Seattle Washington Building Consultant Directory

There’s the 5 Second Rule, But Have You Heard of the 5 Year Rule?

April 23, 2024 — Garret Murai - California Construction Law Blog
They’re called deadlines for a reason. Usually, because something really bad could happen if you fail to meet the deadline. For those in the construction industry, you probably aware of the “deadline” to bring a claim for latent defects (10 years from substantial completion); the deadline to file suit to foreclose on a mechanics lien (90 days from the date of recording the mechanics lien), and the deadline for serving a preliminary notice (generally, 20 days from the date labor and/or materials are first furnished). Well, here’s another deadline: Under Code of Civil Procedure section 585.310, you have 5 years after a complaint is filed to bring a case to trial, absent the court granting relief. I could leave it at that, but in the next case, Oswald v. Landmark Builders, Inc., 97 Cal.App.5th 240 (2023), was too interesting to pass up. The Oswald Case On June 28, 2016, homeowners Jack Oswald and Anne Seley sued their general contractor and its subcontractors alleging construction defects at their home. Answers and cross-complaints were filed and on February 2017 the trial court determined the case to be complex and appointed a discovery master. A discovery master, for those who may be unfamiliar, is usually a retired judge or third-party lawyer appointed by a court to oversee discovery in a case such as written discovery, depositions, site inspections, etc. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders

January 02, 2024 — Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery Blog
The Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue. In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims). Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the full story...

Build, Baby, Build. But Not Like This, Britain.

March 04, 2024 — Matthew Brooker - Bloomberg
The UK needs to do a lot more building. A lack of access to physical and digital connections is holding back the economy, the government says. Besides tackling the housing crisis, the country has to construct more roads, railways, wind farms and reservoirs to open up opportunity and drive productivity. The only problem is that Britain is notoriously inept at delivering infrastructure projects on time and within budget. The advantage of doing things badly is that at least you get to learn from your mistakes — in theory. Updates this month have offered some illuminating insights into two of the biggest civil-engineering undertakings in the country: High-Speed Rail 2, better known as HS2, and Hinkley Point C, which will be Britain’s first new nuclear power station since 1995. Here are five lessons that can be drawn from the issues encountered by two projects with a combined bill that’s likely to exceed £100 billion ($127 billion): Don't take budgets too seriously — especially at the start. Fixing an initial budget that was too low may have done much to feed later perceptions that HS2’s costs were spiraling out of control. The original estimate for the expanded train network was set too early and based on “very immature data,” Jon Thompson, appointed executive chair of High Speed 2 Ltd. in February last year, told the House of Commons transport committee. Numbers get more accurate and reliable as work progresses and the quality of information improves. What were viewed as cost blowouts partly reflected this process. The effect was unfortunate, undermining political support for HS2 and providing cover for cutbacks that have reduced the network to a single line between London and Birmingham that fails to fulfill most of its original purpose. To avoid this problem: Stick to a range rather than a single figure, and make sure people understand the uncertainties inherent in early-stage estimates. Read the full story...
Reprinted courtesy of Matthew Brooker, Bloomberg

Project Completion Determines Mechanics Lien Recording Deadline

April 08, 2024 — William L. Porter - Porter Law Group
The California mechanics lien is one of the most powerful collection remedies 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 actually sell the property where the work was carried out in order to obtain payment, entirely of course, against the wishes of the property owner. There are a number of important steps to follow and timelines to be met in order to pursue this remedy. First, Understand Your Preliminary Notice Deadline 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 process begins with the serving of a “preliminary notice” no later than 20 days after the party serving the preliminary notice begins supplying labor or materials to the project. Direct contractors are only required to serve the preliminary notice on the construction lender (Civil Code section 8200-8216), whereas subcontractors and material suppliers must serve not only the construction lender, but also the owner and direct contractor (see Civil Code section 8200(e)). Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Unpredictable Power Surges Threaten US Grid — And Your Home

