SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Illinois Court Determines Duty to Defend Construction Defect Claims

March 22, 2021 — Tred R. Eyerly - Insurance Law Hawaii
Given the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019). Metropolitan was hired as the general contractor for construction, renovation and demolition at contiguous properties - the 1907 Property, 1909 Property, and 1911 Property. During construction activities, the structures on the 1907 Property and 1909 Property collapsed. The existing structures on the properties were later deemed unsafe and were demolished by the city of Chicago. AIG insured the owner of the buildings and paid over $1.8 million for repairs and associated expenses arising from the collapse. AIG then invoked its rights of subrogation against Metropolitan by filing suit. Metropolitan tendered the suit to its insurer, Lloyd's, who denied coverage and filed for a declaratory judgment. The trial court found the underlying complaint alleged property damage, but not an occurrence. Summary judgment was awarded to Lloyd's. 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

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Amada Family Limited Partnership v. Pomeroy: Colorado Court of Appeals Expressly Affirms the Continuing Viability of the Common-Law After-Acquired Title Doctrine and Expressly Recognizes Utility Easements by Necessity

June 28, 2021 — Luke Mecklenburg - Snell & Wilmer Real Estate Litigation Blog
On May 27, 2021, a division of the Colorado Court of Appeals issued its opinion in Amada Family Limited Partnership v. Pomeroy, 2021 COA 73. In that case, the court decided two significant issues that apparently had never been expressly ruled on by a Colorado appellate court before: (1) that Colorado’s common-law after-acquired title doctrine was not abrogated by adoption of the after-acquired interest statute; and (2) that utility easements may be implied by necessity. As is often the case in matters involving access and implied property rights, the facts and history underlying Amada are complicated, but the case’s two most significant rulings are not. Instead, the basic legal principles established (or confirmed) in Amada appear to be broadly applicable, and real property practitioners should take note of these significant developments (or clarifications) in the law. Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

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Subcontractors Have Remedies, Even if “Pay-if-Paid” Provisions are Enforced

February 19, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
In a recent case in Kentucky[1], a sub-tier subcontractor sued the general contractor and owner for failure to pay for extra work. At the trial, the court held the subcontractor was entitled to recover under the theories of implied contracts and unjust enrichment, even though the subcontract contained a “pay-if-paid” clause. All parties appealed. In particular, the general contractor asserted that the pay-if-paid provision in the subcontract precluded recovery by the subcontractor. The issue was petitioned to the Supreme Court of Kentucky. The question to be resolved by the Supreme Court of Kentucky was whether a pay-if-paid provision was enforceable as between a general contractor and subcontractor, and if so, whether the subcontractor could nevertheless pursue the owner directly for payment notwithstanding a lack of privity between the owner and subcontractor. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

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Bel Air Mansion Construction Draws Community Backlash

December 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the New York Times, a Bel Air hillside mansion in Los Angeles has outraged neighbors who refer to the unfinished, 30,000 square foot and almost 70 feet high building as “the Starship Enterprise.” Despite legal violations such as tearing down the original structure without the city’s permission, the height being twice the legal limit, and digging into the hillside though the site is an “earthquake-induced landslide area,” the case has not progressed much in four years because the actual owner is a shell company. The New York Times summarized the issues at 901 Strada Vecchia as follows: “After the unapproved teardown and leveling of the hillside, the construction team did ask permission to grade the hill but used a survey that made it appear that workers had not already removed significant loads of dirt. Then they joined two buildings that were supposed to be separate and built so high that they drastically violated the city’s height limit.” Read the court decision
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Generally, What Constitutes A Trade Secret Is A Question of Fact

