SEATTLE WASHINGTON CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

Risky Business: Contractual Versus Equitable Rights of Subrogation

December 16, 2023 — Kyle Rice - The Subrogation Strategist
In Zurich Am. Ins. Co. v. Infrastructure Eng’g. Inc., 2023 Ill. App. LEXIS 383, the insurer, Zurich American Insurance Company (Insurer) proceeded as subrogee of Community College District No. 508 d/b/a City Colleges of Chicago and CMO, a Joint Venture. The Appellate Court of Illinois, First District (Appellate Court) addressed whether Insurer – who issued a builder’s risk policy to insure a building during construction – could subrogate on behalf of the building owner, City Colleges of Chicago (City Colleges), who was part of the joint venture and an additional named insured, but who had not been directly paid for the underlying loss. The Appellate Court determined that the policy language established that the carrier was contractually permitted to subrogate on behalf of all additional named insureds on the policy, including the building owner. Read the full story...
Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

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Government Claims Act Does Not Apply to Actions Solely Seeking Declaratory Relief and Not Monetary Relief

March 25, 2024 — Garret Murai - California Construction Law Blog
Perhaps it should come as no surprise, but public entities get special treatment under the law, and when filing a claim against a public entity, in most cases, a claimant is required to file a claim with the public entity before filing suit under the Government Claims Act (Gov. Code §810 et seq.). But, as the next case demonstrates, that’s not always the case. In Stronghold Engineering Incorporated v. City of Monterey, 96 Cal.App.5th 1203 (2023), the 6th District Court of Appeals examined whether a public works contractor that alleged an extended overhead claim was required to file a Government Claims Act claim before filing suit when its initial complaint was limited to a claim for declaratory relief. The Stronghold Case In December 2015, general contractor Stronghold Engineering Incorporated entered into a construction contract with the City of Monterey for the renovation of the City’s conference center and an adjacent city-owned plaza. The construction contract provided that any modification to the construction contract had to be approved by the City through a written change order. No surprise there. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Roni Most, Esq., Reappointed as a City of Houston Associate Judge

November 06, 2023 — Linda Carter - Kahana Feld
Yesterday, Roni M. Most, Esq., was reappointed as an Associate Judge for the City of Houston. Mr. Most is the Managing Partner of Kahana Feld’s Houston office, chairs the firm’s Corporate Compliance & Transaction group, and heads the Texas division of Kahana Feld’s National Appellate Strategy & Advocacy group. Mr. Most was first appointed as an Associate Municipal Court Judge of the City of Houston in 2012 and he continues to serve in this position. The Most name has been a fixture in Harris County courts, with Judge Most being a third-generation attorney, his family has advocated for their client’s causes for over five decades. Mr. Most received his Bachelor of Liberal Arts degree from the University of Texas at Austin and went on to graduate with his J.D. from the South Texas College of Law in 2000. Upon graduating, Mr. Most started The Most Law firm, and then went on to become one of the founding partners of Gerber & Most, PLLC. Mr. Most joined Kahana Feld as a Partner in January 2021. He brings over 20 years of experience in general civil litigation (property & casualty) and appeals, state and federal corporate litigation, collections, construction law, and real estate, as well as providing general business counsel. Read the full story...
Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

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Beyond the Statute: How the Colorado Court Upheld Modified Accrual in Construction Contracts

November 13, 2023 — Hal Baker - Colorado Construction Litigation Blog
In a case of first impression, the First Division of the Colorado Court of Appeals recently reviewed whether parties may contractually alter the accrual time established by Colorado’s statute of limitations for construction defect actions, C.R.S. § 13-80-104, in South Conejos Sch. Dist. RE-10 v. Wold Architects, Inc., 2023 COA 85 (2023), decided on September 21, 2023. The Court held that sophisticated parties may contractually alter the accrual time standards, enlarging the accrual time as was the issue in this case. Notably, the Court’s decision was made in the context of commercial construction, not residential. The issue in South Conejos Sch. Dist. RE-10 arose from the construction of a school in Antonito, Colorado. Prior to construction, the South Conejos School District RE-10 (the “School District”) and Wold Architects, Inc. (“Wold”) entered a contract that provided: Unless a longer period is provided by law, any action against [Wold] brought to recover damages for deficiency in the design, planning, supervision, inspection, construction or observation of construction or for injury to person or property shall be brought within two years after the claim for relief arises and is discovered by [the District]; … “Discovered” as used herein means detection and knowledge by [the District] of the defect in the improvement that ultimately causes the injury, when such defect is of a substantial or significant nature. Read the full story...
Reprinted courtesy of Hal Baker, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Baker may be contacted at baker@hhmrlaw.com

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Federal Magistrate Judge Recommends Rescission of Policies

