SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Action Needed: HB24-1230 Spells Trouble for Colorado Construction Industry and its Insurers

March 25, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In an apparent gift to plaintiffs’ construction defect lawyers, Representatives Parenti and Bacon introduced House Bill 24-1230 on February 12, 2024. The bill was assigned to the House Judiciary Committee and is scheduled for hearing on March 6th, during the afternoon session beginning at 1:30 pm. To date, the bill does not have any senate sponsors, perhaps because the senators are more interested in serving their constituents’ needs for attainable housing than in lining the pockets of their plaintiffs’ construction defect attorney friends. According to the bill’s summary, HB 24-1230 contains the following provisions: Current law declares void any express waivers of or limitations on the legal rights or remedies provided by the “Construction Defect Action Reform Act” or the “Colorado Consumer Protection Act.” Sections 1 and 4 make it a violation of the “Colorado Consumer Protection Act” to obtain or attempt to obtain a waiver or limitation that violates the aforementioned current law. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Liability Coverage for Claims of Publishing Secret Data Does Not Require Access by Others

April 20, 2016 — Sean Mahoney and Laura Schmidt – White and Williams LLP
On April 11, 2016, the United States Court of Appeals for the Fourth Circuit concluded that general liability insurance covered claims alleging that an insured was negligent in securing private medical records, even where there was no evidence that any third parties had actually viewed the underlying plaintiffs’ medical records. This “unpublished” decision was issued in Travelers Indemnity Company of America v. Portal Healthcare Solutions, LLC less than three weeks after the court heard oral argument. Portal Healthcare accordingly stands for the proposition that “publication” within the meaning of the standard commercial general liability coverage for “personal and advertising injury” only requires that claims against an insured allege that confidential information was made available to the public, without allegations that any third party actually accessed it, to trigger the insurer’s duty to defend. Reprinted courtesy of Sean Mahoney, White & Williams LLP and Laura Schmidt, White & Williams LLP Mr. Mahoney may be contacted at mahoneys@whiteandwilliams.com Ms. Schmidt may be contacted at schmidtl@whiteandwilliams.com Read the court decision
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San Francisco Half-Built Apartment Complex Destroyed by Fire

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
According to San Jose Mercury News, a 250 million dollar apartment complex being built in San Francisco, California received “catastrophic damage” from a fire on March 11th. The complex was being developed by BRE Properties, Inc., and “was slated to open sometime later this year.” Initial reports blamed high winds for the start of the blaze, however, San Jose Mercury news reported that “downtown San Francisco experienced wind speeds of no more than 10 mph Tuesday, and that heavy winds were not expected Tuesday night” according to the National Weather Service. “Representatives for [BRE Properties, Inc.] were not available for comment,” as reported by San Jose Mercury News. Read the court decision
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Mendocino Hospital Nearing Completion

December 04, 2013 — CDJ STAFF
The Frank R. Howard Memorial Hospital is well underway on its plans to move to a larger facility. The new building in Willits, California, will be more than twice the size of the old building at 74,000 square feet. Construction has reached the halfway point after just over three months of construction. Despite that, plans are to put the facility into use in January 2015. The general contractor for the project is HBE Corporation. Rick Bockmann, HBE’s chief executive officer, said that the hospital was “on schedule and on budget.” Read the court decision
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The OFCCP’s November 2019 Updated Technical Assistance Guide: What Every Federal Construction Contractor Should Know

March 23, 2020 — Sarah K. Carpenter - Smith Currie
The Department of Labor (“DOL”) Office of Federal Contract Compliance Programs (“OFCCP”) issued its 148-page Updated Construction Contractor Technical Assistance Guide (the “Guide”) on November 13, 2019. A complete copy of the Guide can be found here, but the below provides a summary of what every Federal Construction Contractor should know regarding the OFCCP’s November 2019 update to its prior 2006 publication. The DOL has identified the Guide as a “self-assessment tool” to assist contractors in meeting “their legal requirements and responsibilities for equal employment opportunity by preventing violations before they occur.” However, the Guide does not create or impose new requirements for Federal Construction Contractors. Instead, the Guide provides an overview of anti-discrimination and affirmative action requirements and obligations under existing laws and regulations, and suggests best practices and guidance. Specifically, the Guide provides:

• A concise summary of Federal Construction Contractors’ legal obligations under the three main laws enforced by the OFCCP: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974;
• A detailed explanation of requirements for written Affirmative Action Plans;
• A clear schedule of Standard Federal Equal Employment Opportunity Construction Contract Specifications;
• A reorganized recap of the sixteen affirmative action steps Federal Construction Contractors are required to implement in good-faith; and
• A user-friendly roadmap of what to expect during an OFCCP audit, including a discussion of record keeping requirements.

