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    Construction Expert Witness Builders Information
    Vader, Washington

    Washington Builders Right To Repair Current Law Summary:

    Current Law Summary: (SB 5536) The legislature passed a contractor protection bill that reduces contractors' exposure to lawsuits to six years from 12, and gives builders seven "affirmative defenses" to counter defect complaints from homeowners. Claimant must provide notice no later than 45 days before filing action; within 21 days of notice of claim, "construction professional" must serve response; claimant must accept or reject inspection proposal or settlement offer within 30 days; within 14 days following inspection, construction pro must serve written offer to remedy/compromise/settle; claimant can reject all offers; statutes of limitations are tolled until 60 days after period of time during which filing of action is barred under section 3 of the act. This law applies to single-family dwellings and condos.


    Construction Expert Witness Contractors Licensing
    Guidelines Vader Washington

    A license is required for plumbing, and electrical trades. Businesses must register with the Secretary of State.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Central Washington Home Builders Association
    Local # 4909
    3301 W Nob Hill Blvd
    Yakima, WA 98902
    http://www.cwhba.org

    Lewis-Clark Home Builders Association
    Local # 1310
    1313 6TH ST
    CLARKSTON, WA 99403
    http://www.lcbca.qwestoffice.net

    Home Builders Association of Tri-Cities
    Local # 4911
    10001 W Clearwater Ave
    Kennewick, WA 99336
    http://www.hbatc.com

    Lower Columbia Contr Assoc
    Local # 4922
    PO Box 2306
    Longview, WA 98632
    http://www.lcca.net

    Building Industry Association of Washington-State
    Local # 4900
    111 W 21st Avenue
    Olympia, WA 98501
    http://www.biaw.com

    Olympia Master Builders
    Local # 4933
    1211 State Ave NE
    Olympia, WA 98506
    http://www.omb.org

    Building Industry Association of Clark County
    Local # 4908
    103 E 29th St
    Vancouver, WA 98663
    http://www.biaofclarkcounty.org


    Construction Expert Witness News and Information
    For Vader Washington

    Mandatory Arbitration Provision Upheld in Construction Defect Case

    Statute of Limitations Upheld in Construction Defect Case

    Oregon agreement to procure insurance, anti-indemnity statute, and self-insured retention

    Nevada Supreme Court Reverses Decision against Grader in Drainage Case

    2011 Worst Year Ever for Home Sales

    Badly Constructed Masonry Walls Not an Occurrence in Arkansas Law

    No-Show Contractor Can’t Hide from Construction Defect Claim

    Nevada Assembly Sends Construction Defect Bill to Senate

    Florida: No Implied Warranties for Neighborhood Improvements

    Claims Under Colorado Defect Action Reform Act Count as Suits

    High School Gym Closed by Construction Defects

    Toxic Drywall Not Covered Under Homeowner’s Policy

    Consumer Protection Act Whacks Seattle Roofing Contractor

    Tenth Circuit Finds Insurer Must Defend Unintentional Faulty Workmanship

    Tampa Condo Owners Allege Defects

    Exclusion Bars Coverage for Mold, Fungus

    Defense for Additional Insured Not Barred By Sole Negligence Provision

    Defective Grout May Cause Trouble for Bridges

    Florida Appeals Court Rules in Favor of Homeowners Unaware of Construction Defects and Lack of Permits

    All Risk Policy Only Covers Repair to Portion of Dock That Sustains Damage

    Court Strikes Down Reasonable Construction Defect Settlement

    Cabinetmaker Exceeds Expectations as Conditions Improve

    In Re Golba: The Knaubs v. Golba and Rollison, Debtors

    Insurer Rejects Claim on Dolphin Towers

    Going Green for Lower Permit Fees

    Unit Owners Have No Standing to Sue under Condominium Association’s Policy

    Windows and Lawsuits Fly at W Hotel

    Washington Court of Appeals Upholds Standard of Repose in Fruit Warehouse Case

    Micropiles for bad soil: a Tarheel victory

    School District Marks End of Construction Project by Hiring Lawyers

    Discovery Ordered in Nevada Construction Defect Lawsuit

    Construction Worker Dies after Building Collapse

    Mississippi exclusions j(5) and j(6) “that particular part”

