SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Federal Court Ruling Bolsters the “Your Work” Exclusion in Standard CGL Policies

October 27, 2016 — Daniel E. Levin – Florida Construction Law News
In Evanston Insurance Company v. Dimucci Development Corportion of Ponce Inlet, Inc., the United states District Court for the Middle District of Florida further clarified the standard CGL policy exclusion (L) – the “Your Work” exclusion, one of the several business risk exclusions in a standard CGL policy which insurers and insureds are most likely to encounter in a typical construction defect claim. No. 6:15-cv-486-Orl-37DAB, 2016 U.S. Dist. LEXIS 123678, at *26 (M.D. Fla. Sep. 13, 2016). The lawsuit between Evanston Insurance Company and DiMucci Development Corp. of Ponce Inlet Inc. (“DiMucci”) arose out of initial claims by the homeowners’ association at the Towers Grande high rise in Daytona Beach Shores, Florida, against DiMucci for various construction defect related issues. The lawsuit alleged that DiMucci’s work was defective on a portion of the high rise condominium project, which caused property damage to other elements of the building that DiMucci was also responsible for constructing. Specifically, pertinent here, the Association alleged water damage as a result of DiMucci’s improper waterproofing of the building. Read the court decision
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Reprinted courtesy of Daniel E. Levin, Cole, Scott & Kissane, P.A.
Mr. Levin may be contacted at daniel.levin@csklegal.com

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DoD Issues Guidance on Inflation Adjustments for Contractors

August 15, 2022 — Jennifer Harris & Abby Salinas - ConsensusDocs
The Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4. Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract. Reprinted courtesy of Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs) Ms. Harris may be contacted at jharris@pecklaw.com Read the court decision
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Preparing Your Business For Internal Transition

October 14, 2019 — Stephen P. Katz, Esq. - ConsensusDocs
When is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:

• What happens to the business when an owner retires;
• In the event an owner(s) become disabled; and,
• Unplanned exit/owner pre-deceases her/his exit from the company

Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue. Read the court decision
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Reprinted courtesy of Stephen P. Katz, Esq., Peckar & Abramson, P.C.
Mr. Katz may be contacted at skatz@pecklaw.com

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Las Vegas Sphere Lawsuits Roll On in Nevada Courtrooms

October 02, 2023 — Richard Korman - Engineering News-Record
Big concerts have yet to start at Las Vegas’ distinctive new ball-shaped entertainment venue, but the legal noise over its construction has been heard in Clark County courtrooms for more than two years. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Brown and Caldwell Team with AECOM for Landmark Pure Water Southern California Program

May 15, 2023 — Brown and Caldwell
LOS ANGELES, May 09, 2023 — A joint venture of AECOM and Brown and Caldwell (AECOM-BC Team) has been chosen to provide program and project management support and engineering design services for the Pure Water Southern California program, one of the largest water reuse programs in the world. The innovative program, being developed by the Metropolitan Water District of Southern California (Metropolitan) in partnership with the Los Angeles County Sanitation Districts (Sanitation Districts), will produce up to 150 million gallons of high-quality, purified water per day for up to 15 million people. Anticipated for water delivery by 2032 and potentially earlier, the program will reuse the largest untapped wastewater source in the region that currently flows to the ocean to increase water resiliency, enhance water quality, and fuel economic growth. It will lower Southern California’s reliance on imported water supplies from the Colorado River and Sierra Nevada and replenish groundwater basins while leveraging cutting-edge research and development to increase regional water reuse. About Brown and Caldwell Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and over 1,900 professionals across North America and the Pacific. For more than 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com Read the court decision
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Las Vegas Student Housing Developer Will Name Replacement Contractor

February 15, 2018 — John Guzzon – ENR
More than four months after construction abruptly stopped on a $76-million student housing project for the University of Nevada at Las Vegas, the developer is seeking a new contractor. Read the court decision
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Reprinted courtesy of John Guzzon, Engineering News- Record
Mr. Guzzon may be contacted at ENRSouthWestEditor@enr.com

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Sellers' Alleged Misrepresentation Does Not Amount To An Occurrence

November 30, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The insurer successfully established on summary judgment that the insureds' alleged misrepresentation in the sale of a condominium was not an occurrence. Novak v. St. Maxent-Wimberly House Condo., 2020 U.S. Dist. LEXIS 167397 (E.D. La. Sept. 14, 2020). State Farm issued the sellers a condominium unit owner's policy. The buyers sued the sellers, contending the sellers had made misrepresentations in the sale process. The sellers allegedly failed to disclose defects in the condominium before and at the time of the sale. State Farm intervened, seeking a declaration that it was not required to defend or indemnify the sellers because there was no occurrence. 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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Between Scylla and Charybids: The Mediation Privilege and Legal Malpractice Claims

August 19, 2015 — Garret Murai – California Construction Law Blog
I attended a mediation earlier this month in a real estate case. I won’t say more through because . . . well . . . it’s confidential. The confidentiality of mediations and of settlement discussions generally – the idea being that parties are more likely to resolve their differences if they can speak honestly and frankly with one another without fear that their words or actions can later be used against them in trial – has long been a hallmark of California law. But that may not be the case for long. In 2012, the California State Legislature directed the California Law Review Commission (“Commission”), the state agency responsible for recommending reforms to California law, to review and make recommendations regarding the relationship between California’s laws which make mediation discussions confidential and attorney malpractice. And it appears that the Commission will be reaching a recommendation soon. 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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