Two States of Construction Law: Working in Both Washington and Oregon Friday, November 4, 2016, Vancouver, WA Presented by WSBA CLE in partnership with the Construction Law Sections of the Washington State Bar Association and the Oregon State Bar Tell us what you think: www.surveymonkey.com/s/17812VAN Co-Chairs and Faculty A Special Thank You to Our Program Co-Chairs and Faculty! Those who have planned and will present at this WSBA CLE seminar are volunteers. Their generous contributions of time, talent, and energy have made this program possible. We appreciate their work and their service to the legal profession. Program Co-Chairs C. Andrew Gibson — Stoel Rives LLP, Portland, OR Jakob Lutkavage-Dvorscak — Smith Freed & Eberhard PC, Portland, OR Bart Reed — Stoel Rives LLP, Seattle, WA Thomas H. Wolfendale — K&L Gates LLP, Seattle, WA Jacob A. Zahniser — Jordan Ramis PC, Lake Oswego, OR Program Faculty Judge Henry C. Breithaupt — Oregon Tax Court, Salem, OR D. Gary Christensen — Miller Nash Graham & Dunn LLP, Portland, OR Judge Scott A. Collier — Clark County Superior Court, Vancouver, WA Paul R. Cressman — Ahlers & Cressman PLLC, Seattle, WA Doug Gallagher — Douglas Gallagher Law Office, Eugene, OR Sean Gay — Stoel Rives LLP, Portland, OR Dan Gragg — Seifer Yeats Zwierzynski & Gragg LLP, Portland, OR Amber Hardwick — Green & Yalowitz PLLC, Seattle, WA Roger Lenneberg — Jordan Ramis PC, Lake Oswego, OR Robert L. Olson — Schlemlein, Goetz, Fick & Scruggs PLLC, Seattle, WA Angela M. Otto — Ball Janik LLP, Portland, OR Bart Reed — Stoel Rives LLP, Seattle, WA Chris Soelling — Christopher J. Soelling PLLC, Seattle, WA Athan E. Tramountanas — Short Cressman & Burgess PLLC, Seattle, WA Diane C. Utz — Watt, Tieder, Hoffar & Fitzgerald LLP, Seattle, WA Judge Douglas V. Van Dyk — Clackamas County Circuit Court, Oregon City, OR Jacob A. Zahniser — Jordan Ramis PC, Lake Oswego, OR Copyright © 2016 • Washington State Bar Association • All Rights Reserved The materials and forms in this manual are published by the Washington State Bar Association for the use of its program registrants. Neither the Washington State Bar Association nor the contributors make either express or implied warranties in regard to the use of the materials and/ or forms. Each attorney must depend upon his or her own knowledge of the law and expertise in the use or modification of these materials. The views and conclusions expressed herein are those of the authors and editors and are not necessarily those of the Washington State Bar Association or any division or committee thereof. Any websites represented by screenshots, logos or ads reproduced in the materials and forms are the copyrighted material of the website owners and are included for illustrative and educational purposes only. The Washington State Bar Association does not recommend or endorse any products or services discussed or demonstrated during the course of this seminar. Course materials accompanying the recorded product may have been reformatted or otherwise modified from those delivered in connection with the live presentation. Any such changes do not affect the substantive content of the course materials. 17812VAN • TWO STATES OF CONSTRUCTION LAW: WORKING IN BOTH WA AND OR • i Summary of Contents Program Schedule ...........................................................................................................iii Co-Chair/Section Chair Biographies ................................................................................ v 1A Contracting for Construction in OR & WA: Competing Change Order and Notice Requirements ..................................................................................................1A-1 Roger Lenneberg 1B Contracting for Construction in OR & WA: Competing Change Order and Notice Requirements ..................................................................................................1B-1 Diane C. Utz 2 Construction Claims on Private Projects - The Fine Art of Mechanic’s Liens and Issues to Consider ............................................................................................. 2-1 Sean Gay Bart Reed 3 Construction Claims on Public Projects - Prompt Payment, Retainage, and Payment Bonds ................................................................................................. 3-1 Dan Gragg Robert L. Olson 4A Contractor and Developer Licensing and Registration ......................................4A-1 Doug Gallagher 4B Contractor and Developer Licensing and Registration ......................................4B-1 Athan E. Tramountanas 5A Economic Loss Rule and The Independent Duty Doctrine ................................5A-1 Angela M. Otto 5B Economic Loss Rule and The Independent Duty Doctrine ................................5B-1 Amber Hardwick 6A 2016 Updates and Trends - Case Law & Legislation .........................................6A-1 D. Gary Christensen 6B 2016 Updates and Trends - Case Law & Legislation .........................................6B-1 Paul R. Cressman 7 From the Bench: The Judge’s Perspective ........................................................ 