    Public Relations Battle over Harmon Tower

    Texas contractual liability exclusion

    Remodels Replace Construction in Redding

    California Lawyer Gives How-To on Pursuing a Construction Defect Claim

    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

    Allowing The Use Of a General Verdict Form in a Construction Defect Case Could Subject Your Client to Prejudgment Interest

    Parking Garage Collapse May Be Due to Construction Defect

    California Construction Bill Dies in Committee

    Couple Sues Attorney over Construction Defect Case, Loses

    California insured’s duty to cooperate and insurer’s right to select defense counsel

    History of Defects Leads to Punitive Damages for Bankrupt Developer

    Appeals Court Reverses Summary Judgment over Defective Archway Construction

    Court Consolidates Cases and Fees in Soil Construction Defect Case

    Save a Legal Fee: Prevent Costly Lawsuits With Claim Limitation Clauses

    Follow Up on Continental Western v. Shay Construction

    State Audit Questions College Construction Spending in LA

    Arbitrator May Use Own Discretion in Consolidating Construction Defect Cases

    Construction Defects and Contractor-Owners

    The Colorado Court of Appeals Rules that a Statutory Notice of Claim Triggers an Insurer’s Duty to Defend.

    Webinar on Insurance Disputes in Construction Defects

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

    Seven Former North San Diego County Landfills are Leaking Contaminants

    New Safety Standards Issued by ASSE and ANSI

    No “Special Relationship” in Oregon Construction Defect Claim

    New Jersey Court Rules on Statue of Repose Case

    Construction Defect Notice in the Mailbox? Respond Appropriately

    Legislatures Shouldn’t Try to Do the Courts’ Job

    Gut Feeling Does Not Disqualify Expert Opinion

    South Carolina Legislature Defines "Occurrence" To Include Property Damage Arising From Faulty Workmanship

    Negligent Construction an Occurrence Says Ninth Circuit

    Defect Claims as Occurrences? Check Your State Laws

    Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?

    Guilty Pleas Draw Renewed Interest In Nevada’s Construction Defect Laws

    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    New Washington Law Nixes Unfair Indemnification in Construction Contracts

    Know the Minnesota Statute of Limitations for Construction Defect Claims

    Quarter Four a Good One for Luxury Homebuilder

    Is Construction Heading Off the Fiscal Cliff?

    Lien Law Unlikely To Change — Yet

    Boston Tower Project to Create 450 Jobs

    Contractor’s Home Not Covered for Construction Defects

    Statutes of Limitations May be the Colorado Contractors’ Friend

    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

    Manhattan Developer Breaks Ground on $520 Million Project

    Seven Tips to Manage Construction Defect Risk

    Florida Construction Defect Case Settled for $3 Million

    Damron Agreement Questioned in Colorado Casualty Insurance v Safety Control Company, et al.

    Policyholder Fails to Build Adequate Record to Support Bad Faith Claim

    Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners

    California Supreme Court to Examine Arbitration Provisions in Several Upcoming Cases

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    California Assembly Bill Proposes an End to Ten Year Statute of Repose

    Colorado Statutes of Limitations and Repose, A First Step in Construction Defect Litigation

    School District Settles Construction Lawsuit

    Late Filing Contractor Barred from Involving Subcontractors in Construction Defect Claim

    Homeowners Must Comply with Arbitration over Construction Defects

    Another Las Vegas Tower at the Center of Construction Defect Claims
    Corporate Profile

    VADER WASHINGTON CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Vader, Washington Construction Expert Witness Group at BHA, leverages from the experience gained through more than 5,500 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Drawing from this considerable body of experience, BHA provides construction related trial support and expert services to Vader's most recognized construction litigation practitioners, commercial general liability carriers, owners, construction practice groups, as well as a variety of state and local government agencies.

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    Construction Expert Witness News & Info
    Vader, Washington

    Homeowner Has No Grounds to Avoid Mechanics Lien

    September 1, 2011 — CDJ Staff

    The California Court of Appeals has rejected a motion by a homeowner in a dispute with the contractor who built an extension to his home. In McCracken v. Pirvulete, Mr. McCracken filed a mechanics lien after Mr. Pirvulete failed to complete payment. The matter went to trial with a series of exhibits that showed “the contractual relationship was strained and the parties disagreed over performance and payment.” As a result of the trial, the court awarded Mr. McCracken, the contractor, $1,922.22.

