Seattle Washington Building Expert Directory

Landmark San Diego Hotel Settles Defects Suit for $6.4 Million

March 04, 2011 — Beverley BevenFlorezCDJ STAFF

After five years of legal battles, the condo owners of the El Cortez Hotel building in downtown San Diego settled for $6.4 million, as reported by The San Diego Union-Tribune on March 28, 2011. The Homeowners Association will net just over $3 million from the settlement.

The litigation may have had an adverse effect on the value of the condos within the El Cortez Hotel building. According to an article by Kelly Bennett of Voice of San Diego, “Many condos in the building originally sold for more than $600,000. Currently, the three units on the market are asking for just more than $200,000, the U-T said.”

Andrew Berman, the owners’ attorney, told The San Diego Union-Tribune that the five years of litigation included six lawsuits, 200 depositions, and multiple construction tests.

Read the full story... (San Diego Union Tribune)

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Insurer's Failure to Settle Does Not Justify Multiple Damages under Unfair Claims Settlement Law

February 04, 2013 — Tred R. Eyerly
Although the insurer failed to understand the pertinent law that mandated coverage under the policy, its actions did not rise to an unfair claim settlement practice justifying multiple damages. Gelwan v. Vermont Mut. Ins. Co., 2013 U.S. app. LEXIS 210 (2nd Cir. Jan. 4, 2013). In 1999, a contractor re-roofed the insureds' home. The job was poorly done, and an imperfect seal was created. Over several years, various structures within the house were damaged by water, which caused the rotting of structural beams and joists. The insureds sued for coverage under their homeowners policy. Read the court decision
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Reprinted courtesy of Tred Eyerly
te@hawaiilawyer.com

Waiver of Consequential Damages: The Most Important Provision in a Construction Contract

March 08, 2021 — Jeremy P. Brummond - Construction Executive
Construction agreements can be lengthy. They often include terms covering everything from logistics for working on the project site to complicated provisions regarding intellectual property. Many provisions in a construction agreement deal with risk and who is going to pay for damage claims if or when they occur. However, not all risk-shifting provisions are equally important. While provisions that impose obligations on the contractor to maintain confidentiality, indemnify for personal injury or property damage, or correct defective work can expose a contractor to substantial damage claims and are thus important, contractors can significantly control the amount of damages the owner can claim by including a well-drafted waiver of “consequential damages” provision in the agreement. Because the waiver of consequential damages can significantly control the amount of damages for which a contractor is assuming risk and greatly limit the owner’s ability to recoup many damages, it is arguably the most important provision in a construction contract. Therefore, it is essential for contractors and owners to carefully consider the waiver of consequential damages before entering into any construction agreement. Reprinted courtesy of Jeremy P. Brummond, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Brummond may be contacted at jbrummond@lewisrice.com

Office REITs in U.S. Plan the Most Construction in Decade

July 09, 2014 — Brian Louis – Bloomberg
Office buildings in top U.S. markets are getting so expensive that landlords are choosing to build rather than buy, spurring the most development by real estate investment trusts in at least a decade. Office REITs, led by Boston Properties Inc. (BXP), Vornado Realty Trust (VNO) and Kilroy Realty Corp. (KRC), are planning to plow almost $11 billion into new projects, triple the amount just two years ago and the most in data going back to 2004, according to research firm Green Street Advisors Inc. Much of that is focused on the coasts, including San Francisco and New York, the areas with the most demand from both tenants and investors. Prices for office buildings in major markets have surged past peak levels, lifted in part by sovereign-wealth funds and pensions willing to accept lower yields than other investors because they are seeking safe investments. For REITs, which have to answer to shareholders seeking higher returns, building is often a better option than competing with institutional buyers. Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

Mediation v. Arbitration, Both Private Dispute Resolution but Very Different Sorts

