Seattle Washington Building Expert Directory

The Overlooked Nevada Rule In an Arena Project Lawsuit

August 04, 2016 — Scott Van Voorhis – Engineering News-Record
When crunching the numbers on the construction wrap-up program for the T-Mobile Arena project outside Las Vegas, insurance broker Aon Risk Services South allegedly failed to take into account a Nevada workers’ compensation rule, one of many intricate features of the state’s workers’ compensation regulations. Others had apparently missed this aspect of the rule, too. “Many business owners and executives are unaware of this regulation and … are paying more premium to their workers’ compensation carriers than they should be,” warned Bradley Rowe, a commercial insurance broker in Las Vegas, in a blog post in 2014. Two years later, the prime contractor joint venture on the completed $230-million arena is battling in court with Aon, charging the broker with professional negligence and breach of contract, according to court documents filed in U.S. District Court in Nevada. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, Engineering News-Record
You may send questions or comments to enr.com@bnpmedia.com

Construction Defects Up Price and Raise Conflict over Water Treatment Expansion

August 27, 2013 — CDJ STAFF
The owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million. But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015. Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million. Read the court decision
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Reprinted courtesy of

Norfolk Southern Accused of Trying to Destroy Evidence of Ohio Wreck

February 27, 2023 — Jef Feeley - Bloomberg
Norfolk Southern Corp.’s plan to remove wrecked rail cars from a derailment that resulted in potentially poisonous gas being released over an Ohio town will destroy evidence of the company’s liability, lawyers for residents say. Lawyers in proposed class-action lawsuits over the Feb. 3 accident on Friday asked a federal judge to block the company from clearing the wreckage in East Palestine, Ohio. According to the lawyers, Norfolk Southern informed them last week that it planned to move the 11 rail cars by March 1 and would make them available for inspection for only two days. Adam Gomez, a lawyer for East Palestine residents, said in a court filing that it was “common sense” to keep the wreckage where it is for now. “These communities have questions and we need the evidence to answer them,” he said. Read the court decision
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Reprinted courtesy of Jef Feeley, Bloomberg

Remodel Leads to Construction Defect Lawsuit

October 16, 2013 — CDJ STAFF
The Sacramento, California law firm Anderson Shoech has announced that it will be filing a construction defect lawsuit concerning a single-family home in Sonora, California. The remodel is alleged to have lead to roof leaks and mold growth. Anderson Schoech will have the home inspected by a general contractor who will be retained as an expert witness. Read the court decision
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Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

September 03, 2015 — Steven M. Cvitanovic & Abigail E. Lighthart – Haight Brown & Bonesteel LLP
Prompt payment penalty cases do not come around very often, but when they do, there is bound to be fireworks. In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award prevailing party attorneys' fees to the party who won a prompt payment dispute. California Business and Professions Code §7108.5 and Public Contract Code §§7107 and 10262 are the mechanisms for obtaining prompt payment relief in California. As shown by the outcome, it is possible to win and lose at the same time. West Bay Builders, Inc. (“West Bay”) was the prime contractor on a school construction project for Stockton Unified School District. West Bay entered into a subcontract agreement with James L. Harris Painting & Decorating, Inc. (“Harris”) on the project. During construction there were disagreements between West Bay and Harris regarding the contractual scope of work, and Harris performed work it believed was outside the contract, believing it would be paid for the additional work. After West Bay refused to pay for the additional work, Harris left the project, and West Bay hired another subcontractor to complete the work. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Abigail E. Lighthart, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Ms. Lighthart may be contacted at alighthart@hbblaw.com Read the court decision
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Quick Note: COVID-19 Claim – Proving Causation

August 03, 2020 — David Adelstein - Florida Construction Legal Updates
In certain jurisdictions, the number of people testing positive for COVID-19 is on the rise. As this occurs, there is the possibility that a construction project will have to deal with one or more workers testing positive. That is the current reality. If the dialogue has not occurred before, now is the time to discuss any enhanced measures—above OSHA guidelines—that could be implemented to address this reality and mitigate the risk. Part of the reality, though, is that regardless of the enhanced measures and mitigation, it is impossible to truly prevent this risk. No one disputes COVID-19. There may be a dispute as to whether COVID-19 constitutes a force majeure event or some other event, however, before you start labeling it, you still NEED TO PROVE the impact caused by COVID-19. There needs to be a cause-and-effect relationship so you can address (i) how this impacted the critical path of your schedule and/or (ii) how this impacted labor productivity. In other words, you need to prove causation. Stating there was a delay or loss of productivity without establishing the cause-and-effect relationship (i.e, causation) provides no value because it does not support the production impact or time extension and, without either, there is no basis for additional compensation (even if you establish it should be deemed an excusable, compensable 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

Fifth Circuit Rules that Settlements in Underlying Action Constitute "Other Insurance"

April 17, 2019 — Tiffany Casanova - Saxe Doernberger & Vita, P.C.
The Fifth Circuit ruled that settlements between an insured and its subcontractors qualified as “other insurance” to the extent those settlements were used to pay for damages covered by an excess insurance policy. Policyholders should note the outcome of this case as it demonstrates the significant impact that settlements can have on coverage. Satterfield & Pontikes Construction, Inc. v. Amerisure Mutual Ins. Co.1 was the result of a construction project gone wrong. Zapata County, Texas hired Satterfield & Pontikes (“S&P”) as a general contractor for the construction of a courthouse building. When the project did not go as planned, Zapata County terminated S&P, hired new subcontractors to complete the project, and sued S&P. S&P, in turn, sought indemnification from its subcontractors, who were contractually obligated to indemnify S&P and procure insurance for any damage the subcontractors caused at the project. S&P also sought coverage from its own primary insurers, American Guarantee and Liability Insurance Company (“AGLIC”) and Amerisure Mutual Insurance Company (“Amerisure”), and its excess insurer, U.S. Fire Insurance Company (“U.S. Fire”) who provided liability coverage for S&P’s potential liabilities at the project. The policies contained exclusions for losses arising from mold and did not provide coverage for attorney’s fees or similar legal costs. Read the court decision
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Reprinted courtesy of Tiffany Casanova, Saxe Doernberger & Vita, P.C.
Ms. Casanova may be contacted at tlc@sdvlaw.com

Insured Under Property Insurance Policy Should Comply With Post-Loss Policy Conditions

June 10, 2019 — David Adelstein - Florida Construction Legal Updates
Your property insurance policy will contain post-loss policy conditions. Examples include submitting a sworn statement in proof of loss, providing documentation to your insurer, and sitting for an examination under oath. Insurers will require you, as the insured, to comply with post-loss policy conditions unless they elect to promptly deny coverage. If you do not comply with such post-loss policy conditions you can forfeit coverage under the policy and/or give the insurer the argument that any lawsuit you filed against the property insurer is premature. Thus, there really is no upside in refusing to comply with the post-loss policy conditions, which should be done in consult with an attorney or, as the case may be, a public adjuster. 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

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