Category: Construction Litigation

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Disgorgement Liability in CA for Unlicensed Contractors Runs One Year from Completion or Cessation

By Tamara Boeck on Posted in California, Construction Contract Interpretation, Construction Industry, Construction Liens, Construction Litigation, Contractor Licensing, Damages Claims, Licensing
In a very recently published case dealing with issues of first impression in California, here, the Second Appellate District in Los Angeles determined that the disgorgement penalty under BPC 7031(b) triggers a one-year statute of limitations given that it is a penalty, and the cause of action accrues from either the completion or cessation of … Continue Reading

Registration Now Open for the WSBA Construction Section’s Annual CLE Seminar (Via Webinar on June 12, 2020, on Alternative Procurement and Coronavirus Impacts)

By Bart Reed on Posted in Construction Contracts, Construction Industry, Construction Litigation, COVID-19
The Construction Section of the Washington State Bar Association, in partnership with Stoel Rives, will present its annual full day seminar (via webinar) on June 12.  Co-chaired by Bart Reed (Partner at Stoel Rives), Brett Hill (Partner at Ahlers, Cressman & Sleight), and Ron English (Retired General Counsel of the Seattle Public Schools), the webinar will … Continue Reading

Differing Site Conditions An Issue in the Seattle SR 99 Tunnel Litigation

By Karl Oles on Posted in Construction Claims, Construction Litigation, Washington
In late 2019, the Washington State Department of Transportation and Seattle Tunnel Partners (STP) engaged in a nine-week trial of claims arising from construction of the new State Route 99 tunnel under downtown Seattle. One major issue for the jury was whether STP had encountered “differing site conditions” – unknown underground conditions that differ materially … Continue Reading

Stoel Rives Helps WSDOT Defeat a $640 Million Claim

By Karl Oles on Posted in Construction Claims, Construction Litigation, Infrastructure
The biggest construction project in Seattle in recent years has been the replacement of a seismically compromised waterfront viaduct with a tunnel carrying State Route 99 under downtown. The project was delayed for about two years while the contractor repaired damage to its tunnel boring machine. The contractor claimed that the damage was caused by … Continue Reading

Recent Washington Court Decision Examines Whether Lien Claim on Condominium Unit Was Frivolous (Subject to Release) or Excessive (Subject to Reduction)

By Bart Reed on Posted in Condominiums, Construction Claims, Construction Liens, Construction Litigation, Liens
On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019).  The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a … Continue Reading

Solar PPA Provider That Only “Arranges” Installation of System It Owns Is Not a “Contractor” in California

By Tamara Boeck and Brian Nese on Posted in Construction Contract Interpretation, Construction Industry, Construction Litigation, Contractor Licensing, Licensing, Statutes of Limitation
In the recently issued but unpublished decision Reed v. SunRun, Inc. (Los Angeles County Super. Ct. No. BC498002, Feb. 2, 2018), the Second District Court of Appeal ruled that a solar power purchase agreement (“PPA”) provider that only sells solar energy to homeowners is not required to be a licensed California contractor under certain circumstances.  … Continue Reading

Washington Supreme Court Affirms Brightwater Decision Regarding Application of Olympic Steamship to Sureties

By Bart Reed on Posted in Bond Claim, Construction Claims, Construction Litigation
On July 6, 2017, the Washington Supreme Court confirmed that the equitable rule announced in Olympic Steamship—providing for attorney fees where the insurer compels the insured to take legal action—applies to performance bond sureties on public projects.[1]  In King County v. Vinci Construction Grands Projects/Parsons RCI/Frontier-Kemper, the Court affirmed the trial court’s award of over … Continue Reading

Think the ADA preempts contractual risk shifting? Not so fast, says the Ninth Circuit.

