Seattle Washington Building Expert Directory

Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court

July 09, 2019 — Andres Avila - Saxe Doernberger & Vita, P.C.
Tennessee’s Supreme Court recently held that an insurer may not withhold repair labor costs as depreciation when the policy definition of actual cash value is found to be ambiguous. Tennessee joins other states like California and Vermont that prohibit the depreciation of repair labor costs in property policies. In Lammert v. Auto-Owners (Mut.) Ins. Co., No. M201702546SCR23CV, 2019 WL 1592687, the Lammerts and other insureds sought property damage coverage from Auto Owners Insurance for hail damage to a home and other structures they owned in Tennessee. Auto-Owners Insurance agreed to settle the claims on an actual cash value basis (ACV), which is a method of establishing the value of insured property that must be replaced to determine the indemnity by the insurer. There are multiple methods to calculate ACV. Auto-Owners decided to use the ACV calculation method of deducting depreciation from the cost to repair or replace the damaged property. Depreciation is the decline in value of a property since it was new because of use, age or wear. The rationale behind this method is that an insured should not make a profit by recovering the cost of, for example, a new roof for a damaged roof that was ten years old, and thus depreciation is deducted from the indemnity. Read the court decision
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Reprinted courtesy of Andres Avila, Saxe Doernberger & Vita, P.C.
Mr. Avila may be contacted at ara@sdvlaw.com

Seabold Construction Ties Demise to Dispute with Real Estate Developer

April 29, 2024 — Richard Korman - Engineering News-Record
When Harry W. Seabold, co-founder and CEO of Seabold Construction, died unexpectedly in January 2023 at age 69, the Beaverton, Ore.-based general contractor, which had been in business since 1984, kept chugging along for a year on two adjacent North Portland apartment projects. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Mexico City Metro Collapse Kills 24 After Neighbors’ Warnings

May 17, 2021 — Max De Haldevang & Maya Averbuch - Bloomberg
The collapse of a long-troubled Mexico City metro track killed 24 people and put two of President Andres Manuel Lopez Obrador’s top allies in the line of fire Monday night, after a decade of safety concerns and probes surrounding the project. About 79 people were injured, Mayor Claudia Sheinbaum said Tuesday. A broken beam led to the incident on the Golden Line of the metro system, she said. An international agency and the attorney general’s office will investigate. Reprinted courtesy of Max De Haldevang, Bloomberg and Maya Averbuch, Bloomberg Read the court decision
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Gene Witkin Joins Ross Hart’s Mediation Team at AMCC

March 01, 2021 — Arbitration Mediation Conciliation Center (AMCC)
AMCC is pleased to announce Gene Witkin joining Ross Hart’s mediation team effective March 1 this year. Prior to joining our esteemed roster of neutrals, Mr. Witkin was active in complex litigation, insurance disputes, and conflict resolution in numerous different states and venues throughout the United States for more than thirty years. In 2000, he co-founded the law firm Menter & Witkin LLP that focused in large part on risk sharing and funding of large lawsuits, which gave him the diverse experience of representing both plaintiffs and defendants, as well as third-party defendants and insurance companies. Mr. Witkin completed mediator training at National Conflict Resolution Center in 2017, and is an AV Rated “Preeminent Attorney” by Martindale-Hubbell (highest rating) and “Super Lawyer” every year since 2015. He may be contacted at g.witkin@amccenter.com or through AMCC at (800) 645-4874. Reprinted courtesy of Arbitration Mediation Conciliation Center (AMCC) Read the court decision
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Application Of Two Construction Contract Provisions: No-Damages-For-Delay And Liquidated Damages