    Mr. Pirvulete appealed, contending that the court had not allowed his daughter to act as a translator, that the court had failed to give him sufficient time to present his case, that the mechanics lien should have been dismissed, and several other claims, all before a formal judgment was issued. After the court formalized its judgment and rejected the appeal, Mr. Pirvulete appealed again.

    The appeals court found that Mr. Pirvulete did not provide an adequate record for review. The court dismissed Mr. Pirvulete’s claims. The court notes that Mr. Pirvulete claimed that a request for a discovery period was denied, however, he has provided neither the request nor the denial. The trial court has no record of either.

    Nor was there a record of a request that Mr. Pirvulete’s daughter provide translation. The court notes, “so far as we can glean from the record provided, the Register of Actions states, ‘Trial to proceed without Romanian Interpreter for Defendant; Daughter present to interpret if needed.’” Additionally, the court found that “there has been no showing that his facility with the English language is or was impaired in any way or that there was any portion of any proceeding, which he did not understand.”

    Further, the appeals court found there were no grounds for a new trial, despite Mr. Pirvulete’s filings. The court concluded, “The owner has failed to provide a record adequate for review of most, if not all, of the claims of error. Some issues are not cognizable because they relate to entirely separate proceedings, and not the trial below. To the limited extent that the claims are examinable, the owner has made no showing of error.” The court affirmed the judgment of the lower court against Mr. Pirvulete.

    Read the court’s decision…


    Can Negligent Contractors Shift Blame in South Carolina?

    July 10, 2012 — CDJ Staff

    Clay Olson looks back to a 1991 Carolina case, Nelson v. Concrete Supply Company. The court concluded in that case that “a plaintiff in South Carolina may recover only if his/her negligence does not exceed that of the defendant’s and amount of plaintiff’s recovery shall be reduced in proportion to amount of his or her negligence; if there is more than one defendant, plaintiff’s negligence shall be compared to combined negligence of all defendants.” In 2005, he reports, as part of tort reform in South Carolina, the legislature further addressed this.

    He then suggests a possible outcome of this is that negligent contractors may be able to shift some of the blame (and cost of the settlement) to other defendants who may not be to blame. He offers a scenario in which a contractor is sued for construction defects and a jury has to allocate responsibility for indivisible damage. “A jury need only find the two subcontractors to have each contributed 15% of the indivisible damage.” He adds in another 15% for claims against the architect. Minor blame is given to the manufacturers, and suddenly the negligent contractor is paying less than 50% of the total settlement.

    He notes that the previous system in place also had its problems, but notes that this one may not be “fair and equitable.”

    Read the full story…


    Construction Defects Lead to Demolition

    May 26, 2011 — CDJ Staff

    Ten years after it was built, demolition of Seattle’s McGuire Building has begun, as Jeanne Lang Jones reports in the Puget Sound Business Journal. Construction defects had rendered the 25-story apartment building uninhabitable. The major problem was corroded steel cabling. According to the report, “the building’s owners reached an undisclosed settlement last year with St. Louis-based contractor McCarthy Building Companies.”

    Read the full story…


    California Supreme Court Finds Associations Bound by Member Arbitration Clauses

    September 13, 2012 — CDJ Staff

    In a decision with great implications for construction defect suits in California, the California Supreme Court has ruled in Pinnacle Museum Tower Association v. Pinnacle Market Development that arbitration clauses binding on the members of the association are also binding on the association itself. They concluded this, even though “the association did not exist as an entity independent of the developer when the declaration was drafted and recorded.” The opinion, written by Justice Baxter, was joined by four additional justices, with two separate concurrences and a dissenting opinion by Justice Kennard.

    The Pinnacle homeowners sought to bring suit over construction defect claims. In response, the developer filed a motion to compel arbitration. The association argued that the arbitration clause signed by its individual members was not binding on it. The Appeals Court invalidated the arbitration agreement “finding it marked by slight substantive unconscionability and high degree of procedural unconscionability. The Appeals Court determined that “for all intents and purposes, Pinnacle was the only party to the ‘agreement,’ and there was no independent homeowners association when Pinnacle recorded the CC&R’s.” However, the California Supreme Court said that this was “not persuasive in light of the statutory and contract principles in play.”

