SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.

November 21, 2022 — Christian Fernandez - Snell & Wilmer Real Estate Litigation Blog
Liquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated damages may be referred to in a variety of ways, such as “earnest money,” a “good-faith deposit,” or a “non-refundable deposit,” but each typically denote a negotiated amount of money that a seller is entitled to retain should a buyer breach a purchase and sale agreement. The purpose of liquidated damages is to provide the parties with certainty when actual damages arising from a breach of contract may be difficult to calculate. Accordingly, liquidated damages provisions alleviate the need for potentially expensive litigation associated with proving damages. While parties are free to negotiate the amount of liquidated damages, the amount must approximate the loss anticipated at the time of contracting, or the loss that actually occurs as a result of a breach. Arizona courts have held that where the amount of liquidated damages is unreasonably large when compared to the anticipated loss or actual loss, the liquidated damages provision is unenforceable as a penalty. A breaching party faced with high liquidated damages will often seek to invalidate the provision as a penalty. If a court agrees, the non-breaching party may still recover damages, but must go through the process of proving such damages. Therefore, when negotiating a real estate contract, consideration should be given as to whether a liquidated damages amount is arbitrarily high when compared to an anticipated loss in the event of a breach. Read the court decision
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Reprinted courtesy of Christian Fernandez, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com

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Allocating Covered and Uncovered Damages in Jury Verdict

March 01, 2021 — David Adelstein - Florida Construction Legal Updates
When a liability insurer defends an insured from a third-party claim, they oftentimes do so under a reservation of rights. A reservation of rights letter is issued to the insured that identifies certain coverage exclusions or reservations relative to the insurance policy that may impact the insurer’s duty to indemnify the insured for damages. In other words, just because the insurer is defending its insured does not mean it will be indemnifying its insured for damages asserted in the third-party claim.

Under Florida law, the party claiming insurance coverage has the initial burden to show that a settlement or judgment represents damages that fall within the coverage provisions of the insurance policy. An insured’s inability to allocate the amount of a judgment between covered and uncovered damages is therefore generally fatal to its indemnification claim. However, the burden of apportioning or allocating between covered and uncovered damages in a general jury verdict may be shifted to the insurer if the insurer did not adequately make known to the insured the availability and advisability of a special verdict. QBE Specialty Ins. Co. v. Scrap Inc., 806 Fed.Appx. 692, *695 (11th Cir. 2020) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Chambers USA Names Peckar & Abramson to Band 1 Level in Construction Law; 29 P&A Lawyers Recognized as Leading Attorneys; Six Regions and Government Contracts Practice Recognized

July 08, 2024 — Peckar & Abramson, P.C.
Peckar & Abramson, P.C. (P&A) is pleased to announce that Chambers USA has recognized the firm at the Band 1 level nationwide in Construction Law. P&A stands alone in being named a Band 1 firm in Construction Law nationally and has been named in the position every year since Chambers USA began awarding the recognition. The firm was also recognized nationally in Government Contracts: Highly Regarded. P&A’s offices in New York, New Jersey, Florida, and Texas were ranked Band 1 in Construction Law, and the Firm’s California, Illinois, and Washington, DC practices were also highly rated. Additionally, 29 of P&A’s construction lawyers were named leading construction lawyers in their respective jurisdictions – more than any other construction law practice in the country. As demonstrated by its consistent Chambers USA Rankings, Peckar & Abramson has earned a national reputation for exceptional legal advocacy, representing construction industry members domestically and internationally. Read the court decision
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Reprinted courtesy of Peckar & Abramson, P.C.

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Illinois Court Determines Insurer Must Defend Negligent Misrepresentation Claim

December 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Although the insureds disclosed flooding problems in the basement, the buyers purchased their home. USAA Cas. Ins. Co. v. McInerney, 2011 Ill. App. LEXIS 1130 (Ill Ct. App. Oct. 31, 2011). In a supplemental disclosure, the insureds reported that during heavy rains light seepage occurred in the basement.

After moving in, the buyers experienced significant water infiltration and flooding in the basement. The buyers and their children also began to experience mold-related illnesses.