February 14, 2022 — David Adelstein - Florida Construction Legal Updates
A recent Florida opinion between a prime contractor and a Florida public body touches upon two important issues: (1) the application of a no-damage-for-delay provision; and (2) the application of a liquidated damages provision. Both provisions find there way into many construction contracts. Unfortunately, the opinion is sparse on facts. Nevertheless, the application of these provisions is worthy of consideration. In this opinion, Sarasota County v. Southern Underground Industries, Inc., 2022 WL 162977 (Fla. 2d DCA 2022), a county hired a contractor to install sanitary and water piping underneath a waterway. During construction, a nearby homeowner complained that vibration from the drilling caused damage to his home. As a result, the county stopped the contractor’s work to address a potential safety issue, as it was contractually entitled to do. The contractor hired a structural engineer to inspect the house and the engineer issued a report determining that any alleged damage was cosmetic and that there was sufficient monitoring of the vibrations to prevent future damage. The contractor also had an insurance policy to cover any homeowner claim for damage. However, upon receipt of the engineer’s report, the county did not lift its stop work order. Rather, the stop work order remained in place for an additional 71 days. 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

US Civil Rights Tools Are Failing the Most Polluted Black Communities

February 05, 2024 — Manann Donoghoe & Andre Perry - Bloomberg
In 2022, the United Nations declared that access to a safe and healthy environment, free of pollutants and toxic waste, is a universal human right. The resolution provides a legal foundation for international challenges to environmental injustice; it should also provide an impetus for nations like the US to enforce their own environmental protections. Without more clearly defined rights, some of the greatest environmental injustices may continue to be mired in politics. Take the case of “Cancer Alley,” an 85-mile stretch along the Mississippi River in Louisiana where Black residents have long faced higher rates of death and morbidity due to polluted and toxic environments. For people of color living in the region, fresh air is certainly not a right; it is a privilege for others to experience. Reprinted courtesy of Manann Donoghoe, Bloomberg and Andre Perry, Bloomberg Read the court decision
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New York Assembly Reconsiders ‘Bad Faith’ Bill

May 31, 2021 — Copernicus T. Gaza, Robert S. Nobel, Craig Rokuson, Eric D. Suben - Traub Lieberman
The New York State Assembly is considering A07285, which creates a private right of action for bad faith “if the insurer unreasonably refuses to pay or unreasonably delays payment without substantial justification.” The bill was first introduced in 2013 but was reintroduced on May 3, 2021 and has received some recent attention. According to the bill, an insurer acts unreasonably when it (among other things):

Fails to provide the claimant with accurate information regarding policy provisions relating to the coverage at issue; or
Fails to effectuate in good faith a prompt, fair, and equitable settlement of a claim or portion of a claim and where the insurer failed to reasonably accord at least equal or more favorable consideration to its insured's interests as it did to its own interests, and thereby exposed the insured to a judgment in excess of the policy limits or caused other damage to a claimant; or
Fails to provide a timely written denial of a claimant's claim, or portion thereof, with a full and complete explanation of such denial, including references to specific policy provisions wherever possible; or
Fails to act in good faith by compelling such claimant to initiate a lawsuit to recover under the policy by offering substantially less than the amounts ultimately recovered in such suit; or
Fails to timely provide, on request of the policy holder or the policy holder's representative, all reports or other documentation arising from the investigation of a claim; or
Refuses to pay a claim without conducting a reasonable investigation prior to such refusal.

Reprinted courtesy of Copernicus T. Gaza, Traub Lieberman, Robert S. Nobel, Traub Lieberman, Craig Rokuson, Traub Lieberman and Eric D. Suben, Traub Lieberman Mr. Gaza may be contacted at cgaza@tlsslaw.com Mr. Nobel may be contacted at rnobel@tlsslaw.com Mr. Rokuson may be contacted at crokuson@tlsslaw.com Mr. Suben may be contacted at esuben@tlsslaw.com Read the court decision
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Construction Defect Claim Must Be Defended Under Florida Law

February 15, 2018 — Tred R. Eyerly – Insurance Law Hawaii

The Eleventh Circuit found that the insured caused property damage to areas beyond its own work, obligating the insurer to defend. Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass'n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017).

The condominium association contracted with Poma Construction Corp. to replace the building's aging concrete balcony railings with new aluminum and glass railings. Poma subcontracted with Windsor Metal Specialties, Inc. to paint the new railings. Work was completed on February 24, 2012. Poma issued a 10-year warranty covering its installation of the railings. Windsor issued a 20-year limited warranty covering the paint job.

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

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