January 24, 2018 — Christopher G. Hill - Construction Law Musings
I often get calls from clients, potential construction clients, and other construction and business professionals with questions about arbitration or mediation clauses in the contracts that they are reviewing or drafting. When I get these calls, it often becomes clear that, understandably, there is some confusion as to what each of these alternate dispute resolution processes entails. I thought I’d put together a quick primer on what each is and their differences. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Deference Given To Procuring Public Agency Regarding Material Deviation

April 10, 2019 — David Adelstein - Florida Construction Legal Updates
Deference will be given to a procuring public agency in a bid protest, particularly when the issue involves whether a bid is non-responsive and constitutes a material deviation from the solicitation. You do not believe me? Perhaps you will after this holding in Biscayne Marine Partners, LLC v. City of Miami, Florida, 44 Fla.L.Weekly D467a (Fla. 3d DCA 2019): Consequently, no principle of law is clearly established…as to any obligation of the trial court (and, by analogy, an administrative hearing officer) [in a bid protest] to decide or to defer [whether a bid constitutes a material deviation from the solicitation]. If anything, the existing and clearly established principle of law inclines toward judicial deference in public agency competitive bidding disputes when the agency has exercised it discretion absent illegality, fraud, oppression or misconduct. I do not know about you, but that last underlined sentence is pretty strong language regarding judicial deference! In this case, Miami (the procuring public agency) issued a Request for Proposals (RFP) for the redevelopment and lease of waterfront property, for the operation of a marina, boatyard, restaurant, wet slips, and a dry storage facility on the property. Miami issued five addenda to the RFP. There were three bidders. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New Hampshire Applies Crete/Sutton Doctrine to Bar Subrogation Against College Dormitory Residents

May 17, 2021 — Kyle Rice - The Subrogation Specialist
Pursuant to the Sutton Doctrine, first announced in Sutton v. Jondahl, 532 P.2d 478 (Okla. Ct. App. 1975), some jurisdictions consider a tenant a coinsured of its landlord absent an express agreement to the contrary. In Ro v. Factory Mut. Ins. Co., No. 2019-0620, 2021 N.H. LEXIS 34 (Mar. 10, 2021), the Supreme Court of New Hampshire held that the Sutton Doctrine, adopted by New Hampshire in Cambridge Mut. Fire Ins. Co. v. Crete, 846 A.2d 521 (N.H. 2004), extends to resident students in a college dormitory. Thus, absent specific language to the contrary, a student is an implied coinsured under the fire insurance policy issued for his or her dormitory. In 2016, two students at Dartmouth College, Daniel Ro and Sebastian Lim, set up a charcoal grill on a platform outside of a fourth-floor window in the Morton Hall dormitory. The grill started a fire on the platform that ultimately spread to the roof of the dormitory. During fire suppression efforts, all four floors of the dormitory sustained significant water damage. Following the loss, the building’s insurer, Factory Mutual Insurance Company (Insurer), paid $4,544,313.55 to the Trustees of Dartmouth College for the damages. Read the court decision
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Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

Render Unto Caesar: Considerations for Returning Withheld Sums

January 18, 2021 — William E. Underwood Partner, Jones Walker LLP - ConsensusDocs
Withholding sums during a dispute can be an effective and perfectly legitimate means to protect against the harms caused by another party’s breach. However, withholding too much money during a dispute can turn a position of strength into one of weakness. “Why should I fund the other side’s litigation war chest?” and “Isn’t this just a display of weakness?” are common questions raised by contractors when this issue is discussed. Often, the contractor is well within its contractual or legal rights to withhold money from a breaching subcontractor (another topic for another day). But it may not always be in a contractor’s best interest to withhold every single penny available. This article addresses some of the long-term implications for failing to return withheld sums, including the potential to recover attorneys’ fees, possible bad faith, accruing interest, and overall litigation costs. Admittedly, it can be hard to give money back in the middle of a dispute. But sometimes it can positively impact the overall outcome of the case. Read the court decision
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Reprinted courtesy of William E. Underwood, Jones Walker LLP (ConsensusDocs)
Mr. Underwood may be contacted at wunderwood@joneswalker.com

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