CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - SATURDAY, MAY 17, 2025

river meets sea

Witnesses said the area beneath the bridge deck had been on fire and because traffic across the bridge was stopped, no casualties occurred, according to the Associated Press.

Splashdown: Fire-Weakened Beijing Bridge Deck Falls Into River

May 12, 2025
Richard Korman - Engineering News-Record

A deck section on a 26-year-old tied-arch Beijing bridge collapsed into the Chaobai River April 23, when tie rods hanging from an arch to one side of the deck failed, Chinese agencies and news media reported.

Mr. Korman may be contacted at kormanr@enr.com

Reprinted courtesy of Richard Korman, Engineering News-Record

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CDJ NEWS THIS WEEK



Hurricane building palm trees

In August 2021, Williams' home was damaged by Hurricane Ida.

Homeowner Allowed to Amend Complaint to Demonstrate Third-Party Beneficiary Status Under Lender-Placed Policy

May 12, 2025 — Tred R. Eyerly - Insurance Law Hawaii

The homeowner's complaint was improperly dismissed without leave to amend to demonstrate she was a third-party beneficiary of a lender-placed policy on her home. Williams v. Integon Nat'l Ins. Co., 2025 U.S. App LEXIS 6919 (5th Cir. March 25, 2025).

Ellen Williams purchased a home which was mortgaged by Flagstar Bank. Because she did not insure the home, Flagstaff obtained a "lender-placed hazard insurance policy from Integon at Williams' expense. The policy named Flagstaar as the "insured" and Williams as the "Borrower." Williams paid all premiums and complied with all requirements in the policy. Flagstar negotiated for a policy limit of $77,934, rather than opting to use its own insurable interest in the property to cap the liability risk. The policy provided as follows:

13. Loss Payment. WE will adjust each LOSS with [Flagstar] and will pay [Flagstar]. If the amount of Loss exceeds [Flagstar's] insurable interest, WE will pay BORROWER any residual amount due for the LOSS, not exceeding the Limit of Liability indicated on the NOTICE OF INSURANCE.

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

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

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Confidential file next to typewriter

One critical ruling on a motion to compel involved defendants’ suggestions that the contractor had not adequately protected trade secrets -- and defendants’ request for information from the contractor on the topic.

(Don’t) Go Fish

May 12, 2025 — Daniel Lund III - Lexology

The United States District Court for the Middle District of Louisiana faced significant discovery challenges in a complex trade secrets dispute initiated by a general contractor against several defendants, including former employees of the general contractor. The contractor alleged that defendants misappropriated confidential customer lists, pricing strategies, and business plans in order to unfairly compete against the contractor.

The contractor sought and was granted immediate injunctive relief, and, as the case progressed, the court implemented a protective order and a forensic protocol to manage the exchange and examination of the alleged misappropriated information. Despite these measures, discovery quickly became contentious.

One critical ruling on a motion to compel involved defendants’ suggestions that the contractor had not adequately protected trade secrets -- and defendants’ request for information from the contractor on the topic. The court found no substantial evidence of improper disclosures and ruled that requiring a contractor to review all its documents for potential external disclosures was disproportionate – without tangible evidence of such actions (the court emphasizing the necessity of specificity in discovery requests to avoid undue burdens). In connection therewith, the court also examined the contractor’s efforts to protect its trade secrets, which the court found adequate.

Mr. Lund may be contacted at daniel.lund@phelps.com

Reprinted courtesy of Daniel Lund III, Phelps

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Interior legislature

The bill will take effect upon the Governor’s signature or May 20, 2025.

Washington State Lawmakers Pass Statewide Rent Stabilization Legislation

May 12, 2025 — Lewis Brisbois Newsroom

(May 2, 2025) - On April 27, 2025, the Washington state Legislature passed HB 1217, the Housing Stability Act, which caps rent increases for most single-family and multi-family landlords and mandates specific notice requirements for rent increases that landlords must comply with to increase rents. The bill will take effect upon the Governor’s signature or May 20, 2025.

Below is a summary of key provisions in the bill.

  1. Landlords cannot raise rents in the first year of a tenancy.
  2. Any subsequent rent increase cannot exceed seven percent plus the consumer price index or 10 percent, whichever is lower.
  3. Landlords cannot impose more burdensome conditions on a month-to-month lease or charge a tenant more than a five-percent difference in rent for different lease terms. This restriction reduces the premium rents charged on month-to-month leases or leases for short-term duration.

Reprinted courtesy of Lewis Brisbois

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Measuring tapes

Just because you are pursuing a claim for unjust enrichment does not mean you don’t have to still prove your damages with a reasonable degree of certainty.

