Seattle Washington Building Expert Directory

No Signature? Potentially No Problem for Sureties Enforcing a Bond’s Forum Selection Clause

March 21, 2022 — Brian C. Padove - ConsensusDocs
One of the foundational tenets of contract law is that a party may only be bound by terms they agree to, or in other words, if the party did not sign a contract, that party cannot be bound by the terms thereof. While this principle is generally unwavering, there are certain situations in which a non-signatory to a contract may still be bound by the terms of a contract. In particular, this non-signatory issue may arise when a payment bond claimant makes a bond claim, subsequently files a lawsuit, but the bond contains a forum selection clause different than the venue of the lawsuit and the surety seeks to enforce the bond’s forum selection clause. For example, the claimant may have filed its lawsuit against the surety in federal court, even though the bond provides language specifically mandating that no lawsuit shall be commenced by any claimant other than in a state court where the project is located. Thus, the question then becomes, can the surety enforce the forum selection clause against the claimant when the claimant did not sign the bond and/or never agreed to the terms thereof? The short answer, it depends (yes, that is a very lawyer-like answer). Given recent case law over the past decade, however, the surety has a strong argument in favor of enforcement of the forum selection clause. Read the court decision
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Reprinted courtesy of Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP (ConsensusDocs)
Mr. Padove may be contacted at bpadove@watttieder.com

Surge in Home Completions Tamps Down Inflation as Fed Meets

June 17, 2015 — Carlos Torres – Bloomberg
American builders are tamping down what little inflation there is. Construction companies completed 392,000 buildings with five or more units at an annualized rate in May, the most since 1988, Commerce Department figures showed Tuesday in Washington. “The pickup in demand is pushing up rents and also creating more incentive for builders to put up more units,” said Michael Hanson, a senior economist at Bank of America Corp. in New York. The jump in completions “helps offset some of the upward pressure we’ve seen” on rents, said. Read the court decision
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Reprinted courtesy of Carlos Torres, Bloomberg

How the Parking Garage Conquered the City

January 09, 2023 — Andrew Zaleski - Bloomberg
Uncertainty overcame owners of several Manhattan parking garages in September. A plan to implement congestion pricing — charging drivers to enter a zone south of 60th Street — could lead to more transit usage by commuters, and thus the closure of some parking garages, The City reported. Parking options have already been on the wane in the largest US city: The NYC Department of Consumer Affairs and Worker Protection counted more than 2,200 licenses for garages and lots in 2015, a number that fell to 1,899 by 2021. For most urban residents, if not outer-borough drivers, that decline is reason to cheer. The parking garage — a big, concrete-gray box for cars — is a notorious bane of urban vitality. City after city, desperate to lure suburbanites downtown to work or shop, bulldozed prime real estate to build these structures in the postwar era, turning central business districts into vehicle-storage voids that sapped streets of pedestrian energy and hollowed out neighborhoods. Building codes that mandated a certain number of parking spaces have kept new garages coming: In suburbs, exurbs and towns across the US, you will find these facilities, squatting beside shopping centers and stadiums, airports and office parks, planned communities and amusement parks. Read the court decision
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Reprinted courtesy of Andrew Zaleski, Bloomberg

No Occurrence Where Contract Provides for Delays

March 01, 2017 — Tred R. Eyerly – Insurance Law Hawaii
Applying Montana law, the federal district court found there was no coverage for a subcontractor who was sued by the contractor for breach of the subcontract. Phoenix Ins. Co. v. Ed Boland Constr., Inc., 2017 U.S. Dist. LEXIS 6654 (D. Mont. Jan 18, 2017). Northbank was the general contractor on a project to repair a bridge for the Federal Highway Administration (FHA). Ed Boland Construction, Inc. (EBC) was the subcontractor to perform drilling and pile installation. After beginning its work, EBC ran into difficulties with unforeseen conditions at the work site. The FHA informed Northbank that it had concerns over EBC's ability to complete the work. The FHA alleged that EBC had brought equipment to the work site that differed from the equipment it had represented would be used. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Property Damage to Non-Defective Work Is Covered

