{"id":899215,"date":"2021-10-07T15:13:04","date_gmt":"2021-10-07T21:13:04","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899215"},"modified":"2021-10-07T15:13:06","modified_gmt":"2021-10-07T21:13:06","slug":"spearin-doctrine-washington-state","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/spearin-doctrine-washington-state\/","title":{"rendered":"Washington State Supreme Court Issues Landmark Decision on Spearin Doctrine"},"content":{"rendered":"\n<p>Cameron Sheldon | <a href=\"https:\/\/www.acslawyers.com\/construction-defect\/washington-state-supreme-court-issues-landmark-decision-on-spearin-doctrine\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Ahlers Cressman &amp; Sleight<\/a><\/p>\n\n\n\n<p>The Washington State Supreme Court\u2019s recent decision in\u00a0<em>Lake Hills\u00a0Invs., LLC v. Rushforth Constr. Co.\u00a0<\/em>No. 99119-7, slip op. at 1 (Wash. Sept. 2, 2021)\u00a0marks the first time in over 50 years that it has ruled on the\u00a0<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/federal-court-rules-spearin-doctrine-contractor-immunity-for-defects-in-owners-design-includes-contractor\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Spearin<\/em>\u00a0doctrine<\/a>.\u00a0The Court\u2019s opinion\u00a0clarified\u00a0the contractor\u2019s burden when asserting a\u00a0<em>Spearin<\/em>\u00a0defense\u00a0and\u00a0affirmed the jury\u2019s verdict in favor of contractor AP Rushforth Construction Company (AP).\u00a0\u00a0<strong>The decision\u00a0is a\u00a0major\u00a0win for\u00a0Ahlers Cressman &amp; Sleight PLLC\u00a0attorneys\u00a0Scott Sleight, Brett Hill, and Nick Korst, who represented AP\u00a0throughout its long-running dispute with Lake Hills Investments, LLC (LH), including the two-month jury trial and the appeal.<\/strong>\u00a0<strong>Leonard Feldman of\u00a0Peterson | Wampold | Rosato | Feldman | Luna\u00a0and Stephanie Messplay of\u00a0Van Siclen Stocks &amp; Firkins\u00a0also represented AP on appeal. \u00a0<\/strong><\/p>\n\n\n\n<p>At trial, the owner\u2014Lake Hills Investments, LLC (LH)\u2014asserted it was entitled to $3 million in liquidated damages and $12.3 million for defects it alleged were caused by AP\u2019s deficient workmanship. AP denied responsibility for the delays and most of the defects and requested payment of $5 million. Regarding LH\u2019s defect claims, AP argued as an affirmative defense that the defects were caused by deficiencies in the plans and specifications provided by LH. This affirmative defense was rooted in the&nbsp;<em>Spearin&nbsp;<\/em>doctrine, which states that when the contractor follows plans and specifications provided by the owner, the contractor is not responsible for defects&nbsp;caused by the plans and specifications.&nbsp;&nbsp;<\/p>\n\n\n\n<p>After much back and forth over how to instruct the jury on the defect claims, the trial court&nbsp;instructed the jury as follows:&nbsp;<\/p>\n\n\n\n<p><em>For its affirmative defenses, AP has the burden to prove that&nbsp;LH&nbsp;provided the plans and specifications for an area of work at issue, that AP followed those plans and specifications, and that the [construction] defect resulted from defects in the plans and specifications.&nbsp;&nbsp;<\/em><\/p>\n\n\n\n<p>The jury returned&nbsp;a verdict&nbsp;in favor of AP.&nbsp;&nbsp;The jury awarded AP $5 million&nbsp;on its payment claim, rejected LH\u2019s liquidated damages claim,&nbsp;and awarded LH $1.5 million for defects (some of which were conceded by AP),&nbsp;finding that&nbsp;AP had performed defective work on six of the eight areas of claimed defects.&nbsp;But the jury awarded no damages for certain defects, indicating that it may have agreed with AP that the cause of the defect was LH\u2019s defective plans and specifications.&nbsp;Ultimately, the court awarded AP a net judgment of over $9 million, including nearly $6 million in attorneys\u2019 fees, expert fees,&nbsp;and costs.&nbsp;&nbsp;<\/p>\n\n\n\n<p>LH\u00a0appealed, claiming the trial court issued\u00a0incorrect\u00a0jury instructions regarding AP\u2019s affirmative defense.\u00a0The\u00a0Court of Appeals\u00a0agreed, holding:\u00a0\u00a0<\/p>\n\n\n\n<p><em>[P]roof of any defect in the plans and specifications for that area contributing to a construction defect would let AP avoid all liability for that area even if Lake Hills proved AP\u2019s deficient performance caused some of the damage. This instruction incorrectly understated AP\u2019s burden of proof.<\/em>&nbsp;<\/p>\n\n\n\n<p>According to the&nbsp;Court&nbsp;of Appeals, the instruction&nbsp;as given&nbsp;\u201cclearly misstated the law,\u201d&nbsp;and&nbsp;the instruction would have adequately stated the law had it included the word \u201csolely\u201d&nbsp;as LH requested.&nbsp;The&nbsp;court reasoned that the instruction provided to the jury allowed the jury to absolve AP of all liability for an area, even if only part of the defective work resulted from defective plans and specifications.