    The opinion notes that “the Project CC&R’s provides that Pinnacle and, by accepting a deed to any portion of the Project property, the Association and each individual condominium owner agree to submit any construction dispute to binding arbitration in accordance with the FAA.” The Court noted that “settled principles of condominium law establish that an owners association, like its constituent members, must act in conformity with the terms of a recorded declaration,” which, as the Court notes, includes the CC&Rs.

    After finding that the terms were binding on the Association, the Court then questioned whether the terms were “unenforceable as unconscionable,” noting that “the party resisting arbitration bears the burden of proving unconscionability.” But the Court found that “the arbitration provisions of article XVIII are not substantively unconscionable.” Additionally, they found “no support for the Association’s claims of unfairness and absence of mutuality.”

    Read the court’s decision…


    LEED Certified Courthouse Square Negotiating With Insurers, Mulling Over Demolition

    June 6, 2011 — Douglas Reiser in the Builders Counsel Blog

    Apparently, Courthouse Square is still unresolved. The County hasnow hired an attorney to handle its insurance claim against Affiliated FM. Is there a lawsuit coming?

    Right now, no lawsuit is expected. According to officials, the insurer has been acting in good faith. But, its been quite a while since Salem officials learned that the Courthouse Square building had significant concrete issues that would result in probable demolition of the LEED certified building.

    If you have yet to hear about Courthouse Square, let me fill you in briefly. The Salem building was substantially completed in 2000 and LEED certified by the US Green Building Council in 2002. The project cost more than $30 Million to complete and the building was revered for its innovation as a crowning achievement for city leaders.

    But, structural problems in the building’s core were discovered as early as 2002, writes Chris Cheatham of Green Building Law Update. Final tests earlier in the year, determined that the building had to be vacated. The building has been clear since July 2010.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com


    MGM Seeks to Demolish Harmon Towers

    September 1, 2011 — CJD Staff

    Citing public safety concerns and the cost of repair, MGM Resorts International is seeking to demolish the unfinished hotel tower. The company has a few hurdles to go through before they start laying the charges to implode the structure. Any plans would have to be approved by not only Clark County officials, but also the district court has an order blocking any activity during litigation between MGM and the general contractor on the project, Perini Building Company.

    Architectural Record reports that MGM states it would take “approximately 18 months to conduct test and come up with an approved, permitted design to fix the Harmon.” MGM feels that repairs would then take another two to three years. Perini contends that they could “provide stamped drawings detailing all necessary repairs within three months.” They attribute MGM’s desire to demolish the building as “buyer’s remorse.”

    Read the full story…


    Water Damage Covered Under Efficient Proximate Cause Doctrine

    August 2, 2012 — Tred Eyerly, Insurance Law Hawaii

    A U.S. District Court in Washington found coverage in what it described as a text book study of the efficient proximate cause rule. Hiller v. Allstate Pro. & Cas. Ins. Co., 2012 U.S. Dist. LEXIS 84862 (E.D. Wash. June 19, 2012).

    The Hillers purchased a newly constructed home in December 2006. They also purchased an all-risk homeowner's policy from Allstate.

    In July 2010, the Hillers discovered that the carpet in the basement of the residence was saturated with water. Allstate was immediately notified. Hiller began an investigation to attempt to determine the source of the water. He poured water into a downspout drain at the northwest corner of the residence. This caused water to leak into the northwest corner of the home's basement.

    An area was excavated around the northwest downspout drain. The end of the drain pipe was partially blocked by rocks and had been wrapped with fabric landscaping material. Further, a “T” pipe installed at the foot of the drain was directing water toward the house's concrete foundation. Hiller notified Allstate that the problems with the drain was due to construction defects and the system was designed to fail.

    Allstate denied the claim. Based upon Hiller's information, coverage was excluded under the policy's surface water, subsurface water, inherent vice, and latent defect exclusions.

    Read the full story…

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


    Oregon agreement to procure insurance, anti-indemnity statute, and self-insured retention

    March 5, 2011 — By CDCoverage.com, March 5, 2011

    In Continental Casualty Ins. Co. v. Zurich American Ins. Co., No. 09-35484 (9th Cir. Oct. 28, 2010), general contractor TCR was sued by an employee of subcontractor Safeway for bodily injuries suffered while working on the project. In the subcontract, Safeway agreed to procure primary insurance providing coverage for TCR for liability arising out of Safeway’s negligence. Safeway’s CGL policy included a self-insured retention that had to be satisfied before the insurer had a duty to defend. TCR filed suit against Safeway alleging that

    Read the full story...