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Reprinted courtesy of Sarah K. Carpenter, Smith Currie
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com

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Construction Litigation Roundup: “A Less Than Valiant Effort”

June 21, 2024 — Daniel Lund III - Lexology
A Miller Act claimant in federal court in New Jersey in relation to a VA medical center project found itself on the wrong end of the law and was sent packing by the court. The claimant had supplied products for the project to general contractor Valiant Group, LLC, pursuant to a purchase order from the GC. The general contractor allegedly refused to pay the supplier, leading to the claim against the GC and its payment bond surety in the amount of $126,900. The supplier also sought recovery under the federal Prompt Payment Act, 31 U.S.C. §§ 3901-07. State law claims were asserted as well. Chipping away at the federal law claims – the claims forming the asserted basis for federal court jurisdiction for the case – the court first dispensed with the Prompt Payment Act claim. According to the court, allegations that the general contractor had “wrongfully and improperly withheld remuneration… despite [having] ‘received payment from the U.S. Department of Veterans Affairs’" – whether or not accurate – did not trigger the Act. The court wrote: “The Prompt Payment Act was enacted ‘to provide the federal government with an incentive to pay government contractors on time by requiring agencies to pay penalties . . . on certain overdue bills . . . [and] was later amended to include provisions applicable to subcontractors.’… Absent from the Act, however, are ‘any explicit provisions for subcontractor enforcement if the prime contractor fails to make timely payment.’… This is because the Act ‘merely requires that the prime contractor's contract with the subcontractor include the specified payment clause. [It] does not require the prime contractor to actually make payments to the subcontractor[.]’… The Act, therefore, does not ‘give subcontractors an additional cause of action for an alleged breach by a general contractor of a subcontract.’” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Sometimes You Get Away with Default (but don’t count on it)

July 27, 2020 — Christopher G. Hill - Construction Law Musings
As an almost universal rule here in Virginia, failing to show up for court or respond to a lawsuit is a bad idea. Consequences include default judgment against you without the right to defend or make your case. Courts simply enter judgment and the consequences of that judgment will follow. However, and as is often the case around here, there are small exceptions where the courts of Virginia allow the defaulting party off the hook. Sullivan Mechanical Contractors, Inc. v. KBE Building Corporation is just such a case. In Sullivan Mechanical, the Federal District Court for the Western District of Virginia was faced with a Motion to Vacate Default Judgment from KBE. The facts are laid out in the opinion, but basically come down to the usual subcontractor not paid by the general contractor and general contractor has reasons for non-payment. Subcontractor, Sullivan Mechanical, sued KBE and KBE failed to respond in a timely manner. One day after the deadline for response had passed, Sullivan moved for entry of default and the clerk entered the default that same day. KBE moved to vacate the default a mere 6 days after entry of default. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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AIA Releases Decennial 2017 Updates to its Contracts Suites

June 29, 2017 — Garret Murai - California Construction Law Blog
The American Institute of Architect’s (AIA) suite of design and construction documents are among the most popular industry form contracts. Every ten years the AIA reviews and updates its core documents, and early this Spring, announced the release of its updated contract documents. Among the new changes include:

• Communications Between Owners and Contractors: Expands the ability of owners and contractors to communicate directly while maintaining an architect’s ability to remain informed about communications that affect the architect’s services.
• Owners’ Financial Ability to Pay for Project: Clarifies provisions requiring owner to provide proof it has made financial arrangements to pay for project.
• Contractor Pay Application Requirements: Simplifies provisions for contractors to apply for, and receive, payments.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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