Contractor Settlement Reached in Bellevue City Hall Overrun Dispute
As near as we can tell from this news report, Lease Crutcher will be held responsible for appoximately $5M of the $20M cost overrun incurred on Bellevue's troubled City Hall project. The City intends to pursue recovery against the design team for a "significant" part of the remaining $15M.
Sewer Claim Flushed by Division 3
A backed-up city sewer system overflowed into a home and caused floor damage, among other things. The occupants sued the city for negligence, claiming $15,900 in repair and cleanup expenses. Division 3 affirmed summary judgment in favor of the City.
The Court rejected the theory the City was strictly liable without proof of actual fault -- and likewise rejected the res ipsa loquitur claim. In a nutshell, plaintiff in this context cannot prevail on the theory that the City maintains exclusive control over the sewer system and is thereby guilty for whatever happens.
Court Allows Lien Claimant to Prove that Executed Release Should Be Voided for "Mistake"
The scenario: a supplier of electrical products signed a lien release in exchange for a check from the general contractor for $100,000. The lien release was good up though July 30, according to the face of the document. But the supplier said the document was in error -- that its release only went up through May 25 and that it was still entitled to seek payment for invoices submitted after May 25 (another $100,000).
Overruling the trial court, Division 1 held the supplier had made an adequate factual showing for the dispute to go to trial on the supplier's theory of mistake. The case is a useful starting point for anyone looking to analyze how traditional concepts of contract law such as mistake interact with the instruments of risk management (i.e., releases) which are a vital part of the construction industry.
Contractor May Challenge DOL's "Conformance" Wage Decisions under Davis-Bacon
For aficionados of prevailing wage law, today's D.C. Circuit case will be must reading. The main issue is jurisdictional -- whether a contractor who is subject to Davis-Bacon rules has the right (via the Administrative Procedure Act) to challenge the Labor Secretary's job category and wage rate determinations under the so-called "conformance" regulations. The Court of Appeals said that jurisdiction exists -- but then went to the merits and denied the contractor's complaint.
Payment Claim Barred by Accord & Satisfaction Doctrine
This scenario comes up a lot: an amount owed under an invoice is disputed and the debtor mails in a check for some lesser amount with a letter stating the payment is made "in full satisfaction" of the invoice. This case affirms the general principle that, by depositing the check, the creditor waives its right to sue for the difference. While certain exceptions are noted in the decision, the general rule is caveat depositor.
Cell Tower Permit Denial Upheld by Division 2
The ongoing land use battle over cell tower siting rages on, with this round awarded to the opponents of a Cingular tower proposed for construction in a rural area of Thurston County. Division 2 upheld a hearing examiner's permit denial, summarizing a portion of the key evidence as follows:
The testimony of area residents amply demonstrates that the WCF would
adversely impact views of Mt. Rainier and open vistas of rural farmland.
Currently, no other structures pierce the natural skyline in that area,
which remains undeveloped except for residences, some home businesses, and
a handful of non-residential structures, including a fire station, gas
station and church. We hold that the record contains sufficient evidence
of incompatibility with neighborhood character and adverse aesthetic
impacts to support the hearing examiner's decision