Unjust Enrichment Damages Must Be Measurable and Quantifiable

May 12, 2025 — David Adelstein - Florida Construction Legal Updates

Just because you are pursuing a claim for unjust enrichment does not mean you don’t have to still prove your damages with a reasonable degree of certainty. You ABSOLUTELY do:

Under Florida law, unjust enrichment damages must reflect the reasonable value of the plaintiff’s labor and costs expended for the benefit of the defendant or the value of the economic benefit that the plaintiff had conferred upon the defendant. While mathematical precision is not required, damages must be ‘measurable and quantifiable’ and supported by a ‘fact-based chain of reasoning’ so as to avoid conjecture.

Alvarez v. All Star Boxing, Inc., 50 Fla.L.Weekly D913a (Fla. 3d DCA 2025).

While Alvarez is a non-construction case, it deals with unjust enrichment which comes up in construction disputes. Here, unjust enrichment damages were awarded to the plaintiff. An appeal was taken because the defendant claimed the evidence didn’t support or link to the unjust enrichment damages that were awarded to the plaintiff. The appellate court agreed finding there was no ‘fact-based chain of reasoning” that could link the damages awarded (with relevant citations relative to damages that must be proven to support an unjust enrichment claim).

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

Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.

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Construction site next to powerline

This matter arose from an electrocution incident on a construction site that resulted in the passing of one individual and injuries to two others.

Congratulations to Partners Alison Hurley and Nicholas Rodriguez for Prevailing on Their Motion for Summary Judgment!

May 12, 2025 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Bremer Whyte Brown & O’Meara is pleased to share that Partners Alison Hurley and Nicholas Rodriguez successfully secured a grant of Summary Judgment in a complex case involving claims of wrongful death and personal injury.

This matter arose from an electrocution incident on a construction site that resulted in the passing of one individual and injuries to two others. The incident occurred when the workers were in the process of installing rebar on the fourth-floor deck of a construction project in Los Angeles, California. As they hoisted a piece of rebar past the edge of the building to attempt to fix a prior mistake, it contacted an active power line, causing the incident.

Plaintiffs included the four family members of the decedent, as well as the two injured workers. Nicholas and Alison represented the building owner, general contractor, and a hired subcontractor. Each plaintiff asserted some form of negligence and premises liability against these defendants alleging that defendants were the cause of the incident and resulting harm. However, Nicholas and Alison argued that each and every claim failed under the Privette doctrine as the incident and resulting harm occurred while the workers were in the course of their employment and under the direction and supervision of their employer. Moreover, pursuant to Privette and its progeny, defendants implicitly delegated to the employer of the workers any tort law duty defendants may have owed to ensure the safety of the workplace that was the subject of the contract. The Court agreed and found that defendants met their burden, and that plaintiffs could not present arguments to overcome the facts and prevailing authority.

Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Three chess pieces center is connected to others

Zachary Torres-Fowler and Manav Singhla discussed the similarities and differences between domestic arbitration and international arbitration.

Toolbox Talk Series: International Arbitration for the "Domestic" Construction Lawyer

May 12, 2025 — Brendan J. Witry - The Dispute Resolver

As US-based construction lawyers know, arbitration is a frequently used method of dispute resolution. However, construction lawyers who practice primarily with projects and clients in the US may not be aware of the nuances that come with the use of arbitration on international projects. For this month's installment of the Toolbox Talk Series, Zachary Torres-Fowler and Manav Singhla discussed the similarities and differences between domestic arbitration and international arbitration.

Zachary and Manav first demystified the nature of international arbitration; it is simply a means of dispute resolution just like domestic arbitration. They discussed the advantages of international arbitration, most notably the easier means of enforcement. Particularly where there are different legal systems (i.e., common law vs. civil law) enforcing a judgment from one legal system can be difficult where the prevailing party must go elsewhere (with a different legal system/tradition) to collect.

Mr. Witry may be contacted at bwitry@lauriebrennan.com

Reprinted courtesy of Brendan J. Witry, Laurie & Brennan LLP

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Toast celebration

Anthony LaPlaca was recognized as one of “the top construction lawyers across the commonwealth.”

Anthony LaPlaca Selected as a 2025 Go-To Construction Lawyer by Massachusetts Lawyers Weekly

May 12, 2025 — Anthony LaPlaca - The Construction Seyt

Anthony LaPlaca, Construction partner in Seyfarth’s Boston office, was chosen as a Go-To Construction Lawyer by Massachusetts Lawyers Weekly (MLW) for 2025, recognizing him as one of “the top construction lawyers across the commonwealth.”

