Seattle Washington Building Expert Directory

Two-Part Series on Condominium Construction Defect Issues

May 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Gregory L. Shelton, construction law attorney at Horack, Talley, Pharr & Lowndes, P.A., wrote a two-part series in the Charlotte Observer about condominium construction defect issues. The first part described “common defects and their consequences,” while the second part explained “how legal time limits can prevent the association or its owners from suing the parties responsible for defective construction.” If interested in purchasing a condo unit, Shelton recommended hiring a building inspector, though he cautioned that “the inspector should be truly independent. His client should be you and not ‘the sale.’” In the second part, Shelton discussed the complexities of statutes of limitations and statutes of repose. Read the full story, Part 1... Read the full story, Part 2... Read the court decision
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Amazon Can be Held Strictly Liable as a Product Seller in New Jersey

August 07, 2022 — Michael L. DeBona - The Subrogation Strategist
On June 29, 2022, in N.J. Mfrs. Ins. Grp. a/s/o Angela Sigismondi v. Amazon.com, Inc., 2022 U.S. Dist. LEXIS 115826 (Sigismondi), the United States District Court for the District of New Jersey held that Amazon.com, Inc. (Amazon) is a “seller” under New Jersey’s product liability statute and can thus face strict liability for damages caused by products sold on its platform. Although the analysis is state-specific, Sigismondi may serve as an important decision for allowing product defect claims to proceed against Amazon when so often the third-party vendor that lists the product is unlocatable, insolvent, or not subject to the jurisdiction of United States courts. In recent years, Amazon has been fighting product liability claims across the country. Amazon argues it is not a “seller” under states’ product liability laws but is merely an online marketplace that facilitates the sale of products by third-party vendors. What constitutes a “seller” in a particular state must be evaluated state-by-state, but various courts have accepted Amazon’s argument that it is not a “seller.” These decisions are based on Amazon’s level of control in the product sale and often focus on a finding that Amazon did not convey possession of the product or transfer its title. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

Port Authority Reaches Deal on Silverstein 3 World Trade

June 26, 2014 — David M. Levitt – Bloomberg
The Port Authority of New York and New Jersey approved a financing agreement for Larry Silverstein’s 3 World Trade Center that allows him to use $159 million of insurance proceeds to expedite construction. The agreement, which alters a 2010 deal on the project, follows about a year of negotiations and provides Silverstein with far less than the $1.2 billion of loan guarantees he sought under a previous plan that had been opposed by some board members. Silverstein plans to seek private financing to complete construction on the tower, which is stalled at eight floors. The Port Authority, which owns the Trade Center site, unanimously approved the alterations to the agreement at a meeting today. The new deal meets the criteria of not creating additional debt for the agency, said Commissioner Kenneth Lipper, who led opposition to the loan guarantee, viewing it as too risky and a threat to the authority’s credit rating. Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg
Mr. Levitt may be contacted at dlevitt@bloomberg.net

Big Bertha Lawsuits—Hitachi Zosen Weighs In

January 31, 2018 — John P. Ahlers – Ahlers Cressman & Sleight PLLC
In a recent article published by Seattle Business Magazine, the Japanese manufacturer of the much-maligned tunnel machine (nicknamed “Bertha”) provided its version of events and its position to the public. The interview took place after executives from Hitachi Zosen were not invited to the ceremony celebrating Bertha’s breakthrough at the end of its two-mile journey underground Seattle. Ultimately, apparently, Seattle Tunnel Partners (“STP”), the general contractor for the project, and Washington State Department of Transportation (“WSDOT”) agreed that Hitachi Zosen executives could attend the event, but they were not allowed to stand with other dignitaries on a specially-built viewing platform. The $3.2 billion Alaska Way Viaduct replacement project is embroiled in a number of legal controversies. Now that the tunnel is finished, Hitachi Zosen has finally decided to tell its side of the story. Hitachi’s problems started on December 5, 2013, three days after the tunnel-boring machine (“TBM”) hit a 120-foot long, eight-inch diameter steel well casing (the project DRB has determined that the pipe was a differing site condition), the TBM overheated and ground to a halt. The project was shut down almost two years while the TBM was being repaired. According to Hitachi Zosen, it always worked hard to get the job done. “We wanted to finish the tunnel and make Seattle happy with the results,” said Hidetoshi Hirata, the general manager for Hitachi Zosen. 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

