SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Kaboom! Illinois Applies the Anti-Subrogation Rule to Require a Landlord’s Subrogating Property Insurer to Defend a Third-Party Complaint Against Tenants

December 13, 2021 — Ryan Bennett - White and Williams LLP
In Sheckler v. Auto-Owners Ins. Co, 2021 IL App (3d) 190500, 2021 Ill. App. LEXIS 593, Auto-Owners Insurance Company (Insurer) paid its insured, Ronald McIntosh (McIntosh), for property damage following a fire in an apartment he rented to Monroe and Dorothy Sheckler (the Shecklers). Insurer filed suit against Wayne Workman (Workman), who performed service work on an oven in the Shecklers’ apartment that leaked gas and resulted in a fire. Workman filed a third-party complaint against the Shecklers for contribution and the Shecklers tendered the defense of the claim to Insurer. Insurer refused the tender and the Shecklers filed a declaratory judgment action. In the court below, the Shecklers argued that, as tenants, they were co-insureds on McIntosh’s property insurance policy. Following a liberal interpretation of precedent from the Supreme Court of Illinois in Dix Mutual Insurance Co. v. LaFramboise, 597 N.E. 2d 622 (Ill. 1992), an Illinois appellate court ruled that Insurer – who provided property insurance – must defend the tenants of a rental property from contribution claims if the tenants are co-insureds under the landlord’s policy. In Sheckler, the Shecklers hired Workman to fix a broken burner on a gas stove. Finding that additional parts were needed, Workman left while the Shecklers waited inside. While waiting—and despite the smell of gas filling the kitchen—Mr. Sheckler lit the stove. “Kaboom!” wrote the appellate court when describing the scene. A fire erupted and caused substantial damage to the apartment. Read the court decision
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Reprinted courtesy of Ryan Bennett, White and Williams LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

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Vancouver’s George Massey Tunnel Replacement May Now be a Tunnel Instead of a Bridge

January 06, 2020 — Tim Newcomb - Engineering News-Record
The constant political back-and-forth in British Columbia, Canada, over how to deal with an aging George Massey Tunnel, opened in 1959, has ping-ponged from uncertainty to a $3.5 billion, 10-lane bridge, back to uncertainty, to no bridge and now to an eight-lane submerged tunnel. Tim Newcomb, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Indemnity Payment to Insured Satisfies SIR

March 11, 2014 — Tred Eyerly – Insurance Law Hawaii
In response to certified questions from the Eleventh Circuit, the Florida Supreme Court found that a contractual indemnity payment to the insured satisfied the policy's SIR requirement. Intervest Constr. of Jax v. Gen. Fid. Ins. Co., 2014 Fl. LEXIS 568 (Fla. Feb. 6, 2014). ICI Homes, Inc. a general contractor, hired Custom Cutting, Inc. to provide trim work, including installation of attic stairs in a residence ICI was building. Under the contract, Custom Cutting agreed to indemnify ICI for any damages resulting from Custom Cutting's negligence. The owner of the residence fell while using the attic stairs installed by Custom Cutting, injurying herself. The owner sued ICI, who sought indemnification from Custom Cutting. ICI's policy with General Fidelity had a $1 million SIR. The policy also had a transfer of rights clause granting the insurer some subrogation rights. The case was mediated. The parties agreed to a settlement of $1.6 million. Custom Cutting's insurer proposed paying $1 million to ICI to settle the indemnification claim. ICI, in turn, would pay that $1 million to the residence owner. A dispute arose over wither ICI or General Fidelity was responsible for paying the remaining $600,000. 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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New Jersey Legislation Would Bar Anti-Concurrent Causation Clause in Homeowners' Policies

June 08, 2020 — Tred R. Eyerly - Insurance Law Hawaii
A bill prohibiting the use of anti-concurrent causation clauses in homeowners' insurance policies has been introduced before the New Jersey legislature. The bill is here. Under an anti-concurrent causation clause, the policy bars coverage if two perils (i.e., wind and water damage) contribute to a loss and one peril is excluded from coverage. For example, wind damage alone may be covered, while water damage is excluded. If both wind and water contribute to the loss, regardless of the degree to which each peril contributes, the anti-concurrent causation clause would bar coverage. New Jersey S 217 states,

An insurer authorized to transact the business of homeowners insurance in this state shall not exclude coverage in a homeowners insurance policy for loss or damage caused by a peril insured against under the terms of the policy on the grounds that the loss or damage occurred concurrently or in any sequence with a peril not insured against under the terms of the policy. Any such provision to exclude coverage shall be void and unenforceable.

