Seattle Washington Building Expert Directory

Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

November 07, 2022 — Matthew DeVries - Best Practices Construction Law
This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And that’s precisely what many lenders say on distressed projects when the owner fails to make final payment and the contractor looks to the bank for funding: “We have no money for you contractor!” In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of the construction loan agreements with the owner. The project involved a $13m construction loan between the lender and the owner to renovate a hotel. The owner and contractor entered into an AIA Contract for the construction management services. During construction the contractor would submit payment applications to the lender, who would review and approve the invoices for payment. The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract. Read the court decision
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Reprinted courtesy of Matthew DeVries, Burr & Forman LLP
Mr. DeVries may be contacted at mdevries@burr.com

Get Your Contracts Lean- Its Better than Dieting

January 13, 2020 — Brian Perlberg, Esq. - ConsensusDocs
I recently took the AGC Lean Construction Educations Program Units 1-7. After studying diligently, I’m happy to say that I passed the exam and earned my CM-Lean credential. Surprisingly, this makes me the first attorney to earn this distinction out of over 1,200 CM-Lean holders. So why is a construction attorney learning about lean? After all, this was my first exam in 20 years since I took the bar. Well, according to McKinsey Global Institute, construction actually became less productive from 1995 through 2009. When it comes to efficiency, construction still lags significantly behind the manufacturing sector and the overall economy. Construction contracts – what we sign and the way in which we negotiate them, or lack thereof – is a principal reason why construction productivity is stagnant. Contracting under an integrated lean project delivery method (ILPD) and incorporating Lean construction tools is the most powerful means to increase efficiency and add-value to owners. Owners are the client’s end-users of construction projects. ConsensusDocs has taken a leadership role in publishing the first standard ILPD contract which is an integrated form of agreement (IFOA). The ConsensusDocs 300 Integrated Project Delivery (IPD™) provides an off-the-shelf solution to contract utilizing lean tools. Not every owner can or is comfortable using an IPD approach. Consequently, ConsensusDocs produced the ConsensusDocs 305 Construction Lean Construction Addendum last year to provide an option for contracting for lean on Construction Management at-Risk and design-build projects. Some people call this approach IPD-lite or IPD’ish. Some disfavor such terms, because those terms have been used loosely on projects that aren’t very Lean. Read the court decision
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Reprinted courtesy of Brian Perlberg, Esq., Executive Director and Senior Counsel of ConsensusDocs
ConsensusDocs may be contacted at support@consensusdocs.org

Heathrow Tempts Runway Opponents With $1,200 Christmas Sweetener

December 15, 2016 — Christopher Jasper – Bloomberg
Heathrow Airport Ltd. will offer hundreds of homeowners a 1,000-pound ($1,200) festive sweetener to participate in environmental studies vital to expediting planning for its controversial 16 billion-pound third runway. The owners of houses and farmland on which the new landing strip is due to be built will qualify for the payment in return for agreeing to a handful of visits over about two years, Heathrow Chief Executive Officer John Holland-Kaye said in an interview. The surveys are required to establish the site’s wildlife value. Read the court decision
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Reprinted courtesy of Christopher Jasper, Bloomberg

What is a Personal Injury?

September 03, 2019 — Bremer Whyte Brown & O'Meara LLP
Essentially, a personal injury is when an individual is hurt during an accident. Whether driving on the road, walking down the street, or sitting in a chair, accidents happen. When there is an accident, medical treatment may be necessary. Individuals who sustain injuries usually seek compensation for their medical treatment and pain and suffering in the form of a personal injury lawsuit. Personal injury lawsuits can result from a variety of claims including negligence, strict liability, or intentional torts. Yet, for the most part, personal injury lawsuits tend to arise from a claim of negligence. The individual or entity injured in the accident, “Plaintiff”, files a lawsuit against the individual or entity, “Defendant” who allegedly caused harm. Personal injury lawsuits resulting from claims of negligence tend to have two main components: liability and damages. Yet, in order to prevail in a suit for negligence, a Plaintiff must demonstrate the following: (1) a legal duty to use due care, (2) a breach of that duty, (3) a reasonably close, causal connection between that breach and Plaintiff’s resulting injury, and (4) actual loss or damage to Plaintiff. Wylie v. Gresch (1987) 191 Cal.App.3d 412. First, a finding of negligence rests upon a determination that the actor has failed to perform a duty of care owed to the injured party. Ronald S. v. County of San Diego (1993) 16 Cal.App.4th 887. This means that an individual or entity must act reasonably to avoid injuring others. When an injury occurs, a Plaintiff will generally argue that an individual or entity breached a duty owed to them. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Construction Lien Needs to Be Recorded Within 90 Days from Lienor’s Final Furnishing

March 22, 2018 — David Adelstein – Florida Construction Legal Updates

A lienor needs to record its construction lien within 90 days of its final furnishing date. This final furnishing date excludes punchlist, warranty, or the lienor’s own corrective work. A lien recorded outside of the 90-day window will be deemed invalid.