In LaPlaca’s profile, MLW writes:
“LaPlaca has spent his entire career litigating complex construction and design disputes across the country. While he primarily represents general contractors and design professionals, LaPlaca has substantial experience counseling owners and developers on commercial, transportation, entertainment, and energy projects, which allows him to see the best arguments on both sides of any issue.”

Mr. LaPlaca may be contacted at alaplaca@seyfarth.com

Reprinted courtesy of Anthony LaPlaca, Seyfarth Shaw LLP

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Change Order

Under budget, over budget, change orders and labor shortages. Construction projects are not lacking in surprises. Here's how to be prepared for them.

Four Ways to Master the Twists and Turns of Construction Project Change Orders

May 12, 2025 — Joshua Miles - Construction Executive

In an industry where projects often run over schedule and over budget, change orders, labor shortages and communication gaps can significantly reduce construction firms’ profits.

Delays and budget hikes are often inevitable because of the nature of construction work where change orders are frequent. However, if not managed properly, they can result in a loss of credibility with clients and cut deeply into profit.

Here are four construction project management tips that can ease the burden of inevitable project shifts that lead to hidden losses if not properly managed.

1. Create a Detailed Project Schedule
As projects evolve, superintendents often scramble to get the right skilled-trades workers on site at the right time to move projects forward.

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

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Green grass forest with green glass earth

Attorney Anthony B. Cavender discusses recent environmental issues in the regulatory arena.

Environmental Update: Regulatory Notes – April 2025

May 12, 2025 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog

April has proven a busy month for environmental issues when it comes to the regulatory arena. Below are just a few of the notable developments:

  • Coal-Fired Relief: On April 8, 2025, the President issued Presidential Proclamation 10914, “Regulatory Relief for Certain Stationary Sources to Promote American Energy,” published in the Federal Register on April 21, 2025, at 90 FR 16777. A 2024 change to EPA’s National Emissions Standards will place severe burdens on coal-fired power plants. Accordingly, the President, pursuant to the authority vested in him by the Constitution and Section 112(i)(4) of the Clean Air Act, proclaims that the sources identified in Annex I of this Proclamation are exempt from compliance with the rule for two years, beginning on July 8, 2027, and concluding on July 8, 2029. At the present time, technology to implement the new standards is not available. (Forty-seven stationary sources are identified in Annex I.)
  • A Modified General Permit for the CWA: On April 15, 2025, EPA published its modifications to the 2022 Clean Water Act Construction General Permit. (See 90 FR 15653.)Section 402 of the Act authorizes EPA to regulate construction activities that result in discharges of pollutants to the waters of the United States. The initial notice of a revised Construction General Permit was published in the Federal Register on January 24, 2022. The latest revisions apply to “Lands of Exclusive Federal Jurisdiction,” where EPA is the only permitting authority. In addition, this latest notice responds to the recent Supreme Court ruling in City and County of San Francisco v. EPA, which concerned ambiguous receiving water quality limitations applicable to many municipal wastewater treatment facilities. EPA is likely to provide additional guidance that will be of interest to National Pollutant Discharge Elimination System (NPDE) permittees.

Reprinted courtesy of Anthony B. Cavender, Pillsbury

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Strategy

The article outlines GRSM’s transformation into its truly national platform, a milestone achieved in 2019, that fueled explosive, organic growth.

GRSM’s Successful National Strategy Featured in Los Angeles Times

May 12, 2025 — Gordon Rees Scully Mansukhani, LLP

Gordon Rees Scully Mansukhani Partners Dion Cominos and Miles Scully were featured in a Los Angeles Times article, “For GRSM, Growth Has Come Through a Unique Coast-to-Coast Strategy,” which highlights the firm’s remarkable growth since becoming the first and only full-service law firm with offices and attorneys in all 50 states.

The article outlines GRSM’s transformation into its truly national platform, a milestone achieved in 2019, that fueled explosive, organic growth. Since then, the firm has more than doubled its revenue, opened new offices in key markets nationwide, and grown to become one of the 15 largest firms in the United States.

“We keep getting more – and bigger – work from the largest companies in America,” explained Named Partner Miles Scully, who spearheaded the firm’s 50-state strategy. “We hit a need that most people didn’t know existed for one firm to cover all 50 states. It means that a general counsel could call one attorney for all of their legal problems.”

Reprinted courtesy of Gordon Rees Scully Mansukhani, LLP

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Scissors with tax on it

The real estate industry is at the forefront of a lobbying blitz to sway Congress to preserve the carried interest tax break that President Donald Trump wants to abolish in a giant tax bill pending in Congress.

Real Estate Firms Push to Preserve Carried Interest Tax Break

May 12, 2025 — Erik Wasson - Bloomberg

The real estate industry is at the forefront of a lobbying blitz to sway Congress to preserve the carried interest tax break that President Donald Trump wants to abolish in a giant tax bill pending in Congress.

