Seattle Washington Building Consultant Directory

Construction Litigation Roundup: “You Have No Class(ification)”

May 13, 2024 — Daniel Lund III - Lexology
In fact, you didn’t even have a license. A federal court in Alabama was tasked with determining whether an unlicensed contractor could recover from an Alabama project owner for in excess of $1.7 million in construction infrastructure and site work performed. In fact, the contractor “did not have a valid general contractor’s license” in the state of Alabama when it “assumed work on the project from its predecessor company.” During the course of work on the project, the principals of an original contractor decided to go their separate ways, whereupon one of those principals announced that his new company would take over ongoing work. Roughly two months after the new company began working at the project, the contractor applied for a license with the Alabama Licensing Board of General Contractors – the license was issued within about 45 days. Then, some eight months later, the contractor added a “municipal and utilities” classification to its contractor license. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Claims Litigated Under Government Claims Act Must “Fairly Reflect” Factual Claims Made in Underlying Government Claim

November 27, 2023 — Garret Murai - California Construction Law Blog
Unlike horseshoes and hand grenades, close sometimes isn’t close enough. In the next case, Hernandez v. City of Stockton, 90 Cal.App.5th 1222 (2023), the Third District Court of appeal found that a pedestrian who sued a public entity for personal injuries caused by an “uplifted sidewalk” was barred from pursuing his claim when it was revealed that he had in fact injured himself by falling into a hole left by an “empty tree well” (i.e., a tree well that did not contain a tree”). According to the Court, the pedestrian’s claim was barred because the factual basis for recovery asserted in his complaint was not “fairly reflected” in his government claim. The Hernandez Case In April 2018, pedestrian Manual Sanchez Hernandez injured himself while walking on a public sidewalk in Stockton, California. He submitted a government claim with the City of Stockton claiming that his injuries, which included injuries to his knee, hands and back, was caused by a dangerous condition on public property. In his government claim, Hernandez alleged that he tripped on an “uplifted sidewalk” at or near 230 E. Charter Way in Stockton, California and that his injuries were due because the City “negligently and recklessly designed, maintained and operated the subject property so as to cause [his] injuries.” Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

9th Circuit Plumbs Through the Federal and State False Claims Acts

January 16, 2024 — Garret Murai - California Construction Law Blog
You may have heard of the False Claims Act and know that it penalizes companies and individuals in contract with the government who present false claims. The federal False Claims Act was signed into law by President Abraham Lincoln in 1863 to penalize profiteers during the Civil War who were selling the Union Army moth eaten blankets, boxes of sawdust instead of guns, and sometimes re-selling the Army calvary horses several times over. Since then, many states, including California, as well as municipalities, have enacted their own false claim statutes. As currently written, the federal False Claims Act provides for statutory penalties against any person who:

“[K]nowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval”;
“[K]nowingly makes, uses or causes to be made or used, a false record or statement material to a false or fraudulent claim”;
“[H]as possession, custody, or control of property or money used, or to be used, by the Government an knowingly delivers, or causes to be delivered, less than all of that money or property”;

Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Antidiscrimination Clause Required in Public Works and Goods and Services Contracts –Effective January 1, 2024

January 22, 2024 — Travis Colburn - Ahlers Cressman & Sleight
In July 2023, the Washington legislature passed Senate Bill 5186, which mandates inclusion of select antidiscrimination clauses in every state contract and subcontract for public works, goods, or services executed after January 1, 2024.[i] RCW 49.60.530(3) codifies the now-required antidiscrimination clauses, which prohibit four categories of discrimination against any person because of age, sex, marital status, sexual orientation, gender identity, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, the presence of any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a person with a disability (the “Protected Class”). Under the new law, public contractors and subcontractors (“Public Contractor”) may not refuse to hire a person because that person is a member of the Protected Class, unless that refusal is based upon a bona fide occupational qualification or if a person with a particular disability would be prevented from properly performing the particular work involved.[ii] Similarly, Public Contractors may not discharge or bar a person from employment or discriminate against any person – either in terms of compensation or other terms and conditions of employment – because that person is a member of the Protected Class.[iii] Last, Public Contractors may not print or circulate (or cause to be printed or circulated) any statement, advertisement, publication, form of application for employment, or make inquiry in connection with prospective employment, which expresses any limitation, specification, or discrimination as to the Protected Class.[iv] Read the full story...
Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

Partner Jason Taylor and Senior Associate Danielle Kegley Successful in Appeal of Summary Disposition on Priority of Coverage Dispute in the Michigan Court of Appeals

