SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Senate’s Fannie Mae Wind-Down Plan Faces High Hurdles

March 19, 2014 — Clea Benson, Cheyenne Hopkins and Kathleen Hunter – Bloomberg
A bipartisan U.S. Senate plan to dismantle Fannie Mae (FNMA) and Freddie Mac must clear many political hurdles in a short time if it is to become law, leaving narrow chances of a housing-finance overhaul being enacted this year. Senate Banking Committee leaders said the proposal, which they plan to release later this week, would replace the two U.S.-owned mortgage financiers with government bond insurance that would kick in only after private capital suffered severe losses. It will be left to the courts to decide how investors in Fannie Mae and Freddie Mac are treated as the two companies are wound down, Mike Crapo, an Idaho Republican who co-wrote the bill, said today in an interview on Bloomberg Television. Investors including Perry Capital and Fairholme Capital Management are suing the U.S. to challenge an arrangement in which all the companies’ profits go to the Treasury. Ms. Benson may be contacted at cbenson20@bloomberg.net; Ms. Hunter may be contacted at khunter9@bloomberg.net; Ms. Hopkins may be contacted at chopkins19@bloomberg.net Read the court decision
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Reprinted courtesy of Clea Benson, Cheyenne Hopkins and Kathleen Hunter, Bloomberg

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Supreme Court Overrules Longstanding Decision Supporting Collection of Union Agency Fees

July 02, 2018 — Amy R. Patton, Blake A. Dillion, & Eric C. Sohlgren - Payne & Fears
In a 5 to 4 opinion, the United States Supreme Court overruled a longstanding decision which required government employees who are represented by but do not belong to a union, to pay a fair share or agency fee to cover the union's costs for collective bargaining activities. In Janus v. American Federation of State, County, and Municipal Employees, Council 31, 585 U.S. ___ (2018), the Supreme Court found that requiring such fees from nonconsenting public sector employees violates the First Amendment: "[n]either an agency fee nor any other form of payment to a public-sector union may be deducted from an employee, nor may any other attempt be made to collect such a payment, unless the employee affirmatively consents to pay." Reprinted courtesy of Payne & Fears attorneys Amy R. Patton, Blake A. Dillion and Eric C. Sohlgren Ms. Patton may be contacted at arp@paynefears.com Mr. Dillion may be contacted at bad@paynefears.com Mr. Sohlgren may be contacted at ecs@paynefears.com Read the court decision
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Can General Contractors Make Subcontractors Pay for OSHA Violations?

March 05, 2015 — Craig Martin – Construction Contractor Advisor
OSHA has long held the opinion that general contractors may be held liable for subcontractor’s OSHA violations and the Eighth Circuit Court of Appeals, overseeing the Midwest, has agreed since 2009. To combat this risk, general contractors would be well served to incorporate targeted indemnity provisions into their subcontracts that require subcontractors to pay for all claims and costs associated with subcontractor caused OSHA violations. OSHA’s Multi-Employer Policy OSHA’s Multi-Employer Policy, a/k/a OSHA Instruction CPL 02-00-124, allows OSHA to cite multiple employers at a single worksite for creating a hazard, or for failing to prevent or correct a hazard, even if their own workers are not exposed to the hazard. A ‘‘controlling’’ or ‘‘correcting’’ employer is liable for hazards that it did not take ‘‘reasonable care’’ to detect and prevent. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

March 17, 2011 — Shaun McParland Baldwin

The Court of Appeals of Indiana recently addressed the “Montrose” language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged. The insuring agreement requires that “bodily injury” or “property damage” be caused by an “occurrence” and that the “bodily injury” or “property damage” occur during the policy period. The Montrose language adds that the insurance applies only if, prior to the policy period, no insured knew that the “bodily injury” or “property damage” had occurred in whole or in part. Significantly, it also states that any “bodily injury“ or “property damage” which occurs during the policy period and was not, prior to the policy period known to have occurred, includes a continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.



