washington: Condominium Developers Should Keep In Mind Condo Act Provisions Requiring Lien Releases For Individual Units
- 10/23/08 07:09 AM
Where a contractor liens a condominium project, the entire project does not need to be held hostage until the claim is negotiated. Instead, developers should take advantage of an important provision in Washington’s Condominium Act requiring a lien release as to individual condominium units upon payment of those units’ common expense liability under the condominium declaration. For example, if a general contractor records a $1 million lien against a 100-unit condominium project, a developer can still sell and close units while the lien is in place. Rather than posting a $1.5 million bond or paying the lien in its entirety, a … (0 comments)
washington: Ninth Circuit Holds That Substandard Construction Absent Intentional Breach Constitutes An “Occurrence” Under Washington Law
- 07/16/08 04:16 AM
In October 2006, the trial court issued its order in Mid-Continent Casualty Co. v. Williamsburg Condominium Association (unpublished opinion), holding that defective construction is not an “occurrence” triggering coverage under a CGL policy. Recently, the Ninth Circuit Court of Appeals overturned this decision to hold that it is. Williamsburg arose when the Williamsburg Condominium Association (the “HOA”) sued the developer of the project for defective construction, breach of Washington’s Condominium Act, and other claims. In turn, the developer sued the general contractor, Titan, and Titan tendered defense and indemnity to its insurance company, Mid-Continent Casualty Company. The matter settled, and Mid-Continent … (0 comments)
washington: Insureds Only Have To Pay One SIR
- 07/08/08 11:43 AM
On July 7, 2008, the Court of Appeals, Division 1, held that an insured responsible for payment of a self-insured retention (“SIR”) under two policies need only pay the SIR amount once to satisfy the requirement for both policies. This was the holding in Bordeaux, Inc. v. American Safety Insurance Company. There the plaintiff, Bordeaux, was the developer of the Bordeaux Condominiums in Sammamish, Washington.(1) It sold the units, and subsequently the HOA filed a lawsuit against Bordeaux alleging extensive construction defects and resulting property damage at the project. Bordeaux tendered defense and indemnity of the lawsuit to its insurance general … (0 comments)
washington: Buyer Beware: Even When You Do Everything Right
- 07/10/07 04:30 AM
KOMO News published yesterday a startling story about the homebuyers who did everything right in purchasing their home; only to end up living in a toxic, flooded, waste-ridden moneypit that drove them into bankruptcy. The 1940s farmhouse in Edmonds seemed quiet, picturesque, and the perfect place for the Nealeys to raise their family. Shortly after they moved in, however, the family members began to develop bloody noses, migraines, respiratory infections, and asthma. They soon discovered the cause: only weeks after the family moved in in 2001, heavy rains flooded the small stream running through the peaceful backyard, beginning a season … (10 comments)
washington: Agents: Many Washington State Builders Miss Out On New Protections From Construction Defect Claims
- 07/09/07 05:11 AM
Many Washington State builders, particularly in the single-family home market, are failing to take advantage of recent changes to Washington law regarding construction defect claims. Specifically, these builders are failing to include in their purchase and sale agreements a notice to homebuyers that may prevent that homebuyer from commencing a construction defect lawsuit until after the homebuyer has complied with several statutory notice requirements that aim to provide the builder with an opportunity to cure the alleged defects. RCW 64.50, the Construction Defect Claims Act, became effective in 2002 at the instance of the construction industry. The law aims … (4 comments)
washington: Washington Enacts First-Party Insurance Legislation
- 06/26/07 11:29 AM
Washington has enacted new legislation governing actions against insurers in the first-party context. One common form of first-party insurance is standard property insurance coverage. The new law, known as the Insurance Fair Conduct Act, has several key features: The IFCA codifies the rule long accepted in Washington that an insurer may not unreasonably deny a first-party insurance claim.The IFCA also codifies the long-standing rule in Washington that, where the claim is unreasonably denied, the insured may sue to recover actual damages, including attorney fees and costs. In other words, the damages in such a lawsuit against the insurer are not limited to … (1 comments)
washington: Washington Supreme Court Decides Form 17 Case Holding No Cause of Action for Negligent Misrepresentation
- 04/20/07 09:27 AM
In March, the Washington State Supreme Court released an important decision involving a seller’s liability for failure to disclose problems with a home’s septic system on a Form 17. The Court held that residential buyers have no cause of action against a seller for negligent misrepresentation based upon inaccuracies in the Form 17.
