SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Negligent Construction an Occurrence Says Ninth Circuit

June 30, 2011 — CDJ STAFF

One June 27, the US Court of Appeals has rejected an appeal from Mid-Continent Casualty Company. Mid-Continent had appealed a summary judgment granted to Titan Construction Company.



Titan Construction had built condominiums for the Williamsburg Condominium Association, which later filed a construction defect lawsuit against Titan and other defendants. Titan settled with the developer, Kennydale, assigning its rights against Mid-Continent to Kennydale. Mid-Continent filed suit, claiming that “it had no obligation to indemnify or defend Titan, Kennydale, or various other defendants.” The district court found in favor of Mid-Continent, granting a summary judgment, concluding that Titan’s insurance covered “occurrences,” and none had taken place.



On appeal, the court found that the negligent construction of the condominiums constituted an “occurrence” The case was remanded and the district court this time found in favor of Titan, “concluding that Mid-Continent failed to raise a triable issue as to the applicability of the remaining policy exclusions.

The Ninth Circuit Court of Appeals has now affirmed that decision and Titan’s summary judgment stands.

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Contractor Entitled to Continued Defense Against Allegations of Faulty Construction

November 01, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The U.S. District Court found that the contractor was entitled to a defense in the underlying state court action. Pa. Nat'l Mut. Cas. Ins. Co. v. Zonko Builders, 2021 U.S. Dist. LEXIS 168855 (D. Del. Sept. 7, 2021). Zonko was the general contractor for building the Salt Meadows Townhomes Condominium. This included supervising subcontractors in the installation of siding, house wrap, and flashing in five buildings between 2005 and 2007. In 2016, Salt Meadows and its individual members ("Association") found property damage in the condominiums. The Association sued Zonko in state court, alleged that resulting damages included drywall damage in ceilings or walls, flooring and carpet, water damage around window trim, rot on window frames, incorrect flashing around roofs and windows, possible ridge vent leaks, and possible foundation issues. 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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#4 CDJ Topic: Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc.

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
In the above mentioned case, a Texas architectural firm (HKS Architects, Inc.) hired a California design firm (Vita Planning and Landscape Architecture, Inc.) as a sub-consultant, according to Garret Murai of Wendel Rosen Black & Dean LLP in a post on his California Construction Law Blog. After Vita filed a complaint in California against HKS, HKS filed a motion to dismiss on the grounds that the landscape design contract included a “Texas forum selection clause.” The court found in favor of Vita, stating that “section 410.42 precludes enforcement of the forum selection clause requiring Vita to litigate its dispute against HKS in Texas.” Read the full story... In their article, “Court of Appeal Opens Pandora’s Box on Definition of ‘Contractor’ for Forum Selection Clauses,” Haight Brown & Bonesteel LLP attorneys Abigail E. Lighthart and David A. Harris also analyzed the Vita case: “The Vita ruling expands the protections by Section 410.42 beyond traditional ‘builders’ to design professionals and architects who do not actually ‘build’ a project. What remains to be seen is whether other courts will take the expansion to cover other groups that are in any way involved in a construction project.” Read the full story... Read the court decision
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Be Wary of Construction Defects when Joining a Community Association

February 07, 2013 — CDJ STAFF
There are some benefits to living in small developments with correspondingly small community association. Marilyn Briscoe told the Chicago Tribune that in her 34-unit town home association, "people kind of look out for each other here." But the article also cautions to not only meet the other owners, but that you should "know the developer" and "be leery if you discover litigation for construction defects." Ryan Shpritz, an association attorney said that "you don't want to start out your new association by spending money on lawyer fees or repairing defects." Whether the development is large or small, "having construction defect litigation going on will have an impact on salability." Read the court decision
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Insurer Rejecting Construction Defect Claim Must Share in Defense Costs

