Seattle Washington Building Expert Directory

John Paulson’s $1 Billion Caribbean Empire Faces Betrayal

November 27, 2023 — Jim Wyss & Tom Maloney - Bloomberg
In the decade since hedge fund billionaire John Paulson took a grand gamble on Puerto Rico, he’s faced the wrath of the markets and mother nature. He’s navigated hurricanes, earthquakes, the pandemic and the largest municipal bankruptcy in US history to amass a portfolio of luxury hotels and resorts, high-end office blocks, and auto dealerships catering to the island’s rich. Now, just a few months after breaking ground on one of San Juan’s tallest and most exclusive residential towers, Paulson is facing a new wave of threats: lawsuits that strike at the heart of his Caribbean empire. Reprinted courtesy of Jim Wyss, Bloomberg and Tom Maloney, Bloomberg Read the court decision
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Become Familiar With Your CGL Policy Exclusions to Ensure You Are Covered: Wardcraft v. EMC.

December 31, 2014 — Heather M. Anderson – Colorado Construction Litigation
In a recent case arising out of a denial of coverage for alleged construction defect claims concerning a pre-fabricated home, the U.S. District Court for the District of Colorado applied the 10th Circuit’s determination of what can constitute an “occurrence” under a commercial general liability (“CGL”) policy. See Wardcraft Homes, Inc. v. Employers Mutual Cas. Co., 2014 WL 4852117 (D. Colo. September 29, 2014). William and Grace Stuhr sued Wardcraft, which manufactured pre-fabricated homes at a facility in Fort Morgan, Colorado, because their home was not completed as scheduled and contained various defects. The Stuhrs filed suit against Wardcraft alleging negligence, breach of warranty, and deceptive trade practices in violation of the Colorado Consumer Protection Act. Wardcraft tendered the Stuhrs’ complaint to Employers Mutual Casualty Company (“EMC”), which denied coverage under its policy and denied any duty to defend. According to EMC, the Stuhrs’ alleged construction defects were not property damages and there was no occurrence in connection with faulty workmanship. Approximately two and a half years after they filed their initial complaint, the Stuhrs filed an amended complaint. Wardcraft did not tender this amended complaint to EMC, and first informed EMC about the amended complaint about a year after it was filed. A month prior, Wardcraft settled with the Stuhrs. Read the court decision
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Reprinted courtesy of Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Anderson may be contacted at Anderson@hhmrlaw.com

Construction Cybercrime Is On the Rise

May 26, 2019 — Tom Sawyer & Jeff Rubenstone - Engineering News-Record
At the end of April, just as St. Ambrose Roman Catholic Church in Brunswick, Ohio, neared the close of a five-month-long, $5.5-million renovation, Father Bob Stec, the parish pastor, was surprised to hear that the contractor, Marous Brothers Construction, Willoughby, Ohio, had not received a $1.7- million payment. Reprinted courtesy of Tom Sawyer, Engineering News-Record and Jeff Rubenstone, Engineering News-Record Mr. Sawyer may be contacted at sawyert@enr.com Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the court decision
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Harmon Towers Case to Last into 2014

December 20, 2012 — CDJ STAFF
Don’t expect a fast resolution to the Harmon Tower case in Las Vegas. The latest schedule sets trial for the construction defect claims in January 2014. Previously, these claims were going to be heard during the trial set to start in June 2013. Now the June trial will be over payment issues only. Don’t expect the building to come down soon either. While CityCenter claims the building could come down in an earthquake, Judge Elizabeth Gonzalez had determined that as the structural testing was not random; its results cannot be extrapolated through the entire structure. As a result, CityCenter has elected to do more testing, holding off on demolishing the building. They are appealing Gonzalez’s order to the Nevada Supreme Court. Read the court decision
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"Multiple Claims" Provisions on Contractor's Professional Liability Policy Creates a Trap for Policyholders