    Reprinted courtesy of CDCoverage.com


    Claims Under Colorado Defect Action Reform Act Count as Suits

    July 10, 2012 — CDJ Staff

    The Colorado Court of Appeals has affirmed the judgment of the lower court in Melssen v. Auto-Owners Insurance. The Melssens built a custom home for the Holleys, during which time the Melssens retained a comprehensive general liability policy from Auto-Owners, which “obligated Auto-Owerns to defend the Melssens with respect to any ‘suit’ seeking damages for ‘property damage’ during the policy period.” Soon after the house was constructed, cracks developed in the drywall, then outside stucco and basement slab. The Holleys contended that “approximately $300,000 of damages to the Holleys’ property was caused by the Melssens’ engineering and construction defects” and filed a claim under the Colorado Defect Action Reform Act (CDARA). The Melssens “demanded Auto-Owners defend and indemnify the Melssens and forwared Auto-Owners the notice of claim.”

    Although the Melssens notified Auto-Owners in June 2008, it was not until October 2008 that Auto-Owners denied coverage stating that the claims were sustained outside the policy period. The Melssens filed an action against Auto-Owners. At trial, the jury ruled in favor of the Melssens awarding them damages, to which the trial court added costs and attorney fees.

    On appeal, Auto-Owners contended that the trial court erred in allowing the Melssens to argue that the CDARA notice of claim “was the functional equivalent of a complaint commencing a suit.” The appeals court found that “the CDARA notice of claim process constituted an alternative dispute resolution proceeding under the policy.” The court agreed that jury should not have been asked to determine if a CDARA action is a “suit,” but as the jury found for the Melssens, the concluding it “constituted harmless error.” Further, the court found that an action under the CDARA satisfied the definition of a “suit.”

    The court found for the Melssens, affirming the lower court’s decision and remanding the case to the lower court for the awarding of appeals costs to the Melssens.

    Read the court’s decision…


    Late Filing Contractor Barred from Involving Subcontractors in Construction Defect Claim

    March 1, 2012 — CDJ Staff

    The Colorado Court of Appeals looked at that state’s Construction Defect Action Reform Act in determining if a general contractor could add subcontractors as third-party defendants to a construction defect lawsuit. Shaw Construction, LLC was the general contraction of the Roslyn Court condominium complex, and was sued by the homeowners’ association in a construction defect case. United Builder Services was the drywall subcontractor on the project. MB Roofing had installed roofs, gutters, and downspouts. The certificate of occupancy for the last building was issued on March 10, 2004. The project architect certified completion of all known remaining architectural items in June, 2004.

    The HOA filed a claim against the developers of the property on January, 21, 2009. A week later, the HOA amended its complaint to add Shaw, the general contractor. Shaw did not file its answer and third-party complaint until March 29, 2010, sending its notice of claim under the CDARA on March 30.

    The subcontractors claimed that the six-year statute of limitations had ended twenty days prior. Shaw claimed that the statute of limitations ran until six years after the architect’s certification, or that the HOA’s suit had tolled all claims.

    The trial court granted summary judgment to the subcontractors, determining that “substantial completion occurs ‘when an improvement to real property achieves a degree of completion at which the owner can conveniently utilize the improvement of the purpose it was intended.’”

    The appeals court noted that “Shaw correctly points out that the CDARA does not define ‘substantial completion.’” The court argued that Shaw’s interpretation went against the history and intent of the measure. “Historically, a construction professional who received a complaint responded by ‘cross-nam[ing] or add[ing] everybody and anybody who had a part to play in the construction chain.’” The court concluded that the intent of the act was to prevent unnamed subcontractors from being tolled.

    The court further rejected Shaw’s reliance on the date of the architect’s certification as the time of “substantial completion,” instead agreeing with the trial court that “the architect’s letter on which Shaw relies certified total completion.”

    The appeals court upheld the trial court’s determination that the statute of limitation began to run no later than March 10, 2004 and that Shaw’s complaint of March 29, 2010 was therefore barred. The summary judgment was upheld.

    Read the court’s decision…


    Construction Defect Notice in the Mailbox? Respond Appropriately

    August 4, 2011 — Douglas Reiser, Builders Counsel

    Recently, I have seen a rash of ignored construction defect notices. What is a construction defect notice? It’s a statutorily required notice, sent from a homeowner to a contractor, listing a number of defects found at their property. If you get one, don’t ignore it.

