Seattle Washington Building Expert Directory

After Sixty Years, Subcontractors are Back in the Driver’s Seat in Bidding on California Construction Projects

September 22, 2016 — William L. Porter – Porter Law Group Bulletin
For almost the last sixty years, the standard for bidding on California construction projects has been governed by the landmark case of Drennan v. Star Paving (1958) 51 Cal.2d 409; which generally states that the contractor bidding to perform work for a project owner is entitled to rely on the bids of subcontractors in formulating its own bid to do the work. Under the equitable legal doctrine of “promissory estoppel”, which serves as the foundation of the Drennan case, even though there was no actual “contract” between the contractor and subcontractor at the time of bid, the contractor was entitled to enforce the subcontractor’s bid in reliance on this doctrine. For bidding purposes, promissory estoppel serves as an equitable substitute for an actual contract. The courts have, since that time, allowed promissory estoppel to act as a substitute for the contract in public bidding because, in equity, when a contractor “reasonably” relies on a subcontractor’s bid in formulating its own bid, it would be unjust to allow the subcontractor to withdraw a bid on which the contractor had relied in submitting its own successful bid. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

U.S. Navy Sailors Sue Tokyo Utility Company Over Radiation Poisoning

April 09, 2014 — Beverley BevenFlorez-CDJ STAFF
In a one billion dollar lawsuit, U.S. Navy sailors contend that they “suffered massive doses of radiation” from the Fukushima Dia-ichi nuclear power plant in Toyko, Japan while stationed on the USS Ronald Reagan, reported the Orange County Register. A tsunami (caused by a 9.0 earthquake) flooded the plant, “cutting off electrical power and disabling backup generators.” The USS Reagan was sent to provide aid, but the plant then “blew up” before they arrived. “Sailors on the flight deck said they felt a warm gust of air, followed by a sudden snow storm: radioactive steam,” according to the Orange County Register. “Freezing in the cold Pacific air. Blanketing their ship.” However, the Orange County Register posed the question, “Could the Reagan – one of the most advanced nuclear aircraft carriers in the U.S. fleet – really not know that it was being showered with massive doses of radiation?” TEPCO, the company being sued by the sailors, answered that it’s “wholly implausible.” Read the court decision
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Hunton Insurance Recovery Partner Michael Levine Quoted on Why Courts Must Consider the Science of COVID-19

March 15, 2021 — Latosha M. Ellis & Matt Revis - Hunton Insurance Recovery Blog
One year into the COVID-19 pandemic, courts have issued hundreds of rulings in COVID-19 business interruption lawsuits, many favoring insurers. Yet those pro-insurer rulings are not based on evidence, much less expert opinion evidence. For insurers, ignorance is bliss. Despite early numbers in federal courts favoring insurers (state court decisions actually favor policyholders), the year ahead holds promise for policyholders. Fundamental science is the key. Indeed, as researchers continue to broaden their knowledge about COVID-19, it has become increasingly clear that scientific evidence supports coverage for policyholders’ claims. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law FirmsTM of 2023 by Construction Executive

June 26, 2023 — Ahlers Cressman & Sleight PLLC
ACS is proud to announce that it has once again been ranked among The Top 50 Construction Law Firms in the Construction Executive 2023 rankings. Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry, and its articles are designed to help owners and top managers run a more profitable and productive construction business. Construction Executive established the rankings by asking over 600 hundred U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2022 revenues from the firm’s construction practice, the number of attorneys in the firm’s construction practice, percentage of the firm’s total revenues derived from its construction practice, the number of states in which the firm is licensed to practice, the year in which the construction practice was established, and the number of construction industry clients served during the fiscal year 2022. Read the court decision
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Reprinted courtesy of Ahlers Cressman & Sleight PLLC

