Seattle Washington Building Expert Directory

Insurer's Quote on Coverage for Theft by Hacker Creates Issue of Fact

December 16, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court found that the insurer's quote created an issue of fact on whether loss caused by a computer hacker would be covered. Metal Pro Roofing, LLC v. Cincinnati Ins. Co., 2019 Ind. App. LEXIS 355 (Ind. Ct. App. Aug. 9, 2019). The insureds, Metal Pro Roofing, LLC and Cornett Restoration, LLC ("LLC's") discovered that their bank accounts had been hacked and over $78,000 stolen. They submitted claims to their insurer, Cincinnati. Coverage was denied, and the LLCs filed suit. Cross-motions for summary judgment were filed, and the court granted summary judgment to Cincinnati. The "Forgery or Alternation" coverage applied to losses resulting directly from the "'forgery' or alteration of checks, drafts, promissory notes, or similar written promises, order or directions to pay a sum of money." "Forgery" was defined as "the signing of the name of another person or organization with the intent to deceive." The LLCs did not cite any evidence that the hacker "signed" anything, let alone that they signed "the name of another person or organization." 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

Tarriffs, a Pandemic and War: Construction Contracts Must Withstand the Unforeseeable

May 16, 2022 — Brett Moritz, Adrian Bastianelli III & Adam Handfinger - Construction Executive
Since the tariffs on steel and the first wave of the COVID-19 pandemic, the construction industry has been reeling from the impact of material shortages and price increases, labor shortages, breakdowns in the supply chain and the inflationary effect of these issues. Unfortunately, the war in Ukraine has only exacerbated the situation. International conflicts can constrain supply, resulting in delays and price increases for contractors, subcontractors and suppliers. The disruption caused by the war is expected to be particularly acute due to the role that Russia and Ukraine play in the world economy and the effect of the economic sanctions that have been imposed on Russia by the United States and other countries. Russia controls approximately 10% of the global copper reserves and is estimated to produce about 10% of the world’s nickel supply. It also provides at least 30% of Europe’s oil and natural gas. Ukraine is a significant source of raw materials, such as iron. Thus, the war will cause significant shortages and price increases to the global construction industry. There are already reports of delays and cost increases for commodities such as nickel, aluminum, copper and—most importantly—steel, which have resulted in impacts to construction costs and schedules. Suppliers are especially sensitive to the volatile markets caused by these conditions. Some are insisting on automatic price increases in their purchase orders. All of this, not to mention the anticipation of what may come next, points to the necessity for a new paradigm to achieve a successful project. It is more important today than ever that owners, contractors, subcontractors and suppliers reasonably address the economic and time impacts of these unforeseeable events in preparing contracts for future work and in administering existing contracts. Otherwise, the risk of a default on more than one level may put projects in jeopardy, to no one’s benefit. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Florida Lawmakers Fail to Reach Agreement on Condominium Safety Bill

March 14, 2022 — Community Associations Institute
Falls Church, March 11, 2022 (GLOBE NEWSWIRE) -- Members of the Florida legislature did not reach an agreement on legislation that would require building inspections and mandatory reserve studies for certain condominium and cooperative communities prior to this session's adjournment, despite the tireless efforts from Sen. Jennifer Bradley (R-Orange Park) and Rep. Daniel Perez (R-Miami) as well as CAI advocates to pass legislation that would contribute to condominium safety after the tragic collapse of Champlain Towers South in Surfside, Fla., last June. The Virginia General Assembly recently passed legislation introduced by Sen. Scott Surovell (D-Fairfax, VA) that requires the Virginia Housing Commission to study condominium safety issues, specifically building inspections. The Maryland legislature is considering funding for condominium buildings in need of critical repairs, while Hawaii is considering building inspection requirements for condominiums. Learn more about CAI's efforts to improve condominium safety by visiting www.caionline.org/condosafety. About Community Associations Institute Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 42,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial. Read the court decision
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Texas Shortens Its Statute of Repose To 6 Years, With Limitations