    The Revised Code of Washington includes a number of provisions intended for residential construction disputes. Among them is the “Notice to Customer” requirement in RCW 18.27.114, which can preempt a contractor’s lien rights, and the “Notice of Construction Defects” found in RCW 64.50.020.

    The Notice of Construction Defects is a standard notice mandated by RCW 64.50, a chapter in the Revised Code of Washington, intended to provide a pre-litigation resolution process for contractors and consumers. The chapter applies only to those losses “caused by a defect in the construction of a residence or in the substantial remodel of a residence.”(See “Action” RCW 64.50.010).

    Unfortunately, many contractors will simply ignore these notices or tell the homeowner to make a warranty claim. But, the notice actually provides a contractor with a forty-five (45) day window to alleviate the dispute.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com


    Court finds subcontractor responsible for defending claim

    May 18, 2011 — May 18, 2011 - CDJ Staff

    In an unpublished decision, the California Fourth Appellate District Court has reversed the judgment of Judge Linda B. Quinn of the Superior Court of San Diego. In the case Inland California, Inc. v. G.A. Abell, Inland, a general contractor had subcontracted with Apache Construction and Precision Electric Company (G.A. Abell).

    Apache alleged that extra demolition and drywall work was needed due to Precision’s electrical work. Inland tendered a defense of Apache’s claims. However, Precision did not provide any defense. Inland withheld payment from Precision.

    At trial, Inland “conceded Precision earned the $98,000 in progress payments Inland withheld.” They were obligated to additionally pay Precision’s costs and attorney fees.

    The Fourth Appellate District court has overturned this and remanded the case back to the lower court. The judges determined that Precision was obligated to defend itself against the claims raised by Apache and therefore vacated the judgment against Inland.

    Read the court’s decision…


    New Web Site Tracks Settled Construction Defect Claims

    June 19, 2012 — CDJ Staff

    Peter Lissner, a former Nevada homebuilder, has created a new site to help track homes that have been involved in construction defect litigation. His site, housefaxreview.com, collections documentation about homes where claims of construction defects have been made. He told The Builders Magazine concerns about “the number of homes that have been served notices, received compensation, yet the homes weren’t repaired.” On the site, the creator is identified as “a family owned builder.” According to the site, “the builder had no claims until the neighborhood reached the statutory claims limit 10 years.”

    Lissner also claims that in many cases, after settling construction defect lawsuits, the homeowners sell to subsequent buyers without disclosing the lawsuit or their failure to repair. “Who is going to let the new homeowner know about the issue?” he asks.

    Documents on the site are priced according to their relevance. Lissner notes that those who provide documents to the site will receive free access.

    Read the full story…


    Contractor Sues License Board

    June 30, 2011 — CDJ Staff

    Judge Kendall J. Newman of the US District Court handed down a decision on June 24 on the case of Kent v California Department of Consumer Affairs. Mr. Kent, appearing as his own counsel, had brought the suit against the California Department of Consumer Affairs and the Contractors State Licensing Board after he was arrested in a sting operation and, as the plaintiff put it, “was absurdly arrested and uncooperatively detained for a time longer than necessary or allowed by law under the false pretense of contracting with out a license.” Mr. Kent’s alleged that Rick Lopez, one of the defendants, formed him to read allow from the California Business and Professions Code. He said he was later handcuffed and placed in an uncomfortable chair, “enduring physical pain and emotional agony.”

    Although Kent was given a Notice to Appear, he alleged that a further defendant, Stuart Rind, “closed the plaintiff’s case marked citation A7773 without giving written notice to anyone.” As a result, the Placer County District Attorney’s Office had no record of his Notice to Appear.

    Kent alleged that subsequently his firm was essentially shut down for two years and that he was prevented from “legally contracting or selling services for any other contractor or qualifying for any other licensed capacity governed by the CSLB.” After this, the CSLB suspended the license for his firm, DSI Construction. He was assessed a $1,500 fine, after which he claims he sent a letter to the CSLB demanding money damages. The judge noted that the letter was not included in the plaintiff’s Ninth Amended Complaint.

    Judge Kendall recommended that the plaintiff’s Complaints be dismissed, although he did allow that sixth, and perhaps the eighth and ninth, could be amended with a tenth amended complaint.

