SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Montana Theater Threatened by Closure due to Building Safety

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Phil Henderson, owner of Stevensville Hardware which is adjacent to the theater, has sued the Stevensville Playhouse, alleging that one of the theater building’s walls leans over into his property, according to the Bitterroot Star. Henderson stated that the leaning wall is interfering with construction plan, and he also alleges that the building is not safe and should be condemned. A building inspector hired by Henderson declared that “…it seems necessary to notify the Stevensville Playhouse that their structure is to be immediately considered unsafe for entry, occupancy, etc.” However, another engineering firm presented a different view on the situation: “The playhouse has withstood many snow storms and earthquakes during its life and will likely continue to function well into the future. We do not mean to downplay the need to perform the recommended repairs, but we do not feel that the building needs to be condemned at this point.” Read the court decision
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Elon Musk's Boring Co. Is Feuding With Texas Over a Driveway

July 25, 2022 — Sarah McBride - Bloomberg
While Elon Musk is publicly making a big deal about moving to Texas and cozying up to the governor, behind the scenes his tunnel-building venture, Boring Co., is wrangling with local authorities in the state over a host of seemingly mundane permitting issues. Since Boring bought land last May to create a research and development center in Bastrop, Texas, a rural area outside Austin, the company has put workers up on mobile homes at the site without authorized sewage facilities, failed to get air and stormwater permits and built a driveway without first getting official approval, according to documents obtained by Bloomberg News through a public records request. The company’s dealings with Bastrop are yet another illustration of how Musk’s businesses often push the boundaries of or simply ignore regulations that bind other companies. In recent years his Tesla Inc. restarted production at its Fremont plant in defiance of pandemic rules to stay closed, Boring tried to build a tunnel in Los Angeles without going through an environmental review process and the US Securities and Exchange Commission is examining the disclosure of Musk’s stake in Twitter Inc. Read the court decision
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Reprinted courtesy of Sarah McBride, Bloomberg

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Contractors: A Lesson on Being Friendly

April 06, 2016 — Garret Murai – California Construction Law Blog
I know. You’re just trying to be friendly. Don’t. Particularly when you’re a contractor bidding on a public works project. Those dinners at swanky restaurants, tickets to The Jersey Boys, and all expense paid trips to the Napa Valley have a way of appearing less “friendly” in hindsight, and more like bribery, or as they say, “pay to play.” In Sweetwater Union High School District v. Gilbane Building Company, California Court of Appeals for the Fourth District, Case No. D067383 (February 24, 2016), three contractors, Gilbane Building Company (“Gilbane”), The Seville Group, Inc. (“Seville”) and Gilbane/SGI Joint Venture (“Gilbane/SGI”) (collectively “Contractors”) were sued by the Sweetwater Union School District (“District”) to void their contracts with the District and for disgorgement of all monies paid to them under Government Code section 1090 after it was discovered that the Contractors had engaged in a “pay to play” scheme involving several officials of the District. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Drug Company Provides Cure for Development Woes

November 18, 2011 — CDJ STAFF

Vertex Pharmaceuticals is poised to become the holder of Boston’s biggest commercial lease, paying $72.5 million for 1.1 million square feet on Boston’s waterfront. Vertex’s new buildings are still under construction, but the plans have spurred other development in the Fan Pier area, according to the New York Times. The Times quotes Mary A. Burke, a senior economist at the Federal Reserve Bank of Boston that the Vertex project gives “a big push” to the “momentum for economic growth.”

The Fallon Company is building Vertex’s new laboratory and office space. They are separately planning to build a high-rise with 150 luxury condominium units. According to Joseph Fallon, the chief executive and president of the Fallon Company, there is already a waiting list of 50 buyers for the condominiums.

Across the street from the Vertex site, a group including Morgan Stanley and Boston Global Investors is planning a 23-block mixed use project that would include 1.2 million square feet of retail space. Additionally, the New England Development and the Hanover Group is building a 356-unit apartment building at the adjacent Pier 4.

