USLAW Spring / Summer 2017 – THE DEVIL IS IN THE DETAILS
Parties to construction contracts have historically used indemnity clauses to shift the responsibility to pay damages from one party (the indemnitee) to another party (the indemnitor) without regard to who actually caused the damage. Over time, however, states enacted so-called “antiindemnity” statutes to limit the amount of liability that parties to construction contracts can allocate...
WASHINGTON APPELLATE COURT FINDS INSURER NOT COLLATERALLY ESTOPPED FROM CONTESTING LIABILITY ISSUES IN DECLARATORY JUDGMENT ACTION
Quarterly Newsletter Summer 2017 In Washington, insurers can be subject to collateral estoppel, which bars litigation of the same issue in a subsequent declaratory judgment action, when that issue was actually litigated in the underlying proceeding. The circumstances that allow collateral estoppel to apply vary on a case-by-case basis, but generally turn on whether the...
OREGON COURT OF APPEALS RENDERS IMPORTANT DECISION ON VARIOUS COVERAGE ISSUES ARISING OUT OF CONSTRUCTION DEFECT LAWSUIT
Quarterly Newsletter Summer 2017 In an effort to stem the flood of claims for coverage arising out of construction defect lawsuits, insurers have included various exclusions and endorsements to limit coverage for such claims in their commercial general liability policies issued to construction contractors and subcontractors. One such exclusion, titled the “Multi-Unit New Residential Construction”...
Amendments to Washington’s Retainage Statute Expose Sureties to Additional Risk
Surety Law Update Summer 2017 In February 2017, the Surety Team at Williams, Kastner & Gibbs wrote an article regarding a proposed amendment to Washington’s retainage statute, RCW 60.28.011(6). House Bill 1538, which became effective on July 23, 2017, was largely supported and advanced by subcontractor trade groups in an effort to relieve cash flow...
Washington Supreme Court Decision Exposes Sureties to Increased Risk for Disputing Claims
SURETY LAW UPDATE SUMMER 2017 On July 6, 2017, the Washington State Supreme Court addressed two important issues for sureties in Washington: (1) whether extending statutory attorney fees to public works projects provides the sole fee remedy for those projects; and (2) whether the fees between King County’s claims against the principal and sureties could...
Washington State Court of Appeals Misstates Basic Surety Law Involving Release of Lien Bond Claim
Surety Law Update Summer 2017 Washington’s Release of Lien Bond statute, RCW 60.04.161, allows a property owner or contractor to “release” real property from a construction lien, prior to the lien claim being resolved, by issuing a release of lien bond. Recording the bond does not destroy the lien entirely, but instead transfers the lien...
Eliot Harris Appointed to Insurance Industry Charitable Foundation Board of Directors
Williams Kastner proudly announces that Seattle member Eliot Harris has been elected to the Board of Directors for the Washington Chapter of the Insurance Industry Charitable Foundation. The IICF is a public charity founded over thirty years ago that is funded and directed by insurance industry professionals representing a broad spectrum of the industry. It’s...
ALASKA SUPREME COURT FINDS DUTY OWED BY LIABILITY INSURER TO THIRD-PARTY CLAIMANT
Quarterly Newsletter Spring 2017 Over the years, policyholders and their attorneys have sought to assert tort claims directly against liability insurers for alleged mishandling of liability claims. While the general rule in many jurisdictions is that third party claimants have no independent cause of action against the policyholder’s liability insurer absent an assignment of rights...
Washington Supreme Court Limits the Scope of the Insurance Fair Conduct Act
Surety Law Update Spring 2017 Recently, the Washington Supreme Court narrowly interpreted the Insurance Fair Conduct Act (“IFCA”), limiting the scope of conduct that constitutes a violation under the act. In Isidoro Perez-Crisantos v. State Farm Fire & Casualty Company, the Court determined whether a violation of the insurance regulations under the Washington Administrative Code...
Washington State Legislative Alert: 2017 Regular Session
Surety Law Update Spring 2017 On January 17, 2017, the Senate introduced Bill No. 5222 for referral to the Committee on Commerce, Labor & Sports for consideration. Senate Bill 5222 proposes changes to Washington’s retainage statute, RCW 60.28.011(6), which would require a contractor on a public improvement project, at the request of a subcontractor, to...
Sheryl Willert and Jerry Rubin Participate in PSBJ Thought Leader Forum
Williams Kastner attorneys, Sheryl Willert and Jerry Rubin, recently participated in the Puget Sound Business Journal’s Thought Leader Forum on Immigration and Employment Under the New Administration. The panel included five Seattle attorneys specializing in Immigration and Employment. The three other participants were Janet Cheetham, of Ryan, Swanson & Cleveland, PLLC; Justo Gonzalez, of Stokes...
Regulatory Hurdles and Safety Considerations Remaining for Autonomous Trucks
Introduction In case you missed it, news of the advance of driverless transportation technology abounds. Amazon made its first drone delivery on December 14, 2016, delivering an Amazon Fire TV and microwave popcorn to a customer in the United Kingdom (where the autonomous delivery technology is currently being tested). Domino’s Pizza has been testing delivery...