Insurers don't have to pay for Highway 99 tunnel delays, WA Supreme Court rules - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
September 15, 2022 Property and Casualty News
Share
Share
Post
Email

Insurers don't have to pay for Highway 99 tunnel delays, WA Supreme Court rules

Seattle Times (WA)

Sep. 15—Insurance companies don't have to reimburse Washington state for the two years drivers couldn't use the new Highway 99 tunnel, as a result of the boring machine Bertha's stall during construction, the Washington State Supreme Court has ruled.

In a unanimous decision released Thursday morning, the justices rejected the state's argument that delays in the tunnel project were a type of physical damage that fell under the insurance policy. Justices sent the case back to lower courts for insurers, contractors and the state to argue further over other kinds of damage.

For the people of Washington state, who funded the Highway 99 tunnel project mainly through gas taxes, the results aren't clear. But so far, the state has prevailed in a separate case in which contractors sought hundreds of millions of dollars.

The world's biggest tunnel drill, named after former Seattle Mayor Bertha Knight Landes (1926 to 1928), overheated next to Pier 48 on Dec. 6, 2013, and didn't resume digging until 2016 after a massive repair effort. It then broke through next to Seattle Center in April 2017. The two-mile, double-decker tunnel opened to traffic Feb. 4, 2019.

The contracting team, Seattle Tunnel Partners, sued the Washington State Department of Transportation, claiming losses as high as $600 million, and blaming the damage on a vertical steel pipe the state installed in the ground years earlier, to measure groundwater. A Thurston County Superior Court jury sided with the state, and an appeals court ruling upheld that decision. So far, taxpayers aren't on the hook for overruns.

That's where the insurance dispute figured in.

On a parallel legal track, a consortium of eight insurers refused to pay for tunnel cost overruns. They denied coverage to both STP and WSDOT, both policyholders turned adversaries. Insurers argued in 2017 that Bertha, whose rotating cutter head measured 57 feet, 3 inches diameter, was "underdimensioned" from the outset, to handle such tremendous volumes of muck. Insurers further accused STP of inventing a theory that Bertha was wrecked by a steel groundwater-monitoring pipe.

Executives for the machine's maker, Hitachi Zosen of Osaka, Japan, vehemently denied the slams at Bertha's fitness for duty, in a Seattle Times interview, while emphasizing their commitment to spend money and thousands of worker hours to finish the job. Direct parts and labor costs, to include new bearing seals, a main circular gear and tons of reinforcing steel, were estimated at around $143 million for the repairs.

___

(c)2022 The Seattle Times

Visit The Seattle Times at www.seattletimes.com

Distributed by Tribune Content Agency, LLC.

Older

HOW MUCH DOES ENGAGEMENT RING INSURANCE COST?

Newer

State Insurance Commissioner Approves 12 Health Insurance Providers for Individual Market; Two More Under Review [The Chronicle, Centralia, Wash.]

Advisor News

  • I started using AI, but what now?
  • How to support an entrepreneur client with multiple businesses
  • Could a narrower focus help grow your practice?
  • U.S. debt hits $40 trillion: how to support concerned clients
  • Flourish brings private-bank-like cash solution to MassMutual’s network
More Advisor News

Annuity News

  • MassMutual Expands Lending Options With New Secured Credit Line
  • Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
  • Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
  • IMOs get frustrated with slow carrier adoption of faster technology
  • New class-action lawsuit targets Delaware Life over annuity disclosures
More Annuity News

Health/Employee Benefits News

  • It's 5 a.m. at a Princeton Fitness Center – What Do You Say to the Early Arrivals?
  • Your questions answered on Medicare open enrollment
  • Terry Savage: Questions answered on open enrollment
  • New Jersey residents will see Affordable Care Act premiums jump 20% on average for 2027 health insurance
  • Health insurance hits municipal budgets, taxpayers hard
More Health/Employee Benefits News

Life Insurance News

  • Virginia orders Atlantic Coast Life to halt new business Nov. 1
  • AM Best Affirms Credit Ratings of China Taiping Insurance (Singapore) Pte. Ltd.
  • AM Best Upgrades Credit Ratings of Fidelity Life Association, A Legal Reserve Life Insurance Company; Affirms Credit Ratings of Industrial Alliance Insurance and Financial Services Inc. and Its Life/Health Subsidiaries
  • 777 Partners founder pleads guilty to $500 million fraud scheme
  • AM Best Affirms Credit Ratings of Luen Fung Hang Insurance Company Limited
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.