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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Showdown Over Landmark Housing Law Looms at U.S. Supreme Court

October 01, 2014 — Greg Stohr – Bloomberg
Over the past four decades, U.S. courts have ruled that plaintiffs making discrimination claims under the Fair Housing Act don’t have to prove intentional bias. Civil rights advocates simply have to show that lenders, insurers, developers or government agencies acted in ways that had a “disparate,” or unequal, impact on minority groups. Now, the Supreme Court is weighing whether to hear an appeal from Texas officials who argue that intent to discriminate must be proven and that the “disparate impact” standard is too loose an interpretation of the landmark 1968 law that prohibited discrimination in housing. Read the court decision
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Reprinted courtesy of Greg Stohr, Bloomberg
Mr. Stohr may be contacted at gstohr@bloomberg.net

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Nine ACS Lawyers Recognized as Super Lawyers – Two Recognized as Rising Stars

August 26, 2024 — Ahlers Cressman & Sleight PLLC
Going outside the norm of our blogs, which usually discuss construction related issues, Ahlers, Cressman, & Sleight is pleased to announce that nine members of our firm have been selected to the 2024 Washington Super Lawyers list. Each year, a rigorous process that involves a nomination by peers and a third-party verification of honors, awards, verdicts, settlements, and other criteria relating to their work as an attorney, aims to select no more than five percent of the lawyers in Washington state from no more than seventy practice areas for this distinction. As mentioned, the first step in the process is to be evaluated on their work as an attorney, next candidates are evaluated by their peers and given ratings based on the information known about their work. Finally, candidates are grouped into four firm-size categories and final selections are made. The grouping process is done so that candidates are compared fairly to their peers by firm size, eliminating the potential unfairness that comes with comparing large and small firm outcomes and attorney practices. The Rising Star list involves an even narrower criteria than the Super Lawyers list. The initial process is the same, however, candidates for the Rising Stars list must be under the age of forty or have less than ten years of experience. For this category less the two and a half percent of lawyers in Washington are selected, making this quite a feat for those who have accomplished the honor. Read the court decision
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Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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New Jersey Supreme Court Hears Insurers’ Bid to Overturn a $400M Decision

January 25, 2021 — Lawrence J. Bracken II, Michael S. Levine & Daniel Hentschel - Hunton Andrews Kurth
New Jersey’s highest court heard arguments Monday in the appeal of a ruling that the New Jersey Transit Corp.’s (“NJ Transit”) insurers are required to insure $400 million of water damage loss caused by Hurricane Sandy. The matter stems from an insurance claim NJ Transit made after the super storm rocked the East Coast in 2012. NJ Transit claimed over $400 million in losses as a result of damage to its tracks, bridges, tunnels and power stations. In response, its tower of property insurers took the position that a $100 million flood sublimit applied to limit NJ Transit’s recovery under its insurance tower, not the policy’s $400 million overall limits.NJ Transit filed a coverage action in state court. The trial court granted summary judgment to NJ Transit, holding that NJ Transit was entitled to full coverage of $400 million under the tower’s named windstorm coverage. The insurers appealed, again arguing that the flood sublimit applied to the claim. Reprinted courtesy of Lawrence J. Bracken II, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

November 07, 2012 — CDJ STAFF
Businessweek reports that construction jobs and materials will see increased demand as property owners in New York and New Jersey rebuild after hurricane Sandy. Tom Jeffery, of Irvine, California-based CoreLogic, a real estate information service, noted that “a high percent of damaged properties are going to be repaired.” Experts estimate property damage to total anywhere from $7 billion to $40 billion. It is also estimated that about 739,000 properties in the area are underwater in the way that has nothing to do with flooding, with negative equity of 25 percent or more. Many of these homeowners are likely to walk away from their mortgages. Ken Simonson, chief economist of the Associated General Contractors of America, expects “localized spikes in construction employment throughout November and the winter.” Martin Connor, the chief financial officer of Toll Brothers, expects to see more a rise in labor costs than in materials. Read the court decision
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