7-1 Judge Henry C. Breithaupt Judge Douglas V. Van Dyk Judge Scott A. Collier 8 The Ethics of Negotiation ................................................................................... 8-1 Chris Soelling 9 Rules of Professional Conduct (Table of Rules) .................................................. 9-1 17812VAN • TWO STATES OF CONSTRUCTION LAW: WORKING IN BOTH WA AND OR • ii Program Schedule Two States of Construction Law: Working in Both Washington and Oregon Friday, November 4, 2016 8:00 a.m. Check-in • Walk-in Registration • Light Pastry Service 8:25 a.m. Welcome and Introductions by Section Chairs Tara Johnson, Seifer Yeats Zwierzynski & Gragg LLP, Oregon Section Chair Marisa M. Bavand, Groff Murphy PLLC, Washington Section Chair 8:30 a.m. Contracting for Construction in OR & WA: Competing Change Order and Notice Requirements Construction Contracts include detailed time sensitive requirements for change orders. What happens when the change order requires information that you cannot provide within the time required time? What is the impact of strict notice enforcement on impact and extra work change orders? Roger Lenneberg, Jordan Ramis PC, Lake Oswego, OR Diane C. Utz, Watt, Tieder, Hoffar & Fitzgerald LLP, Seattle, WA 9:30 a.m. Construction Claims on Private Projects - The Fine Art of Mechanic’s Liens and Issues to Consider This presentation will compare and contrast significant issues related to the mechanics’ and materialmen’s lien laws of Oregon and Washington, highlighting key differences in the states’ respective statutes and relevant case law. Calling on their respective experience and expertise with lien claims in Oregon and Washington, the presenters will emphasize tips, tricks and traps for the cross- border practitioner confronted with issues regarding the prosecution and defense of construction lien claims. Sean Gay, Stoel Rives LLP, Portland, OR Bart Reed, Stoel Rives LLP, Seattle, WA 10:15 a.m. BREAK 10:30 a.m. Construction Claims on Public Projects - Prompt Payment, Retainage, and Payment Bonds Review and analyze the statutory tools that are intended to ensure full and prompt payment on public projects. Learn tips, requirements, defenses and pitfalls to successfully use these tools. Dan Gragg, Seifer Yeats Zwierzynski & Gragg LLP, Portland, OR Robert L. Olson, Schlemlein, Goetz, Fick & Scruggs PLLC, Seattle, WA Schedule continued on next page 17812VAN • TWO STATES OF CONSTRUCTION LAW: WORKING IN BOTH WA AND OR • iii Program Schedule (cont.) 11:15 a.m. Contractor and Developer Licensing and Registration Learn about the impact on contractors and developers who fail to comply with state license and registration requirements. Doug Gallagher, Douglas Gallagher Law Office, Eugene, OR Athan E. Tramountanas, Short Cressman & Burgess PLLC, Seattle, WA 11:45 a.m. Economic Loss Rule and The Independent Duty Doctrine The doctrine formerly known as the economic loss rule has been rapidly evolving in Washington and Oregon. In the construction industry where a network of contracts define the relationships of parties, these changes presents unique challenges to attorneys. This presentation will provide the most current case law and the impact on construction litigation today. Angela M. Otto, Ball Janik LLP, Portland, OR Amber Hardwick, Green & Yalowitz PLLC, Seattle, WA 12:15 p.m. LUNCH (included) 1:15 p.m. 2016 Updates and Trends - Case Law & Legislation Discussion of recent cases of interest addressing lien and bond claims; “anti- indemnity” clauses; claim/notice; termination for convenience; implied warranty by owner that plans are workable and sufficient; the independent duty doctrine; construction defects; insurance coverage; statutes of limitations; Employer Liability Law; damages; arbitration; attorney fees; and new legislation of interest to the construction industry. D. Gary Christensen, Miller Nash Graham & Dunn LLP, Portland, OR Paul R. Cressman, Ahlers & Cressman PLLC, Seattle, WA 2:15 p.m. From the Bench: The Judge’s Perspective Moderator: Jacob A. Zahniser, Jordan Ramis PC, Lake Oswego, OR Judge Henry C. Breithaupt, Oregon Tax Court, Salem, OR Judge Douglas V. Van Dyk, Clackamas County Circuit Court, Oregon City, OR Judge Scott A. Collier, Clark County Superior Court, Vancouver, WA 3:15 p.m. BREAK 3:30 p.m. The Ethics of Mediation and Arbitration Compare and contrast ethical rules and practices in Oregon and Washington, including puffing