March 02, 2020 — Tred R. Eyerly - Insurance Law Hawaii
One insurer, who accepted the tender of defense in a construction defect case, successfully moved for summary judgment against the second insurer, who denied the insured's tender. Interstate Fire & Cas. v. Aspen Ins. UK Ltd., 2019 N.Y. Misc. LEXIS 5800 (N.Y. Sup. Ct. Oct. 25,2019). Standard Waterproofing Corporation was hired by the construction manager, G Builders, to perform waterproofing work as part of condominium conversion project. After the project was completed,the condominium occupants experienced water damage in their units. The Condominium Board retained an engineer who reported numerous issues of water infiltration relating to Standard's work. The Condominium Board filed suit against the construction manager, who filed a third party complaint against Standard. Standard tendered to four different insurers, including plaintiff Interstate and defendant Aspen. Interstate agreed to defend, while Aspen and the other two insurers declined. Aspen argued there were no allegations of an occurrence resulting in property damage during its policy periods. Interstate filed for declaratory relief against Aspen and Standard. 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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Lewis Brisbois Moves to Top 15 in Law360 2022 Diversity Snapshot

August 15, 2022 — Rima Badawiya - Lewis Brisbois Newsroom
Los Angeles, Calif. (August 4, 2022) - Lewis Brisbois has ranked 13th in Law360’s 2022 Diversity Snapshot – a measure of the overall presence of individuals from underrepresented backgrounds in law firms of all sizes. Throughout Lewis Brisbois’ history, the firm has been recognized for high achievements in the areas of diversity, equity, and inclusion. Over the past year, its focus on capturing the full picture of its diversity has led to the firm’s rise in several diversity rankings – including the Law360 Diversity Snapshot. As described in the Law360 Pulse article, "Diversity Snapshot: Representation in the Ranks," the Diversity Snapshot serves as a “comprehensive ranking of law firms on their overall representation of minority attorneys,” providing “a picture of where firms are now, and where the future might lead.” Moreover, as explained in the main article of this special publication, "Diversity Snapshot: How Firms Stack Up," Law360 used its own historical surveys as well as data from the American Bar Association to evaluate the diversity in firm headcounts against benchmarks that reflected diversity in the potential marketplace of new hires. Lewis Brisbois’ efforts to capture its diversity numbers has led to a significant increase in the firm’s position from 58th to 13th. This year's Snapshot includes 291 law firms, with 75 in the 600+ attorneys category. Read the court decision
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Reprinted courtesy of Rima Badawiya, Lewis Brisbois
Ms. Badawiya may be contacted at Rima.Badawiya@lewisbrisbois.com

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Top 10 Construction Contract Provisions – Changes and Claims

November 03, 2016 — James R. Lynch – Ahlers & Cressman PLLC
This is the seventh post in our “Top 10 Construction Contract Provisions” series. Prior posts discussed Price and Payment, Liquidated Damages, Consequential Damages – Part I and Part II, Indemnity, Scope of Work, and Flow-Down Provisions. Today’s topic, Changes and Claims, is a contender for the top spot on our list, for both day-to-day impact on the job and importance in disputes. In fact, these provisions[i] are so variable and are involved in so many reported construction law decisions, that this post will not attempt to survey all their various forms, uses, or potential legal ramifications, but instead focuses on bottom line “best practices”—questions to consider as a general contractor, subcontractor, or owner when drafting, negotiating, or managing the Changes and Claims provisions of a contract. There is no “ideal” here, and the changes and claims procedures should be suited to the project, owner, contractor(s), likely issues, and other project-specific considerations. Key considerations include the following: 1. How prescriptive is the Change Order process? At one end of the spectrum, a Change Order provision may include requirements for written direction and request by the owner and formal response by the contractor, with pricing and specific supporting data or documentation, in addition to strict timelines for response, execution, and performance, precise methods to determine the resulting contract adjustment, limits on the type or extent of adjustment, or terms defining the effect of a signed Change Order, e.g. to what extent related claims or impacts might be extinguished. At the other end of the spectrum, the Change Order provision might simply recognize that the owner may direct changes, and the parties intend to document the directions and resulting compensation in a Change Order, with no further elaboration. There is no universal ideal on this spectrum. A highly defined and prescriptive process may be appropriate for a complex, high value, multi-stakeholder project on which significant changes are likely. The same process would be an inefficient waste of resources on a small and simple project where significant changes are unlikely and the parties would be unlikely to comply with more formal procedures. Read the court decision
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Reprinted courtesy of James R. Lynch, Ahlers & Cressman PLLC
Mr. Lynch may be contacted at jlynch@ac-lawyers.com

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Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose

May 11, 2020 — Rahul Gogineni - The Subrogation Strategist
As discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose. For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat. § 558.004(d). Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

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