Seattle Washington Building Expert Directory

Contractual Fee-Shifting in Litigation: Who Pays the Price?

December 31, 2024 — Caitlin Kicklighter - ConsensusDocs
When disputes on a construction project escalate to litigation, general contractors may find themselves entangled in a costly and time-consuming legal battle. One important concept to understand is contractual fee-shifting under a “prevailing party” provision, which can significantly impact damages recovered in litigation. The general rule, known as the “American Rule,” requires each party to pay its own legal costs, including attorney’s fees, expert witness expenses, and other court-related costs. This differs from other legal systems where the losing party typically pays the winning party’s fees. One exception to the American Rule is contractual fee-shifting, specifically through “prevailing party” provisions, which allows for the award of attorney’s fees and costs when explicitly provided for in a contract. This article explores this exception to the American Rule, delves into the challenges posed by prevailing party provisions, and shares tips to consider for drafting these clauses to improve clarity and minimize uncertainty in the face of litigation. Read the court decision
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Reprinted courtesy of Caitlin Kicklighter, Jones Walker LLP
Ms. Kicklighter may be contacted at ckicklighter@joneswalker.com

Exclusion for Construction of Condominiums Includes Faulty Construction of Retaining Wall

August 04, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The exclusion for suits arising out of construction of condominiums encompassed the underlying claim for faulty construction of a retaining wall. HT Serv., LLC v. Western Heritage Ins. Co., 2021 U.S. App. LEXIS 16259 (10th Cir. June 1, 2021). HT Services was a land developer. HT Services designed and constructed a residential community. The AOAO sued HT Services for negligent design and construction of a retaining wall. When its carrier, Western Heritage Insurance Company, denied coverage, HT Services sued. The district court granted summary judgment to Western. The exclusion eliminated coverage for claims or suits "arising out of, relating to or in any way connected with 'your operations' . . . involving the development [or] construction . . . of . . . condominiums . . . or . . . residential structures." HT Services argued that a retaining wall was not a "residential structure." 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

Eleven Newmeyer Dillion Attorneys Named to 2023 U.S. News Best Lawyers in Multiple Practice Areas

August 29, 2022 — Newmeyer Dillion
NEWPORT BEACH, Calif. – August 18, 2022 – Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that eleven of the firm’s attorneys were recently selected for inclusion and will be recognized in their respective areas in The Best Lawyers in America© 2023. Additionally, Greg Dillion, Thomas Newmeyer and Michael McClellan have been selected to Best Lawyers 2023 Lawyer of the Year list in Litigation - Construction, Construction Law and Litigation - Real Estate respectively. The eleven 2023 Best Lawyers are:

Best Lawyers is the oldest peer-review publication for the legal profession. Attorneys are chosen through intensive peer-review surveys in which leading lawyers evaluate their professional peers. Best Lawyers listings are published in almost 70 countries worldwide and are recognized for their reliable and unbiased selections. Read the court decision
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The “Builder’s Remedy” Looms Over Bay Area Cities

February 20, 2023 — Allan C. Van Vliet, Cara M. MacDonald, Robert G. Howard & Robert C. Herr - Gravel2Gavel Construction & Real Estate Law Blog
Cities in the San Francisco Bay Area are frantically working to finalize their state-mandated “housing elements” in their General Plans by the January 31, 2023, deadline imposed by the California Department of Housing and Community Development (HCD). For Bay Area cities like San Francisco, Oakland, San Jose and Berkeley, the plans must be approved by HCD on or before January 31, 2023. California municipalities have extra incentive to get their housing elements approved this year, because the failure to meet the deadline may subject them to a remedy known as the “builder’s remedy.” The failure of cities in California to adopt and implement adequate housing elements as part of their General Plans has contributed to the state’s serious housing affordability crisis. The “builder’s remedy” incentivizes cities to meet housing element deadlines, because failure to do so could cause cities to lose control over certain land use entitlement decisions for projects that include housing under the state’s Housing Accountability Act (HAA). Reprinted courtesy of Allan C. Van Vliet, Pillsbury, Cara M. MacDonald, Pillsbury, Robert G. Howard, Pillsbury and Robert C. Herr, Pillsbury Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com Ms. MacDonald may be contacted at cara.macdonald@pillsburylaw.com Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. Herr may be contacted at robert.herr@pillsburylaw.com Read the court decision
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Insuring Lease/Leaseback Projects

