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
Construction Litigation
When Can You Rest Easy? A Primer on Statutes of Repose
A statute of repose provides an outside limit as to when construction claims can be brought and is intended to give contractors and design professionals a degree of certainty as to when the risk associated with claims on a particular project diminishes. In my latest article for the Daily Journal of Commerce, I give…
WSBA Construction Section Annual Seminar – June 9, 2017
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…
Alter Ego: The $5MM personal danger of neglecting corporate formalities and utilizing substandard building materials
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 to personal liability under the doctrine of alter ego liability if (1) the individual and the LLC share a unity of interest and ownership such that the separate personalities of the two no longer exist, and (2) treating the debts as the LLC’s alone would impose an inequitable result that rewards the bad faith of the individual. A recent legal decision from Southern California highlights the dangers of disregarding an LLC’s corporate formalities during any construction project.
Redefining Priorities: Risk Management, Enhanced Quality, and Minimizing Disputes
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 …
One Unanticipated Cost of Being an Owner-Builder in California: Liability for Retained Control over Safety
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…
Self-Imposed ADA Audits: The Developer’s Best Option
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 …
Architect Off the Hook for ADA Defects
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…
“Without Performance Specifications, Green Building Can LEED to Disputes
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 …
“From, For, and Against”: What’s the Difference?
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…