Seattle Washington Building Expert Directory

Pennsylvania Mechanics’ Lien “Waivers” and “Releases”: What’s the Difference?

March 19, 2015 — Thomas C. Rogers – White and Williams LLP
In the world of Pennsylvania mechanics’ liens there is much confusion about the interchangeable use of the words mechanics lien “waiver” and mechanics’ lien “release.” Many who work in the world of real estate in Pennsylvania, be they contractors, subcontractors, developers, lenders, or attorneys, use these terms interchangeably without understanding that there is a meaningful difference. Failure to understand the difference creates confusion when discussing issues and drafting documents regarding mechanics’ liens. In Pennsylvania a mechanics’ lien “waiver” is the pre-construction waiver of liens that was historically executed by a general contractor and an owner and filed with the Prothonotary in the county in which construction is located. These pre-construction lien “waivers,” assuming they were properly prepared, signed by the contractor and owner and filed in accordance with applicable law, negated the ability of that contractor and its subcontractors to file a mechanics’ lien on the subject property. These pre-construction lien “waivers” were part of every construction loan closing up through the amendments to the Pennsylvania Mechanics’ Lien Act that went into effect in 2007. Since 2007, the Mechanics’ Lien Act has been amended twice to further address those circumstances in which pre-construction lien waivers still have vitality. Except with respect to those narrow situations specifically provided for in the statute, pre-construction lien “waivers” are against public policy in Pennsylvania. Read the court decision
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Reprinted courtesy of Thomas C. Rogers, White and Williams LLP
Mr. Rogers may be contacted at rogerst@whiteandwilliams.com

Empire State Building Owners Sue Photographer for Topless Photo Shoot

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
USA Today reports that the owners of New York’s Empire State Building are suing photographer Allen Henson for taking pictures of a topless woman on the sky scraper’s observation deck. “The owners claim Henson damaged the building's reputation as a safe, family-friendly attraction when he took photos of the model in August,” according to USA Today. Henson allegedly did not ask the owners for permission prior to the shoot. Henson retorted that he took the photos when children were not present, and the pictures do not have any “commercial value; he just posted them on social media.” Read the court decision
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Defense Owed for Product Liability Claims That Do Not Amount to Faulty Workmanship

December 30, 2013 — Tred Eyerly — Insurance Law Hawaii
The trial court's holding that there was no occurrence based on claims from faulty workmanship was reversed by the appellate division of the Pennsylvania Superior Court. The underlying claims were based on product liability tort claims, not faulty workmanship. Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA., 2013 Pa. Super. LEXIS 3186 (Pa. Superior Court Dec. 3, 2013). The underlying lawsuits claimed that the insureds' windows and doors were defectively designed or manufactured, which resulted in water leakage causing physical damage, such as mold and cracked walls. There were also personal injury claims. The insureds had a primary policy with OneBeacon Insurance Group, but the policy limits were exhausted. The insureds turned to their commercial umbrella policy issued by National Union. The policy defined occurrence as "an accident, including continuous or repeated exposure to conditions, which results in Bodily Injury or Property Damage neither expected nor intended from the standpoint of the Insured." Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Too Costly to Be Fair: Texas Appellate Court Finds the Arbitration Clause in a Residential Construction Contract Unenforceable

November 21, 2022 — Gus Sara - The Subrogation Strategist
In Cont’l Homes of Tex., L.P. v. Perez, No. 04-21-00396-CV, 2022 Tex. App. LEXIS 7691, the Court of Appeals of Texas (Appellate Court) considered whether the lower court erred in refusing to enforce an arbitration clause in a construction contract between the parties. The Appellate Court considered the costs of the arbitration forum required by the contract in the context of the plaintiffs’ monthly household income. The court also compared the arbitration cost to the estimated cost of litigating the dispute. The court held that the arbitration clause was substantively unconscionable on the grounds that the arbitration costs were not affordable for the plaintiffs and not an “adequate and accessible substitute to litigation.” The Appellate Court affirmed the lower court’s decision denying the defendant’s motion to compel arbitration. The plaintiffs, Giancarlo and Krystle Perez (collectively, the Perezes), hired the defendant, Continental Homes of Texas, LP d/b/a Express Home (Express Homes), to build a new home in San Antonio. Express Homes provided its standard contract, which included a binding arbitration clause. The clause stated that every potential dispute between the parties occurring before and after the closing of the purchase of the home was subject to binding arbitration, to be administered and conducted by the American Arbitration Association (AAA). The clause also stated that the costs of the arbitration were to be split by the parties. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams LLP
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Defining Constructive Acceleration

March 22, 2021 — David Adelstein - Florida Construction Legal Updates
When it comes to the definition of “constructive acceleration,” the case of Fraser Const. Co. v. U.S., 384 F.3d 1354 (Fed.Cir. 2004) is a cited case and contains an instructive definition, quoted below, for proving a constructive acceleration claim. In a nutshell, a constructive acceleration claim is when the contractor incurs added costs for trying to complete the contract on time when it should be provided extensions of time to perform based on excusable delay (i.e., delay not caused by the contractor). These added costs could be bringing in additional supervision to manage the work, adding manpower to perform the work, working overtime, working weekends, adding more shift work, stacking trades, etc. However, just because a contractor claims they have been constructively accelerated does not make it so. The contractor has to actually ask for an extension of time based on an excusable delay and the owner either denied the extension or unreasonably sat on the request for an extension of time; thus, the contractor incurred significant costs to accelerate in order to finish the project on time because it was deprived of a requested time extension for excusable delay. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Appetite for Deconstruction