August 19, 2024 — David G. Jordan & Jeffrey J. Vita - Saxe Doernberger & Vita, P.C.
Overview Several states utilize a unique statutory mechanism to allow school districts to finance the construction of public-school facilities. This arrangement (known as a “lease-leaseback agreement”) allows a school district to lease property to a contractor/developer, who then constructs or renovates a school facility on the property. Once the work is completed, the contractor/developer leases the school building back to the school district. The school district then makes lease payments over time, often many years, which can be structured in various ways to spread out the cost of construction. The arrangement typically requires a site lease for the land leased to the contractor/developer, a facilities lease for the lease-back of the school building to the school district and a traditional construction agreement. In some ways, the arrangement resembles a Public-Private Partnership (PPP) whereby a public entity collaborates with a private entity for the purpose of financing and delivering a project traditionally provided solely by the public sector. Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita, P.C. and Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. Mr. Jordan may be contacted at DJordan@sdvlaw.com Mr. Vita may be contacted at JVita@sdvlaw.com Read the court decision
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Landmark Montana Supreme Court Decision Series: Trigger and Allocation

January 24, 2022 — Lorelie S. Masters, Patrick M. McDermott & Rachel E. Hudgins - Hunton Insurance Recovery Blog
In one of the top insurance-coverage decisions of 2021, the Montana Supreme Court at the end of the year handed down a landmark decision adopting the continuous trigger of coverage and “all sums” allocation, finding a duty to defend and ruling that the qualified, or “sudden and accidental” pollution exclusion did not apply. Nat’l Indem. Co. v. State, 499 P.3d 516 (Mont. 2021). The Supreme Court affirmed in part and reserved in part the rulings entered by the trial court, largely upholding a $98,000,000 judgment for the State against its CGL insurer for the policy years 1973 to 1975. The ruling thus helps ensure coverage for the hundreds of claims alleging that the State had failed to warn claimants of the dangers of asbestos exposures to workers in vermiculite mining and milling operations in Libby, Montana, operated by W. R. Grace (the “Libby Mine”). Representing amicus curiae United Policyholders (“UP”), Hunton Andrews Kurth supported the position of the policyholder, the State of Montana, on the key rulings on trigger of coverage, allocation, and the pollution exclusion, with the court specifically citing to the Hunton brief in adopting all-sums allocation. This first post in our series covering the Montana Supreme Court’s decisions will address the court’s rulings on trigger of coverage and allocation. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth, Patrick M. McDermott, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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That Boilerplate Language May Just Land You in Hot Water

December 17, 2015 — Kevin Brodehl – California Construction Law Blog
The following post originally appeared in my partnerKevin Brodehl‘s informative blog, Money and Dirt. If you’re involved in real estate investment, development and/or secured lending in California, it’s a must read. While Kevin’s post below discusses a case involving a real estate purchase agreement, it applies equally to construction contracts, perhaps even more so, since I can’t think of any other type of contract in which indemnity and integration clauses are as common, or as integral. Almost all real estate purchase and sale agreements contain provisions relating to integration and indemnity. In the “boilerplate” worldview, these provisions are standard, generic, and basically all the same — integration clauses prohibit extrinsic evidence that would contradict the terms of the agreement, and indemnity clauses force the seller to protect the buyer from third party claims arising after closing. But a recently published opinion by the California Court of Appeal (Fourth District, Division Three in Santa Ana) — Hot Rods, LLC v. Northrop Grunman Systems Corp. — clarifies that integration and indemnity clauses can have vastly different effects depending on how they are drafted. Read the court decision
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Reprinted courtesy of Kevin Brodehl, California Construction Law Blog
Mr. Brodehl may be contacted at kbrodehl@wendel.com

An Obligation to Provide Notice and an Opportunity to Cure May not End after Termination, and Why an Early Offer of Settlement Should Be Considered on Public Works Contracts

August 17, 2020 — Jeff Kaatz - Ahlers Cressman & Sleight
In 2015, the City of Puyallup (“City”) and Conway Construction Company (“Conway”) executed a public works contract for road improvements (“Project”). On March 9, 2016, approximately four months after work started on the Project, the City issued Conway a notice of suspension and breach of contract and identified nine defective and uncorrected work and safety concerns. Conway denied any wrongdoing, and on March 25, 2016, the City issued a notice of termination for default and withheld payments due to Conway. Conway subsequently filed suit in Pierce County Superior Court and alleged the City’s termination for default breached the contract and sought a determination that the City’s termination for default was improper and should be deemed a termination for convenience. Conway sought approximately $1.25 million in damages and recovery of its attorney fees and costs. Following a bench trial, the Trial Court found the City breached the contract and awarded Conway damages, attorney fees, and costs. The City appealed.[1] On appeal, after affirming the trial court’s determination that the City improperly terminated Conway, the Court of Appeals considered two other issues raised by the City. First, whether the City was entitled to a set-off for replacing defective work discovered after Conway was terminated. Second, whether Conway is entitled to attorney fees if it did not make the statutorily required offer of settlement per RCW 39.04.240. Read the court decision
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Reprinted courtesy of Jeff Kaatz, Ahlers Cressman & Sleight
Mr. Kaatz may be contacted at Jeff.Kaatz@acslawyers.com

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