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DIRECTORY AND CAPABILITIES

Washington’s Court of Appeals Protects Contracting Parties’ Rights to Define the Terms of their Indemnity Agreements

March 19, 2024 — Margarita Kutsin - Ahlers Cressman & Sleight PLLC
It has long been the law in Washington that contracting parties are free to draft contractual indemnity agreements to allocate risk arising from performance of the work, and Courts will generally enforce those agreements as written. This well-settled principle was recently reaffirmed in King County v. CPM Development Corp., dba ICON Materials[1] a decision from Division I of the Washington Court of Appeals, wherein one party to an indemnity agreement attempted to evade its contractual obligations by arguing that certain common law indemnity principles supersede the written terms. This appeal followed a multi-week jury trial from which the client and Ahlers Cressman and Sleight legal team, including Lindsay Watkins, Klien Hilliard, and Christina Granquist, obtained a seven-figure judgment in the client’s favor, including an award of all attorneys’ fees and costs. ICON was the general contractor on a Vashon Island Highway Pavement project for King County. Part of the work on the project involved hauling away and disposing of ground milled asphalt (the “millings”) at King County-approved sites. ICON and D&R Excavating Inc., (“D&R”) executed a subcontract for D&R to perform that work. The subcontract incorporated the contract between ICON and King County, including the obligation to stockpile millings only at approved sites. D&R, however, did not obtain the requisite approvals from King County, and placed the millings at various sites on the Island, including locations that King County explicitly rejected. Read the full story...
Reprinted courtesy of Margarita Kutsin, Ahlers Cressman & Sleight PLLC
Ms. Kutsin may be contacted at margarita.kutsin@acslawyers.com

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Best Practices: Commercial Lockouts in Arizona

April 15, 2024 — Patrick Tighe - Snell & Wilmer Real Estate Litigation Blog
If a tenant defaults under a commercial lease, Arizona law permits the landlord to re-take possession of the premises by locking out the defaulting tenant. However, if the landlord’s lockout is wrongful, the landlord may be liable for the damages the tenant sustains because of the wrongful lockout. To minimize such liability, here are some general best practices to follow when locking out a defaulting tenant:

• Do Not Breach the Peace. It is vital when performing a lockout to not breach the peace. What constitutes a “breach of the peace” depends on the particular circumstances at hand. For example, if a tenant arrives during the lockout and becomes angry or threatens violence, the landlord should stop performing the lockout and return at a later time. As a general rule of thumb, it is best to perform lockouts in the early morning hours or in the late evening hours when the landlord is less likely to encounter the tenant.
• Provide A Notice of Default. Many commercial leases require the landlord to provide a notice of default before the landlord can lock out a defaulting tenant. Check, double check, and triple check that the landlord followed the lease’s notice of default provisions correctly, including that the landlord sent the notices to all required parties in accordance with the time requirements set forth in the lease.

Read the full story...
Reprinted courtesy of Patrick Tighe, Snell & Wilmer
Mr. Tighe may be contacted at ptighe@swlaw.com

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Just How Climate-Friendly Are Timber Buildings? It’s Complicated

February 12, 2024 — Eric Roston - Bloomberg
This article is part of the Bloomberg Green series Timber Town, which looks at the global rise of timber as a low-carbon building material. The number of people living in urban areas around the world will swell by upwards of 2 billion over the next three decades. Many of those people will need new homes. But building those with conventional materials would unleash a gusher of carbon dioxide: Concrete, steel, glass and bricks for construction make up a combined 9% of global CO2 emissions, according to research by the United Nations Environment Program. Enter engineered wood, a seemingly no-brainer solution. Mass timber is not the typical lumber that has structured single-family houses in North America for decades. The wood components are strong enough to hold up an office tower or apartment block, and building with them is thought to emit much less CO2 than using standard materials. And since wood is about 50% carbon, the material itself even stores a little carbon, to boot. Read the full story...
Reprinted courtesy of Eric Roston, Bloomberg

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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

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Construction Litigation Roundup: “Builder’s Risk Indeed”