February 01, 2021 — David Adelstein - Florida Construction Legal Updates
In construction, contractors maintain competitiveness by compiling, combining, utilizing, or developing proprietary and unique systems. The systems can be from a cost standpoint (determining general conditions or general requirement costs and percentages including percentages for insurance) or can be with respect to certain construction assembly or delegated design components. Such proprietary and unique systems are trade secrets to the contractors and efforts are taken to identify such information as confidential when proposing on a project. Contractors would not want such systems disclosed to others because it would dilute and impact what they believe is valuable and makes them competitive in the marketplace. Florida’s Uniform Trade Secret Act (“FUTSA”) creates a statutory cause of action for the misappropriation of trade secrets. (FUTSA is set forth in Florida Statute s. 688.001 en seq.) FUTSA displaces or “preempts all claims [such as common law claims] based on misappropriation of trade secrets.” Alphamed Pharmaceuticals Corp. v. Arriva Pharmaceuticals, Inc., 391 F.Supp.2d 1148, 1167 (S.D.Fla. 2005). See also Fla. Stat. s. 688.008. Florida Statute s. 688.002 (found here) defines the terms “trade secret” and “misappropriation.” Read the court decision
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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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Remote Trials Can Control Prejudgment Risk

September 07, 2020 — Robert G. Devine, Victor J. Zarrilli & Kimberly M. Collins - White and Williams LLP
While courts across the country are largely unavailable to litigants demanding a jury trial, pre-judgment interest rules present an increasing penalty risk to a defendant wanting its day in court and may not always make a plaintiff whole. The COVID-19 pandemic has altered the manner in which people and industries operate across the board. In light of the need to maintain social distancing whenever possible, the use of technology to replace in-person appearances is becoming more commonplace. As more attorneys become comfortable with the remote platform, the willingness to consider a remote trial grows. With in-person jury trials suspended until further notice, it is important for attorneys and parties to consider the attendant consequences of the indefinite delay in waiting for a traditional jury trial. Aside from general inconvenience, continued delays may have a substantial financial impact, particularly with regard to the accumulation of pre-judgment interest. Reprinted courtesy of White and Williams LLP attorneys Robert G. Devine, Victor J. Zarrilli and Kimberly M. Collins Mr. Devine may be contacted at deviner@whiteandwilliams.com Mr. Zarrilli may be contacted at zarrilliv@whiteandwilliams.com Ms. Collins may be contacted at collinsk@whiteandwilliams.com Read the court decision
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Committeewoman Requests Refund on Attorney Fees after Failed Legal Efforts

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
West Deptford, New Jersey township redevelopment counsel Mark Cimino had spent a year arguing that the city should receive a $4 million reduction in construction costs due to “inadequate documentation provided by the bank, as well as receipts showing disbursement had ‘improperly’ been made toward uses other than construction,” according to a December 30th 2013 article in the South Jersey Times. However, a state appellate court upheld the ruling that “the township had no basis” to request the reduction. Now, Committeewoman Denice DiCarlo is “seeking a $10,000 refund on the attorney fees paid” to Cimino, the South Jersey Times reported on February 6th. “This entire matter has been a monumental waste of tax dollars, and I am angry that the entire township committee was misled by Mr. Cimino and induced to believe we had any reasonable chance of recovering loan proceeds from this lawsuit,” DiCarlo stated in a letter to Mayor Raymond Chintall. Not all committee members agree with DiCarlo. Committeeman Sam Cianfarini told South Jersey Times that “he still believed Fulton Bank owed it to West Deptford to answer for any funds put toward anything other than construction.” Cimino declared “that both the lawsuit and appeal were valid,” according to the February 6th article. He “accused DiCarlo of ‘playing politics.’” Read the full story, December 30th Article... Read the full story, February 6th Article... Read the court decision
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Lawmakers Strike Deal on New $38B WRDA

January 09, 2023 — Tom Ichniowski - Engineering News-Record
Key Senate and House leaders have reached a bipartisan agreement on a new Water Resources Development Act (WRDA) that would authorize more than $37 billion in federal funds for 25 new and five modified Army Corps of Engineers flood and hurricane protection, harbor dredging and other civil works projects across the U.S. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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