By Eric Grasberger and Cory Haller on Posted in Construction Claims, Construction Contracts, Construction Defects, Construction Litigation, Design Professionals and Claims, Developers v. Contractors, Indemnity, Public Construction Contracting
Rejecting an argument that the ADA preempts all contractual claims for indemnity and contribution, the Ninth Circuit recently upheld a public owner’s right to seek contribution for damages arising out of ADA violations caused by the designer and contractor of a transportation facility. See City of Los Angeles v. AECOM Services, Inc. (here). This decision … Continue Reading

What’s Up with Bertha?

By Karl Oles on Posted in Construction Litigation
Regular readers of this blog know that Stoel Rives represents the State of Washington Department of Transportation (“WSDOT”) with regard to construction of the new highway 99 tunnel in downtown Seattle. The giant tunnel boring machine, named “Bertha” (not “Big Bertha” as is sometimes reported), finished its work in April and is now undergoing a … Continue Reading

WSBA Construction Section Annual Seminar – June 9, 2017

By Bart Reed on Posted in Construction Liens, Construction Litigation, Public Construction Contracting, Statutes of Limitation
On June 9, 2017, my colleague, Karl Oles, and I (both from the Seattle office of Stoel Rives) will present at the annual meeting and seminar for WSBA’s Construction Section, which this year is entitled Washington Statutes Affecting Construction.  This seminar, located at the WSBA Conference Center in Seattle, will feature in-depth discussions regarding important … Continue Reading

Alter Ego: The $5MM personal danger of neglecting corporate formalities and utilizing substandard building materials

By Andrew Gibson on Posted in Construction Defects, Construction Litigation, Damages Claims, Defects, Developers v. Contractors, Formation of Construction Entities, Owner Insolvency
Many building developers utilize a single purpose entity limited liability company (an “LLC”) to purchase and develop property, such as an apartment complex, a subdivision, or a shopping center. Generally, an LLC’s debts, whether incurred or judicially imposed, belong only to the LLC, not to its members.  However, an LLC’s individual member may be subject … Continue Reading

Redefining Priorities: Risk Management, Enhanced Quality, and Minimizing Disputes

By Tamara Boeck on Posted in Construction Litigation, Risk Management
When engaging in a new construction project, the primary focus is frequently on the immediate issues — plans, permits and the build-out itself.   But building good risk management procedures and techniques into the front end of your project planning can have bottom-line business benefits. In my recent article for the Daily Journal of Commerce, written … Continue Reading

One Unanticipated Cost of Being an Owner-Builder in California: Liability for Retained Control over Safety

By Tamara Boeck on Posted in Construction Defects, Construction Litigation, Defects, Insurance, Licensing, Risk Management, Safety/Personal Injury, Workers Compensation
Many times I hear from people who want to “save money” and serve as their own “owner-builder” under the exemption to the California Contractor’s Licensing law, which generally requires that any “construction” work over $500 to be performed by a licensed California contractor in the absence of an exemption.  (Bus. & Prof. Code section 7048).  … Continue Reading

Self-Imposed ADA Audits: The Developer’s Best Option

By Eric Grasberger on Posted in Construction Claims, Construction Contracts, Construction Defects, Construction Litigation, Developers v. Contractors
Recent rulings indicate that courts across the country view project owners’ and developers’ liability for ADA claims differently than they do other compliance violations.  Owners’ attempts to raise questions of contractor negligence, breach of contract or breach of warranty are being rejected.  So what can a project owner do? In my recent article for the … Continue Reading

Architect Off the Hook for ADA Defects

By Eric Grasberger on Posted in Construction Claims, Construction Defects, Construction Litigation, Design Professionals and Claims
Continuing a disturbing trend, another recent case finds that an architect is not liable for a design that failed to comply with the ADA and Section 504 of the Rehabilitation Act (RA). In Chicago Housing Authority v. DeStefano & Partners, Ltd. (here), an Illinois appellate court followed several other federal and state decisions in holding … Continue Reading

“Without Performance Specifications, Green Building Can LEED to Disputes

By Cory Haller on Posted in Construction Contracts, Construction Litigation, Defects, Risk Management
It’s been more than 20 years since the LEED standard was introduced, and green building has now become a significant percentage of new U.S. commercial real estate construction.  The benefits of green building techniques and products have made LEED certification a hot commodity and changed the construction industry.  But there are also risks involved if … Continue Reading

“From, For, and Against”: What’s the Difference?

