What is Contractual Risk Transfer?

November 15, 2022
Saxe Doernberger & Vita, P.C.

Every commercial property owner, developer, general contractor, subcontractor, and vendor should understand the concept of contractual risk transfer and how it might affect its company and projects.

Contractual Risk Transfer Defined
With any kind of commercial property development, the parties involved face risk. Whether you’re the owner, general contractor, or some other entity involved in the project, there’s always the risk that accidents, injuries, damages, negligence, bad weather, or some other act of God could lead to increased costs and liability exposure. Often, insurance covers these risks. But contractual risk transfer serves as another useful tool that can protect you and the project.


What The U.S. Can Learn from China to Bring Its Buildings to New Heights

Hong Kong Skyline

America does not want to emulate the absolute government control that has allowed China to build futuristic bridges and airports in record time, but there are still some things we can learn from our biggest global competitor.

November 15, 2022
Mark Gravely - Gravely Law

“China’s history is marked by thousands of years of world-changing innovations: from the compass and gunpowder to acupuncture and the printing press. No one should be surprised that China has re-emerged as an economic superpower.” —Gary Locke

Westerners have often criticized China’s ‘creative’ interpretation of the concept of intellectual property, but even its harshest critics recognize the Asian superpower’s ability to build large-scale infrastructure projects at a breakneck pace. America does not want to emulate the absolute government control that has allowed China to build futuristic bridges and airports in record time. However, there are still some things we can learn from our biggest global competitor.

The White House itself has invoked China’s grand achievements in its quest to secure more infrastructure funding from Congress. The administration believes that the only way to compete with China is to spend at least $2 trillion on upgrading bridges and mass transit, modernizing neighborhoods and airports, and making broadband access universal.

The skylines of China’s largest metropolises are nothing short of mesmerizing. Its grand airports and auditoriums amaze tourists and locals alike. Explore any important Chinese city on Google maps, and you will find a level of modernization in infrastructure that far surpasses American cities of similar size. Scholars have coined the phrase “China envy” to refer to the effects of this phenomenon.

According to urban planning historian Thomas J. Campanella, China is doing the kind of things America used to do: amazing the world with grand structures that push engineering and architecture forward. The question is, if China has emulated us, can we now emulate China?

China Envy
There are some basic differences between the two nations which make emulation difficult. On the one hand, China has leapfrogged from rudimentary infrastructure to suborbital spaceships and bullet trains. America is at a different stage and moves at a different pace. Chinese leaders don’t need approval from the opposition in Congress; they have total control. If the Chinese administration wants to build a bridge, they just go ahead and do it. Democracy is a bit more complicated, but we naturally welcome the complexities, considering how stifling the political atmosphere is under communist rule.

Another difference some analysts have pointed out is that the current Chinese President and his predecessor both studied engineering, so they were naturally keen on innovation in their field. Meanwhile, U.S. presidents have seldom had such backgrounds. The American public has more often elected lawyers to rule over our nation.

China envy is understandable. Our competitor is home to 49 of the planet’s 100 tallest skyscrapers. It also boasts a million bridges. While the U.S. spends 2.4 percent of GDP on infrastructure, China spends 8 percent. This was an important selling point for the White House’s ambitious infrastructure plan.

Located in a mountainous region with over 1,500 rivers, China has built bridges of fantastic proportions to keep urban centers and important agricultural areas connected. The Pingtang Bridge in Guizhou province links two sides of a canyon that are 7,000 feet apart. The spectacular, 7-mile-long Hutong Yangtze River Bridge efficiently provides railway and highway access to Shanghai from Jiangsu province.

As climate change forces us to reevaluate Americans’ preference for private cars and the neglect of our railway systems, the inferior car ownership that was once a disadvantage for China is now an advantage. By 2025, high-speed trains will service 98 percent of Chinese cities. Subways are common in many of them. Today, the country boasts a high-speed rail network totaling more than 23,500 miles, or eight times the distance between New York and LA. Chinese workers travel on bullet trains at 215 miles per hour, much faster than their American counterparts.

The gap between China and the U.S. when it comes to infrastructure is one of astronomic proportions. A few years ago, Bill Gates announced that China had used as much cement in three years as the U.S. in 100 years. China currently produces 14 times more steel than the U.S. and about 2.2 gigatons of cement per year, roughly half of the 4.5 gigatons our country used in the 20th century. In China, city planners have not focused on short-term return on investment, but on broader societal benefits. For example, World Bank officials were not enamored with the idea of creating a subway in Shanghai; the region’s geology made the project far too complex. The World Bank suggested buses would be a better solution for the city’s transit, but Chinese officials didn’t listen and went ahead. Thirty years later, the Shanghai subway has become an example of efficiency, transporting more than 10 million people every day. It is as if China followed a different logic, one that often pays off.

