Seattle Washington Building Expert Directory

Alabama Supreme Court Reverses Determination of Coverage for Faulty Workmanship

August 26, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Although the lower court held that the insured contractor was entitled to coverage and indemnification under a CGL policy despite claims based upon faulty workmanship, the Alabama Supreme Court reversed. Nationwide Mut. Fire Ins. Co. v. David Group, Inc., 2019 Ala. LEXIS 52 (Ala. May 24, 2019). The David Group (TDG) specialized in custom-built homes. The Shahs purchased a newly built home from TDG in October 2006. After moving in, the Shahs experienced problems with their new home that TDG was unable to correct. In February 2008, the Shahs sued TDG. The complaint alleged that serious defects existed, resulting in health and safety issues, building code violations, poor workmanship, misuse of construction materials, and disregard of property installation methods. The case went to arbitration and an award of $12,725 was issued to the Shahs. Nationwide was TDG's CGL carrier and initially defended TDG. After Nationwide withdrew its defense, TDG sued seeking a judgment declaring that Nationwide was obligated to defend and indemnify. The trial court denied Nationwide's motion for summary judgment and issued a partial summary judgment in favor of TDG on the issue of coverage. Nationwide appealed. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Rio Olympics Work Was a Mess and Then Something Curious Happened

April 06, 2016 — Jonathan Levin, Tariq Panja & David Biller – Bloomberg
In early 2014, a senior Olympic Committee official returned from a trip to Rio de Janeiro and declared Brazil’s preparations for the Summer Games to be the worst he’d ever seen. In the two years since, a crippling recession set in, dozens of construction executives were ensnared in a nationwide corruption scandal and the president has been pushed to the brink of impeachment. And the preparations? They’re basically fine now, actually. In what is emerging as a rare bright spot in a country buffeted by crisis on all sides, the organizing committee is saying that more than 95 percent of the venues are complete some four months ahead of the opening ceremony and, what’s more, data shows spending has largely remained under control. Reprinted courtesy of Bloomberg reporters Jonathan Levin, Tariq Pania and David Biller Read the court decision
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Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project

June 21, 2017 — Sean Minahan - Construction Contractor Advisor
According to a quick Google search the term “holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client. Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently leaving our client holding the bag. Fortunately, we were able to hand the bag back to the State and obtain full payment for the services and materials provided. Read the court decision
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Reprinted courtesy of Sean Minahan, Lamson, Dugan and Murray, LLP
Mr. Minahan may be contacted at sminahan@ldmlaw.com

Duke Energy Appeals N.C. Order to Excavate Nine Coal Ash Pits

April 17, 2019 — Mary B. Powers - Engineering News-Record
Duke Energy Progress said April 11 it will appeal the North Carolina Dept. of Environmental Quality’s order issued earlier this month to excavate nine remaining large coal ash pits at six power plants in the state and move ash to lined landfills; the firm claims the new mandate at sites previously deemed low-risk will cost up to $5 billion to implement. Read the court decision
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Reprinted courtesy of Mary B. Powers, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Ruling Dealing with Constructive Changes, Constructive Suspension, and the Implied Covenant of Good Faith and Fair Dealing

January 22, 2024 — David Adelstein - Florida Construction Legal Updates
A dispute pending in the Armed Services Board of Contract Appeals (ASBCA) dealt with interesting legal issues on a motion to dismiss. See Appeals of McCarthy Hitt-Next NGA West JV, ASBCA No. 63571, 2023 WL 9179193 (ASBCA 2023). The dispute involves a contractor passing through subcontractor claims due to impacts caused by the COVID-19 pandemic and the government’s response to the pandemic. More particularly, the claim centers on the premise that the government “failed to work with [the contractor] in good faith to develop a collaborative and cooperative approach to manage and mitigate the impacts and delays arising from the COVID-19 pandemic.” See Appeals of McCarthy Hitt. The contractor (again, submitting pass through claims from subcontractors) claimed: (a) constructive changes to the contract entitling it to an equitable adjustment under the Changes clause of Federal Acquisition Regulation (F.A.R.) 52.243-4; (b) construction suspensions of the contractor’s work entitling it to an equitable adjustment under the Suspensions of Work clause of F.A.R. 52-242-14; and (c) the government breached the implied covenant of good faith and fair dealing. Each of these legal issues and theories will be discussed below because they are need-to-know legal issues. Keep these legal issues in mind, and the ASBCA’s ruling on the motion to dismiss as its analysis may demonstrate fruitful in other applications. 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

Sub-Limit Restricts Insured's Flood Damage Recovery

March 15, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insured's recovery for flood damage was controlled by the policy's sub-limit. David S. Brown Enters. v. Affiliated FM Ins. Co., 2020 U.S. Dist. LEXIS 239208 (D. Md. Dec. 18, 2020). Roughly 6.6 inches of rain fell in Ellicott City, Maryland, causing extensive flooding. During the storm, a water main broke on Main Street, in relatively close proximity to the insured's two properties on Main Street. The foundations of the two properties washed away. The insured, David S. Brown Enterprises (DSB), had a business owners' policy with Affiliated with covered 204 named locations. The Main Street Properties were not listed, but the policy also provided certain coverage for unnamed locations. The sub-limit applicable to unnamed locations was $1,000,000. The sub-limit for flood, however, was $50,000, annual aggregate "as respects Errors & Omissions, Off-Premises Service Interruption, Unnamed Locations and Supply Chain combined." Affiliated paid $50,000 for the loss based upon the $50,000 Flood annual aggregated Sub-Limit for Unnamed Locations. DSB disagreed that the $50,000 sub-limit applied and filed suit. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Ackman Group Pays $91.5 Million for Condo at NYC’s One57

April 15, 2015 — David M. Levitt and Oshrat Carmiel – Bloomberg
A group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever. The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls. The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office. Reprinted courtesy of David M. Levitt, Bloomberg and Oshrat Carmiel, Bloomberg Read the court decision
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Wall Street’s Palm Beach Foray Fuels Developer Office Rush

June 28, 2021 — Natalie Wong - Bloomberg
First came the pandemic migration of New York financiers to West Palm Beach. Now comes the investor rush for offices to accommodate them. With the likes of Goldman Sachs Group Inc. and Steve Cohen’s Point72 Asset Management opening outposts in the Florida city, an area once known for snowbirds and retirees has suddenly become hot market for commercial real estate. At the forefront is Manhattan developer Related Cos., which has been accelerating investments in West Palm Beach and now controls about a third of its downtown office stock. It’s a bet that even as Covid restrictions ebb and New York bankers are called back to their office towers, South Florida’s pandemic boom is here to stay. The region, with its relatively lax virus rules, no state income tax and comparatively cheaper homes, last year saw thousands of people flock to enclaves such as West Palm Beach -- a city that for now has just slightly more downtown office space than a single Empire State Building. Read the court decision
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Reprinted courtesy of Natalie Wong, Bloomberg

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