Seattle Washington Building Expert Directory

Lien Law Unlikely To Change — Yet

May 26, 2011 — Melissa Brumback, Construction Law in North Carolina

For those of you following the proposed revisions to the NC lien law that is currently at the NC House Judiciary Subcommittee B, a quick update: the proposed bill (HB 489) is unlikely to be voted on this legislative session due to its unpopularity with several constituency groups, including both the AIA-North Carolinaand the NC Home Builders Association.

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Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.

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Reasonableness of Liquidated Damages Determined at Time of Contract (or, You Can’t Look Back Again)

October 05, 2020 — Christopher G. Hill - Construction Law Musings
I’ve discussed the continuing litigation between White Oak Power Constructors v. Mitsubishi Hitachi Power Systems Americas, Inc. previously here at Construction Law Musings because the case was another reminder that your construction contract terms matter and will be interpreted strictly here in the Commonwealth of Virginia. The prior opinion in this case from the Eastern District of Virginia court the Court considered the applicability of a liquidated damages provision. In the latest opinion from the Court (PDF) the Court looked at when and how any liquidated damages would be calculated. In its June 22, 2020 opinion, the Court put the issue as follows:

White Oak’s motion for partial summary judgment presents a narrow issue: whether courts may consider the damages actually sustained by a party as a result of a contract breach when deciding if liquidated damages required by a contract “grossly exceed” a party’s actual damages.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

A Behind-the-Scenes Look at Substitution Hearings Under California’s Listing Law

March 04, 2019 — Garret Murai - California Construction Law Blog
The next case, JMS Air Conditioning and Appliance Service, Inc. v. Santa Monica Community College District, 2nd District Court of Appeal, Case No. B284068 (December 17, 2018), provides an interesting behind-the-scenes look at substitution hearings under the Subletting and Subcontracting Fair Practices Act. The Subletting and Subcontracting Fair Practices Act

The Subletting and Subcontracting Fair Practices Act (Public Contract Code Section 4100 et seq.), also commonly referred to as the “Listing Law,” requires that prime contractors on state and local public works projects “list” the following subcontractors in their bids:
Subcontractors who are anticipated to perform work with a value in excess of 0.5% of the prime contractor’s total bid; and Subcontractors, on street, highway and bridge projects, who are anticipated to perform work with a value in excess of the greater of: (a) 0.5% of the prime contractor’s total bid; or (b) in excess of $10,000.

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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

Related’s $1 Billion Los Angeles Project Opens After 15-Year Wait

August 22, 2022 — John Gittelsohn - Bloomberg
It’s taken 15 years — longer than the time to finish Manhattan’s Hudson Yards — for Related Cos. to complete the Grand LA, a $1 billion hotel, residential and retail complex designed by star architect Frank Gehry. The Los Angeles hilltop development’s 28-floor Conrad hotel opens July 6, and the first tenants move into a neighboring 45-story apartment tower on July 15. The retail section — a mall-like space between the two towers for restaurants and boutiques — debuts in 2023. Grand LA rises across Grand Avenue from Gehry’s aluminum-clad Walt Disney Concert Hall, home of the Los Angeles Philharmonic. Nearby palaces of culture include the Dorothy Chandler Pavilion, the Ahmanson Theatre, the Broad art museum, Los Angeles Museum of Contemporary Art and the Colburn School, a music and dance academy. Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg

Recent Supreme Court Decision Could Have Substantial Impact on Builders

January 23, 2023 — Cassidy Ingram - Ahlers Cressman & Sleight
On October 27, 2022, the Washington State Supreme Court issued a decision which could have a substantial impact on the enforceability of contract clauses that require litigation to be commenced within a stated period of time from project completion. In Tadych v. Noble Ridge Construction, Inc.,the Supreme Court held that the contractual one-year statute of limitations for bringing claims against the contractor was substantively unconscionable and reversed the Court of Appeals. In Tadych, plaintiff owners (the Tadychs) contracted with defendant contractor (Noble Ridge Construction, Inc., or NRC) for the construction of a custom home in 2012. The contract included a one-year claim limitations clause that required claims to be raised within a one year period from project completion and that any claims not raised during the one-year period would be waived. In December 2013, as the project neared completion, the Tadychs met with NRC to identify any outstanding project issues. The Tadychs noted several, including rainwater pools at the landing at the bottom of the stairs and several nicks and cracks on the stucco exterior walls. The Tadychs moved into the home on April 8, 2014, and the City of Seattle Department of Planning and Development conducted its final site inspection on April 15 and approved the residence for occupancy on April 23. In January or February of 2015, the Tadychs began to notice a shift in their home. In February of 2015, the Tadychs engaged the Construction Dispute Resolution (CDR) to review NRC’s work. CDR raised concerns about the adequacy of the home’s construction and prepared a written report in March 2015 indicating several deviations from the architectural plans and building codes. The Tadychs sent this report to NRC, who assured the Tadychs that NRC’s work followed all requirements and rejected any claims that there were deviations from the plans. The Tadychs continued to notice issues with the home through October 2016. Read the court decision
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Reprinted courtesy of Cassidy Ingram, Ahlers Cressman & Sleight
Ms. Ingram may be contacted at cassidy.ingram@acslawyers.com

Changes to Comprehensive Insurance Disclosure Act in New York Introduced

February 07, 2022 — Craig Rokuson & Lisa M. Rolle - Traub Lieberman Insurance Law Blog
As discussed in our post on Friday, January 7, 2022, Governor Kathy Hochul signed into law the Comprehensive Insurance Disclosure Act, mandating comprehensive, automatic disclosures regarding insurance in all cases pending in New York courts. Although the law was signed as written, Governor Hochul also made proposed amendments to the law, in the form of a “redline” in an attempt to make the law less onerous on insurance companies and businesses. On January 18, 2022, Senator Andrew Gounardes introduced Senate Bill 7882, incorporating Governor Hochul’s proposed amendments:

The time for disclosure would be 90 days of service of the answer, instead of 60.
The proof of insurance could constitute a declaration page only, if a party agrees in writing.
The required policies to be disclosed only relate to the claim litigated.

Reprinted courtesy of Craig Rokuson, Traub Lieberman and Lisa M. Rolle, Traub Lieberman Mr. Rokuson may be contacted at crokuson@tlsslaw.com Ms. Rolle may be contacted at lrolle@tlsslaw.com Read the court decision
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‘I’m a Scapegoat,’ Says Former CEO of Dubai Construction Firm

September 30, 2019 — Layan Odeh & Zainab Fattah - Bloomberg
The former chief executive officer of Drake & Scull International PJSC said the company’s accusations of financial violations against him are an attempt to find a “scapegoat” for rising losses. Khaldoun Tabari said the Dubai-based contractor has filed 15 complaints against him to the public prosecutor last year. He said the allegations prompted authorities in the United Arab Emirates to order banks to freeze his bank accounts in June 2018. He denies any wrongdoing. Read the court decision
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Reprinted courtesy of Layan Odeh & Zainab Fattah, Bloomberg

Policy Lanuage Expressly Prohibits Replacement of Undamaged Material to Match Damaged Material

March 09, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Construing an all-risk Businessowners Policy, the court found that the policy language did not required replacement of undamaged material match materials that were damaged. Pleasure Creek Townhomes Homeowners' Ass'n v. Am. Family Ins. Co., 2019 Minn. App. Unpub. LEXIS 1095 (Minn. Ct. App. Nov. 25, 2019). The policy covered the Association's 14 townhome buildings. In June 2017, a hail storm damaged siding on all 14 buildings. An appraisal panel included the cost to replace the undamaged, faded siding in its appraisal award so that it would match the new siding. American Family refused to pay this component - which was appraised at about $211,382 - of the award. An exclusion in the policy provided,

We will not pay to repair or replace undamaged material due to mismatch between undamaged material and new material used to repair or replace damaged material.

We do not cover the loss in value to an property due to mismatch between undamaged material and new material used to repair or replace damaged material.

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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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