February 12, 2024 — Craig Rokuson - Traub Lieberman
In the recent case of Union Mut. Fire Ins. Co. v. 142 Driggs LLC, 2023 U.S. Dist. LEXIS 220393, Magistrate Judge Lois Bloom of the United States District Court for the Eastern District of New York recommended granting the insurer's default judgment and holding that of three policies issued to 142 Driggs LLC ("Driggs") be rescinded ab initio. Driggs had represented on its insurance applications that it did not provide parking to anyone other than itself, tenants, and its guests at the subject insured premises. However, Union Mutual learned that Driggs had been renting out three garages to non-tenants. Second, Driggs represented that the mercantile square footage was around 1,000 square feet, when in actuality, it was larger than allowed under the policies. Union Mutual provided underwriting guidelines in connection with its default motion, which state that "parking provided for anyone other than the insured, tenants and their guests," presents an "unacceptable risk." The guidelines also state that answering yes to any "preliminary application questions (which presumably included those regarding mercantile square footage and parking) is an "unacceptable risk." The court held that these guidelines supported a finding that Driggs made material misrepresentation and that Union Mutual relied on these misrepresentations in issuing the policies. The court, as such, recommended that the policies at issue be rescinded from inception. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

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Perez Broke Records … But Should He Have Settled Earlier?

February 19, 2024 — Sofya Uvaydov & John F. Watkins - Kahana Feld
In 2021, Mark Perez’ Labor Law 240(1) lawsuit made legal news by breaking the record of the highest appellate-sustained pain and suffering award in New York history. While that record was short-lived, it still maintains its place as New York’s highest-ever pain and suffering award for a brain injury. This January 17th, the Appellate Division, First Department revisited the litigation but, this time, in a dispute between Perez and his then-lawyer, Ben Morelli and the Morelli Law Firm. Mr. Perez claims breach of contract over a 10% additional contingency fee charge related to the Perez v. Live Nation appeal and breach of fiduciary duty by his counsel in failing to convey settlement offers during the lifetime of the case. The Morelli firm counters, among other things, that the prior settlement offers – a $30 million offer during the 2019 trial and intermediate sums during the appellate stage – were still lower than the ultimate $55 million settlement. No harm, Mr. Morelli argues, and thus no foul in failing to convey the offers. But is that so? Did Mark Perez ultimately receive more money in his $55 million settlement than from the $30 million settlement offer mid-trial? Despite the glaring $25 million difference, the surprising calculations show that Perez would have been financially better off taking the $30 million mid-trial settlement. Reprinted courtesy of Sofya Uvaydov, Kahana Feld and John F. Watkins, Kahana Feld Ms. Uvaydov may be contacted at suvaydov@kahanafeld.com Mr. Watkins may be contacted at jwatkins@kahanafeld.com Read the full story...

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Appraisal Award for Damaged Roof Tiles Challenged

December 04, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The district court denied Travelers' motion for summary judgment and granted the insureds' motion in part regarding replacement of roof tiles damaged in a hail storm. Bertisen v. Travelers Home & Marine Ins. Co., 2023 U.S. Dist. LEXIS 159649 (D. Colo. Sept. 8,2023). On May 8, 2017, the insureds' home was struck by a hailstorm that damaged their property. A Travelers inspector found damage to metal roof components, a deck, patio furniture and gutters. A partial payment of $6,381.04 was made. A further payment was made for personal property damaged by the storm. Travelers disputed that the hailstorm caused damage to all of the roof tiles. Travelers' adjustor reinspected the property and observed additional damages caused by hail and another payment of $6,605.22 was issued. 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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Watchdog Opens Cartel Probe Into Eight British Homebuilders

April 02, 2024 — Damian Shepherd & Katharine Gemmell - Bloomberg
Britain’s top antitrust enforcer has opened an investigation into eight housebuilders to probe potential information sharing, sharpening scrutiny of a sector that’s failing to deliver enough affordable housing to meet demand. The Competition and Markets Authority has opened a cartel investigation into eight developers including Barratt Developments Plc, the Berkeley Group, Persimmon Plc and Vistry Group Plc. The investigation centers on concerns the companies may have exchanged competitively sensitive information, which could be influencing the build-out of sites and the prices of new homes. An initial review will take place until December. CMA Chief Executive Officer Sarah Cardell told Bloomberg Television the watchdog had seen potential evidence of companies exchanging information relating to pricing, sales rates, and incentives offered to new homebuyers. The watchdog has the power to fine firms a maximum penalty of as much as 10% of annual revenue and disqualify directors following cartel investigations. Reprinted courtesy of Damian Shepherd, Bloomberg and Katharine Gemmell, Bloomberg Read the full story...

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