In Grange Mutual Cas. Co. v. West Bend Mut. Ins. Co., No. 29D04-0706-PL-1112 (Ct. App. IN March 15, 2011), http://www.ai.org/judiciary/opinions/pdf/03151109ehf.pdf, Sullivan was the General Contractor for a school construction project. Its subcontractor, McCurdy, installed the storm drain pipes. One of the storm pipes was fractured in 2005 while McCurdy was doing its installation work. More than a year later, the school experienced significant water damage due to flooding. It was later discovered that the flooding was due to the fractured storm drain. Sullivan’s insurer paid $146,403 for the water damage. That insurer brought a subrogation claim against McCurdy and its two insurers: West Bend and Grange. West Bend had issued CGL coverage to McCurdy while the construction was ongoing , including the date in which the storm pipe was fractured. Grange issued CGL coverage to McCurdy at the time of the flooding. Those two carriers jointly settled the subrogation claim and then litigated which insurer actually owed coverage for the loss. Significantly, the loss that was paid included only damages from the flooding, not any damages for the cost of repairing the pipe.



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Reprinted courtesy of Shaun McParland Baldwin of Tressler LLP. Ms Baldwin can be contacted at sbaldwin@tresslerllp.com

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Disputed Facts on Cause of Collapse Results in Denied Cross-Motions for Summary Judgment

January 31, 2018 — Tred R. Eyerly – Insurance Law Hawaii

Although the court concluded that the policy covered a loss caused by the weight of snow, disputed facts as to the cause of the collapse led to the denial of cross-motions for summary judgment. Freeway Drive Inv., LLC v Employers Mut. Cas. Co., 2017 U.S Dist. LEXIS 207165 (E.D Mich. Dec. 18, 2017).

Freeway Drive owned a single story commercial building insured by Employers Mutual Casualty Company (EMCC). The building sustained damage when trusses within the roof shifted and dropped, causing visible sagging. EMCC denied Freeway Drive's claim.

Freeway Drive hired structural engineer Abdul Brinjikji to inspect the damage. He visited the building three times. On the first visit, he saw snow on the roof but could not estimate how much. Nevertheless, he opined that the collapse was caused by an overload of snow. He developed a plan to shore up the roof and repairs commenced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawarii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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No Coverage for Alleged Misrepresentation Claim

January 23, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court found there was no coverage for a misrepresentation claim against the insured sellers of a residence. Am. Family Mut. Ins. Co. v. Coyne, 2022 U.S. Dist. LEXIS 186417 (E.D. Mo. Oct. 12, 2022). Aaron and Tobi Beckman purchased a home from Denise Coyne. The Bockmans alleged in the underlying suit that Coyne represented that the property had a "2-car garage." A disclosure statement signed by Coyne stated she had disclosed all conditions which might lower the value of the property or adversely affect the Bockman's decision to buy the property. After purchasing the property, the Bockmans learned that they could not fit their two vehicles in the attached garage. The Bockmans alleged that substantial remediation was necessary to expand the depth of the garage to fit two cars within it. The underlying suit alleged that Coyne had was engaged in fraud, misrepresentation and concealment by omitting material facts in connection with the sale of the home. Coyne allegedly engaged in negligent misrepresentation by failing to inform the Bockmans of the depth of the attached garage. 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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'Perfect Storm' Caused Fractures at San Francisco Transit Hub

January 08, 2019 — Nadine M. Post - Engineering News-Record
The underlying causes of the trouble at San Francisco’s 4.5-block-long Salesforce Transit Center are coming into focus. A combination of low fracture toughness deep inside thick steel plates, cracks present as a consequence of normal steel fabrication and stress levels from loads, which are a function of design, apparently caused brittle fractures in the bottom flanges of the center's twin built-up plate girders that span 80 ft across Fremont Street. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

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No Coverage for Construction Defect Claim Only Impacting Insured's Work

January 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
In a coverage dispute between two insurers over a claim for damages caused by faulty workmanship, the court found there was no right to equitable contribution or indemnity. Travelers Prop. Cas. Co. of Am. v. Mallcraft, Inc., 2023 Cal. Super. LEXIS 67568 (Cal. Super. Ct. Sept. 15, 2023). Mallcraft was the general contractor for a building project and was sued for construction defects. Travelers was an additional insured under a policy issued to a subcontractor, KitCor. Travelers defended Mallcraft in an arbitration. Travelers sought equitable contribution and equitable indemnity from Hartford, Mallcraft's insurer. Mallcraft and Travelers stiulated to a judgment agianst Mallcraft for all costs Travelers incurred in the arbitration. Travelers' insured, KitCor, was not implicated in the construction defect claims against Mallcraft. The judgment set forth findings, including the fact that the underlying plaintiff never made any claim that KitCor perfomred work on the project or casued property damage. 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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