According to Mr. Campanella, “We need a bit of China to be stirred into our game. . . We’re over privileging the immediately affected residents. What we don’t do is give requisite weight to the larger society.” China’s modernization has, however, not been without cost. Accelerated construction creates pollution, and not all the country’s massive structures are green or energy efficient. President Xi’s country is conscious about pollution, and it has poured significant resources into green infrastructure projects like wind and solar farms.

There is a boldness in China’s infrastructure planning, a pioneering spirit that we would do well to imitate. What American jurisdiction would spend billions on a new state-of-the-art airport only 50 miles away from a recently modernized one? China has done it in Beijing. In a way, it seems that China is seeing beyond the here and now, planning for tomorrow, and this is something we can learn from our competitors.

Marc Gravely is the founder and lead attorney at Gravely Law and author of Reframing America’s Infrastructure: A Ruins to Renaissance Playbook.


Rising Construction Disputes Require Improved Legal Finance

Red arrow bursting through ground

Companies in the construction sector are well served to be fully conversant in the tools that can help them maximize the value of their legal claims.

November 15, 2022
Apoorva Patel - Construction Executive

Construction disputes are famously high stakes, and the industry is currently experiencing an uptick in the value and number of disputes resulting from contractual obligations and third-party or force majeure incidents. While this is not entirely surprising given COVID-19’s disruption of global markets and supply chains, the numbers are noteworthy.

For example, in 2020 alone, the International Chamber of Commerce (ICC)—the leading institution for construction disputes, partly because its clauses feature in many FIDIC standard form contracts—registered 194 construction arbitrations, and construction disputes now comprise over 20% of the ICC caseload.

In addition to the damage to business outcomes that the underlying disputes may present, parties can quickly spend many millions on legal fees and expenses, as well as technical experts and consultants, if and when those disputes progress through the courts or arbitration. According to Norton Rose’s 2020 Global Construction Disputes Report, the average construction dispute value rose sharply from $30.7 million in 2019 to $54.26 million in 2020.

Reprinted courtesy of Apoorva Patel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


DC Wins Largest-Ever Civil Penalty in US Housing Discrimination Suit

House

Three real estate companies will pay a record-setting $10 million settlement for discriminating against renters with Section 8 housing vouchers.

November 15, 2022
Kriston Capps - Bloomberg

Three real estate companies operating in Washington, DC, will pay record-breaking penalties in a suit brought by the city for illegally discriminating against tenants who use Section 8 vouchers and other forms of housing assistance.

The attorney general for the District of Columbia, Karl Racine, announced on Thursday a settlement for $10 million. While fair housing cases involving lenders have resulted in larger compensation payouts, $10 million is the largest civil penalty ever levied in a housing discrimination case.

In 2020, the city sued several entities — DARO Management Services, DARO Realty and New York-based parent company Infinity Real Estate, as well as several executives — over housing practices in the District. DARO Management operates and rents some 1,200 residential units in more than a dozen apartment buildings spread across Wards 1, 2 and 3, which include DC’s more affluent areas. (DARO Realty owns the properties, DARO Management operates them, and Infinity owns both affiliates.)


Newmeyer Dillion Named 2023 Best Law Firm in Multiple Practice Areas By U.S. News-Best Lawyers

Best Keyboard Key

U.S. News-Best Lawyers® has recognized Newmeyer Dillion in its 2023 "Best Law Firms" rankings.

November 7, 2022
Newmeyer Dillion

NEWPORT BEACH, Calif. – November 3, 2022 – Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that U.S. News-Best Lawyers® has recognized the firm in its 2023 "Best Law Firms" rankings, in seven practice areas earning the highest ranking possible - Tier 1 in the Orange County Metro area. The practices recognized include:

Commercial Litigation
Construction Law
Insurance Law
Litigation - Construction
Litigation - Insurance
Litigation - Real Estate
Real Estate Law

Additionally, the firm has been recognized as Tier 2 in Employment Law - Management and Tier 3 in Litigation - Labor & Employment.