Burlingame Construction Defect Case Heading to Trial

December 30, 2013 — CDJ STAFF
A condominium association in the Aspen, Colorado area will likely go to trial over its claims of construction defects, reports Aspen Daily News Online. According to the suit, siding and trim were improperly manufactured and installed. The homeowners engaged experts to determine the appropriate remedy, and then sought bids from contractors. Shaw Construction, which built the condos, responded with a counteroffer. Chris Rhody, the lawyer for the homeowners, said there was “a big difference” between the association’s request and the builder’s counteroffer. According to Mr. Rhody, settlement is still possible, but seems unlikely. A date for the trial is yet to be set. Read the court decision
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Condos Down in Denver Due to Construction Defect Litigation

November 06, 2013 — CDJ STAFF
A new report suggests that fears of construction defect litigation may be the cause of the slump in condo building in the Denver area. The Denver Business Journal reports that the Denver Regional Council of Governments commissioned the study by Economic & Planning Systems. The conclusion of the report was that the only type of condominium likely to be built is high-cost units with high profit margins. This is not good news for the DRCOG, which is seeking to create more affordable housing. The report found that builders assess the likeliness of being sued “is nearly 100 percent,” that costs of addressing construction defects are 12% higher than at apartment complexes, and that preparing for litigation adds about $15,000 to the cost of a condo unit. One possible remedy is to reform Colorado’s construction defect laws. Bob Muphy, the mayor of Lakewook and an advocate of construction defect litigation reform, said that he sees “this as a verification of what I’ve been talking about.” Read the court decision
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Texas Federal District Court Dismisses COVID-19 Claim

October 25, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Judge Ezra, formerly on the bench in Hawaii, dismissed a COVID-19 claim pursued by a Texas policy holder. Diesel Barbershop, LLC v. State Farm Lloyds, 2020 U.S. Dist. LEXIS 147276 (W.D. Texas Aug. 13, 2020). Local and state officials in Texas issued shutdown orders in March 2020 due to the spread of the cornavirus. All non-essential businesses, including the insureds' barbershop businesses, were ordered closed from April 2, 2020 until April 30, 2020. The insureds submitted a claim for business interruption and civil authority coverage to their carrier, State Farm. The claim was denied based on the policy's exclusion for loss caused by enforcement of ordinance or law, virus, and consequential losses. For Civil Authority coverage, State Farm contended the policy required that there by physical damage within one mile of the described property and that the damage be the result of a Covered Cause of Loss, which, State Farm asserted, a virus was not. The insureds sued and State Farm moved to dismiss. The court noted cases in which courts had found physical loss even without tangible destruction to the covered property. Yet, the court found that the line of cases requiring tangible injury to property were more persuasive. Therefore, the court found that the insureds failed to plead a direct physical loss. 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

Airbnb Declares End to Party!

January 27, 2020 — Patrick J. Paul - Snell & Wilmer Real Estate Litigation Blog
As municipalities around the country evaluate changes to their respective codes in an effort to exert greater control over bad actors in the vacation rental market, Airbnb announced on November 2nd that it is banning party houses. The move comes in response to the shooting deaths of five people at a Halloween party hosted at an Airbnb rental house in Orinda, CA. CEO Brian Chesky announced on Twitter that starting November 2, Airbnb would ban “party houses” and redouble the company’s efforts to “combat unauthorized parties and get rid of abusive host and guest conduct.” twitter.com/bchesky The four-bedroom rental reportedly had been rented on Airbnb by a woman who advised the owner her family members had asthma and needed to escape smoke from a wildfire burning in Sonoma County about 60 miles north of Orinda earlier in the week. Nevertheless, the homeowner was suspicious of a one-night rental on Halloween and reminded the renter that no parties were allowed. Having received complaints from neighbors and witnessing some party activity via his camera doorbell, the homeowner called police who were en route to the home, but arrived after the shooting. The Halloween party apparently was advertised on social media as an “Airbnb Mansion Party,” with an admission fee of $10 per person. Independently owned vacation rentals are currently growing at a faster rate than hotels or motels, and in some instances are owned by out-of-state investors seeking not only a real estate return on investment, but also a return on investment associated with revenue streams generated by “pay to play” parties promoted on social media. Read the court decision
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Reprinted courtesy of Patrick J. Paul, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com

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