&nbsp;&nbsp;<\/p>\n\n\n\n<p>AP petitioned\u00a0the Washington State Supreme Court\u00a0for review.\u00a0On June 24, 2021, the Supreme Court heard\u00a0oral\u00a0arguments.\u00a0A recording of\u00a0the parties\u2019\u00a0oral arguments\u00a0can be found here:\u00a0<a href=\"https:\/\/www.tvw.org\/archives\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">https:\/\/www.tvw.org\/archives\/<\/a>.\u00a0\u00a0<\/p>\n\n\n\n<p>The Supreme Court reversed&nbsp;the Court of Appeals and ruled that although the wording of the trial court\u2019s&nbsp;<em>Spearin<\/em>&nbsp;instruction was \u201cpotentially misleading,\u201d it was not prejudicial to LH because it allowed the jury to apportion fault between LH and AP&nbsp;and&nbsp;\u201cthe jury had every opportunity to award&nbsp;LH&nbsp;damages based on claims for each breach of contract.\u201d No. 99119-7, slip op. at 18.&nbsp;The Court&nbsp;explained that a&nbsp;<em>Spearin&nbsp;<\/em>affirmative defense can be used to absolve the contractor of all liability or&nbsp;only&nbsp;a portion of liability:&nbsp;<\/p>\n\n\n\n<p><em>An affirmative design defect defense is a&nbsp;complete&nbsp;defense if the damage is solely due to the&nbsp;design. However, if the defects were caused by a combination of deficient performance and deficient design, then it is not a complete defense.&nbsp;&nbsp;<\/em><\/p>\n\n\n\n<p><em>Id<\/em>. at&nbsp;16.&nbsp;&nbsp;The Supreme Court recognized that the&nbsp;<em>Spearin&nbsp;<\/em>defense may be used by a contractor to reduce liability rather than totally escape it.&nbsp;The Supreme Court rejected the&nbsp;all-or-nothing&nbsp;reasoning of&nbsp;the&nbsp;Court of Appeals. While the Court of Appeals viewed&nbsp;the&nbsp;<em>Spearin&nbsp;<\/em>defense instruction as improperly allowing the jury to absolve AP of fault so long as deficiencies in LH\u2019s plans and specifications contributed in some way to the defects, the Supreme Court understood that the instructions&nbsp;as a whole intended&nbsp;for the jury to apportion&nbsp;liability&nbsp;appropriately&nbsp;between AP and LH based on whether the defects were caused by the work AP performed or the plans and&nbsp;specifications&nbsp;LH provided.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The Supreme Court\u2019s&nbsp;reversal&nbsp;means the jury verdict stands and the case will not be retried. However, the&nbsp;Supreme&nbsp;Court&nbsp;remanded&nbsp;the case&nbsp;to the Court of Appeals to consider&nbsp;LH\u2019s arguments&nbsp;on&nbsp;to the trial court\u2019s award of attorneys\u2019 fees, which the Court of Appeals did not reach in its earlier decision.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong><em>Commentary<\/em><\/strong>&nbsp;<\/p>\n\n\n\n<p><em>The Supreme Court\u2019s opinion&nbsp;is&nbsp;the first time the Court has considered&nbsp;Spearin&nbsp;in 50 years, and&nbsp;it&nbsp;provides&nbsp;an essential&nbsp;clarification of&nbsp;the contractor\u2019s burden when asserting a&nbsp;Spearin&nbsp;defense.&nbsp;In particular, the Court\u2019s decision reaffirms clear precedent limiting a contractor\u2019s liability for defects when the contractor follows the owner\u2019s plans and specifications, as well as Washington\u2019s public policy allocating risk and liability between contractors, owners, and architects (among others) on construction projects.&nbsp;Importantly, the opinion indicates that a contractor&nbsp;can still use a Spearin defense to reduce its&nbsp;liability&nbsp;even if some defects were caused in part by its own deficient work.&nbsp;<\/em>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cameron Sheldon | Ahlers Cressman &amp; Sleight The Washington State Supreme Court\u2019s recent decision in\u00a0Lake Hills\u00a0Invs., LLC v. Rushforth Constr. Co.\u00a0No. 99119-7, slip op. at 1 (Wash. Sept. 2, 2021)\u00a0marks the first time in over 50 years that it has ruled on the\u00a0Spearin\u00a0doctrine.\u00a0The Court\u2019s opinion\u00a0clarified\u00a0the contractor\u2019s burden when asserting a\u00a0Spearin\u00a0defense\u00a0and\u00a0affirmed the jury\u2019s verdict in favor&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/spearin-doctrine-washington-state\/\">Continue reading <span class=\"screen-reader-text\">Washington State Supreme Court Issues Landmark Decision on Spearin Doctrine<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,172],"tags":[9895,19,9160,306],"class_list":["post-899215","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-construction-law-2","tag-advise-consult","tag-construction-defects-2","tag-spearin-doctrine","tag-washington","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Washington State Supreme Court Issues Landmark Decision on Spearin Doctrine - Advise &amp; 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