General Business Construction

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News & Analysis as of

Conclusory Allegations Held Insufficient to Support Declaratory Relief on Right to Independent Counsel or Allocation of Defense...

In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. E060057, filed 5/22/15), a California Court of Appeal held that a developer’s declaratory relief lawsuit seeking a declaration of the right to independent counsel was...more

Indiana Court Nixes Requests for Reinsurance and Reserves

Early last month a federal court in Indianapolis barred a policyholder from seeking the claims and underwriting files of the defendant carrier’s reinsurer in Indianapolis Airport Auth. v. Travelers Property Cas. Co. of Amer.,...more

Righting a Wrong in West Virginia – The Residential Construction Right to Cure

In residential construction, problems can arise with customers that cause expensive litigation. In West Virginia, a right to cure in residential construction by statute can alleviate such costs. The statutory term is...more

Letters of the Law: 'J' is for Jurisdiction

The first step when you cannot resolve your dispute is the "jurisdiction" clause in your contract. In some contracts the jurisdiction clause has been ferociously reviewed, considered and negotiated. Other contracts completely...more

Virginia Legislation Significantly Impacts Construction Industry

At its recently-concluded 2015 Regular Session, the Virginia General Assembly passed legislation which will significantly affect those persons who deal with potential mechanic’s lienors. The revision to section 43-3 of the...more

Interaction between on-demand bonds and the underlying contract revisited by the English High Court

Introduction - From our previous alerts, which can be found here and here, we know that bonds and guarantees are complex instruments, the consequences of which depend not on what they are called, but their terms, the...more

Construction Corner: Preparing RFQs and RFPs for Design Services for Your School Construction Project

Last week, we discussed the requirements of the selection process for the architect of a state-assisted school construction project as well as the importance of procurement protocols for all projects regardless of the source...more

Michigan Court of Appeals Reverses Lower Court, Finds An Express Contract

The Michigan Court of Appeals recently reversed a lower court in a contractor-subcontractor dispute, requiring analysis of the contract and unjust enrichment doctrines. In the unpublished decision, Lawrence M. Clarke, Inc. v....more

Federal Court Determines that General Contractor’s Unreasonable Exercise of its Broad Discretion over Scheduling and Sequencing of...

In a recent decision, Elec. Contractors, Inc. v. Fid. & Deposit Co. of Maryland, No. 3:13-CV-00514 MPS, 2015 WL 1444481 (D. Conn. Mar. 30, 2015), the United States District Court for the District of Connecticut dismissed on...more

Construction Case Law Update - May 2015

Contractor/Employee Injury Exclusion under Commercial General Liability Policy - After a worker suffered serious injury at construction site, insurer brought declaratory action seeking judgment that the...more

Letters of Intent: What Do They Really Do?

A construction project usually contains a web of contractual relationships, such as between owner-contractor, contractor-subcontractor, subcontractor-supplier, owner-architect, architect-engineer, and so forth. To make things...more

State May Not Disclose Trade Secrets Submitted as Part of RFP Response

If you have ever agonized about whether to include certain confidential business information in a bid for a state contract in New Hampshire because of concerns that your competitors might get their hands on it, you should...more

U.S. District Court in Pennsylvania Holds Subcontractor’s Miller Act Suit Not Subject to Stay Pending Prime Contractor’s...

Marenalley Constr., LLC v. Zurich American Ins. Co. and Nason Constr. Inc., 2015 U.S. Dist. LEXIS 30968 (E.D. Pa. March 13, 2015) - This payment dispute case arises out of a Veterans Affairs (“VA”) construction project...more

District of Colorado: “First-Party Claimant” Under State Bad Faith Statute is Not Synonymous With First-Party Bad Faith Under...

Nat’l Union Fire Ins. Co. of Pittsburgh, PA v. Intrawest ULC, et al., No. 13-cv-00079-PAB-KMT, 2015 WL 1326199 (D. Colo. Mar. 20, 2015). The U.S. District Court for the District of Colorado denies an insurer’s motion to...more

Litigation Alert: "Texas Supreme Court Affirms Protection for Business Property Owners"

The Supreme Court of Texas, interpreting Chapter 95 of the Texas Civil Practices & Remedies Code, affirmed that business property owners have broad protections against suits for injuries claimed by contractors, subcontractors...more

Using Drones On Your Construction Project - Are You Ready?

There are many potential uses for drones in the construction industry, such as for site selection, surveying, and real-time work inspections. If you are thinking about using a drone in your construction operations, there are...more

Food for Thought – Ten Post ADCNC Construction Defect meeting comments on “the system” by CD practitioners

The process still works if everyone cooperates. That means plaintiffs, developers, subcontractors and insurance companies. A breakdown exists in the following areas: Plaintiffs are not being uniformly required to...more

Money, Dirt & Steel: Spring 2015 NC Real Property Litigation Update

MONEY: GUARANTORS CAN NOW RELY ON G.S. §45-21.36 VALUE DEFENSES - By statute in North Carolina, G.S. §45-21.36, certain obligors may defend a deficiency action where the bank is the successful bidder by arguing...more

Stop, Think, and Be Careful What You Ask For: Lessons and Opportunities Created by Recent Arbitration Ruling

On April 21, 2015, the Missouri Court of Appeals in City of Chesterfield v. Frederich Construction Inc. upheld an arbitration award that included substantial attorneys' fees to the prevailing party, in a construction case...more

Federal District Court in Nevada Denies Contractor’s Motion to Stay Subcontractor’s Miller Act Suit Pending Resolution of...

KBW Assocs. v. Jaynes Corp., 2015 U.S. Dist. LEXIS 18220 (D. Nev. Feb. 13, 2015). This action arose out of the construction of additions to existing buildings at Creech Air Force Base in Indian Springs, Nevada (the...more

Letters of the Law: 'I' is for Indemnity

A to Z of Construction Law in Qatar Series - Standard form construction contracts contain indemnities. For example, the FIDIC standard forms of contract contain indemnities in relation to loss arising from death,...more

The Announcement of Criminal Charges against Lumber Liquidators Underscores the Need for Lacey Act Compliance

On Wednesday, April 29, 2015, Lumber Liquidators announced in its most recent 10Q that the United States Department of Justice plans to pursue criminal charges surrounding allegations the company illegally imported wood in...more

OAS UPDATE: Bankruptcy Court Grants Limited Temporary Relief in Chapter 15 Case

Background: Grupo OAS, a Brazilian construction conglomerate linked to a massive corruption scandal (“OAS”), filed for Chapter 15 creditor protection in the Bankruptcy Court for the Southern District of New York on April 15,...more

Construction Law Advisory - May 2015

In This Issue: - Beware of penny bidding: Contractors could be stuck footing the bill for differing site conditions - Pennsylvania Supreme Court weighs whether good faith refusal to pay is a factor in awarding...more

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

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