares the conduct of the defendant.”); McCain v. Florida Power Corp., 593 So.2d 500, 502 (Fla. 1992) (“Since duty is a question of law, an appellate court obviously could reverse based on its purely legal conclusion that no such duty existed.”). Thus, the trial court determines, as a matter of law, whether a legal duty of care applies in a negligence action. Florida law recognizes the following four sources of duty: (1) statutes or regulations; (2) common law interpretations of those statutes or regulations; (3) other sources in the common law; and (4) the general facts of the case. See id. Oftentimes it is the fourth source – the general facts of the case – that comes into play to determine whether the defendant owed the plaintiff a duty of care. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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New York Shuts Down Majority of Construction

March 30, 2020 — Laura Bourgeois LoBue & Matthew D. Stockwell - Gravel2Gavel Construction & Real Estate Law Blog
Due to pressure from construction workers, officials, and some construction workers having tested positive for COVID-19, the Empire State Development Corp. (acting on behalf of Governor Cuomo) has frozen all construction in New York today, with the exception of work on hospitals and health care facilities, transit facilities, roads and bridges, affordable housing and homeless shelters. As a result, commercial construction and condominium projects are on hold, with the exception of work that must be completed to prevent unsafe conditions. Until now, construction has been considered “essential” in New York. Reprinted courtesy of Laura Bourgeois LoBue, Pillsbury and Matthew D. Stockwell, Pillsbury Ms. LoBue may be contacted at laura.lobue@pillsburylaw.com Mr. Stockwell may be contacted at matthew.stockwell@pillsburylaw.com Read the court decision
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Court Rules Planned Development of Banning Ranch May Proceed

June 10, 2015 — Kristian B. Moriarty and Lawrence S. Zucker II – Haight Brown & Bonesteel, LLP
In Banning Ranch Conservancy v. City of Newport Beach (filed 5/20/2015, No. G049691), the California Court of Appeal, Fourth District, held the Environmental Impact Report prepared by the City of Newport Beach for the partial development of Banning Ranch complied with California environmental protection statutes and local ordinances. Under the California Environmental Quality Act (“CEQA”), a city desiring to approve or carry out a project that may have significant effect on the environment must prepare an environmental impact report (“EIR”) designed to provide the public with detailed information about the effect which a proposed project will have on the environment. The California Coastal Act of 1976 provides for heightened protection of environmentally sensitive habitat areas (“ESHA”) defined as any “area in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments.” In 2006, the City of Newport Beach adopted a General Plan for the physical development of the city. The plan specifically identifies Banning Ranch as having significant value as a wildlife habitat and open space resource for citizens. The general plan includes a primary goal of complete preservation of Banning Ranch as open space. To the extent the primary goal cannot be achieved, the plan identifies a secondary goal allowing limited development of Banning Ranch “to fund preservation of the majority of the property as open space.” The plan also requires the City to coordinate any development with the state and federal agencies. Reprinted courtesy of Kristian B. Moriarty, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Mr. Moriarty may be contacted at kmoriarty@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Residential Construction Rise Expected to Continue

May 10, 2013 — CDJ STAFF
Housingwire reports that Fannie Mae has predicted strong increases in housing starts over the last few years, with an expected return to normal by 2016. If this holds true, residential construction will include 2.5 million jobs. Read the court decision
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Spearin Doctrine as an Affirmative Defense

November 30, 2016 — David Adelstein – Florida Construction Legal Updates
The Spearin doctrine, referred to as the implied warranty of constructability doctrine, is oftentimes utilized as an affirmative defense by a contractor being sued for construction defects. Under the Spearin doctrine (recognized in the government contract setting), a contractor is NOT liable for defects in the plans and specifications furnished by the owner if the contractor constructs the project pursuant to the plans and specifications. This is because the owner impliedly warrants the constructability of the plans and specifications it furnishes to the contractor. Hence, the contractor should not be liable for defective construction caused by the owner furnishing defective plans and specifications. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

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