SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of

December 04, 2023 — Skyler L. Santomartino - Peckar & Abramson, P.C.
Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[1] The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs. Read the court decision
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Reprinted courtesy of Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com

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Walmart Seeks Silicon Valley Vibe for New Arkansas Headquarters

June 18, 2019 — Matthew Boyle - Bloomberg
Walmart Inc. took inspiration from McDonald’s Corp., Apple Inc. and locations like Stanford University when designing the new headquarters that will start taking shape this summer. The 350-acre campus will be located just a few blocks east of Walmart’s current home, a patchwork of more than 20 buildings in Bentonville, Arkansas. It will feature bike paths, food trucks and outdoor meeting areas -- part of an effort to lure younger, digitally-savvy workers to northwestern Arkansas. Read the court decision
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Reprinted courtesy of Matthew Boyle, Bloomberg

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No Coverage for Homeowner Named as Borrower in Policy but Not as Insured

July 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The magistrate judge recommended that the homeowner's complaint seeking coverage for damage caused by Hurricanes Laura and Delta be denied because the homeowner was only named as the borrower under the policy. LeDay v. Integon Nat'l Ins. Co., 2024 U,S. Dist. LEXIS 87369 (W.D. La. April 15, 2024). When the homeowner sought coverage for hurricane damage, it was denied. The homeowner then sued and Integon moved to dismiss. Integon argued it did not issue a policy to the homeowner, but the policy was issued to Midland Mortgage. The pro se homeowner did not respond to the motion. 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

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Real Estate & Construction News Roundup (10/04/23) – NFL Star Gets into Real Estate, DOJ Focuses on “Buyer-Broker Commissions”, and the Auto Workers’ Strike Continues

November 13, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, seller impersonation fraud becomes an issue in the United States, major retailers are closing over 3,000 stores nationwide, the Tampa Rays are set to construct a new $1.3 billion stadium, and more!

• NFL star Tyler Lockett is preparing for his life and career after football by becoming a real estate broker in both Washington state and Texas. (Brady Henderson, ESPN)
• Seller impersonation fraud has become a major scam in the United States with 73% of real estate firms reporting an increase in these schemes since the beginning of the year. (Diane Tomb, Fortune)
• “Buyer-broker commissions” are a focus for the U.S. Justice Department as they have filed a “statement of interest” in one case in Massachusetts while there are several other pending lawsuits in U.S. courts. (Mike Scarcella, Reuters)

Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Suing a Local Government in Land Use Cases – Part 2 – Procedural Due Process

February 16, 2017 — Wally Zimolong – Supplemental Conditions
n my last post I discussed suing a local government for a substantive due process violation. In this post, I discuss a the right to procedural due process. The Fourteenth Amendment of the United States Constitution protects prohibits the government from depriving an individual or business of life (in the case of an individual), liberty, or property without due process of law. Unlike the somewhat abstract and subjective concept of substantive due process, procedural due process is direct and objective. Generally, if an individual or business maintains a property or liberty interest, a local government must afford that individual or business notice that the government intends to deprive them of a liberty or property interest and a reasonable opportunity to be heard to contest the proposed deprivation. Unless there is an emergency, the notice and opportunity to be heard must be given before the government deprives an individual or business of a liberty of property interest. This is known as a pre-deprivation hearing. Because of the clear contours of the right, procedural due process violations are typically easier to prove than substantive due process violations. 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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Florida Extends Filing Time for Claims Subject to the Statute of Repose

June 13, 2018 — William L. Doerler - The Subrogation Strategist
Under Florida’s construction-related statute of repose, Fla. Stat. § 95.11, actions based on the design, planning or construction of an improvement to real property are barred if not commenced within 10 years after the later of several possible dates, including the date of actual possession by the owner and the date of the issuance of a certificate of occupancy. The Florida Legislature recently amended the statute to extend the time within which defendants subject to a suit filed close to the end of the 10-year period can file claims. Under the revised law, a defendant can file “counterclaims, cross-claims and third-party claims up to 1 year after the pleading to which such claims relate is served.” Regardless of when the cause of action at issue accrued, the law applies to actions commenced on or after July 1, 2018, except that any action that would not have been barred under Fla. Stat. § 95.11(3)(c) prior to the amendment may be commenced before July 1, 2019. The revised law provides relief to defendants because, under the prior law, they had to file claims against other potentially responsible third parties before the expiration of the statute of repose. Under the new law, defendants can bring third parties into the action after the expiration of the 10-year statute of repose period. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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Order for Appraisal Affirmed After Insureds Comply with Post-Loss Obligations

April 15, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Florida Court of Appeal affirmed an order compelling an appraisal because the insureds complied with their post-loss obligations under the policy. State Farm Fla. Ins. Co. v. Cardelles, 2015 Fla. App. LEXIS 2559 (Fla. Ct. App. Feb. 25, 2015). The insureds suffered damage to their home after Hurricane Katrina on August 25, 2005, and again after Hurricane Wilma on October 24, 2005. After each hurricane, State Farm was notified. With the assistance of their public adjuster, the insureds submitted sworn proofs of loss for damages caused by each hurricane. After the deductible, State Farm paid $19,000 for the Hurricane Katrina claim and $13,000 for the Hurricane Wilma claim. The insureds repaired their roof and made minor repairs to their home with the State Farm payment, but claimed the payment was insufficient to fully repair the damage from the two hurricanes. Four years later, the insureds hired a second public adjuster, who submitted a supplemental claim to State Farm for $127,000 in damages. State Farm requested documents and an updated sworn proof of loss. The insureds did not submit any additional documents because they had not made any additional repairs without further payment from State Farm. The insureds did, however, allow State Farm to make a further inspection of the damages. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Oregon Supreme Court Confirms Broad Duty to Defend

November 21, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
Originally published by CDJ on January 13, 2017 The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks. 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

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