SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

English High Court Finds That Business-Interruption Insurance Can Cover COVID-19 Losses

November 02, 2020 — Lorelie S. Masters, Scott P. DeVries, Patrick M. McDermott & Jorge R. Aviles - Hunton Insurance Recovery Blog
In a decision that will influence how policyholders and insurers around the world address business-interruption coverage for COVID-19 losses, the English High Court recently handed down its much-anticipated judgment in the “Test Case,” The Financial Conduct Authority (FCA) v. Arch et al. The High Court’s comprehensive analysis will likely serve as an additional tool in policyholders’ arsenal in the ongoing battles over COVID-19 coverage. The Panel, composed of two well-respected judges, one from the High Court (the UK’s trial court) and the other from the English Court of Appeal, analyzed 21 sample policy wordings in coverage extensions for business-interruption losses due to disease or the issuance of public authority orders. (Many of these wordings are also found in policies sold to US policyholders.) The High Court found that the COVID-19 pandemic and ensuing government actions fell within the coverage provided by the sample policy wordings. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth, Scott P. DeVries, Hunton Andrews Kurth, Patrick M. McDermott, Hunton Andrews Kurth and Jorge R. Aviles, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Mr. Aviles may be contacted at javiles@HuntonAK.com Read the court decision
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Coverage, Bad Faith Upheld In Construction Defect Case

October 26, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's finding of coverage for faulty workmanship allegations and bad faith by the insurer. Pulte Home Corp. v. Am Safety Indem. Co., 2017 Cal. App. LEXIS 748 (Cal. Ct. App. Aug. 30, 2017). Pulte Home Corporation was the general contractor and developer of two residential projects. American Safety issued several sequential comprehensive general liability policies to three of Pulte's subcontractors which named Pulte as an additional insured. The projects were completed by 2006. 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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How to Determine the Deadline for Recording a California Mechanics Lien

September 17, 2015 — William L. Porter, Esq. – Porter Law Group Bulletin
The California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California private works construction project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. As noted below, in order to pursue this remedy, certain deadlines must be met. Know Your Mechanics Lien Filing Deadlines Generally Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). Read the court decision
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Reprinted courtesy of William L. Porter, The Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Oklahoma Finds Policy Can Be Assigned Post-Loss

April 26, 2021 — Tred R. Eyerly - Insurance Law Hawaii
Oklahoma joined the majority of court in finding that after a loss occurs, the insured can assign the policy to another. Johnson v. CSAA Gen. Ins. Co., 2020 Okla LEXIS 118 (Okla. Dec. 15, 2020). Johnson's property was damaged in a storm. She filed a claim with her insurer. She also executed an assignment of her claim in order to repair the property with the execution of assignment to Triple Diamond Construction LLC. An appraiser retained by Triple Diamond determined the storm damage was $36,346.06. The insurer paid only $21,725.36 for the loss. Johnson and Triple Diamond sued the insurer for breach of contract, seeking $14,620.70, not inclusive of interest, attorneys' fees and costs. The insurer filed a motion to dismiss, or an alternative motion for summary judgment to dismiss Triple Diamond as a party. The insurer argued that both the policy and an Oklahoma statute barred the assignment. The district court granted the insurer's 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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Greystone on Remand Denies Insurer's Motion for Summary Judgment To Bar Coverage For Construction Defects

June 28, 2013 — Tred Eyerly
A prior post here discussed the Tenth Circuit's decision in Greystone Constr., Inc. v. National Union Fire & Marine Ins. Co., 661 F. 3d 1272 (10th Cir. 2011). The court found a duty to defend construction defect claims where damage caused by the faulty workmanship was unintentional. The Tenth Circuit remanded for a determination on whether any policy exclusions precluded a defense or indemnity for damage arising from faulty workmanship. On remand, the district court denied National Union's Motion for Summary Judgment, seeking to establish the policy exclusions precluded its duty to defend and to indemnify. See Greystone Constr., Inc. v. v. National Union Fire & Marine ins. Co., 2013 U. S. LEXIS 46707 (D. Colo. March 31, 2013). Greystone was sued for construction defects in homes it built. The suit alleged that Greystone failed to recognize defects in the soil where the house was built. National Union refused to defend. The district court initially granted summary judgment to National Union because claims arising from construction defects were not covered. As noted above, the Tenth Circuit vacated because the damage in the underlying suit did not categorically fall outside coverage under the policy. On remand, National Union first argued there was no duty to defend based upon an exclusion precluding coverage for damage arising out of work done by subcontractors unless the subcontractors agreed in writing to defend and indemnify the insured and carried insurance with coverage limits equal to or greater than that carried by the insured. The Tenth Circuit rejected this argument because National Union had to rely on facts outside of the underlying complaint. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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Georgia State and Local Governments Receive Expanded Authority for Conservation Projects

May 31, 2021 — David R. Cook Jr. - Autry, Hall & Cook, LLP
In the 2020-2021 session, the Georgia General Assembly amended existing laws to expand state and local governments’ authority to enter conservation projects. In connection with these projects, the contractor guarantees that cost savings or revenue increases will cover any payments for the project. Read more about conservation projects, including Guaranteed Energy Savings Performance Contracts With regard to school systems, conservation projects had previously included facility alterations designed to reduce energy or water consumption or operation costs. But the new law expands the permitted projects to include equipment purchases used in new construction or building retrofit, addition, or renovation. It also adds training programs incidental to the contract. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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2018 California Construction Law Update

January 10, 2018 — Garret Murai – California Construction Law Blog
The California State Legislature introduced 2,495 bills during the first year of the 2017-2018 Legislative Session. Of these, 859 were signed into law. While much political attention was focused on several California laws that could be viewed as California’s rebuke of Washington, including California’s legalization of marijuana, enactment of “sanctuary state” legislation, and bills focused on climate change, 2017 also saw the enactment of a package of bills intended to address the state’s housing affordability crises (for a great summary of these bills see Wendel Rosen’s Landuse Group’s recent article Slate of New Housing Bills Takes Effect January 1, 2018 ), as well as a range of other bills of interest to the construction industry including bills related construction financing, alternative project delivery methods, and solar construction. Each of the bills discussed below took effect on January 1, 2018, except as otherwise stated. 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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A WARNing for Companies

March 13, 2023 — Abby M. Warren & Sapna Jain - Construction Executive
Since last fall, news of layoffs in the technology sector have set off a ripple effect in a variety of other industries. Companies engaging in layoffs must be thoughtful and prepared when it comes to taking such action. While the construction industry generally has one of the highest layoff rates, and human resource personnel may be very knowledgeable with regard to related risks and exposure, there are a number of additional issues to consider when there are mass layoffs or closings. Further, expensive litigation awaits if companies are not meticulous in complying with state and federal laws regarding such large scale reductions in force. Under federal law, the primary legislation governing mass layoffs and closing is the Worker Adjustment and Retraining Notification (“WARN”) Act which generally covers employers with 100 or more employees. This law was enacted to protect employees by requiring companies to provide 60 days’ notice to employees in advance of certain plant closings and mass layoffs. In addition, many states, such as California, Connecticut and New York, have enacted similar state laws, referred to as “mini-WARN” laws, which impose additional requirements, including increasing the length of the required advance notice and broadening the scope of employers to which the law applies. Reprinted courtesy of Abby M. Warren and Sapna Jain, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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