April 08, 2024 — Naureen S Malik - Bloomberg
Paul LeBlanc was barefoot when he stepped outside that morning. He was taking the trash out when he saw the red glow of flames engulfing a nearby home. A former firefighter, LeBlanc grabbed his shoes before racing across the street. He smashed a window, then rushed inside. The only person believed to be home was a teenage boy who had already escaped, luckily with just minor burns. Alarms blared “fire” loudly, again and again, blasting from homes through the area. “I’ve been in buildings without protection before — I just wanted to make sure no one was stuck in there,” said LeBlanc, who spent more than three decades as a firefighter before retiring. The damage to the Alonge family’s four-bedroom home built in the early 1800s was so bad they haven’t been able to return since the blaze in June. The source of the conflagration in Waltham, Massachusetts, came from a facility about 2 miles west of the home. An electric substation, which had been dealing with a rodent infestation, had a sudden, unstable surge in voltage. Read the full story...
Reprinted courtesy of Naureen S Malik, Bloomberg

Payne & Fears LLP Recognized by Best Lawyers in 2024 “Best Law Firms” Rankings

November 27, 2023 — Payne & Fears LLP
Payne & Fears LLP has been recognized by Best Lawyers 2024 “Best Law Firms” list. Firms included in the 2024 edition of Best Lawyers “Best Law Firms” are recognized for professional excellence with consistently impressive ratings from clients and peers. Payne & Fears LLP has been ranked in the following practice areas:

Metropolitan Tier 1
- Orange County
  - Commercial Litigation
  - Employment Law – Management
  - Insurance Law
  - Labor Law – Management
  - Litigation – Labor & Employment
  - Litigation – Real Estate

Metropolitan Tier 2
- Las Vegas
  - Commercial Litigation

Metropolitan Tier 3
- Orange County
  - Litigation – Intellectual Property

Read the full story...

AMLO Hits Back at Vulcan, Threatens to Use Environmental Decree

December 04, 2023 — Maya Averbuch & Eric Martin - Bloomberg
Mexico’s president threatened to declare a disputed property owned by Vulcan Materials Co. an environmentally protected area, after failing to reach an agreement with the US construction firm. Andres Manuel Lopez Obrador said Vulcan continued work at the site even while in talks with his government over its potential purchase of the property, which was occupied by Mexican marines in March. Accusing the company of “vile trickery,” AMLO — as the president is known — told reporters Friday that he would act by decree if necessary to halt the destruction in “one of the most beautiful areas in the world.” His comments came a day after Bloomberg reported that the Alabama-based firm was seeking the Biden administration’s protection from what it sees as the threat of a hostile takeover of its property. The 2,400 hectare (5,930 acre) plot south of the resort city of Playa del Carmen includes a port and a quarry. Reprinted courtesy of Maya Averbuch, Bloomberg and Eric Martin, Bloomberg Read the full story...

More In-Depth Details on the Davis-Bacon Act Overhaul

November 06, 2023 — Seth C. Wiseman & Angela M. Richie - Construction Executive
The U.S. Department of Labor’s finalization of a rule updating the Davis-Bacon Act, the federal law that governs how prevailing wages for federal construction projects can be determined, will have a significant impact on contractors and workers alike in the construction industry. The new rule, in effect, adopts the 30% rule, meaning that the prevailing wages must be equal to the wage paid to at least 30% of workers of a particular classification in a particular area. The new rule also implements a new anti-retaliation provision, specifically protecting construction workers who raise concerns about payment practices from adverse employment actions. The timing of this new rule is particularly significant for contractors, as it will likely raise the cost of labor for contractors at a time when the Infrastructure Investment and Jobs Act and the CHIPS Act are providing additional funding for federal projects across the country. Thus, it is important for all parties in the construction industry to understand the updated rule in order to evaluate the short-term impacts on their respective projects and long-term impact on their respective businesses. Reprinted courtesy of Seth C. Wiseman & Angela M. Richie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Wiseman may be contacted at swiseman@grsm.com Ms. Richie may be contacted at arichie@grsm.com Read the full story...

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