Seattle Washington Building Expert Directory

California Mechanics’ Lien Case Treads Both Old and New Ground

July 27, 2020 — Garret Murai - California Construction Law Blog
People do the darnedest things. The next case, Carmel Development Company v. Anderson, Case No. H041005, 6th District Court of Appeals (April 30, 2020), involving a 10-plus year oral design and construction contract, inconsistent accounting practices, two mechanics liens, and side-agreements, takes us down some well traveled paths but also covers some new ground. Carmel Development Company v. Anderson Carmel Development Company, Inc. provided design and construction services at a luxury subdivision known as Monterra Ranch located in Monterey under an oral contract with developer Monterra LLC which spanned over more than a decade. Between 1996 and 2008, Carmel was involved in the infrastructure design and construction of the subdivision including lot design and layout, the location of building envelopes on each lot, water and sewage system layout and design, and roadway design, construction and repair. When roughly half of the lots were developed and sold Monterra ran out of money and Carmel sued. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Significant Ruling in PFAS Litigation Could Impact Insurance Coverage

October 10, 2022 — Sara C. Tilitz & Lynndon K. Groff - White and Williams LLP
Per- and poly-fluoroalkyl substances, commonly known as PFAS, have served as a key component in numerous industrial and consumer products for decades. These “forever chemicals,” which have been associated with environmental contamination and adverse health outcomes, have garnered steadily-growing attention from regulatory authorities, the plaintiffs’ bar, and, by extension, the insurance industry. The current “case to watch” regarding PFAS is the multidistrict litigation (“MDL”) in the United States District Court for the District of South Carolina, Judge Gergel presiding. The MDL is comprised of well over 2,000 cases brought by both individual plaintiffs and state and local governments arising out of the manufacturing and/or use of aqueous film forming foam, also known as AFFF. The use of AFFF, which was historically employed in firefighting operations, including those undertaken by the United States military, allegedly causes the release of two types of PFAS into the environment – PFOS and PFOA. On September 16, 2022, Judge Gergel denied a motion for partial summary judgment filed by defendant 3M Company and other AFFF defendant manufacturers on the government contractor immunity defense. Although not an insurance coverage decision, the ruling is significant in the context of PFAS litigation and could have insurance coverage implications. Reprinted courtesy of Sara C. Tilitz, White and Williams LLP and Lynndon K. Groff, White and Williams LLP Ms. Tilitz may be contacted at tilitzs@whiteandwilliams.com Mr. Groff may be contacted at groffl@whiteandwilliams.com Read the court decision
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The Hidden Dangers of Construction Defect Litigation: A Redux

January 17, 2013 — David McLain, Higgings, Hopkins, McLain & Roswell, LLC

I previously wrote an article entitled “The Hidden Dangers of Construction Defect Litigation” for the Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In that article, I discussed the potential negative effects of homeowners associations bringing construction defect suits as anything other than a last resort. The purpose of this post is to bring to light, by way of a real life example, the problems discussed in my previous article.

I have recently seen a lawsuit filed by an individual homeowner within a common interest community against the homeowners association, its management company, and the attorneys retained by the association to represent it in a construction defect lawsuit against the original developer, general contractor, and one of the design professionals. In his suit, the homeowner complains that the association’s construction defect attorneys “neglected to amend [their] complaint to include only and specifically the claims for damages for those properties, those buildings or condominium units, either by owner or specific locations, which had sustained damages or had faulty construction for which damages were being sought.” As a result of claiming damages throughout the entire community, the homeowner alleged that the entire community was tarred “with the black brush of litigation.”

As the homeowner explained in his complaint, he purchased a condominium for his daughter-in-law when she moved to Colorado to care for him after the death of his wife.

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Reprinted courtesy of David McLain
Mr. McLain can be contacted at mclain@hhmrlaw.com

New York City Dept. of Buildings Explores Drones for Facade Inspections

December 13, 2021 — Jeff Rubenstone - Engineering News-Record
Drones have only seen limited use in New York City for construction documentation and facade inspections due to restrictive local ordinances. But that may be changing with the release of a new report from the New York City Dept. of Buildings, which sees future potential for unmanned aerial vehicles (UAV), or drones, to be used in building facade inspections. Reprinted courtesy of Jeff Rubenstone, Engineering News-Record Mr. Rubenstein may be contacted at rubenstonej@enr.com Read the full story... Read the court decision
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How Does Your Construction Contract Treat Float

November 08, 2017 — David Adelstein - Florida Construction Legal Updates
Although there are different types of construction schedule float and more technical definitions, the definition that makes sense to me is that float is the amount of time a particular activity can be delayed without that activity delaying the project’s completion date (substantial completion date). In looking at a construction schedule, this determination is made from looking at the difference between the early start date for an activity and the late start date for that activity or the difference between the early finish date for that activity and the late finish date for that activity in your CPM schedule (which should be the same amount of time). This is often referred to as “total float” and is the float that I usually focus on since it may pertain to a delay to the substantial completion date of the project and can trigger either the assessment of liquidated damages and/or the contractor’s extended general conditions, whatever the case may be. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Banks Rejected by U.S. High Court on Mortgage Securities Suits

January 12, 2015 — Greg Stohr – Bloomberg
The U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group Plc and Nomura Holdings Inc. (8604), refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities. The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities. Read the court decision
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Reprinted courtesy of Greg Stohr, Bloomberg
Mr. Stohr may be contacted at gstohr@bloomberg.net

California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language

December 20, 2017 — Garret Murai - California Construction Law Blog
In McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project. In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units. The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rose Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Fourth Circuit Rejects Application of Wrap-Up Exclusion to Additional Insured

December 11, 2018 — K. Alexandra Byrd & Samantha M. Oliveira - Saxe Doernberger & Vita, P.C.
Utilizing an owner-controlled or contractor-controlled insurance program (collectively known as “wrap-ups”) can reduce claims, save costs, and give owners and general contractors comfort in knowing their project is adequately insured. However, problems often arise when a subcontractor doesn’t enroll in the wrap-up and, instead, agrees to provide additional insured coverage to the owner and general contractor on the subcontractor’s own general liability policy. One of those problems is the prevalence of wrap-up exclusions on subcontractors’ general liability policies. If the wrap-up exclusion is too broadly drafted, the exclusion can eliminate coverage for the general contractor and owner even when the subcontractor is not enrolled in the wrap-up. Reprinted courtesy of K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. and Samantha M. Oliveira, Saxe Doernberger & Vita, P.C. Ms. Byrd may be contacted at kab@sdvlaw.com Mr. Oliveira may be contacted at smm@sdvlaw.com Read the court decision
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