"Newmeyer Dillion prides itself on genuinely partnering with our clients to offer business-oriented solutions for their legal issues," said Managing Partner Paul Tetzloff. "Receiving this honor shows that our clients appreciate the quality of our work and our team's dedication to their organization's success."

Firms included in the 2023 "Best Law Firms" list have been recognized by their clients and peers for their professional excellence. Firms achieving a Tier 1 ranking have consistently demonstrated a unique combination of quality law practice and breadth of legal expertise.

To be eligible for the "Best Law Firms" ranking, a firm must have at least one attorney recognized in the current edition of The Best Lawyers in America for a specific practice area. Best Lawyers recognizes the top 4 percent of practicing attorneys in the U.S., selected through exhaustive peer-review surveys in which leading lawyers confidentially evaluate their professional peers.

About Newmeyer Dillion
For over 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 60 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.


Two Bright Spots in a Cooling Housing Market

November 7, 2022
Conor Sen - Bloomberg

Surging mortgage rates and uncertainty about the economy have put the housing market on ice. Mortgage purchase applications dropped Wednesday morning to their lowest level in 25 years and single-family housing starts will soon be down 20% on a year-over-year basis. Historically, a drop of more than 20% in single-family housing starts has meant pretty good odds for an overall recession.

Yet the US economy added 263,000 jobs in September. And while the labor market is somewhat cooler from earlier in the year, it's a long way from anything that could be characterized as weak.


Actual Cost Value Includes Depreciation of Repair Labor Costs

Costs Benefits buttons

Hurricane Laura damaged the insured's home.

November 7, 2022
Tred R. Eyerly - Insurance Law Hawaii

The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022).

Hurricane Laura damaged the insured's home. She filed a claim with Allstate under her homeowners policy. Allstate issued payment. The insured filed suit alleging Allstate wrongfully withheld amounts by depreciating labor when calculating the ACV of the damaged property. Allstate moved to dismiss.

The policy was a replacement cost policy where the insured would receive the actual cash value of her insured property when it was damaged or destroyed by a covered peril. ACV was calculated by taking the repair/replacment which included both material and labor, and then deducting for depreciation. If no repairs or replacements were made, the insured was paid the ACV. If repairs or replacement was done, Allstate reimbursed the insured for the depreciation deduction. The insured challenged Allstate's refusal to pay 100% of the future labor costs, without any depreciation, even if the insured did not replace or repair the damaged property.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


We Need to Talk: Suicide Prevention in Construction

November 7, 2022
Maggie Murphy - Construction Executive

"I’m good, man.”

“Nothing’s wrong, just tired.”

“You don’t wanna know.”

In an industry historically characterized by its stoic nature, these are often the responses you get if you ask a construction employee how they’re doing. Hard workers in a grueling industry, they’ve been conditioned by the very nature of the job to tough it out and get it done—and that’s taking a toll on their mental health. The numbers don’t lie: Construction is already a dangerous occupation, with 1,008 work-related jobsite fatalities in 2020, but the industry’s suicide rate for the same year is a staggering four times greater, at 5,242 employees.

Reprinted courtesy of Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


A Lack of Sophistication With the Construction Contract Can Play Out In an Ugly Dispute

Businessman beating hands against wall

A lack of sophistication can play out when that contract that should govern the relationship, the risk, the scope, the amount, and certain outcomes doesn’t actually do that, or if it does, it does it poorly.

November 7, 2022
David Adelstein - Florida Construction Legal Updates

There are times where a lack of sophistication can come back to haunt you. This is not referring to a lack of sophistication of the parties. The parties, themselves, could be quite sophisticated. This is referring to a lack of sophistication with the construction contract forming the basis of the relationship. While parties don’t always want to buy into the contract drafting and negotiation process, it is oftentimes the first document reviewed. Because contract terms and conditions are important. They govern the relationship, the risk, scope, amount, and certain outcomes with disputes. However, a lack of sophistication can play out when that contract that should govern the relationship, the risk, the scope, the amount, and certain outcomes doesn’t actually do that, or if it does, it does it poorly. An example of how bad a dispute can play out when it comes to the lack of sophistication on the front end is Avant Design Group, Inc. v. Aquastar Holdings, LLC, 2022 WL 6852227 (Fla. 3d DCA 2022), where a cost-plus contract was treated as a lump sum contract.