Defeating the Ten-Year Statute of Repose For Latent Construction Defects

January 28, 2015 — The Porter Law Group
It is an all-too-common scenario in California construction: Nine and a half years after completion of a major California construction project, immediately before the 10-year “statute of repose” for suing on “latent” construction defects expires, a lawsuit claiming damages for “recently discovered” latent construction defects is filed. The property owner sues the contractor for the alleged defects. The direct contractor sues all its subcontractors for indemnity and defense. The attorneys spontaneously generate. Experts proliferate. Claimed defects are extrapolated. Four or five years later, after a few dozen attorneys earn a small fortune in fees, the insurance companies make payments. Attorneys collect more fees. The owners take what remains. They repair nothing... and buy vacation homes. Perhaps a cynical view, but there are many in the construction defect world who would reach a similar conclusion. The question is: How can you defeat this seemingly inevitable chain of events? Under a case known as Brisbane Lodging L.P. v. Webcor Builders, Inc. 216 Cal.App 4th 1249 (2013) there may be hope. California Code of Civil Procedure sections 337.1 and 337.15 grant a 10-year “statute of repose” for bringing claims for “latent” construction defects. These statutes allow a lawsuit for such claimed defects to be filed in court up until ten years after the project has been completed. Latent defects are generally defined as those which are “not apparent by reasonable inspection” (CCP §337.15(b)). It is extremely common for such claims to be filed immediately before this 10-year deadline expires. When the lawsuit is brought, the cash register begins to ring. Read the court decision
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Reprinted courtesy of The Porter Law Group

A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured

March 25, 2024 — Gus Sara - The Subrogation Strategist
In New Jersey Mfrs. Ins. Co. v. Lallygone LLC, No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court’s finding that the prior lawsuit extinguished the carrier’s claims. In Lallygone LLC, the insured hired the defendant to renovate a detached garage on his property. In March 2022, while the defendant’s employees were removing existing concrete slabs, the garage collapsed. After the incident, the insured stopped paying the defendant. In addition, the insured filed a claim with the carrier, which ultimately paid the insured over $180,000 for the damage under its property policy. The carrier sent a subrogation notice letter to the defendant. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Retroactive Application of a Construction Subcontract Containing a Merger Clause? Florida’s Fifth District Court of Appeal Answers in the Affirmative

September 07, 2017 — Sanjo S. Shatley - Florida Construction Law News
Florida’s Fifth District Court of Appeal recently addressed the issue of retroactive application of a construction subcontract on the basis of a merger clause in Don Facciobene, Inc. v. Hough Roofing, Inc.[1] In the case, in late 2010, Don Facciobene, Inc. (“DFI”), a licensed general contractor, contracted with Digiacinto Holdings, LLC, an owner of a home built in 1905 in Melbourne, Florida, known as the Nannie Lee House or the Strawberry Mansion, to perform various renovations in preparation for a restaurant to be opened on the premises. One of the renovations included a new roof. DFI subcontracted the roofing work to Hough Roofing, Inc. (“HRI”), a licensed roofing subcontractor. In mid-March 2011, HRI submitted an estimate and proposed statement of work to DFI. DFI’s project manager signed HRI’s proposal on April 5, 2011, as well as an additional expanded proposal six days later. According to the proposals, payment was due on completion. HRI began work on the roof on April 15, 2011, without a signed subcontract. However, DFI and HRI ultimately executed a subcontract on June 8, 2011, even though HRI had mostly finished its work by the end of May. Read the court decision
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Reprinted courtesy of Sanjo S. Shatley, Cole, Scott & Kissane, P.A.
Mr. Shatley may be contacted at sanjo.shatley@csklegal.com

NTSB Sheds Light on Fatal Baltimore Work Zone Crash

April 25, 2023 — Justin Rice - Engineering News-Record
The National Transportation Safety Board recently released conclusions of a preliminary investigation into a March 22 crash that killed six construction workers when an errant car sped through a work zone along the Interstate-695 Beltway in Baltimore. Reprinted courtesy of Justin Rice, Engineering News-Record Mr. Rice may be contacted at ricej@enr.com Read the full story... Read the court decision
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