December 11, 2023 — Jason Taylor & Danielle K. Kegley - Traub Lieberman
In this appeal brought before the Michigan Court of Appeals, the appellate court ruled in favor of Traub Lieberman’s insurance carrier client (the “Carrier” or “Client”), affirming an award of summary disposition in favor of the Carrier in a coverage lawsuit. The coverage lawsuit involved a priority dispute between the Carrier and another insurer over which company’s policy had responsibility to cover the defense of their mutual insured, a heating and cooling contractor (the “Insured”) in an underlying lawsuit alleging carbon monoxide poisoning. The Carrier issued a contractor’s pollution liability policy and the other insurer issued a commercial general liability policy to the Insurer. Both the Carrier and the other insurer filed cross-motions for summary disposition in the trial court on the priority of coverage issue. The trial court granted the Client’s motion, holding that the CGL carrier was the primary insurer based on the language in the policies’ “other insurance” clauses. The trial court rejected the CGL carrier’s argument to apply the “total policy insuring intent” or “closest to the risk” tests—tests which Michigan courts have not adopted. Specifically, the court rejected the CGL carrier’s argument that the Client’s contractor’s pollution liability policy was more specifically tailored to the loss in the underlying lawsuit. The trial court also rejected CGL carrier’s alternative argument that the “other insurance” clauses in the policies were irreconcilable, requiring a pro rata allocation based on the respective limits of the policies. Reprinted courtesy of Jason Taylor, Traub Lieberman and Danielle K. Kegley, Traub Lieberman Mr. Taylor may be contacted at jtaylor@tlsslaw.com Ms. Kegley may be contacted at dkegley@tlsslaw.com Read the full story...

Hirer Not Liable Under Privette Doctrine Where Hirer Had Knowledge of Condition, but not that Condition Posed a Concealed Hazard

December 11, 2023 — Garret Murai - California Construction Law Blog
The Privette doctrine, so-called because of a case of the same name, Privette v. Superior Court, 5 Cal.4th 698 (1993), provides a rebuttable presumption that a hirer is not liable for workplace injuries sustained by employees of hired parties. In other words, if a property owner hires a contractor, and one of the contractor’s employees gets injured while working on the property, there is a rebuttable presumption that the property owner is not liable for the employee’s injuries, the rationale being that because the contractor is required to carry workers’ compensation insurance the contractor is in the better position to absorb losses incurred a workplace injury. There are, however, two widely recognized exceptions to the Privette doctrine. The first, is the Hooker exception, again named after a case of the same name, Hooker v. Department of Transportation, 27 Cal.th 198 (2002), which provides that a hirer is liable for injuries to a hired parties’ employees, if the hirer retained control over the work being performed, negligently exercised that control, and the negative exercise of that control contributed to the employee’s injury. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Wyoming Supreme Court Picks a Side After Reviewing the Sutton Rule

January 16, 2024 — Ryan Bennett - The Subrogation Strategist
In a matter of first impression, the Supreme Court of Wyoming (Supreme Court), in West American Insurance Company v. Black Dog Consulting Inc., No. S-23-0052, 2023 WY 109, 2023 Wyo. LEXIS 111, examined whether a landlord’s insurer could pursue a subrogation claim against a tenant who caused a fire loss. The Supreme Court, applying a case-by-case approach, found that the insurer could not subrogate against the tenant. West American Insurance Company (West) insured Profile Properties (Profile), which owned commercial property in Cheyenne, Wyoming. Black Dog Consulting Inc., d/b/a C.H. Yarber (Yarber) leased commercial space from Profile where it operated a metal fabrication business. The lease agreement between Profile and Yarber required Yarber to pay the full expense of Profile’s blanket insurance policy, which included general commercial liability insurance and fire and extended coverage insurance on the building. Read the full story...
Reprinted courtesy of Ryan Bennett, White and Williams LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

Court Grants Insurer's Motion for Summary Judgment After Insured Fails to Provide Evidence of Systemic Collapse

April 15, 2024 — Tred R. Eyerly - Insurance Law Hawaii
With the insurer conceding that there was evidence of potential collapse at portions of eight specific building locations, the court granted the insurer's motion for partial summary judgment in determining no additional buildings suffered from collapse. Exec. 1801 LLC v. Eagle W. Ins. Co., 2024 U.S. Dist. LEZXIS 5923 (D. Or. Jan. 11, 2024). Executive 1801 owned a group of six buildings with eighty-six residential units. The court previously granted partial summary judgment on Executive 1801's rain damage claim, leaving only claims regarding collapse. Eagle insured "the property for direct physical los or damage to Covered Property . . . caused by or resulting from any Covered Cause of loss." The policy further provided, "We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building insured under this policy, if the collapse is caused by . . . hidden decay." Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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