Seattle Washington Building Expert Directory

Construction Defect Claims are on the Rise Due to Pandemic-Related Issues

April 25, 2022 — Beverley BevenFlorez – CDJ Staff
According to a recent New York Times article, pandemic-related issues such as “stop-and-start construction, global supply chain issues, pressure from lenders and yo-yoing housing prices” has caused an increase in construction defect suits for new apartment developments: “Complaints and legal claims are already emerging, signaling that a confluence of all factors amid the Covid crisis could continue to be a problem for new construction — from entry-level studios to top-tier penthouses — for years to come, according to lawyers and development consultants.” A Times analysis of Department of Buildings data by Marketproof demonstrated an increase in complaints beginning March 1st, 2020: “During the first year of the pandemic, new residential buildings recorded an average of five complaints per building, a 46 percent jump from the same period the previous year.” Steven D. Sladkus, a partner at Schwartz Sladkus Reich Greenberg Atlas told the Times that his “'phone’s been ringing off the hook' with complaints from homeowners in new condo buildings” regarding “heating problems, poor sound insulation, fire safety issues and faulty elevators.” Developers have faced a variety of pandemic-related challenges including a disrupted supply chain, shut downs, shipping delays, labor shortages, and increased material prices. In 2020, the lack of availability of vaccines caused some construction to halt: “Suddenly one guy calls in sick and the whole crew of electricians can’t show up,” Steven Zirinsky, co-chair of the building codes committee at the New York chapter of the American Institute of Architects told the Times. Read the court decision
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Contractor Definition Central to Coverage Dispute

July 22, 2024 — Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & Berman
How do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy. Factual Background In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision. Reprinted courtesy of Stacy R. Goldscher, Wood Smith Henning & Berman and Tracy M. Lewis, Wood Smith Henning & Berman Ms. Goldscher may be contacted at sgoldscher@wshblaw.com Ms. Lewis may be contacted at tlewis@wshblaw.com Read the court decision
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Digital Twins – Interview with Cristina Savian

February 11, 2019 — Aarni Heiskanen - AEC Business
In this interview with Cristina Savian, we discuss the present and future of digital twins in the construction industry. Cristina Savian is the founder and managing director at BE-WISE, a London based consultancy firm specialized in helping start-ups and SMEs to scale-up and bring new technologies into the construction market. Cristina has over twenty years’ experience in the civil engineering and technology industries, working from small-scale traffic calming and parking schemes in UK and Italy, through to planning major events such as playing a key role as transport manager of the Greenwich Park venue during the London 2012 Olympic and Paralympic Games. She then moved to work for a multinational leading technology company, Autodesk, covering several global roles as technical and commercial lead across Europe and America. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

US Appeals Court Slams FERC on Long-Muddled State Environmental Permits

March 27, 2019 — Mary B. Powers and Debra K. Rubin - Engineering News-Record
What may be the nation’s largest dam removal project—delayed for years by regulatory and legal disputes of a utility, stakeholders and states over licensing and environmental permits—now may have new momentum after a hard-hitting January federal appeals court ruling. Reprinted courtesy of Mary B. Powers, ENR and Debra K. Rubin, ENR Ms. Rubin may be contacted at rubind@enr.com Read the court decision
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Damages in First Trial Establishing Liability of Tortfeasor Binding in Bad Faith Trial Against Insurer

October 22, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court considered whether, in a second trial for bad faith, the insured was required to again prove her damages, instead of relying on the jury's damage determination in the first trial where the tortfeasor's liability was established. Geico Gen. Ins. Co. v. Paton, 2014 Fla. Ct. App. LEXIS 14362 (Fla. Ct. App. Sept. 17, 2014). The insured was injured in a car accident caused by the negligence of the underinsured driver. Geico paid the insured the $10,000 policy limit under her policy. The insured's mother also had uninsured/underinsured coverage with Geico, with policy limits of $100,000. When the insured demanded the $100,000 policy limits from her mother's policy, Geico offered $1,000. Later, Geico offered $5,000, but returned to the $1,000 offer after the insured refused to settle. When the insured reduced her demand to $22,500, Geico did not respond. The insured sued and the case went to trial. The jury awarded $10,000 for past pain and suffering, and $350,000 for future pain and suffering. The verdict set the insured's total damages at $469,247. Geico did not file a motion for new trial nor did it appeal. Judgment was entered in favor of the insured, but was limited to the $100,000 UM policy limits. 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

MetLife Takes Majority Stake in New San Francisco Office Tower

October 21, 2015 — Hui-Yong Yu – Bloomberg
MetLife Inc. is taking a majority stake in a 43-story office tower being built next to San Francisco’s Transbay Transit Center, expanding the biggest U.S. life insurer’s holdings in one of the country’s most expensive office markets. MetLife formed a joint venture with Chicago-based John Buck Co. and Golub & Co. for the property, called Park Tower at Transbay, the companies said in a statement before the building’s groundbreaking Tuesday. The tower, which doesn’t yet have a tenant, is scheduled for completion in 2018. Financial terms of the venture weren’t disclosed. Fred Pieretti, a spokesman for MetLife, said the company will own a majority interest in the building. Read the court decision
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Reprinted courtesy of Hui-Yong Yu, Bloomberg

Georgia Court Rules that Separate Settlements Are Not the End of the Matter

October 14, 2013 — CDJ STAFF
The Georgia Court of Appeals recently took up the question of how parties in a construction defect settlement relate to one another in terms of apportioning the settlement. Scott Murphy, writing on the Barnes & Thornburg blog clarifies the issues. The underlying construction defect case involved a newly-constructed hotel with mold and mildew problems. The owners sued the contractor (for negligent construction) and the architect (for negligent design). Separately, the owners settled with the contractor for $2.3 million and the architect for $100,000. Subsequently, the contractor sued the architect, attempting to recover part of the settlement the contractors had made with the owners. At trial, the architect prevailed, obtaining a summary judgment that under Georgia law, “joint-tortfeasors can no longer assert contribution or non-contractual indemnity claims.” This was reversed by the Court of Appeals, determining that the two were not joint tortfeasors. Mr. Murphy notes that “the court rejected the parties’ attempt to disavow joint and several liability in their respective settlement agreements.” The court ruled that the contractor could proceed with their claims against the argument. Read the court decision
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Is an Initial Decision Maker, Project Neutral, or Dispute Resolution Board Right for You?

July 14, 2016 — David Adelstein – Florida Construction Legal Updates
Recently, I participated in a roundtable hosted by JAMS with experienced South Florida construction lawyers and retired circuit court judges to discuss the pros and cons of utilizing an initial decision maker (“IDM” and also referred to as a project neutral) or a dispute resolution board (“DRB”) to resolve disputes on construction projects. The IDM and DRB are designed to resolve disputes, specifically claims (whether for time, money, or both), during construction to keep the project progressing forward without being bogged down by the inevitable claim. There are numerous avenues to resolve disputes without resorting to filing a lawsuit or a demand for arbitration. The thought is that dispute resolution will be facilitated by techniques designed to assist the parties with the resolution of claims during construction. While direct discussions between the parties, meetings with the executives for business decision purposes, mediations, etc., are certainly helpful, sometimes these avenues are simply not enough to truly resolve a complex claim on a construction project that occurs during construction. Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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