Seattle Washington Building Expert Directory

Does the Implied Warranty of Habitability Extend to Subsequent Purchasers? Depends on the State

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Attorneys for Traub Liberman Straus & Shrewsberry LLP (in JD Supra Business Advisor), discussed how state courts have come to different conclusions as to “whether a subsequent purchaser of a previously inhabited residence can recover contract damages from a builder or general contractor for breach of the implied warranty of habitability.” Recently, a Pennsylvania “sided with the builder, holding that the implied warranty of habitability was grounded in contract law. Thus, the Court reasoned that an action for breach of the implied warranty of habitability required a showing of contractual privity between the parties. Because there was no contractual privity between the Conways and the builder, the Conways could not pursue an action against the builder based on a breach of the implied warranty of habitability.” However, other state courts have made other conclusions. “Iowa permits an action for breach of the implied warranty of workmanlike construction by subsequent purchasers and does not require a showing of contractual privity. Rhode Island also does not require contractual privity, but limits liability to latent defects discovered within 10 years of construction.” Vermont and Connecticut, however, require contract privity. Read the court decision
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The Complex Insurance Coverage Reporter – A Year in Review

February 27, 2019 — White and Williams LLP
Welcome to CICR’s annual review of insurance cases. Here, we spotlight five (actually, seven) decisions from the last year that you should know about, and five pending cases—all before state high courts—to keep an eye on. The choices were not always easy. That is because 2018 saw a number of notable insurance coverage developments. Among them was the “Restatement of the Law – Liability Insurance,” a nearly five hundred-page document that the American Law Institute (ALI) adopted after eight years and twenty-nine drafts. Already, much has been written about the ALI Restatement, including by us. There will be more to come. Going forward, we will continue to highlight significant examples where courts address its provisions. Read the court decision
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Reprinted courtesy of White and Williams LLP

Los Angeles Wildfires to Impact Profitability of US Property Insurers, Says GlobalData

February 03, 2025 — GlobalData
The Los Angeles (LA) area in the US has witnessed a devastating impact from a series of wildfires that erupted since the second week of January. There were 312 wildfires that resulted in 28 deaths and the destruction of 16,255 structures as of 29 January, with the Palisades and Eaton wildfires continuing to burn, according to the California Department of Forestry and Fire Protection. Estimates from the University of California suggest that the total damage from the LA wildfires could surpass $20 billion. Consequently, US insurers may see increased claims in 2025 across various insurance lines, potentially affecting their profitability, says GlobalData, a leading data and analytics company. Manogna Vangari, Insurance Analyst at GlobalData, comments: "The recent LA wildfires are expected to impose significant financial burdens on property and casualty insurers, with damages potentially exceeding billions of dollars. The destruction affects both residential and commercial properties, particularly high-value homes and businesses, leading to anticipated insured losses to be among the highest in California's history." Property insurance claims are projected to represent a 13.1% share of total general insurance claims in the US in 2025, totaling $247 billion. Incurred losses are anticipated to rise by 7.5% in 2025, reaching $193.6 billion from $180.1 billion in 2024. However, the full effect of wildfires may push actual claims even higher. Consequently, the profitability of the US general insurance sector is expected to be notably affected, with the average combined ratio predicted to exceed 100% in 2025. According to GlobalData's Global Insurance Database, the US property insurance industry is expected to grow at a CAGR of 7.3% over 2025–29, from $416.3 billion in 2025 to $551.1 billion in 2029, in terms of gross written premiums (GWP). Read the court decision
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Construction Defects and Commercial General Liability in Illinois

October 25, 2013 — CDJ STAFF
Nathan B. Hinch writes on his blog about construction defect law in Illinois. Mr. Hinch notes that he has been providing continuing legal education presentations about commercial general liability insurance and coverage of defective construction. In Illinois, for coverage to exist, “there must be ‘an occurrence’ that results in ‘property damage.’” The Illinois courts have determined that “defective work is not an ‘accident,’ reasoning that the contractor intended to do the work, whether it turned out to be defective or not,” however the court “found that there was an ‘accident’ and therefore an ‘occurrence’ in a case where a contractor allegedly caused property damage by negligently backfilling around a residential basement.” And ‘property damage’ must be “damage to property other than the work.” Read the court decision
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Landmark Towers Association, Inc. v. UMB Bank, N.A. or: One Bad Apple Spoils the Whole Bunch

May 12, 2016 — Jean Meyer - Colorado Construction Litigation
On April 21, 2016, the Colorado Court of Appeals issued an opinion that immediately drew the ire of the greater real estate development industry and those concerned about affordable housing in a state in the midst of unprecedented soaring rent and housing prices. The Landmark Towers Assn., Inc. v. UMB Bank, N.A., 2016 COA 61, decision is the result of protracted litigation arising out of construction and sale of the ill-fated European Village (“Village”) residential community. For a thorough summary of the origins of the development and the unfortunate story of the man behind the curtain, review the Denver Post’s article titled “Zachary Davidson, Denver Landmark developer, and his fall from grace.” (http://www.denverpost.com/ci_22656011/fall-from-grace-zach-davidson-landmark denver) Despite the unique facts and circumstances relating to the questionable dealings by the developer, Mr. Zachary Davidson, the decision now stands to turn the Colorado real estate development business on its head. Specifically, a group of condominium owners, who did not live in the Village, learned that their properties had been included in a special district, the Marin Metropolitan District (“District”), to finance the Village. Prior to their purchase, Mr. Davidson failed to disclose to the condominium owners that they would be responsible for financing the Village’s development through previously issued bonds by the District to be paid for through their property taxes. Understandably frustrated by this discovery the condominium owners, through the Landmark Towers Association, Inc. (“Landmark HOA”), investigated the origin of these unforeseen property taxes. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

Town Sues over Defective Work on Sewer Lines

January 13, 2014 — CDJ STAFF
The Handy Sanitary District in North Carolina has filed a lawsuit against one of the subcontractors on the Badin Lake Sewer Project, which the Lexington Dispatch describes as “delay riddled.” The town claims that the materials used by Hobbs, Upchurch and Associates “were not adequate for the project.” Additionally, the town claims that valves were improperly installed or damaged, and that pipes were of the incorrect type and improperly connected. The Sanitary District Board of Commissioners has additionally settled a lawsuit over non-payment for work on the sewer project. The Handy Sanitary District has settled claims brought by Monroe Roadways Contractors and Young Construction with a payment of $250,000. Read the court decision
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New York Nonprofit Starts Anti-Scaffold Law Video Series

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
According to readMedia, The Lawsuit Reform Alliance of New York (LRANY) has released “‘Victims of the Scaffold Law’ video series” that highlights “the impact of New York's ‘Scaffold Law’ on small businesses, taxpayers, and, specifically New York's Minority and Woman Owned Business Enterprises.” The New York Scaffold Law “imposes total liability on contractors and property owners in lawsuits for gravity-related construction accidents, regardless of any contributing negligence by the worker,” reports readMedia. Furthermore, the law “is responsible for over half of the largest settlements in the state and dramatically increases the cost of liability insurance and construction in New York.” Read the court decision
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How to Make the Construction Dispute Resolution Process More Efficient and Less Expensive

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
John P. Ahlers on the Ahlers & Cressman PLLC blog has posted the first of a two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive: “In our view, construction is well suited to streamlining the resolution process, particularly when experienced lawyers and judges / arbitrators are involved.” “Discovery can take vast amounts of time and cost a company significant resources,” Ahlers wrote. “Many times, only small portions of a deposition might actually be used at the hearing in cross examination. The question then becomes whether the cost of the discovery is providing a return.” Ahlers listed several steps and requirements that arbitrators, judges, or the parties themselves can impose to make the process more efficient, such as client involvement, avoiding too much process at the expense of practical outcomes, discovery limitations, among others. Read the court decision
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