The opinion in In re: Jennerwein, 309 B.R. 385 (M.D. Fla. 2004) provides a good discussion of this 90-day window. This matter dealt with a debtor / owner’s bankruptcy where the owner was contesting the validity of a construction lien by its pool contractor. The owner contended that the lienor’s lien was recorded outside of this 90-day window thus rendering the lien invalid. The bankruptcy court was determining the validity of the lien.

In this matter, the owner hired a swimming pool contractor to construct a pool. On October 25, 2002, the pool contractor installed pavers around the pool. After this was performed, the pool contractor realized the owner was unable to obtain the financing to pay for the pool. As a result, the pool contractor ceased doing any more improvements. But, neither the pool contractor nor the owner terminated the contract. Then, on November 27, 2002, the pool contractor sent a supervisor to the property to inspect the pool (work-in-place), the pool equipment, the installed pavers, made a list of the unfinished work, and remove any debris. On January 27, 2003, the pool contractor recorded its lien.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Wilke Fleury Attorneys Featured in 2021 Best Lawyers in America and Best Lawyers: Ones To Watch!

August 16, 2021 — Wilke Fleury LLP
Wilke Fleury congratulates attorneys David Frenznick, Adriana Cervantes and Dan Egan on their inclusion in the 2021 Edition of Best Lawyers in America! Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 108,000 industry leading lawyers are eligible to vote (from around the world), and they have received over 13 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. For the 2021 Edition of The Best Lawyers in America©, 9.4 million votes were analyzed.

Daniel L. Egan

First year recognized in Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law: 2021

David A. Frenznick

First year recognized in Litigation – Real Estate: 2016

Adriana C. Cervantes

First year recognized in Medical Malpractice Law – Defendants: 2021

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Reprinted courtesy of Wilke Fleury LLP

Ninth Circuit Clears the Way for Review of Oregon District Court’s Rulings in Controversial Climate Change Case

February 27, 2019 — Anthony B. Cavender - Gravel2Gavel
On December 26, a divided panel of the U.S. Court of Appeals for the Ninth Circuit accepted an interlocutory appeal of the presiding District Court’s pre-trial rulings in the novel climate change case that is being tried in Oregon. The case is Juliana, et al. v. United States of America. In its ruling, the Ninth Circuit held that the District Court certification of this case for interlocutory appeal satisfied the provisions of 28 U.S.C. § 1292(b). Ninth Circuit precedents authorize such an appeal when a District Court order “involves a controlling question of law as to which there is a substantial ground for difference of opinion”—which aptly characterizes the U.S. Supreme Court’s view of this litigation. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Dreyer v. Am. Natl. Prop. & Cas. Co. Or: Do Not Enter into Nunn-Agreements for Injuries that Occurred After Expiration of the Subject Insurance Policy

January 20, 2020 — Jean Meyer - Colorado Construction Litigation
While Nunn-Agreements[1] may be appealing for both plaintiffs and defendants where an insurer unreasonably fails to defend a lawsuit, a recent opinion from The Honorable Marcia Krieger in the United States District Court of Colorado[2] (“Opinion”) demonstrates the importance of first confirming that there exists a viable insurance claim before proceeding with such a Nunn- Agreement. The facts giving rise to the Opinion were as follows. In March 2015, a Homeowner couple (the “Homeowners”) suffered damages to their home resulting from a brushfire. Fortunately, the Homeowners were insured, they submitted their claim to their homeowners’ insurance carrier which was in effect at the time of the brushfire (the “Insurance Carrier”), and the Insurance Carrier paid the claim. Ostensibly as part of the Homeowners’ remediation efforts to their home they removed a large bush which left a hole in the ground. After paying the claim, in August 2015 the Insurance Carrier cancelled or elected not to renew the Homeowners’ policy. In October 2015, a repairman working on the Home (the “Repairman”) was injured after his ladder fell over allegedly because of the hole in the ground caused by the bush that had been removed. As a result of injuries caused by the fall from the ladder, the Repairman brought suit against the Homeowners. In response to the Repairman’s claim, the Homeowners again tendered to their Insurance Carrier. This time, however, the Insurance Carrier denied coverage on the basis that the Repairman’s injuries occurred after the expiration of the relevant policy. Without insurance coverage, the Homeowner’s entered into a Nunn-Agreement with the Repairman, conceding liability, and assigning any claims they might have had against the Insurance Carrier in lieu of execution of any judgment against the Homeowners. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

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