The buyers sued for rescission of the contract or, in the alternative, damages. They alleged breach of contract, fraudulent misrepresentation and negligent misrepresentation. In the claim for negligent misrepresentation, the buyers alleged that the insureds carelessly omitted the fact that there were material defects in the basement and foundation when they should have known of such defects.

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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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Getting U.S to Zero Carbon Will Take a $2.5 Trillion Investment by 2030

December 29, 2020 — Will Wade & Eric Roston - Bloomberg
It’s going to take $2.5 trillion in spending over the next decade to get the U.S. on a path to a carbon-free economy, but the transition will help to pay for itself, Princeton University researchers say. Achieving net-zero emissions by 2050 -- a central goal of President-elect Joe Biden’s climate plan -- would require expanding renewable-energy systems, building more efficient homes and putting 50 million electric cars on the road, according to a report released Tuesday. The effort, two years in the making, is the first major assessment since the election detailing how the U.S. can transition to an energy system that satisfies scientific guidance for keeping the climate livable. While the upfront costs are significant, they would be offset by savings associated with switching to cheaper electricity and the creation of as many as 1 million new jobs, according to the researchers, who shared an earlier draft with Biden’s transition team. Read the court decision
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Reprinted courtesy of Will Wade & Eric Roston, Bloomberg

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New Case Alert: Oregon Supreme Court Prohibits Insurer’s Attempt to Relitigate Insured’s Liability

November 17, 2016 — Austin D. Moody – Saxe Doernberger & Vita, P.C. Blog
In a big win for policyholders, the Oregon Supreme Court recently ruled that that insurance companies are not allowed to relitigate the nature of damages awarded against their insureds during an underlying trial. In a coverage dispute stemming from a contractor’s faulty work on a condominium development, the insurer argued that at least a portion of the damages awarded represented the cost of repairing the contractor’s own work product. Coverage for such damages would be explicitly excluded by the policy. However, the Oregon Supreme Court found that the jury had been instructed that it could not award damages for the contractor’s own faulty workmanship. The court declined to give the insurer a chance to attempt to reclassify the nature of these damages. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

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Who Will Pay for San Francisco's $750 Million Tilting Tower?

February 02, 2017 — James Tarmy & Kartikay Mehrotra – Bloomberg
Nina Agabian, a retired director of research in global health science at the University of California, bought a 29th-floor apartment in San Francisco’s Millennium Tower in 2010. “It was supposed to be a wonderful building,” she said in January, sitting in a leather chair in the building’s vast, low-lit, owner's-club level. “For many of us, who left our business lives to start our older years, this had become a nice, comfortable place.” The building, which opened in 2008 and was touted as the most luxurious tower in San Francisco, became a beacon of the city’s burgeoning wealth, attracting tech millionaires, venture capitalists, and even the San Francisco 49ers retired quarterback Joe Montana. The 58-story tower's shine faded on May 10, 2016, when Agabian attended a homeowners association meeting and was informed that the building had sunk 16 inches into the earth and tilted over 15 inches at its tip and 2 inches at the base, according to suits filed by residents and the city of San Francisco. “You can imagine how distressed we were to know that, for one, our lifetime investment and savings are at risk,” she said. “And we have no idea whether or not there’s a fix to it, and if there is a fix to it, what it will entail.” Reprinted courtesy of James Tarmy, Bloomberg and Kartikay Mehrotra, Bloomberg Mr. Tarmy may be followed on Twitter @jstarmy Mr. Mehrotra may be followed on Twitter @kartikaym Read the court decision
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Investigators Explain Focus on Pre-Collapse Cracking in Florida Bridge

June 06, 2018 — Scott Judy & Richard Korman - Engineering News-Record
The National Transportation Safety Board's preliminary report on the fatal collapse in March of a pedestrian bridge at Florida International University in Sweetwater focuses attention on the widely discussed pre-collapse cracking in the main span. The report also confirms accounts about what the construction crew working on the bridge was doing before the structure fell. Reprinted courtesy of Scott Judy, ENR and Richard Korman, ENR Mr. Judy may be contacted at judys@enr.com Mr. Korman may be contacted at kormanr@enr.com Read the court decision
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