October 02, 2023 — Jason Daniel Feld & Roni Most - Kahana Feld
Effective June 9, 2023, Texas has shortened its statute of repose from the existing 10-year statute for builders of new homes to 6-years under specific conditions. The significantly shorter statute of repose bars suits against construction contractors of detached one-and two-family homes and townhomes, filed six years after the substantial completion of such homes, where the contractor also furnished a written warranty in compliance with the statute. Notably, projects including apartments, mixed-use, and hotels are not covered by the new law. It is also noted that a grey area in the law exists as to whether condominiums will be covered by the statute. The statute of repose strictly bars the filing of any action, claim or arbitration demand regardless of when the injury was actually discovered (latent defects) and is separate and distinct from any applicable statute of limitations. The New Texas Statute of Repose Law Under the Texas Civil Practice & Remedies Code § 16.009, persons who construct or repair improvements to real property cannot be sued for defective or unsafe conditions of the property or deficiencies in the construction or repair of the improvement later than 10 years after substantial completion of the improvement, except in certain narrow circumstances. This statute is known as the “statute of repose.” The statute applies not only to suits for construction defects, but also personal injury, wrongful death, contribution, and indemnity. Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Roni Most, Kahana Feld Mr. Feld may be contacted at jfeld@kahanafeld.com Mr. Most may be contacted at rmost@kahanafeld.com Read the court decision
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On Rehearing, Fifth Circuit Finds Contractual-Liability Exclusion Does Not Apply

November 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
On rehearing, the Fifth Circuit determined that the contractual-liability exclusion did not apply to bar coverage for damage caused by the insured contractor to the home it constructed. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20727 (5th Cir. Oct. 29, 2014).The court withdrew its prior opinion, summarized here. Arrow Development, Inc. contracted with the Crownovers to construct a home. The contract had a warranty-to-repair clause, which, in paragraph 23.1, provided that Arrow would "promptly correct work . . . failing to confirm to the requirements of the Contract Documents." After the Crownovers moved in, cracks began to appear in the walls and foundation of the home. Additional problems with the heating, ventilation, and air conditioning ("HVAC") caused leaking in the exterior lines and air ducts inside the home. To compensate for defects in the HVAC system, the system's mechanical units ran almost continuously in order to heat or cool the home. Because they were overburdened, the mechanical units had to be replaced. The Crownovers paid several hundred thousand dollars to fix the problems with the foundation and HVAC system. 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

Cal/OSHA’s Toolbox Has Significantly Expanded: A Look At Senate Bill 606

December 13, 2021 — Michael J. Studenka - Newmeyer Dillion
Governor Gavin Newsom recently signed into law Senate Bill 606, set to take effect on January 1, 2022. With proponents of the bill citing the need to hold large employers accountable for COVID-related workplace hazards, SB 606 creates two new categories of employer violations. First, SB 606 creates a rebuttable presumption that if a type of violation is discovered at one particular worksite, Cal/OSHA can extrapolate that the violation is an “enterprise-wide” violation at all of the other company worksites. Additionally, SB 606 adds a new category of “egregious violations” to Cal/OSHA’s arsenal, adding a penalty multiplier for such violations. Finally, SB 606 increases Cal/OSHA’s investigative capabilities by authorizing Cal/OSHA to issue a subpoena to employers should they fail to “promptly provide” information requested during an investigation. As further explained below, the consequences of violating Cal/OSHA regulations has become significantly greater and more expensive, particularly for larger employers with multiple worksites. ENTERPRISE-WIDE VIOLATIONS AND THE SEVERE REMEDIES THAT FOLLOW Under SB 606, employers with more than one worksite will now face a rebuttable presumption that a violation at one location is actually “enterprise-wide” if either of the following are true:

A written policy or procedure violates any Cal/OSHA standard, rule, order or regulation; OR
Cal/OSHA finds evidence of a “pattern or practice” of the same violation being committed by the employer at one or more of its worksites.

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Reprinted courtesy of Michael J. Studenka, Newmeyer Dillion
Mr. Studenka may be contacted at michael.studenka@ndlf.com

NY Appeals Court Ruled Builders not Responsible in Terrorism Cases

January 13, 2014 — Beverley BevenFlorez-CDJ Staff
In a ruling on a case related to the September 11, 2001 attacks, New York federal appeals court stated that builders and developers could not be held responsible for losses linked to terrorism, Reuters reports. Circuit Judge Rosemary said the building “would have collapsed regardless of any negligence ascribed by plaintiffs' experts.” Scott Sweeney writing for the Schinnerer's RM Blog explained, “This decision should make it harder for constructors and designers to be held responsible for damages resulting from major acts of terrorism and unforeseeable events that can be nearly impossible to prepare for.” Read the full story at Reuters... Read the full story at Schinnerer's RM Blog... Read the court decision
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Nevada Provides Independant Counsel When Conflict Arises Between Insurer and Insured

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Nevada Supreme Court, responding to certified questions, determined that an insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and insured. State Farm Mut. Auto. Ins. Co. v. Hansen, 2015 Nev. LEXIS 86 (Nev. Sept. 24, 2015). The insured struck the vehicle of another driver, Hansen. Hansen sued the insured alleging both negligence and various intentional torts. State Farm agreed to defend under a reservation of rights. The reservation of rights letter reserved the right to deny coverage for liabiltiy resulting from intentional acts and punitive damages. 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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