Seattle Washington Building Expert Directory

No Subrogation, Contribution Rights for Carrier Defending Construction Defect Claim

December 23, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The Court held that the insurer defending the additional insured general contractor had no right to equitable subrogation or equitable contribution from a separate carrier who also insured the general contractor as an additional insured. Old Republic Gen. Ins. Co. v. Amerisure Ins. Co., 2023 U.S. Dist. LEXIS 170293 (N.D. Ill. Sept. 25, 2023). Tanger Grand Rapids, LLC hired Rockford Construction Company to build the Tanger Outlet Center. Rockford subcontracted with Kamminga & Roodvoeis, Inc. (K&R) to work on the pavement for the outlet mall. Under the subcontract, K&R agreed to maintain primary commercial general liability insurance for itself, with Rockford as an additionial insured. K&R obtained a policy from Amerisure. For additional paving work, Rockford subcontracted with Michigan Paving & Materials, CP. The subcontract also required Michigan Paving to maintain primary coverage, with Rockford as an additional insured. Michigan Paving obtained a policy from Liberty Mutual. 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

Michigan Supreme Court Concludes No Statute of Repose on Breach of Contract

July 19, 2011 — CDJ STAFF

Judge Marilyn Kelly of the Michigan Supreme Court has remanded the case of Miller-Davis Co. v. Ahrens Constr. Inc. (Mich., 2011) to the Court of Appeals, after determining that the court had improperly applied the statute of repose. She reversed their judgment, pending a new trial.

Ahrens Construction was a subcontractor, hired by Miller-Davis to build and install a natatorium room at a YMCA camp in Kalamazoo, Michigan. After its installation, the YMCA discovered a severe condensation problem, causing moisture to “rain” from the roof. The architect, testifying for Miller-Davis, alleged that the problems were due to improper installation by Ahrens. Ahrens claimed that the condensation problem was due to a design error.

When the roof was removed and reconstructed, the moisture problem ended. Ahrens argued that the alleged defects were caused by the removal. Further, in trial Ahrens raised the issue of the statute of repose. The court found in favor of Miller-Davis and did not address the statute of repose.

The Court of Appeals reversed the trial court, determining that the statute of repose had barred the suit. This rendered the other issues moot.

The Michigan Supreme concluded that the issue at hand was “a suit for breach of contract,” and that the Michigan statute of repose is limited to tort actions. They remanded the case to the Court of Appeals to address the issues that had been mooted by the application of the statute of repose.

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Denver Condo Development Increasing, with Caution

January 21, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Aldo Svaldi of The Denver Post, condo development has increased in the Denver metro area, though builders stated they are carefully documenting each step of construction as well as vetting contractors and materials. "We are being ultra-careful about everything," Roy Kline, a managing director at Western Development Group, told the Denver Post. Western Development is behind the 250 Columbine development. Svaldi reported that Western Development Group has been “photographing or filming every step of construction.” Brian Levitt and Trevor Hines of NAVA Real Estate Development “have spent the past year crafting a detailed three-page, 18-point action plan to deal with any contingency they could think of arising from the state's constructions-defects law.” Levitt told Svaldi that he “estimates all the safeguards being put in place will add 5 percent to 10 percent to the costs of the units at NAVA Sloan Lake, whose final price points are being determined.” Read the court decision
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CDJ’s #7 Topic of the Year: The Las Vegas Harmon Hotel Year-Long Demolition & Trial Begins

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
The 26-story tower in MGM’s $9 billion Las Vegas, Nevada CityCenter project, is being demolished piece by piece after a structural engineer reported that an earthquake of 7.7 could bring it down. While litigation began as early as 2010, the trial didn’t begin until October of 2014, and expectation is it will last through almost all of 2015 as well, according to Carri Geer Thevenot of the Las Vegas Review-Journal. Read the court decision
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Infrared Photography Illuminates Construction Defects and Patent Trolling

October 01, 2013 — CDJ STAFF
Reuben Saltzman, a home inspector in the Minneapolis area wrote a piece for the Star Tribune in which he discussed the use of infrared photography in home inspections. Lack of insulation and water intrusion show up clearly on infrared photography where there is not yet any visible damage. Moist or cold areas show up as darker than their surroundings. Mr. Saltzman included one photo with his article in which the problem shows up as a hot spot: a carpet installer had covered over a floor register. Mr. Saltzman’s use of infrared photography may be in danger, as he recently learned that a Mississippi firm has actually taken out a patent on using infrared photography for home inspections. Read the court decision
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New-Home Sales in U.S. Unexpectedly Fall to Four-Month Low

January 07, 2015 — Victoria Stilwell – Bloomberg
Purchases of new U.S. homes unexpectedly declined in November to a four-month low, underscoring a lack of momentum this year in residential real estate. Sales dropped 1.6 percent to a 438,000 annualized pace last month following a 445,000 rate in October that was weaker than previously estimated, Commerce Department figures showed today in Washington. The median estimate of 73 economists surveyed by Bloomberg called for a 460,000 pace in November. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

New York Appellate Division Reverses Denial of Landlord’s Additional Insured Tender

December 07, 2020 — Eric D. Suben - Traub Lieberman
In Wesco Insurance Co. v. Travelers Property & Cas. Co. of America, 2020 WL 6572489 (1st Dep’t Nov. 10, 2020), the New York Appellate Division found that a commercial landlord was owed additional insured coverage in connection with an incident in which a plaintiff slipped and fell on the sidewalk while exiting the leased premises. The tenant, Capital One, was the named insured in a CGL policy issued by Travelers. The policy added the landlord as an additional insured, but “only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to [Capital One] and shown in the Schedule.” The lease defined the demised premises to include the building and “all appurtenances.” Travelers denied the landlord’s tender on the basis that the sidewalk did not constitute “that part of the premises leased to” Capital One. In the ensuing declaratory judgment action brought by Wesco (the landlord’s insurer), the court granted Travelers’ motion for summary judgment on this ground. Read the court decision
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Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

Apprentices on Public Works Projects: Sometimes it’s Not What You Do But Who You Do the Work For That Counts

September 17, 2015 — Garret Murai – California Construction Law Blog
If you’re a public works contractor in California you’re familiar with prevailing wages. The Prevailing Wage Law, a Depression era law designed to encourage the hiring of local labor, sets a minimum wage that employers must pay to workers on public works projects. But because the Prevailing Wage Law sets a floor on wages it also limits the opportunity for lesser-skilled workers to gain experience. To address this, the Prevailing Wage Law permits contractors to pay apprentices a lower “apprentice wage” if the apprentice is enrolled in a state-approved apprenticeship program and requires contractors who hire workers in an “apprenticeable craft or trade” to hire a certain number of apprentices. But are particular apprentices required to be hired depending on the type of work being performed? In Henson v. C. Overaa & Company, Case No A139966 (June 29, 2015), the California Court of Appeals for the First District held that apprentices are required to be hired based on the craft or trade of the journeymen performing work not based on the type of work being performed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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