For many years, Washington attorneys on all sides of the insurance debate have disagreed over the extent to which CGL policies covering “property damage” provide coverage to non-damaged work requiring tear-out and replacement as a result of underlying damaged work. Today, in its decision in Mutual of Enumclaw v. T&G Construction Co., Inc., ___ Wn.2d ___ (2008), the state’s Supreme Court held that tear-out is covered property damage under a CGL policy. (read article)
In October 2006, the trial court issued its order in Mid-Continent Casualty Co. v. Williamsburg Condominium Association (not reported in F.Supp.2d), 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. (read article)
On July 7, 2008, the Court of Appeals, Division I, 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. (read article)
In 2007, Division I of the Washington Court of Appeals decided three cases that may have significant ramifications regarding the continuing liability of single-project LLCs. These cases hold that a dissolved and cancelled LLC has no standing to sue its contractors, but that due to recent revisions in the Limited Liability Companies Act, the developer LLC could nevertheless remain liable to the HOA. (read article)
The Supreme Court recently ruled in Ballard Square Condominium Owners Association v. Dynasty Construction Company that a 2006 amendment to Washington’s laws regarding lawsuits against dissolved businesses applies retroactively to bar lawsuits initiated prior to the law’s effective date. This could have significant impacts for developers, contractors, and homeowner associations currently involved in litigation, or facing potential litigation. (read article)
Washington recently amended its laws to require owners of “multiunit residential buildings” to comply with strict testing and inspection requirements as part of the building or renovation permitting processes. Although the primary purpose of these laws is to protect condominiums from water intrusion damage and relieve the wave of ensuing litigation, these laws may also have significance to apartment owners engaging in exterior renovation. (read article)
On December 28, 2006, the Washington State Supreme Court decided that the state’s registration of contractors act, RCW 18.27, which provides a mechanism for recovering against a contractor’s bond, allows a prevailing party to recover attorney fees only for an action against the bond. The statute, the Court held, does not provide a mechanism to recover attorney fees for an action against the contractor. (read article)
V: 425.284.1150 | F: 425.284.1147 | 1201 MARKET STREET
| KIRKLAND, WA 98033
© Heffernan Law Firm, PLLC