Here, an owner planned to perform an extensive interior build-out to a residential unit. The owner had an out-of-country architect; because the architect was not licensed in Florida, the owner hired a local architect/designer to oversee construction and obtain goods and services for the residential interior build-out. The contract was nothing but a proposal of items and costs. The proposal stated the owner “would pay the cost of goods and services of the vendors, plus pay a ‘20% Interior Design & Administrative Fee’” to the local designer. Avant Design Group, 2022 WL at *1. The proposal further stated, “This preliminary budget of the Client’s construction costs include [sic] anticipated costs for construction materials, labor and sales tax. Any other cost, including but not limited to freight, cartage, shipping, receiving, storage and delivery are not included in the preliminary budget and will be invoiced separately.” Id., n.2.

Mr. Adelstein may be contacted at dma@kirwinnorris.com


Does Article 2 of the Uniform Commercial Code Impact Your Construction Project?

Question mark in maze

Understanding when and how the UCC applies to construction contracts is important because it can affect the agreement’s terms.

November 7, 2022
Chris Cazenave - ConsensusDocs

The Uniform Commercial Code (UCC) is a set of statutes governing commercial transactions. Every state has adopted the UCC or some version of it. Understanding when and how the UCC applies to construction contracts is important because it can affect the agreement’s terms.

Article 2 of the UCC applies to the sales of goods, which the UCC defines very broadly to mean “all things (including specialty manufactured goods) which are movable . . . other than money in which the price is to be paid . . . .” UCC § 2-105. For the construction industry, UCC Article 2 governs most, if not all, purchases of materials and equipment installed or incorporated into the project. As a result, contractors and subcontractors should be familiar with the circumstances under which Article 2 may apply and how it may affect the project.

This article provides a brief overview of when Article 2 may affect your construction project and why it matters. The article also generally covers the UCC’s potential effects on the applicable statute of limitations, implied warranties, and when the obligation to make the payment arises.

Mr. Cazenave may be contacted at ccazenave@joneswalker.com


Contractor Owed a Defense

Contractor working with wooden beam

The Illinois Appellate Court reversed the lower court and found that the insured contractor was entitled to a defense for alleged construction defects.

November 7, 2022
Tred R. Eyerly - Insurance Law Hawaii

The Illinois Appellate Court reversed the lower court and found that the insured contractor was entitled to a defense for alleged construction defects. Acuity v. M/I Homes of Chicago, LLC, 2022 Ill. App. LEXIS 393 (Ill. Ct. App. Sept. 9, 2022).

The owners association (AOAO) sued M/I Homes for breach of contract and the implied warranty of habitability due to alleged defects. The AOAO alleged that the defects caused physical injury to the townhomes. There was resulting property damage such as damage to other building materials, windows and patio doors, and water damage to the interior of units. M/I Homes requested a defense from Acuity, but the request was denied.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Safeguarding the U.S. Construction Industry from Unfair Competition Abroad

Lady law blindfolded holding scales of justice

The ITC can help protect American industry from unfair acts in the importation of articles into the United States.

November 7, 2022
Ric Macchiaroli - Gravel2Gavel Construction & Real Estate Law Blog

In April 2015, the U.S. International Trade Commission (ITC) issued an exclusion order prohibiting the importation of certain foreign-made crawler cranes into the United States for a period of at least 10 years. That order was the result of a 20-month investigation by the ITC, initiated by a Wisconsin-based crane manufacturer based on allegations of patent infringement and trade secret misappropriation by a China-based company. Defined by powerful injunctive remedies, unique rules, and a lightning-fast docket, the ITC can help protect American industry from unfair acts in the importation of articles into the United States. This post explores the traits that make the ITC an attractive venue for potential complainants.

ITC Site Plan
The ITC is a specialized trade court located in Washington, D.C., that has broad authority to investigate and remedy unfair trade practices. One of the ITC’s primary functions is to conduct unfair import investigations, also known as “section 337” investigations, after the authorizing statute. A section 337 investigation can be instituted based on any number of unfair acts, including, but not limited to, patent infringement (utility and design), registered and common law trademark infringement, copyright infringement (including violations of the Digital Millennium Copyright Act), trade dress infringement, and trade secret misappropriation. Business torts such as passing off, false advertising, and tortious interference with business relations have also formed the bases of investigations.

Mr. Macchiaroli may be contacted at ric.macchiaroli@pillsburylaw.com


2023 DRI Construction Law Seminar

November 7, 2022
Beverley BevenFlorez – CDJ Staff

The DRI Construction Law Seminar will cover topics such as “Effective management of multi-party, complex construction litigation,” “Charging a Jury and when to engage appellate counsel,” and “How to harness psychology to achieve favorable litigation outcomes.” Several networking opportunities will be provided including meeting with Construction Law committee members, networking happy hours, dine-arounds, and newly designated networking sessions.