By Cory Haller on Posted in Commercial Construction Contracts, Construction Contract Interpretation, Construction Contracts, Construction Litigation, Design Build Agreements, Design Professionals and Claims, Public Construction Contracting, Risk Management
Indemnity provisions are often among the most negotiated and least understood provisions of commercial contracts, and construction contracts are no exception to this rule. Despite, and perhaps because of, the importance of these clauses, they have evolved into an almost impenetrable jumble of legal terminology. This jumble of words is not, however, without meaning. Although … Continue Reading

A New Wrinkle In Time To Claim Construction Defects

By Andrew Gibson on Posted in Construction Claims, Construction Defects, Construction Industry, Construction Litigation, Defects
Oregon’s law on statutes of limitation and/or repose periods on construction claims is complex and ever-changing.  A recent Oregon Supreme Court ruling has introduced yet another instance of differing time limits on construction defect claims. In my recent article for the Daily Journal of Commerce, I discuss Schell v. The Schollander Companies, Inc. and the … Continue Reading

Termination Clauses a Must for Owners

By Eric Grasberger on Posted in Construction Contracts, Construction Litigation, Design Build Agreements
The recent termination of the joint venture of Skanska-Hunt from the Washington State Convention Center project (article here) is a good reminder of the importance of well-written termination clauses in your owner-contractor contracts.  The reasons for termination (or “severance,” a slightly kinder word) can be many, including failure to agree on pricing (the reason given … Continue Reading

Think all Oregon construction defect claims are governed by the same 10-year statute of repose? Think again.

By Cory Haller on Posted in Construction Defects, Construction Litigation, Defects, Statutes of Limitation
In Shell v. Schollander Companies, Inc., the Oregon Supreme Court affirmed a line of appellate decisions distinguishing between defect claims arising out of construction performed for an owner and defect claims arising out of an owner’s purchase of an existing structure.  In Schollander, the homeowner sought recovery for defects in the construction of a spec … Continue Reading

Yes, Contractor Licensing May Be Required Under California Law Even if the Contractor Does Not Physically Build Anything Itself

By Tamara Boeck on Posted in Construction Contracts, Construction Industry, Construction Liens, Construction Litigation, Contractor Licensing, Legislation, Licensing, Liens, Payment Disputes, Risk Management
It seems that almost weekly, and certainly monthly, I receive a call or inquiry from colleagues and/or prospective clients as to whether a license is really required if the prospective “contractor” is not actually building anything but is merely facilitating a “deal” or is hiring otherwise qualified and licensed contractors and trades. Virtually every time … Continue Reading

Court of Appeals affirms Brightwater judgment, reviews law regarding differing site conditions and surety obligations

By Bart Reed on Posted in Construction Claims, Construction Litigation, Public Construction Contracting
On November 9, 2015, Division One of the Court of Appeals affirmed a 2012 King County trial court judgment that joint-venture tunneling contractor Vinci Construction Grands Projets/Parsons RCI/Frontier-Kemper (VPFK) was liable to King County for $144 million in damages and attorney fees. The case arose from the Brightwater project, a wastewater treatment plant north of … Continue Reading

Take Care in Reaching for Deep Pockets: Don’t Let Insurance Companies Off the Hook When Drafting Settlement Agreements in Construction Defect Cases

By Cory Haller on Posted in Construction Claims, Construction Defects, Construction Litigation, Damages Claims, Defects
It will happen to almost every contractor at some point — an owner or project developer will try to sue you.  Hopefully your insurer agrees you are covered, and you’ve dodged a bullet. But if your insurer tells you that you are not covered, things get sticky.  One common strategy is for the parties to … Continue Reading
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