The real estate industry — representing affordable housing and construction jobs as economic anxiety mounts — presents a more sympathetic case to lawmakers than the other main beneficiaries of carried interest: private equity and venture capital.

“When you have a development that a member of Congress can see or can imagine in their district, that resonates,” said Greg Brown of the National Apartment Association, who oversaw an 800-member lobbying event in March to press Congress on carried interest and other issues important to his group.

Reprinted courtesy of Erik Wasson, Bloomberg

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Hand holding model futuristic house

These technologies reduce build times, improve safety, and point toward a more digital, modular future for construction worldwide.

Building the Future: Inside China’s Cutting-Edge Construction Innovations

May 12, 2025 — Aarni Heiskanen - AEC Business

In a recent conversation with three experts from the China Construction Third Engineering Bureau, Mr. Pei Yijun, Dr. Yang Hui, and Ms. Liu Jiao, I had the opportunity to explore two breakthrough innovations that are reshaping high-rise construction and building services integration in China.

The two technologies we discussed were the Intelligent Micro Bump Jacking Formwork System and the Design-Prefabricate-Transport-Assemble (DPTA) model. These technologies reduce build times, improve safety, and point toward a more digital, modular future for construction worldwide.

The three experts from the China Construction Third Engineering Bureau (CSCEC 3rd Bureau) each have distinguished careers marked by deep technical expertise and a commitment to advancing construction innovation.

Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Reprinted courtesy of Aarni Heiskanen, AEC Business

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Consulting Design and Architecture Expert Witness

Forensic Architect CA, AZ, NV, CO, TX, UT, FL, NM, OK - NCARB - National Council of Architectural Registration Boards

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Real estate for sale sign in front of homes

The Housing Market Will Have Some Bargains This Spring

May 12, 2025 — Conor Sen - Bloomberg

A standoff between homebuyers and sellers played out in much of the country over the past two years, and particularly in internal migration destinations such as Florida and Texas. The number of homes on the market rose as poor affordability constrained would-be buyers, but sellers rejected offers significantly below the 2022 peaks. That’s changing. Builders and homeowners are demonstrating that they’re more motivated to sell, giving potential buyers greater bargaining power this spring.

This was the message from two large developers Lennar Corp. and KB Home on their recent earnings calls. The incentives Lennar offered house hunters in its first quarter comprised 13% of revenue, the highest since 2009. Executives said they expect incentives to remain elevated in the current quarter, which is why they guided profit margins to near their lowest level in a decade. The company’s average closing price may fall mid-single-digits in 2025, representing the third consecutive year of declines, according to Bloomberg Intelligence. KB Home said that sluggish demand prompted the company to shift from “pocket incentives” — offered to prospective buyers touring properties but not publicly advertised — to just putting the deals on its website. That and lowering prices in communities with sluggish activity led to a sales pickup.

Reprinted courtesy of Conor Sen, Bloomberg

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Upward trend arrow

Nonresidential Construction Spending Rises to Highest Level on Record in February

May 12, 2025 — ABC - Construction Executive

WASHINGTON, April 1—National nonresidential construction spending increased 0.3% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.255 trillion.

Spending was up on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending increased 0.4%, while public nonresidential construction spending was up 0.2% in February.

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

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Umbrella

Is a Customized Umbrella Insurance Policy Right for Your Construction Company?

May 12, 2025 — Dennis Verheijde - Construction Executive

Construction is an inherently high-stakes industry, where lawsuits, accidents and unpredictable events can jeopardize a company's financial health. While traditional insurance policies provide foundational coverage, they often fall short of addressing the full spectrum of risks contractors face. This is where an umbrella insurance policy comes in—offering an extra safety net that extends beyond the limits of primary coverage.

As the construction industry evolves, so do the risks and challenges that companies encounter. Staying informed about the latest developments in insurance is a must for making strategic decisions that protect businesses from emerging threats.

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

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Seminar

Oregon Wildfire Mitigation and Response

May 12, 2025 — Beverley BevenFlorez – CDJ Staff

This one-day seminar will cover topics such as Private Litigation, Litigation Against the Government, Fire Risk Planning and Mitigation, Insurance Considerations, and more. The event will be presented in person and also offered as a live webcast. Attendance is relevant for attorneys, foresters, municipal employees, conservationists, and government employees.

September 12th, 2025
Location TBD
Portland, OR

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Transmission Tower Involved in Eaton Fire Investigation Removed

One of two Southern California Edison transmission towers was dismantled and removed Wednesday as part of an investigation into whether the towers played a role in starting the deadly Eaton fire.

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