January 23rd-25th, 2023
Las Vegas, Nevada


Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

Person holding money

The project involved a $13m construction loan between the lender and the owner to renovate a hotel.

November 7, 2022
Matthew DeVries - Best Practices Construction Law

This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And that’s precisely what many lenders say on distressed projects when the owner fails to make final payment and the contractor looks to the bank for funding: “We have no money for you contractor!”

In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of the construction loan agreements with the owner.

The project involved a $13m construction loan between the lender and the owner to renovate a hotel. The owner and contractor entered into an AIA Contract for the construction management services. During construction the contractor would submit payment applications to the lender, who would review and approve the invoices for payment. The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract.

Mr. DeVries may be contacted at mdevries@burr.com


Chesapeake Bay Water Quality Is Still in Trouble, Two Major Reviews Say

Water

Wastewater plant upgrades are key to restoration efforts, but urban runoff is a growing problem.

November 7, 2022
Pam McFarland - Engineering News-Record

Two separate assessments of the health of the Chesapeake Bay indicate that most jurisdictions within its watershed are not on track to meet target goals to cut nitrogen and phosphorus discharge levels by 2025. But new plans and programs put in place in 2022 could improve the restoration trajectory, according to the U.S. Environmental Protection Agency.

Reprinted courtesy of Pam McFarland, Engineering News-Record

Ms. McFarland may be contacted at mcfarlandp@enr.com

Read the full story...


Concealment Or Fraud Provision In Insurance Policy

November 7, 2022
David Adelstein - Florida Construction Legal Updates

It is common for insurance policies to have a concealment or fraud provision that ultimately says the policy is void if the insured engaged in fraudulent conduct, intentionally concealed or misrepresented material facts, or made false material statements. In a nutshell, lying is bad, which includes intentionally withholding material facts.

An insured may make misrepresentations during the insurance application process. Or, an insured may make misrepresentations after a loss occurs, referred to as the post-loss context. The misrepresentations require different burdens of proof.

Mr. Adelstein may be contacted at dma@kirwinnorris.com


A Trivial Case

Concrete wall

Ms. Nunez tripped following a group run when her back foot hit a sidewalk slab that was elevated at its highest point approximately 11/16 inches.

November 7, 2022
Garret Murai - California Construction Law Blog

Construction defect cases leading to physical injury are rarely trivial, at least in the eyes of the injured party, but alas sometimes they are as the next case, Nunez v. City of Redondo Beach, 81 Cal.App.5th 749 (2022), demonstrates.

The Nunez Case
Monica Nunez, Vice President of Finance and Accounting at a restaurant chain and a part-time fitness instructor at a gym, tripped and fell on a public sidewalk in Redondo Beach. Ms. Nunez, who was in her forties, tripped following a group run when her back foot hit a sidewalk slab that was elevated at its highest point approximately 11/16 inches. Ms. Nunez landed on her left knee and right arm and in the process fractured her kneecap and elbow.

Ms. Nunez sued the City of Redondo Beach for her injuries alleging causes of action for dangerous conditions on public property under Government Code section 835, nuisance under Government Code section 815.2, and failure to perform a mandatory duty under Government Code section 815.6.

Mr. Murai may be contacted at gmurai@nomosllp.com


Vermont Supreme Court Finds COVID-19 May Damage Property

Gavel illustration

The Vermont Supreme Court became the first state high court to reject the notion that quintessential issues of fact concerning the effect of a virus on property can somehow be decided without evidence.

November 7, 2022
Michael S. Levine & Lorelie S. Masters - Hunton Insurance Recovery Blog

As reported on this blog, policyholders have long been of the view that the presence of substances like COVID-19 and its causative virus SARS-CoV-2, which render property dangerous or unfit for normal business operations, should be sufficient to trigger coverage under commercial all-risk insurance, as has been the case for more than 60 years.

However, many courts, federal courts in particular, despite decades of pro-policyholder precedent, have embraced the view that “viruses harm people, not [property].” Thirty-one months after the start of the pandemic, the first state high court has gone in a different direction, according greater weight to pro-policyholder precedent.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Lorelie S. Masters, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com


The Final Nail: Ongoing Repairs Do Not Toll the Statute of Repose

Clocks in black background

Venema alleged that Moser’s repairs failed to remedy the underlying defects, causing significant water infiltration and damage.

