Seattle Washington Building Expert Directory

Insurer Must Defend Faulty Workmanship Claims

May 02, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court determined that the insurer improperly denied a defense for construction defect claims made against the insured. Amerisure Mut. Ins. Co. v. McMillin Tex. Homes, 2022 U.S. Dist. LEIS 40363 (W.D. Texas March 8, 2022). McMillin was a developer, general contractor and home seller. It constructed multiple homes in various communities in the San Antonio area. After the homes were completed, homeowners observed defects in the artificial stucco exterior finish. After claims were lodged against McMillin, the various claims were tendered to Amerisure. Amerisure filed for declaratory judgment that it had to duty to defend or indemnify and moved for summary judgment. Amerisure first argued the homeowners' faulty workmanship claims did not allege "property damage" under the policies. It argued there were no allegations that any property damage existed, but merely that the stucco suffered from construction defects. The court disagreed. Among the allegations was the statement that due to the construction defects, the homes suffered damage "not only to the exterior stucco, but also to the underlying wire lath, paper backing, house wrap, flashing, water resistive barriers, sheathing, interior walls, interior floors and/ or other property." Consequently, the underlying claims amounted to property damage. 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

Construction Site Blamed for Flooding

November 08, 2013 — CDJ STAFF
A neighborhood in Pflugerville, Texas was during some recent heavy rains, and the residents blame the nearby construction of a new elementary school. During the rains, a retention wall around the site collapsed, leading to the water discharging to their neighborhood. One resident noted that he had about $16,000 worth of damage to his home and it has also cost him work. “I fix computers for a living, but I don’t have internet right now, and a lot of my stuff is wet,” said Erik Goeser, one of the Shallow Creek neighborhood residents. The county is looking into the situation but notes that “the construction site in question had recently been inspected and met all Travis County expectations, requirements and codes.” Read the court decision
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#3 CDJ Topic: Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
Michael R. Vellado and Nicole R. Kardassakis of Lewis Brisbois Bisgaard & Smith LLP analyzed the appeals case that “reversed the trial court’s entry of summary judgment in favor of ProBuilders Specialty Insurance Company (“ProBuilders”) and held that the ‘other insurance’ clause in the ProBuilders policy did not relieve it of its duty to participate in the defense of its insured, Pacific Trades Construction & Development, Inc. ('Pacific Trades')." Read the full story... Another discussion of the ProBuilders appeal ruling occurred on the California Construction Law Blog, written by Yas Omidi of Wendel Rosen Black & Dean LLP. Omidi explained the appeal’s court decision: “In reversing the trial court’s decision, the appellate court characterized ProBuilder’s ‘other insurance’ clause as an ‘escape clause’—i.e., a clause that attempts to have coverage, paid for with the insured’s premiums, evaporate in the presence of other insurance.” Furthermore, she noted that “California public policy disfavors such clauses.” Read the full story... Read the court decision
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Construction Litigation—Battles on Many Fronts

May 07, 2015 — Craig Martin – Construction Contractor Advisor
When you are involved in construction litigation, you have battles on several fronts, including those against subcontractors, owners, insurers and the court. Shoring up your defenses on each of these fronts is imperative, or you may lose the battle or, worse yet, the war. A recent opinion out of the Eleventh Circuit Court of Appeals (overseeing federal courts in Alabama, Florida and Georgia) Carithers v. Mid-Continent Casualty Company, illustrates the various battle fronts involved in a construction case. In this case, the Carithers (Home Owner) sued their homebuilder, Cronk Duch Miller & Associates (Contractor) in state court after discovering multiple defects with their home. Battle Front #1—Claim Against Contractor The Contractor and Home Owner entered into a consent judgment for approximately $90,000.00 and the Contractor assigned its claim against its insurer to the Home Owner. It is unlikely that the Contractor paid the $90,000.00 judgment. The Home Owner likely agreed not to collect on the $90,000.00 in exchange for the chance to pursue the Contractor’s claim against its insurer. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Evaluating Construction Trends From 2023 and Forecasting For 2024