    Read the court’s decision…


    Reference to "Man Made" Movement of Earth Corrects Ambiguity

    December 20, 2012 — Tred Eyerly, Insurance Law Hawaii

    In Pioneer Tower Owners Assn. v. State Farm Fire & Cas. Co., 12 NY3d 302 (2009), the New York Court of Appeals found an "earth movement" exclusion was ambiguous when applied to an excavation. The court now considered whether a similar exclusion, expressly made applicable to "man made" movement of earth, eliminated the ambiguity when loss was created by excavation. Bentoria Holdings, Inc. v. Travelers Indem. Co., 2012 N.Y. LEXIS 3087 (N.Y. Oct. 25, 2012).

    Plaintiff's building suffered cracks due to an excavation being conducted on the lot next door. A claim was submitted to Travelers, plaintiff's insurer. Travelers rejected the claim, relying on the earth movement exclusion. 

    Read the full story…

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


    Nevada Budget Remains at Impasse over Construction Defect Law

    June 1, 2011 — CDJ Staff

    Negotiations for the Nevada state budget have stalled over proposals to amend the state’s construction defect laws. Assembly Republicans had offered changes to the law to make it friendlier to contractors; however, after a state Supreme Court ruling that the state could not move a local government entity’s funds into state coffers, pressure has increased on the governor to lift the expiration dates of taxes approved in 2009.

    The Reno Gazette-Journal quotes John Madole, a construction industry lobbyist, “We agree with them that you have to address the issue of the attorney fees, and for all practical purposes, they are automatically awarded when anybody brings any kind of suit.”

    Speaker of the Assembly, John Oceguera, a Democrat, has proposed a bill that “makes it absolutely crystal clear that the only time you get attorney's fees is if you're the prevailing party.”

    Read the full story…


    David McLain to Speak at the CDLA 2012 Annual Conference

    June 19, 2012 — CDJ Staff

    The Colorado Dense Lawyers Association will be holding their 2012 Annual Conference from July 26 through the 28, in Crested Butte, Colorado. The CDLA provides benefits to its member defense trial lawyers, including educational and information resources.

    David McLain of Higgins, Hopkins, McLain & Roswell, LLC will be joining in a discussion with William J. McConnell, PE of Vertex Engineering on Saturday, July 28. Their topic will be common building code violations alleged in construction defect cases and how to respond to these allegations.

    Read the full story…


    Yellow Brass Fittings Play a Crucial Role in Baker v Castle & Cooke Homes

    May 10, 2012 — CDJ Staff

    Baker v Castle & Cooke Homes Hawaii, et al. is a “class action filed by homeowners who allege that their homes have a construction defect. They allege that their plumbing systems include brass fittings susceptible to corrosion and likely to cause leaks. They bring this action against the developer of their homes and the manufacturers of the brass fittings.”

    Zurn, the manufacturer of the allegedly defective brass fittings, sought a dismissal, or if that could not be achieved, then “a more definite statement, of five of the six claims.” Zurn moved for summary judgment on the sixth claim, or alternately sought “summary judgment on one of the five claims it” sought to dismiss.” The court granted in part the motion, and denied the motion for summary judgment.

    The developer, Castle & Cooke, sought dismissal of the First Amended Complaint stating “that Plaintiffs have not complied with Hawaii’s Contractor Repair Act, chapter 672E of Hawaii Revised Statutes, which requires, among other things, a plaintiff to give a contractor the results of any testing done before filing an action against that contractor.” The court couldn’t determine “certain facts essential to ruling” on Castle & Cooke’s motion, and therefore denied the motion, but ordered Plaintiffs to submit requested material by the stated deadline.

    The Baker v Castle & Cooke case began with the Plaintiffs claim that the use of yellow brass fittings can lead to construction defects. They allege that “yellow brass is particularly susceptible to dezincification, a corrosion process in which zinc leaches into potable water that comes into contact with the brass. According to Plaintiffs, as the brass corrodes, it becomes porous and mechanically weak. Plaintiffs further allege that the PEX systems in the putative class members’ homes have begun to, or are about to, leak water into the walls, ceilings, and floors of their homes. Plaintiffs allege that the leakage will cause water damage and mold growth, exposing the occupants to toxins.”

