Seattle Washington Building Expert Directory

The Requirement to Post Collateral Under General Agreement of Indemnity Is Real

May 16, 2022 — David Adelstein - Florida Construction Legal Updates
In prior postings, I have discussed the all-powerful General Agreement of Indemnity (click here and here). This is the document a bond-principal executes to obtain bonds (e.g., performance and payment bonds). Not only does the bond-principal execute this General Agreement of Indemnity, but typically, so do other indemnitors such as the company’s principals and their spouses, other related companies, etc. The objective is that the surety has financial comfort that if a claim is made against the bond, there are avenues where it will get reimbursed and indemnified for any cost it incurs, or payment it makes, relative to that claim against the bond. When a surety issues bonds, the objective is that all losses it incurs gets reimbursed because the bonds are NOT insurance policies. One of the powerful tools the surety can exercise in the General Agreement of Indemnity is to demand the bond-principal and other indemnitors to post collateral in an amount the surety deems sufficient to cover any losses it may incur. This is a right in any General Agreement of Indemnity I have seen and is a right the surety can rightfully exercise. A recent example is shown from the opinion in Philadelphia Indemnity Ins. Co. v. Quinco Electrical, Inc., 2022 WL 1230110 (M.D.Fla. 2022), which pertains to the surety’s motion for preliminary injunction. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Building a Strong ESG Program Can Fuel Growth and Reduce Company Risk

June 19, 2023 — The Hartford Staff - The Hartford Insights
Companies are addressing today’s evolving ESG (Environmental, Social and Governance) issues like they never have before. From climate change to diversity, equity and inclusion, these topics are at the forefront of discussion for businesses, with many seeking to understand stakeholder concerns and implement strategies to improve their ESG efforts. Stakeholders – consumers, investors and employees alike – have recently become more vocal and united in their demand for sustainable corporate behavior. In fact, 83% of consumers think companies should be actively working on Environmental, Social and Governance (ESG) program best practices and 86% of employees prefer to support or work for companies that care about the same issues they do.1 In turn, companies are addressing these issues like they never have before, in recognition of their importance as indicators of long-term value. Read the court decision
Read the full story...
Reprinted courtesy of The Hartford Staff, The Hartford Insights

Six-Month Prison Term for Role in HOA Scam

January 28, 2013 — CDJ STAFF
Ben Kim, the former police lieutenant whose wife is one of the figures in the scheme to take over Las Vegas homeowner associations in order to profit from construction defect settlements, might face a six-month sentence in a bank fraud scheme. Mr. Kim has plead guilty in the charges that he submitted false financial documents. Others who were involved in the homeowner scandal, including Mr. Kim's wife, were also involved in this case. Read the court decision
Read the full story...
Reprinted courtesy of

Construction Spending Highest Since April 2009

October 25, 2013 — CDJ STAFF
The Commerce Department has announced that construction spending has increased by 0.6 percent, but that modest gain puts it at the highest it has been in four and a half years. The last time construction spending was this high was April 2009. The rise in construction spending is due to increases in both public and private construction project. Public construction was up, despite a decrease in spending by the federal government. Private residential construction is at a five-year high. Read the court decision
Read the full story...
Reprinted courtesy of

The Texas Storm – Guidance for Contractors

March 08, 2021 — Curtis W. Martin & Paulo Flores - Peckar & Abramson, P.C.
The Texas snow and ice storm of February 2021 will long be remembered. It has affected everyone across the State, and its impacts continue to be felt a week later. This Alert provides the construction industry with guidance and recommendations for navigating commercial risk resulting from the storm. The potential impacts to your projects may be wide reaching. Consequences on a project site can include damage to the site, delays to work from the storm or from government orders, or simply the lack of help from trades who are dealing with serious personal catastrophes. Offsite impacts can cover a much broader scope of issues, including supply production issues or transportation interruptions. So, what can contractors facing such impacts do to avoid losses, mitigate the impacts, and prepare for what’s to come? Reprinted courtesy of Curtis W. Martin, Peckar & Abramson, P.C. and Paulo Flores, Peckar & Abramson, P.C. Mr. Martin may be contacted at cmartin@pecklaw.com Mr. Flores may be contacted at PFlores@Pecklaw.com Read the court decision
Read the full story...
Reprinted courtesy of

Trump Signs $2-Trillion Stimulus Bill for COVID-19 Emergency

April 06, 2020 — Tom Ichniowski - Engineering News-Record
President Donald Trump has signed the massive measure approved by Congress aimed at helping laid-off workers, financially strapped companies and a stressed health care system as a result of the coronavirus outbreak. Final congressional action came on March 27, when the House passed the bill by voice vote. President Trump signed it a short time later. Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
Read the full story...
Reprinted courtesy of

Amazon Feels the Heat From Hoverboard Fire Claims

January 20, 2020 — William L. Doerler - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Amazon.com, Inc., No. 3:18CV166-M-P, 2019 U.S. Dist. LEXIS 189053 (Oct. 31, 2019), the United States District Court for the Northern District of Mississippi considered a Motion for Judgment on the Pleadings filed by defendant Amazon.com, Inc. (Amazon). Amazon argued that, because it was a “service provider” who cannot be held liable under Mississippi’s Product Liability Act (MPLA), Miss. Code § 11.1.63, the negligence and negligent failure to warn claims filed against it by plaintiff State Farm Fire & Casualty Company (State Farm) failed as a matter of law. The court, looking beyond the MPLA, held that State Farm’s complaint stated a claim against Amazon. In State Farm, Taylor and Laurel Boone (the Boones), State Farm’s subrogors, purchased two hoverboards from third parties in transactions facilitated by Amazon. They purchased the first hoverboard on October 31, 2015 and the second on November 10, 2015. The Boones started using the hoverboards on or about December 25, 2015. On March 16, 2016, the hoverboards caught fire and the fire spread to destroy the Boones’ home. As alleged in the amended complaint, the hoverboards were “manufactured by unknown manufacturers from China.” State Farm, as the Boones’ subrogee, filed suit asserting negligence and negligent failure to warn claims against Amazon. Amazon filed a Motion for Judgment on the Pleadings, arguing that State Farm’s claims against it were governed by the MPLA and, as a service provider, it was not liable under the MPLA. In response, State Farm argued that Amazon was liable because it acted as a “marketplace” and that, rather than MPLA claims, Amazon is subject to common law negligence and failure to warn claims. The District Court agreed with State Farm. Read the court decision
Read the full story...
Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Manhattan Condo Lists for Record $150 Million

February 18, 2015 — Oshrat Carmiel – Bloomberg
(Bloomberg) -- Manhattan’s ultra-luxury condo market has a new high-water mark: $150 million. That’s the price set by developer Chetrit Group for a 21,500-square-foot (2,000-square-meter) triplex at the former Sony Building in Midtown, according to documents filed with the New York State attorney general’s office. It would be a record for a residential listing, topping a $130 million offering planned at Zeckendorf Development Co.’s 520 Park Ave. As luxury apartments proliferate in Manhattan, builders are offering their premier units at ever-higher prices as a way of standing out from the crowd, said Jonathan Miller, president of New York appraiser Miller Samuel Inc. So far, the highest price ever paid for a condominium in the city is $100.5 million, a deal completed in December for a duplex penthouse at the One57 tower. Read the court decision
Read the full story...
Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES