Seattle Washington Building Expert Directory

OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute

October 30, 2018 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C.
On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis. Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

Blackstone Said in $1.7 Billion Deal to Buy Apartments

January 21, 2015 — Hui-yong Yu – Bloomberg
Blackstone Group LP (BX), the biggest owner of U.S. single-family houses, agreed to buy 36 apartment properties across the country for about $1.7 billion as it expands its rental business, according to two people with knowledge of the transaction. The low-rise, garden-style properties are being sold by Praedium Group, a New York-based real estate investment firm, and contain about 11,000 apartments, said the people, who asked not to be identified because the deal is private. About half of the buildings are in California, Washington, D.C., and Boston, with the rest located around the U.S., they said. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

What California’s COVID-19 Reopening Means for the Construction Industry

July 05, 2021 — Garret Murai - California Construction Law Blog
This past Wednesday, Governor Newsom announced that California would reopen after being in lockdown for over a year due to COVID-19. Gone is Governor’s Stay at Home Executive Order. Gone is California’s Blueprint for a Safer Economy. And gone is the state’s somewhat confusing four-tier, yellow (minimal), orange (moderate), red (substantial) and purple (widespread), risk-level mapping system. So what does this mean for the construction industry? Well it’s not quite business back to usual. CalOSHA’s Standards Board voted this past Thursday to pass revised COVID-19 Emergency Temporary Standards (“Revised Standards”). That same day, Governor Newsom signed Executive Order N-09-21 implementing the Revised Standards immediately while they are being reviewed by the Office of Administrative Law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Las Vegas HOA Conspiracy & Fraud Case Delayed Again

September 17, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Las Vegas Review-Journal, “[T]he federal trial of former construction company boss Leon Benzer and five others in a massive scheme to take over Las Vegas-area homeowners associations” has been delayed to February 2015 by U.S. District Judge James Mahan. Defense attorneys “argued they needed more time to review thousands of pages of new documents provided by prosecutors.” The prosecutors did not object to the delay. Benzer and the other defendants face conspiracy and fraud charges in an HOA takeover scheme that allegedly occurred between 2003 and 2009. Read the court decision
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New York Considers Amendments to Construction Industry Wage Laws that Would Impose Significant Burden Upon Contractors

August 04, 2021 — Richard W. Brown & Michael D. Angotti - Saxe Doernberger & Vita, P.C.
A bill that would amend the the wage and hour requirements of the New York Labor Law was recently passed by the New York State Legislature and is expected to be signed by Governor Cuomo. Bill Number S2766C (the “Bill”) is intended to protect construction workers against wage theft. However, it places a heavy burden on contractors to police the payroll practices of its downstream subcontractors and exposes them to potentially significant liability for the wage and hour violations of their subcontractors. The proposed Bill would make a contractor or upstream subcontractor jointly and severally liable for any wages owed to employees of their subcontractors. The Bill allows for a private right of action for such subcontractor’s employee (or such employee’s representative) to bring a civil or administrative action seeking payment of unpaid wages owed pursuant to Section 198 of the New York Labor Law. In such an action against a subcontractor for unpaid wages, the contractor or upstream subcontractor is not only jointly and severally liable for any unpaid wages, but also for the prevailing claimant’s reasonable attorney fees, prejudgment interest, and, absent a good faith defense, liquidated damages equal to the amount of the wages owed. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Michael D. Angotti, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at RBrown@sdvlaw.com Mr. Angotti may be contacted at MAngotti@sdvlaw.com Read the court decision
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Architects and Engineers Added to Harmon Towers Lawsuit

February 12, 2013 — CDJ STAFF
Since the beginning of the Harmon Towers construction defect lawsuit, it has been CityCenter making claims against Perini, the property owner against the builder. CityCenter now has a new legal team, and with it apparently a new strategy. The Las Vegas Review Journal reports that papers were filed in court on February 8, adding the architect and the engineer as defendants in the case. According to the filings, the engineering firm Halcrow Yolles should have noticed during inspections that parts of the building’s steel skeleton were improperly installed and should have been repaired. Instead these structures were encased in concrete. CityCenter also contends that there were deficiencies in Halcrow’s blueprints. AAI Architects has been named because its contract made it responsible for Halcrow’s work. Perini has contended that some problems at the building were due to bad plans and therefore not their responsibility. They have claimed that they can fix the building for $20 million, of which $4 million would be due to their actions. Read the court decision
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How AI Can Become a Design Adviser

October 02, 2018 — Aarni Heiskanen - AEC Business
Parametrized design software is not a recent invention. This software is based on predetermined, fixed algorithms, leaving most of the work to the designer. Sweco, a leading engineering consultancy, is now exploring how artificial intelligence (AI) could take design automation in the Architecture, Engineering, and Construction industry to the next level. 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

Shifting the Risk of Delay by Having Float Go Your Way

July 05, 2021 — Christopher J. Brasco & Matthew D. Baker - ConsensusDocs
Critical path delay plays a central role in allocating responsibility for project delay. The interrelated concept of concurrency is also frequently determinative of entitlement on a range of claims including by owners for liquidated damages and by contractors for delay damages. What constitutes critical/concurrent delay, however, is hotly debated by scheduling experts. The lack of real consensus regarding how critical/concurrent delay should be determined and analyzed has created significant uncertainty in scheduling disputes. Indeed, courts have adopted differing and at times conflicting theories of concurrency that can produce divergent outcomes for the parties. In an effort to reduce uncertainty, stakeholders have increasingly adopted specialized contractual provisions and scheduling techniques which have significant implications for the evaluation of the companion concepts of criticality and concurrency. One such mechanism is float sequestration. Regardless of whether float sequestration is ultimately in the construction industry’s broader interest, stakeholders must be able to recognize its use and appreciate the implications for delay disputes on their projects. Simply defined, float is the number of days an activity can be delayed before affecting the project’s critical path (i.e., the longest chain of activities which determines the project’s minimal duration). Typically, only delays affecting the critical path can produce concurrent delay. Consequently, the concept of float is integral to understanding and resolving issues of both criticality and concurrency. Reprinted courtesy of Christopher J. Brasco, Watt, Tieder, Hoffar & Fitzgerald, LLP and Matthew D. Baker, Watt, Tieder, Hoffar & Fitzgerald, LLP Mr. Brasco may be contacted at cbrasco@watttieder.com Mr. Baker may be contacted at mbaker@watttieder.com Read the court decision
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