July 02, 2024 — Patrick Sisson - Bloomberg
The death of 206 College Avenue was slow and painstaking. Over several days in January 2022, dozens of bundled-up volunteers swarmed over the three-story property, a tired wooden boarding house built in the early 1900s in Ithaca, New York. Long used as rental apartments for Cornell University students, the 13-bedroom house was set to be demolished, along with several neighboring structures of the same vintage, to make room for a new multi-use complex. But while those buildings were quickly reduced to rubble by trackhoes, the house at 206 was deconstructed, piece by piece, so that its elements could be used again. The Catherine Commons Deconstruction Project, an effort by Cornell’s Circular Construction Lab, was a large-scale pilot designed to show how building waste can be kept out of landfills. As volunteers pulled nails out of fir, oak, and walnut boards and hauled lumber off to be sorted and redistributed, a team of eight workers with heavy machinery began meticulously sawing, slicing and removing 8-by-18-foot panels of the old building. These were trucked off to a warehouse, where they’d be taken apart and recycled. The labor that went into this process was substantially more than a typical demolition. But it avoided the societal penalties left behind at nearly every building and demo site across the US. The sheer volume of waste generated by knocking down, adding to or renovating buildings in the US is stunning: 600 million tons of construction demolition waste annually, according to the most recent EPA estimate from 2018. Roughly 75% gets ground up into aggregate and fill, and only a small share is recycled and reused, necessitating production of new material for the next project. For scale, municipal solid waste only accounts for 300 million tons every year. Read the court decision
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Reprinted courtesy of Patrick Sisson, Bloomberg

Construction Defects Lead to “A Pretty Shocking Sight”

October 14, 2013 — CDJ STAFF
Walls black with mold. Grass growing on carpets. The board chair of the Penhorwood condos, Christine Burton, describes the photos as “a pretty shocking sight.” The residents were all evicted in 2011 and given only fifteen minutes to gather what possessions they could after the buildings were found to be structurally unsound. An attempt was made to stabilize the buildings, but they kept shifting and cracking, exposing the interiors to the elements. The owners of the Fort McMurray condominium complex are suing the developer, contractor, and others for $60 million. Fort McMurray has ordered that the buildings be torn down, although the condo owners don’t have the funds for this. Even the funds for continuing the lawsuit are hard to come by. Ms. Burton notes “because of the evacuation and the cost of stabilizing the building so that we could go in and get people’s furniture and personal effect out has pretty much depleted our funds.” The owners “have no more money.” The condo owners are hoping that they can sell the land where their former homes are in order to recoup some of their losses. Read the court decision
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West Coast Casualty’s 25th Construction Defect Seminar Has Begun

May 16, 2018 — Beverley BevenFlorez-CDJ STAFF
The first day of this year’s West Coast Casualty Seminar has concluded, with two more days ahead to learn, network, and discuss the construction defect industry’s current trends. Don’t forget to stop by the Bert L. Howe & Associate’s exhibit so that you can participate in their Sink a Putt for Charity Golf Challenge. As in the past, attendees can participate for free in the BHA golf challenge and win a $25 Amazon gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to be distributed equally between each worthy organization. This year, participant’s efforts on the green will help benefit three cancer fighting institutions that are dedicated to treating and eradicating children’s cancer: Hawaii’s Children’s Cancer Foundation, St. Jude Children’s Research Hospital, and Shriners Hospital for Children. BHA is also raffling Dodger’s tickets, so you won’t want to miss their exhibit. You may read more about this year’s exhibit at BHA HAS A NICE SWING and take a look back at previous exhibits, 20 YEARS OF BHA AT WEST COAST CASUALTY'S CD SEMINAR: CHRONICLING BHA'S INNOVATIVE EXHIBITS. Want some help maximizing your work-play schedule? Check out CDJ’s Sample Itinerary to get the Most out of West Coast Casualty’s Construction Defect Seminar that includes the seminar schedule as well as dining and event suggestions. We also have included suggestions for exploring the Greater Anaheim area: BEYOND THE DISNEYLAND RESORT: DINING, BEYOND THE DISNEYLAND RESORT: SPECIAL EVENTS, BEYOND THE DISNEYLAND RESORT: MUSEUMS, and BEYOND THE DISNEYLAND RESORT: WORLD CLASS SHOPPING EXPERIENCES. Last week, Don MacGregor wrote a not-to-be-missed piece on THE EVOLUTION OF CONSTRUCTION DEFECT TRENDS AT WEST COAST CASUALTY SEMINAR. Thursday, this year’s West Coast Casualty awards will be presented. To learn more about these coveted awards, please see A LOOK BACK AT THE OLLIES and AN ERA OF LEGENDS. We hope you enjoy days two and three of the seminar! Read the court decision
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