October 24, 2023 — Daniel Lund III - Lexology
A contractor for a hotel in Seattle was tasked with constructing the hotel utilizing premanufactured modular hotel rooms. The modular unit portion of the project was the subject of a $15.8 million subcontract between the general contractor and the manufacturer. The manufacturer was also responsible to the GC for shipping and installing the modular units. Shipping was to be “DDP,” or “Delivery Duty Paid” – which, according to a New York federal court, “is an international shipping term meaning that the seller assumes all responsibilities and costs for delivering property to the named place of destination, including export and import clearance, fees, duties, and taxes.” Additionally, per the subcontract, the manufacturer was responsible for “ensur[ing] all modular units [were] covered, secured[,] and protected from damage during the shipping process….” The modular units were shipped from Poland to Seattle. In the shipping process, the units spent some time in the Port of Everett in Washington state, where the units sustained water damage while sitting in port. A related damage claim made by the subcontractor against the general contractor’s builder’s risk policy. On the face of the policy, the policy covered subcontractors as “additional insured” parties, covered all manner of materials and the like to be used on the project, and would provide that coverage in the process of transporting the materials insofar as “inland or coastal waters” were concerned. Yet, the builder’s risk insurer refused to cover the claim for the damages to the modular units which occurred while sitting in port in Everett. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Jason Feld Awarded Volunteer of the Year by Claims & Litigation Management Alliance

April 15, 2024 — Linda Carter - Kahana Feld
On April 3, 2024, Kahana Feld’s Co-Founding Partner, Jason Feld was honored by the Claims & Litigation Management Alliance (CLM) with the Inaugural Volunteer of the Year award. The CEO of CLM, Ronna Ruppelt stated, “The new CLM Volunteer of the Year award honors dedicated members who passionately serve the CLM community. Jason’s service spans over a decade as both the President and Director of Events for the Orange County Chapter. Under his guidance, this chapter has flourished – not only educating and connecting the CLM community but rallying members to give back to the local community through service events in the process. Jason is also a frequent writer, speaker, and contributor for CLM events, and we are proud to honor him as our inaugural CLM Volunteer of the Year.” Mr. Feld is a renowned nationwide construction claims leader who actively speaks at industry events. He serves as panel counsel for many prominent insurance carriers and provides personal counsel for multiple national and regional builders, developers, and contractors. With his vast experience and expertise, Mr. Feld is a trusted authority in the field and is highly regarded for his legal representation. Read the full story...
Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

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Protect Projects From Higher Repair Costs and Property Damage

March 04, 2024 — Michael Teng - Construction Executive
Every aspect of a jobsite costs more today, from materials and labor to tools and equipment. Take construction input costs for example. While relatively flat in 2023, they remain almost 40% higher than they were pre-pandemic. With borrowing costs still high in the face of a stubbornly strong economy, project financing will remain a challenge. Still, contractors are expected to break more ground in 2024, fueled in part by the CHIPS Act, the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. Despite wages growing and the labor market remaining tight, many businesses are expected to dive deeper into their backlogs. Meanwhile, the economy is expected to grow with a chance for a short and mild recession. As industry leaders gauge economic pressures, it’s clear businesses must manage their costs—and financial risks in 2024. It’s a year where insurance and safety should take priority. Below are economic trends to monitor, and insurance strategies to help protect this year’s bottom line. Reprinted courtesy of Michael Teng, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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The Role of Code Officials in the Design-Build Process

November 16, 2023 — Grace Calengor - Construction Executive
Building codes are an integral part of the design-build process, but what role do building code professionals play throughout that process? Kevin McOsker, vice president of technology services for the government relations department at the International Code Council, breaks it down, from basic design to groundbreaking ideas to incorporating new technology and retrofitting older builds. McOsker, whose experience includes serving as building official for the city of Las Vegas, is no stranger to striking architecture and the safety protocols that go along with it. He believes that safety protocol starts before the contractors begin building and that contractors should be involved throughout the entire journey. Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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