February 18, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Hampshire Supreme Court found some of the property damage evolving from the insured's portion of the work was covered under its liability policy. Cogswell Farm Condo. Ass'n v. Tower Group, Inc., 2015 N.H. LEXIS 3 (N.H. Jan. 13, 2015). Lemery Building Company, Inc. constructed and developed 24 residential condominium units. After units were sold, the Cogswell Farm Condominium Association sued Lemery, asserting that the "weather barrier" components of the units were defectively constructed and resulted in damage to the units due to water leaks. Cogswell then sued its insurer, Tower Group, Inc., seeking a declaratory judgment that its claims against Lemery were covered. The trial court eventually determined that exclusions J (1) and J (6) both applied to exclude coverage. Exclusion J (1) excluded coverage for "property damage" to property that Lemery "owns, rents, or occupies." Exclusion J (6) excluded coverage for property damage to "[t] hat particular part of any property that must be restored, repaired or replaced because [Lemery's] work was incorrectly performed on it." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional

September 20, 2021 — Anthony L. Miscioscia & Frank J. Perch, III - White and Williams LLP
Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property damage” are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such claims were inherently intentional and do not state a covered “occurrence.” In Velez v. AR Management Company, et al., 2021 N.J. Super. Unpub. LEXIS 1675 (Law Div. Bergen Co. Aug. 10, 2021), owners of a condominium unit rebuilt after a fire sued the condominium association, several association board members, the association’s property management company and the general contractor for the reconstruction work. The owners’ suit alleged faulty workmanship and incomplete repairs. In addition, the owners asserted fraud and breach of fiduciary duty claims against the management company, alleging conflicts of interest and self-dealing between the management company and the general contractor, which had common ownership. In a third-party complaint, the management company sought coverage from the condo association’s liability and D&O insurer. The court dismissed the D&O coverage claim, noting that the management company was not a director or officer or otherwise entitled to insured status for the D&O coverage part. Reprinted courtesy of Anthony L. Miscioscia, White and Williams LLP and Frank J. Perch, III, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Perch may be contacted at perchf@whiteandwilliams.com Read the court decision
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2018 Super Lawyers and Rising Stars!

July 18, 2018 — Wilke, Fleury, Hoffelt, Gould & Birney, LLP
Wilke Fleury is thrilled to announce our 2018 Super Lawyers and Rising Stars! Twelve of our talented attorneys have been honored with the Super Lawyers and Rising Stars distinctions. Super Lawyers® is a service of the Thomson Reuters, Legal Division. Each year, the research team at Super Lawyers® undertakes a rigorous multi-phase selection process that includes a statewide survey of lawyers, independent evaluation of candidates by the attorney-led research staff, a peer review of candidates by practice area and a good-standing and disciplinary check. The Super Lawyers list represents only five percent of lawyers in California and Rising Stars reflects 2.5% of the state’s up-and-coming lawyers. Congratulations to Wilke Fleury’s 2018 Super Lawyers and Rising Stars! Read the court decision
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Reprinted courtesy of Wilke, Fleury, Hoffelt, Gould & Birney, LLP

The 2019 ISO Forms: Additions, Revisions, and Pitfalls

February 24, 2020 — Richard W. Brown, Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & Vita, P.C.
The Insurance Services Office, Inc. (ISO) issued several new and revised endorsements for use with Commercial General Liability (CGL) coverage forms, which became effective December 1, 2019, in most jurisdictions. The new ISO endorsements include several notable changes that Policyholders should be aware of, including revisions to existing Additional Insured (AI), Primary and Noncontributory, and Waiver of Subrogation endorsements, as well as a number of new AI and other endorsement forms. A summary of the more significant elements of new ISO endorsements is provided below. NEW ISO FORMS

New AI Endorsements - Automatic Status for Completed Operations

For Contractors, Owners and other construction industry stakeholders, there are two new AI endorsements of note, CG 20 39 12 19 – Additional Insured – Owners, Lessee or Contractors – Automatic Status when Required in Written Construction Agreement with You (Completed Operations) and CG 20 40 12 19 – Additional Insured – Owners Lessees or Contractors – Automatic Status for Other Parties when Required in Written Construction Agreement (Completed Operations). AI coverage for Completed Operations is generally provided under form CG 20 37, which requires each additional insured to be listed in the endorsement schedule. The new ISO endorsements automatically extend AI status for Completed Operations without having to specifically identify each additional insured, thereby mirroring current AI endorsements that confer automatic AI status for Ongoing Operations (e.g. CG 20 33 and CG 20 38). Thus, the CG 20 39 and CG 20 40, correspond with CG 20 33 (ongoing operations), and CG 20 38 (ongoing operations), respectively, to extend AI coverage for Completed Operations. Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys Richard Brown, Michael V. Pepe and Janie Reilly Eddy Mr. Brown may be contacted at rwb@sdvlaw.com Mr. Pepe may be contacted at mvp@sdvlaw.com Ms. Eddy may be contacted at jre@sdvlaw.com Read the court decision
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