Seattle Washington Building Expert Directory

Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved

February 03, 2020 — David Adelstein - Florida Construction Legal Updates
A liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured. With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted). For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights. 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

Few Homes Available to Reno Buyers, Plenty of Commercial Properties

January 22, 2013 — CDJ STAFF
Saying that "new home inventory does not exist," Mark Krueger of ArchCrest Commercial Partners tells the Reno Gazette Journal that this had lead to a problem, in that there are no homes for prospective buyers in the Reno and Sparks area. Adding to the problem is that investors are buying up resale homes with the intent of selling them at a profit later, which adds to the scarcity of available homes. While the residential market is suffering from not enough homes to satisfy buyers, there are ample commercial properties. As a result, there are no plans for any additional retail, office, or industrial projects in the Reno area for 2013. Vacancy rates are expected to fall only slightly to 12.3% for industrial properties and 17.7% for retail properties. Read the court decision
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Difficulty in Defending Rental Supplier’s Claim Under Credit Application

October 11, 2021 — David Adelstein - Florida Construction Legal Updates
In construction, one of the easiest claims to prove from a burden of proof standpoint is that of a supplier, particularly a rental equipment supplier. Oftentimes, these claims are more in the realm of a collection claim because a rental supplier will generally be able to establish that a party opened an account with them, signed a credit application and personal guaranty, and equipment was rented and even delivered to a specific jobsite during set dates. Defending these claims is not so easy. And even if there is a defense as it relates to some amounts, there needs to be an upside challenging those amounts when factoring in the attorney’s fees, costs, and interest on the other amounts and on continuing the dispute. An example of the difficulty in defending these claims from rental suppliers can be found in the recent case of Custom Design Expo, Inc. v. Synergy Rents, Inc., 2021 WL 4125806 (Fla. 2d DCA 2021). Here, a contractor rented equipment (e.g, forklifts) from a supplier. The equipment was rented on an open account and the contractor signed a personal guaranty. The supplier sued the contractor for about $81,000 that remained unpaid. The supplier appeared to waste no time and moved for summary judgment with an affidavit from its credit manager. The credit manager affirmed that the contractor executed a credit application for purposes of renting equipment on an open account, the application contained a personal guaranty, and the credit application formed the basis of a contract. The credit manager authenticated the credit application and affirmed that the contractor owed it about $81,000 in unpaid amounts for rental equipment that was furnished under the credit application. 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

ASCE Report Calls for Sweeping Changes to Texas Grid Infrastructure

March 28, 2022 — C.J. Schexnayder - Engineering News-Record
A just-released detailed analysis of the catastrophic 2021 Texas winter storm finds systemic flaws in the state's electric sector contributed to a “cascade of failures” that overwhelmed its power grid and left millions freezing in the dark. Reprinted courtesy of C.J. Schexnayder, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Panel Declares Colorado Construction Defect Laws Reason for Lack of Multifamily Developments

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Dennis Huspeni writing for the Denver Business Journal provided reactions from panelists at a ULI Colorado event on January 9th at the Embassy Suites Denver – Downtown/Convention Center hotel regarding a report on “Emerging Trends in Real Estate.” According to Huspeni’s article, panelists discussed “the lack of for-sale multifamily development and attributed it to Colorado’s construction defect laws.” John Beeble, chairman and CEO of Saunders Construction, one of the panelists, said that Saunders does not build condos because of Denver’s construction defect laws: “We’ve been in business for 42 years and never been sued for construction defects,” Beeble said, according to the Denver Business Journal. “But the odds are close to 100 percent that we’d be in court defending ourselves if we did condos.” Jeff Hawks, principal at ARA Colorado, claimed, “Colorado has some of the worst construction defect laws in the country. It’s stupid to try and build a condo development until that changes,” as reported by the Denver Business Journal. Read the court decision
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Duty to Defend Triggered by Damage to Other Non-Defective Property

February 20, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court found the insurer must defend because there was a possibility of damage to property due to work not performed by the insured. B&W Paving & Landscape, LLC v. Employers Mut. Cas. Co., 2022 U.S. Dist. LEXIS 225783 (D. Conn. Dec. 15, 2022). In 2010, Whiting Turner Contracting Company (WT) contracted with United Illuminating Company (UI) to act as general contractor for the construction of UI's new central facility. WT subcontracted with Cherry Hill Construction, Inc. (Cherry Hill) for work underneath the parking lot and driveways, including installing base and sub base materials. WT also subcontracted with B&W Paving and Landscape, LLC (B&W) for the asphalt paving. In 2018, UI sued WT for defective and incomplete work. WT then filed a third-party compact against its subcontractors, including B&W. WT sued for contribution for any liability it may have to UI for the paving work. 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

Contractor Suffolk's Hospital Project Is on Critical List After Steward Health Care Bankruptcy

January 14, 2025 — Richard Korman - Engineering News-Record
Before it was hit by troubles that now threaten to kill it, a new hospital being built by Suffolk Construction in Norwood, Mass., was shaping up as a tale of recovery. The existing hospital on the site had been forced to shut most local operations since a devastating rainfall and flood in 2020. Read the court decision
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Reprinted courtesy of Richard Korman, ENR

COVID-19 Response: Key Legal Considerations for Event Cancellations

March 30, 2020 — Michael G. Platner, Solomon B. Zoberman, & Jane C. Luxton - Lewis Brisbois
Every passing day brings stark new reports of novel coronavirus (COVID-19) cases and increasing numbers of cancelled conventions, concerts, and other major events. Both the hospitality and travel industry on the one hand, and organizations that are canceling events on the other, are scrambling to understand the legal consequences of these costly terminations. Cancellation fees can be breathtaking, and affected parties are quickly learning that there are no simple answers as to whether a disease outbreak of this scope and scale falls within force majeure (or Act of God) clauses that either do not explicitly list, or arguably may never have contemplated, circumstances of this type. Generally, force majeure clauses excuse parties’ performance under a contract when circumstances that are beyond their control arise and prevent them from fulfilling their obligations. The party electing to enforce its rights under the force majeure clause must show that the triggering event qualifies as a force majeure event, and that the event has rendered the party’s performance impossible or impracticable. Reprinted courtesy of Lewis Brisbois attorneys Michael G. Platner, Solomon B. Zoberman and Jane C. Luxton Mr. Platner may be contacted at Michael.Platner@lewisbrisbois.com Mr. Zoberman may be contacted at Solomon.Zoberman@lewisbrisbois.com Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com Read the court decision
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