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District Court Allows DBE False Claims Act Case to Proceed

February 23, 2017 — Wally Zimolong – Supplemental Conditions
Last week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding. The Case The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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What You Should Know About Liquidated Damages and Liability Caps for Delay and Performance Liquidated Damages

May 06, 2024 — Chris Cazenave - ConsensusDocs
Liquidated damage clauses are omnipresent in today’s construction contracts—often considered in early negotiations to provide a degree of certainty and limit financial liability. There are two principal types of LDs appearing in construction contracts—(i.) damages for delay when a contractor fails to deliver a project by a certain milestone; and (ii.) performance damages when a contractor fails to meet specific performance requirements. Differentiating between LDs for delay and LDs for performance—especially when both LD types are combined in the same contract—is key to risk awareness and allocation during contract negotiations and throughout performance. This article briefly outlines what you should know about LDs for delay and LDs for failing to meet certain performance requirements. The article also covers how contractors can allocate and cap risks based on risks each party can either manage, insure, or otherwise limit. Read the court decision
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Reprinted courtesy of Chris Cazenave, Jones Walker LLP
Mr. Cazenave may be contacted at ccazenave@joneswalker.com

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Entire Fairness or Business Judgment? It’s Anyone’s Guess

January 09, 2015 — Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico – White and Williams LLP
In lawsuits challenging the validity of business transactions and combinations, the most significant issue is often which standard of review the court applies: the defense-friendly “Business Judgment Rule” or the more stringent “Entire Fairness Standard.” The standard utilized by the court – or more often times the standard which the parties think the court will apply – can drive decisions on motion practice, settlement discussions, and resolution strategy. Under the Business Judgment Rule, directors are presumed to have acted in good faith and their decisions will only be questioned when they are shown to have engaged in self-dealing or fraud. However, if a “Controlling Shareholder” stands on both sides of the transaction, the court will often scrutinize the transaction under the more plaintiff-friendly “Entire Fairness Standard.” So, what constitutes a “Controlling Shareholder?” If the party in question owns more than 50% of a company’s equity, the answer is clear-cut. However, for cases involving stockholders who own less than 50% of a company’s equity and stand on both sides of the disputed transaction, the answer is not so simple. This uncertainty was highlighted in back-to-back decisions by the Delaware Chancery Court in November 2014. On November 25, 2014, the court granted the defendants’ motion to dismiss a derivative lawsuit alleging breach of fiduciary duty in In Re Sanchez Energy Derivative Litigation (“Sanchez”). Vice Chancellor Glasscock held that the complaint failed to plead facts sufficient to raise an inference that two directors with a collective 21.5% equity interest in the company were Controlling Shareholders. The very next day, in In Re Zhongpin Inc. Stockholders Litigation (“Zhongpin”), the Delaware Chancery Court denied the defendants’ motion to dismiss breach of fiduciary duty claims against an alleged “Controlling Shareholder” and members of the company’s board. In Zhongpin, Vice Chancellor Noble held that sufficient facts were plead to raise an inference that a CEO with a 17.5% equity was a “Controlling Shareholder.” Reprinted courtesy of White and Williams LLP attorneys Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico Mr. Pesso may be contacted at pessom@whiteandwilliams.com Mr. Steinberg may be contacted at steinbergg@whiteandwilliams.com Mr. Orrico may be contacted at orricoc@whiteandwilliams.com Read the court decision
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New York Appellate Court Restores Insurer’s Right to Seek Pro Rata Allocation of Settlements Between Insured and Uninsured Periods

March 28, 2022 — Patricia B. Santelle & Frank J. Perch, III - White and Williams LLP
In Liberty Mut. Ins. Co. v. Jenkins Bros., 2022 N.Y. App. Div. LEXIS 1846 (App.Div. 1st Dept. March 22, 2022), the New York Supreme Court, Appellate Division, First Department, issued a ruling reversing the trial court and holding that an insurer was entitled to allocate a portion of asbestos claim settlements it negotiated to time periods when its dissolved insured was without coverage. The decision overturns a trial court ruling that the insurer was barred from denying liability for the full amount of the settlements because the insurer had become the “real party in interest” as a result of a prior court order directing it to accept service of process on behalf of a dissolved insured. The trial court held that the insurer stood in the shoes of the insured for all purposes by accepting service and negotiating settlements, and was therefore estopped from denying liability for the full amount of the settlements. Reprinted courtesy of Patricia B. Santelle, White and Williams LLP and Frank J. Perch, III, White and Williams LLP Ms. Santelle may be contacted at santellep@whiteandwilliams.com Mr. Perch may be contacted at perchf@whiteandwilliams.com Read the court decision
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