Seattle Washington Building Expert Directory

U.S. District Court of Colorado Interprets Insurance Policy’s Faulty Workmanship Exclusion and Exception for Ensuing Damage

August 15, 2022 — Carin Ramirez - Colorado Construction Litigation
Recently, the United States District Court for the District of Colorado interpreted a faulty workmanship exclusion in a property insurance policy in The Lodge at Mountain Village Owner Association v. Eighteen Certain Underwriters of Lloyd’s of London, 22 U.S Dist. Ct LEXIS 48883*, decided on March 18, 2022. The Court held that the faulty workmanship exclusion at issue extended to preclude coverage for later ensuing damage that arose from the faulty workmanship, even though the damage was weather related, because faulty workmanship was the primary cause of the ensuing damage. The claims in The Lodge at Mountain Village arose from maintenance work performed on log siding at three multi-unit condominium buildings in Telluride. The maintenance work to the log siding included staining, finishing, and chinking repairs to joints between the logs. About a year after completion of the work, The Lodge at Mountain Village Owners Association (“The Lodge”) notified the maintenance contractor that logs were extremely weathered and that its work was defective. The Lodge retained an expert who prepared a report stating that the log finish and underlying wood was deteriorating because of the contractor’s work and that some areas were not properly protected from exposure to snow, rain, and brine from ice-melting salt. The Lodge pursued and settled its claims against the contractor. Read the court decision
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Reprinted courtesy of Carin Ramirez, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ramirez may be contacted at ramirez@hhmrlaw.com

A Subcontractor’s Perspective On California’s Recent Changes to Indemnity Provisions

September 10, 2014 — William M. Kaufman – Construction Lawyers Blog
Great news for California subcontractors and suppliers! “Type I” Indemnity provisions in California construction contracts entered into on or after January 1, 2013 are not enforceable. This change in the law prevents owners and general contractors from shifting enormous exposure and costs of litigation downstream to the little guy, namely subcontractors and suppliers. In October 2011, Governor Brown signed Senate Bill 474 into law, which represented a major legislative victory for subcontractors and suppliers. The new law also imposed exacting limitations on contractors that attempt to require their subcontractors and suppliers to cover their defense fees and costs in litigation. New Law Prevents Indemnity or Cost of Defense for Active Negligence Under a "Type I" indemnity provision, the downstream subcontractor agrees to indemnify the owner or contractor, even against liability caused by the upstream owner/contractor's own "active negligence." A “Type I” indemnity provision in general contractors’ subcontracts often require their subcontractors to defend and indemnify them from liability regardless of whether the general contractor is partially at fault. Subcontractors and suppliers historically have complained that they have little bargaining power when entering into these contracts and these types of provisions can result in ruinous liability for those in the construction industry that are most vulnerable-subcontractors and suppliers. Before this change, the law allowed a general contractor who is 99 percent at fault for an injury or damage to shift the entire risk to a subcontractor who is only one percent at-fault or a subcontractor who is not at fault at all, but tangentially involved in the claim. Subcontractors and suppliers joined forces and lobbied the legislature. The legislature and Governor Brown agreed. Under the new law, such "Type I" indemnity provisions will no longer be enforceable. SB 474 adds Civil Code section 2782.05 that precludes indemnity where the party to be indemnified is "actively negligent" and makes void and unenforceable these types of clauses. Reprinted courtesy of William M. Kaufman, Lockhart Park LP Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com Read the court decision
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Subsidence Exclusion Bars Coverage for Damage Caused by Landslide

May 23, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Ninth Circuit affirmed the district court's order granting summary judgment to the insurer who denied coverage based upon the policy's subsidence exclusion. Atain Spec. Ins. Co. v. JKT Associates, 2022 U.S. App. LEXIS 6351 (9th Cir. March 11, 2022). JKT was hired by Lora Eichner Blanusa in 2011 to perform landscape and hardscape work at her house. After selling the house to Richard Meese, a catastrophic landslide occurred in 2019. Portions of the rear of the property slid downhill by 15 feet. Meese sued JKG and others. The owner of an adjacent property, Kristi Synek, filed a separate action against JKT and others. JKT tendered both suits to Atain, who defended under a reservation of rights. Atain filed a coverage action in federal district court regarding both underlying suits. The district court granted summary judgment to Atain, ruling there was no duty to defend or to indemnify. 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

Workers Compensation Immunity and the Intentional Tort Exception

July 02, 2018 — David Adelstein - Florida Construction Legal Updates
In prior articles, I discussed the benefit of workers compensation immunity for contractors. Arguing around workers compensation immunity under the “intentional tort exception” is really hard – borderline impossible, in my opinion. Nevertheless, injured workers still make an attempt to sue a contractor under the intentional tort exception to workers compensation immunity. Most fail based on the seemingly impossible standard the injured worker must prove to establish the intentional tort exception. A less onerous standard (although certainly onerous), as a recent case suggests, appears to be an injured worker suing a co-employee for the injury. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Bert Hummel Appointed Vice Chair of State Bar of Georgia Bench & Bar Committee

