Seattle Washington Building Expert Directory

Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Brenner Base Tunnelers Conquer Peaks and Valleys in the Alps

October 21, 2019 — Scott Blair - Engineering News-Record
A logistics tangle decades in the unraveling, the Brenner Base Tunnel project is having a banner year. Twin tunnel boring machines in May were released on their relentless journey to mine the main tunnels underneath the Alps between Austria and Italy, while a multinational crew of 2,400 workers armed with a toolkit of just about every mining technique is swarming four major worksites, including a particularly challenging area where workers must undercut a river and pass through the fast-flowing aquifer below it. Read the court decision
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Reprinted courtesy of Scott Blair, ENR
Mr. Blair may be contacted at blairs@enr.com

Connecticut Supreme Court Rules Matching of Materials Decided by Appraisers

March 28, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Connecticut Supreme Court determined that an appraisal panel could resolve whether the insurer must replace undamaged materials so that they match the damaged materials. Klass v. Liberty Mut. Ins. Co., 2022 Conn. LEXIS 2 (Conn. Jan. 11, 2022). The insured reported damage to the roof of his home to Liberty Mutual. A representative from Liberty Mutual inspected and noticed a few shingles missing from the rear slope of the roof. The representative agreed that the damage was caused by wind damage, a covered loss under the policy. Liberty Mutual accepted coverage and issued an estimate to replace the rear slope of the roof. The insured's contractor inspected the roof and provided an estimate that contemplated replacement of the entire roof at nearly double the cost of Liberty Mutual's estimate. The insured requested an appraisal. Liberty Mutual responded that the insured could not invoke the appraisal process in the absence of a "competing" estimate (i.e., one that addressed the claim for which coverage was accepted). Any dispute regarding the matching of the front and rear roof slope was a question of coverage, not an issue for appraisal. 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

Home Construction Thriving in Lubbock

December 30, 2013 — CDJ STAFF
The 2013 numbers for home construction aren’t ready yet, but the January through November numbers for Lubbock, Texas show a 42% increase over the number of construction permits issued for single-family homes in the first 11 months of 2012. The number look even better compared to 2011’s totals, according to KFYO. Read the court decision
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Following My Own Advice

October 21, 2015 — Craig Martin – Construction Contractor Advisor
I often advise clients on the use of E-Verify and the importance of getting policies and in place to ensure compliance. This is particularly true for clients that do federal and state work. Now it’s my turn to follow my own advice. I was recently appointed to represent the Nebraska Board of Engineers and Architects. As such, I am a contractor for the State of Nebraska. That means I have to use E-Verify. Here is a refresher of “our” E-Verify obligations as a contractor for the State. Nebraska adopted an E-Verify law in 2009. Nebraska statute section 4-114 requires all contractors that are awarded a contract by a state agency or political subdivision to register with ta federal immigration verification system. Although not explicit in the statute, the Department of Labor has indicated that the obligation to E-Verify applies only to new employees that will be working on the project. 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

Hawaii Federal Court Grants Insured's Motion for Remand

January 12, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court, district of Hawaii, recently granted the insured's motion for remand. Catholic Foreign Mission Society of Am., Inc. v. Arrowood Indem. Co., Civ. No. 14-00420, Order Granting Plaintiff's Motion for Remand and Denying Defendants' Motion to Dismiss or Transfer (D. Haw. Dec. 30, 2014) [Order here]. [Full disclosure - our office represents the insured, Maryknoll]. Maryknoll was sued in several lawsuits filed in Hawaii state court by victims of alleged sexual abuse occurring as far back as the 1950s by members of the clergy. Maryknoll was insured during these periods under liability policies issued by various carriers. The successor of Royal Globe Insurance Company, Arrowood Indemnity Company, agreed to defend some of the underlying lawsuits, but declined to defend others. The Travelers Companies, Inc. refused to defend. 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

Is Your Contract “Mission Essential?” Recovering Costs for Performing During a Force Majeure Event Under Federal Regulations

May 10, 2022 — Joneis M. Phan & Sarah K. Bloom - ConsensusDocs
Federal contractors have faced unprecedented challenges performing during the COVID-19 pandemic. Additional costs have included delays and inefficiencies, site closures, quarantines, unavailability of supplies and materials, and full shutdowns of subcontractor operations. For contractors performing under fixed price contracts, the cost impact of COVID-19 was likely severe. The Federal Acquisition Regulation (“FAR”) recognizes “epidemics” as a force majeure event that may excuse non-performance. Many federal contracts include some version of the Default clause, which prevents the government from terminating a contractor for default due to impacts of force majeure events that are beyond a contractor’s control, such as an epidemic. See, e.g., FAR 52.249-10. See also Pernix Serka Joint Venture v. Dep’t of State, CBCA No. 5683 (Apr. 20. 2020). The Default clause, however, operates as a shield from liability, not a sword authorizing recovery. Contractors are now left wondering whether any avenue exists to recover additional costs incurred after performing in the face of the COVID-19 pandemic. In response to a likely influx of claims and requests for equitable adjustment due to COVID-19 impacts, the federal government largely took the position that contractors were entitled to extensions of time, but not to additional costs. This article explores the avenues that may be available for contractors to recover costs for performing during a force majeure event that would otherwise be non-compensable. Reprinted courtesy of Joneis M. Phan, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs and Sarah K. Bloom, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs). Mr. Phan may be contacted at jphan@watttieder.com Ms. Bloom may be contacted at sbloom@watttieder.com Read the court decision
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Federal Arbitration Act Preempts Pennsylvania Payment Act

June 15, 2020 — Wally Zimolong - Supplemental Conditions
I am back. It feels like an entirety since I last posted. But a hellacious trial schedule got me off the blogosphere for some time. Plus, there was nothing to write about. But I am back with a bang thanks to a decision from the Eastern District of Pennsylvania concerning the interplay of a forum selection clause appearing in an arbitration clause in a construction contract and the Pennsylvania Contractor and Subcontractor Payment Act. In Bauguess Electrical Services, Inc. v. Hospitality Builders, Inc., the federal court (Judge Joyner) ruled that the federal arbitration act preempted the Payment Act’s prohibition on forum selection clauses and held that an arbitration must proceed in South Dakota even though the construction project were the work was performed was located in Pennsylvania. The Payment Act applies to all commercial construction projects performed in Pennsylvania. As some you might know, Section 514 of the Payment Act, 73 P.S. 514, prohibits choice of law and forum selection clauses. It states “[m]aking a contract subject to the laws of another state or requiring that any litigation, arbitration or other dispute resolution process on the contract occur in another state, shall be unenforceable.” Therefore, if a construction contract is for a project located in Pennsylvania, Pennsylvania law must apply and all disputes must be adjudicated in Pennsylvania. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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