The case arose when Ms. Bull sold her home to the Alejandres. The home utilized an on-site septic system, and the year before the sale, Ms. Bull noticed soggy ground in the yard over the system. She had the tank pumped and emptied, and a … (5 comments)
The Sleasmans live in a 1,967 square foot, single family residence on .29 acres in Lacey, Washington. Soon after cutting down eighteen trees on their property, they were notified by the City of Lacey that they violated a Lacey code by removing the trees without a permit. The Sleasmans were assessed a fine of $16,861, the trees’ appraised value.
The code prohibited the removal of … (2 comments)
washington: Why Developers May Consider Registering As Contractors When Acting As General Contractor
- 02/05/07 05:05 AM
In general, an owner of property in Washington does not have to register as a contractor when making improvements to that owned property. However, developers may have to register as a contractor in certain situations. Here's why. RCW 18.27.020 requires that: “Every contractor shall register with the department.” Failing to register is a misdemeanor. A contractor may be either a “contractor” or a “general contractor.” The statute defines a contractor in relevant part as follows: Any person, firm, or corporation who or which, in the pursuit of an independent business undertakes to…construct, for another, any building…or other structure, project, development, … (1 comments)
washington: Washington Supreme Court Abandons Doctrine of Completion and Acceptance
- 01/22/07 02:40 AM
In Davis v. Baugh Industrial Contractors, Inc., the Washington State Supreme Court abandoned the doctrine of completion and acceptance, which shields contractors from certain liability for negligent work after that work has been completed and accepted by the property owner.
The case arose when Baugh, through its subcontractor, installed underground piping at a processing facility. The work was accepted by the owner, and approximately three years later, a leak in the piping caused a pond to form. An employee of the owner was killed trying to repair the work, and the employee’s estate filed a negligence action against the contractor. … (2 comments)
washington: Who Knew?
- 01/16/07 05:28 AM
It's amazing what real estate legal research reveals. For example, while researching liens, I came across this Washington statute:
Every person who arrests, attaches, detains, or claims to detain any human remains for any debt or demand, or upon any pretended lien or charge, is guilty of a gross misdemeanor.
Who knew? … (4 comments)
washington: State Supreme Court Holds That RCW 18.27 Provides Attorney Fees Only In Actions Against Contractor’s Bond, Not Contractor
- 01/15/07 04:57 AM
On December 28, 2006, the Washington State Supreme Court decided in Cosmopolitan Engineering Group, Inc. v. Ondeo Degremont, Inc. that the state’s registration of contractors act, RCW 18.27, provides for attorney fees for the prevailing party in an action against the bond, but not in an action against the contractor. The case arose when Miller Brewing Company hired Ondeo Degremont, Inc., to design an onsite wastewater treatment facility, and other development work, for its brewery in Tumwater, Washington. Ondeo subcontracted with Cosmopolitan Engineering Group, Inc. for engineering services. Cosmopolitan was not paid for all of its services. Cosmopolitan filed a complaint … (0 comments)
washington: Compliance with Condo Act Renovation Requirements by Apartments and Conversions
- 01/09/07 03:50 AM
In years past, the construction industry saw a wave of lawsuits arising out of water intrusion damage to condominiums resulting from improperly designed or constructed siding systems. In response, the Washington legislature imposed a number of testing and inspection requirements affecting “multiunit residential buildings.”
The testing and inspection requirements are triggered when applying for a building permit for new construction, or a permit for exterior renovation of a building enclosure if the cost of that work is more than five percent of the assessed value of the building. The applicant must submit design documents, including subsequent changes, signed by … (4 comments)
Where a contractor liens a condominium project, the entire project does not need to be held hostage until the claim is negotiated. Instead, developers should take advantage of an important provision in Washington’s Condominium Act requiring a lien release as to individual condominium units upon payment of those units’ common expense liability under the condominium declaration.;)
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