October 24, 2021 — Bert Hummel - Lewis Brisbois
Atlanta, Ga. (October 4, 2021) – Atlanta Partner Bert Hummel was recently named Vice Chair of the State Bar of Georgia's Bench & Bar Committee for the 2021-2022 year. The Bench & Bar Committee identifies and facilitates solutions to issues of mutual interest between State judges and Georgia lawyers for the benefit of the bench, the bar and the public. It also oversees the annual Justice Thomas O. Marshall Professionalism Award, which honors one lawyer and one judge who have demonstrated the highest professional conduct and paramount reputation for professionalism. Read the court decision
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Reprinted courtesy of Bert Hummel, Lewis Brisbois
Mr. Hummel may be contacted at Bert.Hummel@lewisbrisbois.com

When OSHA Cites You

April 22, 2024 — Michael Metz-Topodas - Construction Executive
With the strong bonds that form among construction project teams, workers looking out for each other helps keep safety foremost in everyone’s mind. But sometimes, even the very best intentions alone can’t prevent an occasional misstep—a forgotten hard hat, a sagging rope line—which can and often does result in an OSHA citation. These regulatory reminders can bring unfortunate consequences: penalties, higher insurance premiums, potential worker injury claims, loss of bidding eligibility, loss of reputation and even public embarrassment, because citations are published on OSHA’s website. Due to citations’ adverse effects, contractors have incentives to minimize them. They can do this by asserting available defenses, because a citation is only an alleged violation, not a confirmed one. But making defenses available begins well before a citation is issued, well before OSHA arrives to a construction site and well before a violation even occurs. Instead, contractors’ ongoing safety programs should incorporate the necessary measures to preserve OSHA citation defenses in three key areas: lack of employee exposure, lack of employer knowledge and impossibility. EMPLOYEE EXPOSURE To sustain a citation against an employer, OSHA must not only identify an applicable standard that the company violated but also show that the violation exposed employees to hazards and risk of injury. Absent evidence of actual exposure, OSHA often makes this showing by asserting that performing job functions necessarily exposes employees to the cited hazard. Reprinted courtesy of Michael Metz-Topodas, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Metz-Topodas may be contacted at michael.metz-topodas@saul.com

Work without Permits may lead to Problems Later

September 10, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Los Angeles Register, “Southern California homeowners often have repairs or improvements done to their property without getting the required building permits,” which sometimes, may be fine, but other times it leads to disastrous problems. The Register used an example of a San Clemente couple who had issues selling their home when a building inspector found that weep screeds were covered up by a cement deck installed by a contractor. The contractor also failed to get building permits for the work that was done. The buyer stated that repairs needed to be done prior to the sale. According to Mac MacKenzie, an agent at Coldwell Banker in Irvine, the situation is not uncommon: “We’ve had (permit problems) kill deals before, and we’ve had them almost kill deals. If it’s serious enough, it can stop a transaction from closing.” Permits are generally required “for any alteration, major repairs or new construction,” according to the Register, while they are not necessary “for minor repairs, such as fixing leaky pipes, painting, new carpeting or new kitchen countertops.” Read the court decision
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Insurer Springs a Leak in Its Pursuit of Subrogation

August 21, 2023 — Katherine Dempsey - The Subrogation Strategist
In Nationwide Prop & Cas. Ins. Co. v. Fireline Corp., No. 1:20-cv-00684, 2023 U.S. Dist. LEXIS 104241, the United States District Court for the District of Maryland (District Court) considered whether the events giving rise to the plaintiff’s claims fell within the scope of a previously formed agreement, thereby rendering the plaintiff’s claims subject to the agreement’s time limitation and waiver of subrogation provisions. The District Court found that the claims fell within the scope of the agreement. The plaintiff, Nationwide Property & Casualty Insurance Company (Insurer), provided property insurance to Maple Lawn Homeowners Association, Inc. (Maple Lawn) for common property located in Fulton, Maryland, including a community center (the Subject Premises). On January 18, 2018, Maple Lawn entered into an Inspection Agreement (the Agreement) with defendant, Fireline Corporation (Fireline), wherein Fireline agreed to provide:

annual fire alarm inspection and testing services,
quarterly sprinkler inspection and testing, and
annual portable fire extinguisher testing and inspection.

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Reprinted courtesy of Katherine Dempsey, White and Williams LLP
Ms. Dempsey may be contacted at dempseyk@whiteandwilliams.com

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