    In response to the plaintiffs’ claims, Zurn argued “because their yellow brass fittings have not failed to date, Plaintiffs fail to allege, and have no evidence showing, that they have suffered any actual injury.” Plaintiffs replied, “even if the fittings have not failed as of today, failure in the future is inevitable.”

    However, the court stated, “whether Plaintiffs have suffered any injury, or whether Plaintiffs are attempting to proceed based solely on future injury, implicates Plaintiffs’ standing to bring this action, as well as whether this case is ripe for adjudication.” The court has requested the parties to submit “supplemental briefing on whether this case should be dismissed pursuant to Rule 12(b)(1). In supplemental briefs, Zurn argues that dismissal is appropriate because Plaintiffs lack standing, and Castle & Cooke argues that dismissal is appropriate because Plaintiffs’ claims are not ripe.”

    The court continues to discuss the problem of standing: “To establish standing, a plaintiff must demonstrate three things. First, the plaintiff must suffer an "injury-in-fact," which means that there must be a concrete and particularized "invasion of a legally protected interest" and the invasion is actual or imminent. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992). Second, the injury must be fairly traceable to the challenged action. Third, a favorable decision must be likely to redress the injury. Id. It is the first element (injury-in-fact) that is in issue here.”

    The court found that the plaintiffs do have standing: “Even if the court could not rely on the allegations that the pipes will soon leak, the court would conclude that, for standing purposes, Plaintiffs have a sufficient injury-in-fact in the form of their alleged economic loss.” In a hearing, Plaintiffs argued that their homes had decreased in value.

    The court also denied Castle & Cooke’s motion to dismiss based on a lack of ripeness, stating “the same reasons Plaintiffs satisfy the injury-in-fact requirement for standing purposes, they satisfy the constitutional ripeness requirement.”

    Plaintiffs asserted six counts against Zurn. Zurn, in response, made a motion to dismiss counts VIII, IX, X, XII, and XIII. The court granted Zurn’s motion for Counts VIII, IX, and X only: “Counts VIII (product liability), IX (negligence), and X (strict liability) sound in tort. Zurn argues that, because Plaintiffs allege no injury other than to the PEX systems and the yellow brass fittings themselves, the economic loss rule bars their tort claims. The court agrees.”

    The court disagreed with Zurn’s motion regarding Count XII: “Count XII asserts that Zurn has breached the implied warranty of merchantability. Zurn argues that Count XII is barred by the applicable statute of limitations and that Plaintiffs do not sufficiently allege an injury. The court disagrees.”

    Zurn’s motion regarding Count XIII was also denied: “Count XIII asserts that Zurn violated section 480-2 of Hawaii Revised Statutes.” Furthermore, “Plaintiffs allege that Zurn ‘engaged in unfair and deceptive acts or practices when [it] designed, manufactured and sold Yellow Brass Fittings.’ Zurn argues that Plaintiffs fail to state a claim under section 480-2(a) because their claims are barred by the statute of limitations and they do not adequately allege reliance or a cognizable injury. The court disagrees.”

    The court denied the motion for summary judgment with respect to Counts XI and XII.

    Castle & Cooke sought to dismiss “Plaintiffs’ claims against it under section 672E-2 of Hawaii Revised Statutes, which provides for dismissal when claimants fail to comply with chapter 672E.” There was some discussion regarding the test results. Apparently, the plaintiffs had failed to provide a written notice of claim at least 90 days before filing the action. However, it is unclear if the Plaintiffs have since complied with the requirements of the chapter. “The court has received no supplemental information from either party about whether any test results from another case have been turned over or whether those materials are subject to a confidentiality agreement. The record at this point does not establish noncompliance with the requirement in chapter 672E to provide such information. The court therefore denies the motion to dismiss.”

    In summary, “Zurn’s motion to dismiss is granted as to Count VIII, Count IX, and Count X. Zurn’s motion to dismiss is denied with respect to Plaintiffs’ other claims. Zurn’s request for a more definite statement and its summary judgment motion are denied. Plaintiffs are given leave to file an amended Complaint no later than May 21, 2012.” Furthermore, “the court denies Castle & Cooke’s motion, but directs Plaintiffs to file, within two weeks, either a certificate of compliance with section 672E-3(c), or an explanation as to why they have not complied. Castle & Cooke may submit a response within two weeks of Plaintiffs’ submission. Each party’s submission is limited to 1000 words.”

    Read the court’s decision…