May 24, 2021 — Michael V. Pepe - Saxe Doernberger & Vita
In Berkley Assurance Company v. Hunt Construction Group, Inc., 465 F.Supp.3d 370 (S.D.N.Y., 2020), professional liability insurer Berkley sued its insured, Hunt, a construction management firm, seeking a declaration that it did not owe Hunt a duty to defend and indemnify against breach of contract claims. The United States District Court for the Southern District of New York granted Berkley’s motion for summary judgment and denied Hunt’s motion for partial summary judgment. Among other things, the court held that the policy’s automatic extended reporting period did not apply to Hunt’s first claim. The multiple claims provision barred Hunt’s second claim because the claims were related. The court’s holding creates a potential trap for policyholders who wait to see how a claim develops before reporting it to their insurance carrier. This case demonstrates that waiting to see how a claim develops can result in a loss of coverage. Policyholders need to be aware of this trap and report all claims and circumstances immediately. Read the court decision
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Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita
Mr. Pepe may be contacted at MPepe@sdvlaw.com

New Certification Requirements for Veteran-Owned Small Business Concerns and Service-Disabled Veteran-owned Small Business Concerns Seeking Public Procurement Contracts

March 27, 2023 — Jennifer Harris, Timothy D. Matheny & Abby Bello Salinas - ConsensusDocs
Effective January 1, 2023, Veteran-Owned Small Business Concerns (VOSBs) and Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBs) will be required to obtain Small Business Administration (SBA) certification to participate in any federal government agency VOSB or SDVOSB sole source or set-aside prime contracts. This change originated from a Final Rule (87 FR 73400) published by the SBA on November 29, 2022. As a result of this Final Rule, not only will VOSBs and SDVOSBs be required to re-visit, and in some cases re-apply for various certifications, but these new regulations will also impact joint ventures that rely on their member’s VOSB or SDVOSB status to bid public work. New Regulation Previously, a VOSB and SDVOSB could self-certify to perform set-aside and sole source projects on non-U.S. Department of Veteran Affairs (VA) procurements—a VOSB and SDVOSB only needed to be certified by the VA Center for Verification and Evaluation (CVE) when bidding on VA procurements contingent on its status. Reprinted courtesy of Jennifer Harris, Peckar & Abramson, P.C., Timothy D. Matheny, Peckar & Abramson, P.C. and Abby Bello Salinas, Law Clerk, Peckar & Abramson, P.C. Ms. Harris may be contacted at jharris@pecklaw.com Mr. Matheny may be contacted at tmatheny@pecklaw.com Read the court decision
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Commercial Construction Heating Up

November 20, 2013 — CDJ STAFF
The Motley Fool suggests that commercial construction is the next hot sector. Their analysis is that lag time between a rise in residential construction and commercial construction is just about over. “Industry surveys and construction data are suggestion that commercial construction could be about to turn.” Among the indicators are increased billing by architects for commercial projects. With the exception of December 2012, with a strong slump in residential work, commercial projects lagged below residential projects from June 2012 until June 2013. Read the court decision
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Eleventh Circuit Asks Georgia Supreme Court if Construction Defects Are Caused by an "Occurrence"

December 20, 2012 — TRED EYERLY, INSURANCE LAW HAWAII
The Eleventh Circuit certified a question to the Georgia Supreme Court, asking whether property damage can constitute an "occurrence" under a CGL policy where its effects are not felt on "other property." HDI-Gerling Am. Ins. Co. v. Morrison Homes, Inc., 2012 U.S. App. Ct. LEXIS 23813 (11th Cir. Nov. 19, 2012). The general contractor, Taylor Morrison Services, Inc., was covered by a CGL policy issued by Gerling. The policy excluded "expected or intended injury," contractual liability," and business risk exclusions. Morrison was sued by homeowners in a class action suit. Morrison had allegedly omitted four inches of gravel required beneath the base of the concrete foundations by the Uniform Building Code. Thereafter, the houses sustained water intrusion, cracks in the floors and driveways, and warped and buckling flooring. Gerling defended, but sued Morrison for a declaratory judgment. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii.
Mr. Eyerly can be contacted at te@hawaiilawyer.com

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