Seattle Washington Building Expert Directory

Motion to Dismiss COVID Claim Granted in Part, Denied in Part

February 06, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion to dismiss the insured's claim for business losses due to COVID-19 was granted in part, denied in part. SRL v Zurich Am. Ins Co., 2022 U.S. Dist. LEXIS 210058 (N.D. Ill. Nov. 21, 2022). Excelsior owned and managed the Westin Excelsior Rome, a luxury hotel in Rome. The hotel suffered business income losses with the onset of the pandemic.While the hotel was not forced to close, its bookings decreased to virtually nothing. The Excelsior's complaint alleged that the COVID-19 virus was present in and around the hotel as multiple guests and at least six employees tested positive for COVID-19. It further alleged that the virus attached to interior property and was in the air. Excelsior was insured under a commercial property policy issued by Zurich. The court agreed there was no direct physical loss because no structure suffered damage. Among the coverages under the policy, however, was a "Cancellation of Bookings" provision. Zurich agreed there was coverage under this provision, but argued that Excelsior had already reached its annual limit for Cancellation of Bookings claims. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Construction Defect Claim not Barred by Prior Arbitration

October 28, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Stan Martin of Commonsense Construction Law LLC, the Appellate Court of Connecticut ruled in favor of the owner of a twenty-two building development in a construction defect suit despite the contractor’s objection “that the lawsuit was barred by doctrines of res judicata or collateral estoppel.” When issues of “construction and alleged defects” arose in 1996, the “contractor eventually filed for arbitration, seeking the contract balance.” The contractor was awarded $82,812.81. During the arbitration, “no claims for defective construction were advanced.” Read the court decision
Read the full story...
Reprinted courtesy of

Some Construction Contract Basics- Necessities and Pitfalls

January 03, 2022 — Christopher G. Hill - Construction Law Musings
Recently, I’ve been on an “advising” kick here at Construction Law Musings. My last two posts have been about communication and trusting your gut when it comes to a smooth construction project. This post will be the third in the trilogy (and who knows maybe I’ll have a 4th and 5th like the Hitchhiker’s Guide to the Galaxy “trilogy”). While all construction contractors should use their communication skills and instincts to assure a smooth and hopefully profitable project, all of the gut following and great communication will not help you if your contract is not up to snuff. In the spirit of giving you a few basics things to look at, here’s my list of three basics that you need in your contract and a three things to be on the lookout for in others’ contracts. First, the good stuff that needs to be there:

Attorney Fees Clause– without it, a Virginia court (and most other courts) will not award you a judgment for any attorney fees spent to protect your rights.
Dispute Resolution– whether the specified resolution is through the litigation process, ADR or some combination, such a clause or paragraph will only help define the parameters of what happens with a claim.
Detailed scope of work– Without the proper detail in the scope of work, the parties cannot properly set expectations and know what happens when things change.

Read the court decision
Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Court Says KBR Construction Costs in Iraq were Unreasonable

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Mike Bosse of Bernstein Shur, analyzed a case involving Kellogg Brown and Root Services Inc. (KBR) and the U.S. Army for services that KBR provided during Operation Iraqi Freedom, according to JDSupra Business Advisor: “The court case involved KBR’s construction of dining facility services near Mosul, Iraq under a cost-plus fee arrangement. Under this contractual arrangement, all allowable costs were reimbursed by the government plus the contractor was paid an additional fee.” KBR first started on a prefabricated metal dining hall that would serve 2,500 people, but part way into building they were told to stop construction and to instead start on a new reinforced concrete building that would serve almost three times as many people. “After construction was finished, a defense contract auditing agency suspended some of the payments to KBR and instead of the $12.5 million it expected to receive, KBR was paid only $6.7 million,” reported JDSupra Business Advisor. “After trial, the court concluded KBR did not meet its burden to show the costs it incurred were reasonable under the circumstances.” Read the court decision
Read the full story...
Reprinted courtesy of

N.J. Voters Approve $116 Million in School Construction

March 19, 2014 — Stacie Sherman – Bloomberg
New Jersey voters in 11 of 13 school districts with bond referendums this week approved $116.1 million of construction. The largest project, out of a total of $180 million proposed, failed. Voters in the Greater Egg Harbor Regional High School District rejected $37 million in renovations to three schools. The work would have increased property taxes as much as $36 a year, according to the district, which serves four towns at the Jersey Shore. Read the court decision
Read the full story...
Reprinted courtesy of Stacie Sherman, Bloomberg
Ms. Sherman may be contacted at sbabula@bloomberg.net

Liquidating Agreements—Bridging the Privity Gap for Subcontractors

September 03, 2015 — Craig Martin – Construction Contractor Advisor
What is a subcontractor to do when the owner has demanded additional work, but has refused to pay for it? Typically, a subcontractor cannot sue the owner because the subcontractor doesn’t have a contract with the owner. Perhaps the subcontractor and general contractor should enter into a liquidating agreement through which the general contractor can pursue the claim on behalf of the subcontractor. Liquidating agreements bridge the privity gap between owners and subcontractors who sustain damages because of the others actions. Liquidating agreements or pass-through agreements grant the general contractor a release of its liability to the subcontractor after the general contractor prosecutes the subcontractor’s pass-through claim against the owner and gives the subcontractor any recovery. Read the court decision
Read the full story...
Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

No Coverage for Property Damage That is Limited to Work Completed by Subcontractor

April 25, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S. App. LEXIS 5412 (11th Cir. March 15, 2012).

Amelia Island Company contracted with Auchter Company, a general contractor, for construction of an inn and conference room. Auchter subcontracted with Register Contracting Company to install the Inn’s roof. Pursuant to the Florida Building Code, installation of the roof required that it be able to withstand 110 m.p.h. winds.

Register completed installing the roof tiles in January 1998. Beginning in 2002, the tiles began dislodging from the roof. During the 2004 hurricane season, three hurricanes caused more tiles to come off the roof. Some of these tiles hit other tiles, cracking them.

In 2006, the parties went to arbitration over the costs of repairs for the roof.

Read the full story…

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

Read the court decision
Read the full story...
Reprinted courtesy of

Changes to Va. Code Section 43-13: Another Arrow in a Subcontractor’s Quiver

November 02, 2020 — Christopher G. Hill - Construction Law Musings
As is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting. One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code. This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose. Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer. For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases. A key change in the statute occurred during the 2020 legislative session states as follows:

Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.