February 12, 2024 — Jason Feld & Dominic Donato - Kahana Feld
As we begin 2024, it is informative to evaluate what transpired in 2023 in the construction industry, and especially the use of construction technology. 2023 ushered in a variety of newly implemented construction technologies including 3D printed entire houses, improved wearables that detect all aspects of the construction worker from location to temperature to heart rate, increased use of modular construction for entire apartments, hotels, and condominium projects, and eco-friendly and conservation minded technologies to minimize carbon footprint, water preservation and sustainable construction methods, to name a few. 2023 also identified some significant issues in the construction industry. First and foremost, the labor shortages and hiring of skilled and qualified workers continued to be an issue resulting in increased delays, construction accidents, and project mismanagement. The skyrocketing interest rates, decline in commercial/office projects, supply chain issues, material price fluctuation and increase changes in scope of projects all negatively impacted the construction industry in 2023. There is also the demand for renewable and infrastructure projects put strain on construction resources as the projects became “mega” with larger and more complex construction leading to multi-party, high dollar, and more complex claims. Finally, there is a growing trend of construction claims and litigation being financed by third party litigation funding sources for personal/bodily injury claims and construction defect claims. Reprinted courtesy of Jason Feld, Kahana Feld and Dominic Donato, Kahana Feld Mr. Feld may be contacted at jfeld@kahanafeld.com Mr. Donato may be contacted at ddonato@kahanafeld.com Read the court decision
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Does the Russia Ukraine War Lead to a Consideration in Your Construction Contracts?

April 04, 2022 — David Adelstein - Florida Construction Legal Updates
Material costs are still affecting the construction industry. Supply chain impacts too. The volatility started with COVID-19 (and, in certain cases, before with the imposition of tariffs) and has continued through present date. But what about the war between Russia and Ukraine and the impact this has had or may have on the supply chain? I think the spillover from the war (with oil, gas, the energy sector, etc.), including the imposition of any sanctions, is not fully realized other than the concern exists in an economy that is already battling through material costs and supply chain disruptions. How does this affect you? It may not. Or you may regularly enter into construction contracts in which you would be smart to address material costs and supply chain impacts. The reason being is that everything from a risk standpoint should begin with your construction contract. Not addressing an issue does not actually mitigate the risk. Confronting the issue does mitigate the risk because you are contractually addressing a concern and know where the other party stands relating to that concern so that business decisions can be made. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Colorado Temporarily Requires Employers to Provide Sick Leave While Awaiting COVID-19 Testing

April 06, 2020 — Shawna Ruetz - The Grindstone Lewis Brisbois Labor & Employment Blog
On March 11, 2020, the Colorado Department of Labor and Employment (CDLE) issued emergency rules, referred to as Colorado Health Emergency Leave with Pay (Colorado HELP) Rules, requiring employers in certain industries to provide four days of paid sick leave to employees with flu-like symptoms while awaiting test results for COVID-19, or to anyone who is under instructions from a healthcare provider to quarantine or isolate due to a risk of having COVID-19. These rules take effect immediately for 30 days, or longer if the state of emergency declared by Colorado Governor Polis continues. Which industries are covered by the Colorado HELP Rules?

Leisure and hospitality;
Food services;
Child care;
Education (including transportation, food service, and related work at educational establishments);
Home health (if working with elderly, disabled, ill, or otherwise high-risk individuals)
Nursing homes; and
Community living facilities; and
Retail establishments that sell groceries (added March 26).

How much paid sick leave must be provided? Employers are required to provide up to four days of paid sick leave to employees with flu-like symptoms who are being tested for COVID-19. If the employee tests negative, the leave ends. Read the court decision
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Reprinted courtesy of Shawna Ruetz, Lewis Brisbois
Ms. Ruetz may be contacted at Shawna.Ruetz@lewisbrisbois.com

DEP Plan to Deal with Noxious Landfill Fumes Met with Criticism

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Residents of Roxbury, New Jersey have dealt with hydrogen sulfide fumes coming from the Fenimore landfill, which gives off a rotten-egg smell and many say have “made them or their children sick,” according to New Jersey Online. The Department of Environmental Protection (DEP) announced their plan to fix the situation, which is to “first dig more wells at Fenimore, to help feed noxious gasses into the oxidizer and scrubber system the agency has credited with radically reducing smells over the last several months.” But no one seems to be satisfied with the plan, according to New Jersey Online: “Not state Sen. Anthony R. Bucco, who authored a bill to enable a state takeover of the site last year. Not the Roxbury Township Council. Not the activist group created to respond to Fenimore issues. Not one of the state's most vocal environmental organizations. And not the site's owner, who has been in multi-pronged litigation with the state for months.” Roxbury’s mayor, Jim Rilee, stated, “The council and I will continue to demand that the DEP show us compelling data that supports its conclusions and that its plan is based only on what is best for Township residents," as quoted by New Jersey Online. Read the court decision
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