November 7, 2022
Kyle Rice - The Subrogation Strategist

In Venema v. Moser Builders, Inc., 2022 PA Super. 171, 2022 Pa. Super. LEXIS 414, the Superior Court of Pennsylvania (Superior Court) upheld an award of judgment on the pleadings from the Court of Common Pleas of Chester County (Trial Court). The Superior Court found that Pennsylvania’s 12-year Statute of Repose for improvements to real property (Statute of Repose) began to run upon the issuance of the certificate of occupancy following original construction of the home in 2003—not from the completion of repairs to the home that continued through 2008.

The underlying cause of action involved a home constructed by Moser Builders, Inc. (Moser) in 2003. The certificate of occupancy for the home was issued on August 13, 2003. Matthew Venema and Liza Squires (collectively, Venema) purchased the property from the original owners in 2004.

Mr. Rice may be contacted at ricek@whiteandwilliams.com


Avoid L&I Violations by Following Appropriate Safety Procedures

Builders pointing at plans

Roof Doctor was cited for two violations by a Washington State Department of Labor and Industries' (L&I) compliance inspector and seven additional asbestos violations.

November 7, 2022
Reeya Patel - Ahlers Cressman & Sleight PLLC

Department of Labor and Industries of the State of Washington v. Roof Doctor, Inc. d/b/a Roof Doctors, Inc. of Tacoma (Unpublished opinion)

Roof Doctor, a company engaging maintenance of roofs, was hired to complete work for a commercial building in Tacoma in February 2018. During the job, Roof Doctor was cited for two violations by a Washington State Department of Labor and Industries’ (L&I) compliance inspector and seven additional asbestos violations. Each citation was rated with a probability of 1 – 3 to determine the likelihood of injury, illness, or disease. The ratings allowed issuance of an appropriate monetary penalty.

The disputes among the parties on appeal were as follows:

First, L&I and Roof Doctor disputed the asbestos probability ratings and calculated penalties. L&I produced as evidence, the fact that nine employees were physically hanging roofing material with asbestos, but none had training or knew that the material contained asbestos. L&I did agree that that most of the employees were experienced in handling roofing material and knew of the dangers that asbestos presented. Roof Doctor explained that because the employees were working outdoors, the danger of asbestos exposure was mitigated due to a low probability that a high concentration of asbestos could be inhaled by the employees when outdoors.



714.701.9180

Arrange No Cost Consultation

johnspringman

markchapman

johntolman

mattnardella

alansturm

davesuggs










Construction Defect News Channel - The Latest News and Video From The Construction Defect Journal

Construction defect and claims video channel.  For access to full construction defect channel content visit the construction defect channel homepage at... ConstructionDefectChannel
Millennium Tower Fix Shifts to Hasten Completion

Millennium Tower fix engineers have scrapped an elaborate strategy designed to prevent more tilting at the troubled high-rise as they push to complete the project – a shift in strategy that critics say amounts to gambling, but monitoring data suggests is paying off so far, Jaxon Van Derbeken of NBC Bay Area reports.

Look At This!: Los Angeles International Airport

Desmond of CBS Los Angeles takes us to the bustling travel hub best known as LAX, one of the world's busiest airports.

Miami Condo Evacuated Over Structure Concerns

ABC News reports, residents of a Miami Beach condo building were forced to suddenly evacuate Thursday after significant damage was found in a concrete beam in the garage level.

Homeowners Share Ongoing Problems In New-Build Homes Around Las Vegas

Fox5 Las Vegas pose question: As homeowners share ongoing problems in Las Vegas Valley new-build homes, is quality falling between the cracks?

Visiting the Construction of Pittsburgh Airport’s Grand New Terminal

ENR Transportation Editor Aileen Cho checked out the construction of a $1B new terminal in summer 2022.

The Damage Is Done, Who's To Blame?

This video is all about the story of Rag ‘n’ Bone Brown’s bungalow re-roofing nightmare project, and what happened when everything went wrong.

Construction Defect Journal Archives - Recent CD News for Construction Claims Professionals

 

Construction Defect Journal is aggregated from a variety of news sources, article submissions, contributors, and information from industry professionals.

No content on this site should be construed as legal advice or expert opinion. By viewing this site you agree to be bound by its terms and conditions

 

Copyright 2022 - Construction Defect Journal – All Rights Reserved