General Business Construction Civil Procedure

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Construction Law Alert: Concrete Supplier Botches Concrete Mix, Gets Thrashed By Court of Appeal for Trying to Blame Third Party

On January 8, 2015, the Second Appellate district affirmed judgment of the lower court in State Ready Mix Inc. v. Moffatt & Nichol, and barred a concrete supplier from blaming a third party consultant for the concrete...more

Transfer of Property Title to a Holding Company Did Not Divest Landowner of Owner-Occupant Status Under A.R.S. § 33-1002(B)

Recently, in Marco Crane & Rigging Co. v. Masaryk, 703 Ariz. Adv. Rep. 29 (Dec. 30, 2014), the Arizona Court of Appeals established that a subcontractor on a residential project has no lien rights against an owner-occupant,...more

Oregon Court of Appeals Clarifies Application of Statute of Limitations and Statute of Repose in Connection with Construction...

In Riverview Condo, Ass’n v. Cypress Ventures, Inc., 266 Ore. App. 574 (Or. Ct. App. 2014), the Oregon Court of Appeals clarified application of the statute of repose and statute of limitations in the context of a suit...more

The Status of Lien Waivers in Utah Remains Cloudy

On December 19, 2014, the Utah Supreme Court issued its opinion in Lane Myers Construction, LLC v. National City Bank, et al. 2014 UT 58 (UT 2014). In this case, a total of nine Utah jurists considered the question of whether...more

Recent New York Decision Reaffirms Limits to Surety's Liability on a Delay Claim Made Under a Payment Bond

Advanced Automatic Sprinkler Co., Inc. v. Seaboard Surety Co., Inc., No. 650321/2001, N.Y.L.J. 1202678994141, at (Sup. Ct. New York County Dec. 3, 2014), the Court (Hon. Marcy Friedman) granted the defendant surety’s motion...more

California Expands the Duty of Professional Consultants

Professional consultants and sub-consultants provide essential services to a Project during its planning, design, construction, and acceptance. In some jurisdictions, they enjoy protections from liability for “economic...more

N.C. Supreme Court Reverses Court of Appeals and Upholds 20-Year Construction Warranty

Freedom of contract principles prevailed in the Supreme Court’s recent ruling that a manufacturer waived application of North Carolina’s 6-year statute of repose by extending an express 20-year warranty of its product. The...more

Where, Oh Where, Can My Lawsuit be Filed?

When preparing or negotiating the terms of construction contracts, parties often indicate where any dispute that may arise between the parties must be litigated. Courts will generally enforce such “venue” or “forum selection”...more

The Demise of the Economic Loss Rule in Construction Defect Litigation

The Massachusetts Supreme Court recently held in Wyman v. Ayer Properties, LLC, that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s...more

December 2014 Independent Contractor Compliance and Misclassification Update

SUPPLIER OF INSTALLATION SERVICES FOR LARGE SATELLITE TV COMPANY CANNOT DISMISS IC MISCLASSIFICATION CLAIM BY INSTALLER. A federal district court in Mississippi last month denied cross-motions for summary judgment in an FLSA...more

The Application of Arizona’s Anti-Deficiency Statute to Partially Constructed Homes

In January 2014, Division One of the Arizona Court of Appeals issued an opinion in BMO Harris Bank, N.A. v. Wildwood Creek Ranch, LLC et al., 678 Ariz. Adv. Rep. 6, 317 P.3d 641 (Ariz. App. 2014), which provides guidance to...more

Illinois Supreme Court Agrees to Decide Breadth of Condo Developer's Tort Duties

In the closing days of its November term, the Illinois Supreme Court agreed to review a decision from Division 5 of the First District with potentially significant implications for developers: Henderson Square Condominium...more

En Banc Pennsylvania Superior Court Rejects Extending CASPA Liability Beyond Contracting Parties

Scungio Borst & Assocs. v. 410 Shurs Lane Developers, LLC et al., 2014 Pa. Super. LEXIS 4527 (Pa. Super. Ct. 2014). On reconsideration of an earlier panel decision of the Pennsylvania Superior Court, the Court en banc...more

The Construction Advantage – Issue 12

Welcome to the twelfth edition of The Construction Advantage! In this issue, we bring you issues of competitive bidding, more mechanics lien case law, and a Maine case of a dismissed appeal. We hope that you enjoy our...more

Equitable Subordination: Construction Lenders Beware

Atlantic Builders Group, Inc. v. Old Line Bank (In re Prince Frederick Inv., LLC), 516 B.R. 778 (Bankr. D. Md. 2014) – A construction contractor contended that the claim of the debtor’s construction lender should be...more

Compliance With Notice Provisions Can Make Or Break Your Bottom Line

Over the past decade, courts in Ohio have confirmed time and time again that they will strictly enforce notice requirements in construction contracts where a contractor or subcontractor seeks additional time or compensation. ...more

Guarantors of a Construction Loan were Exonerated From Liability by a Bank's Misconduct Under the Loan Agreement, Notwithstanding...

California Bank & Trust's predecessor bank ("Bank") granted a $22.5 million construction loan to Five Corners Rialto, LLC ("Five Corners") to develop a 70-unit townhome project in two phases. Two principals of Five Corners...more

Amendments to the Home Building Act

The Home Building Amendment Act 2014 (NSW) (the Amending Act) will significantly change the Home Building Act 1989 (NSW) (Home Building Act) and comes into force in late 2014 and early in 2015....more

Like Hats and Belt Buckles, Indemnity Agreements in Texas Must be CONSPICUOUS

Earlier this month, the U.S. Court of Appeals for the Tenth Circuit held that Texas law allows an indemnity agreement to insulate a party from the consequences of its own, allegedly negligent conduct, but only if that feature...more

N.C. Court of Appeals: Limitations Period Does Not Apply to Local Government Enforcement of Subdivision Performance Bonds

A post-Great Recession treat, the North Carolina Court of Appeals affirmed today a ruling that the Town of Black Mountain is entitled to enforce subdivision performance bonds originally in the name of Buncombe County, after...more

N.C. Court of Appeals: Restrictive Covenant Prohibiting "Store" Does Not Prohibit "Parking" for a Prohibited Store

How broadly will the appellate courts interpret a restrictive covenant applicable to real property? Not so broadly as to prohibit a parking lot to be used by customers for an otherwise expressly prohibited use....more

U.S. District in California Discusses Distinctions between Joint Ventures and Subcontractor Relationships for Miller Act Purposes

Frontier Contr. Inc. v. Allen Eng’g Contr., Inc., 2014 U.S. Dist. LEXIS 136474 (E.D. Cal. Sept. 2014) - Frontier Contracting Inc. (Frontier) entered into a teaming agreement with Allen Engineering Contractor, Inc....more

Developing Issues in Utah Construction Defect Litigation

Following the Utah Supreme Court’s decision in Davencourt at Pilgrim’s Landing Homeowners’ Association v. Davencourt at Pilgrim’s Landing, which clarified the law regarding the claims for which homeowner’s associations (HOAs)...more

Recent Decisions Reinforce the Value of Quality over Quantity in a Reservation of Rights Letter

In two recent cases, Advantage Builders & Exteriors v. Mid-Continent Casualty Co. No. WD 76880 (Mo. Ct. App. Sept. 2, 2014) and EAN Services, LLC v. Brunson, No. 2-14-118 (Ill. Ct. App. September 8, 2014), the courts remind...more

Nevada Construction Law Developments in 2014

This is an off year for Nevada’s biennium legislative session; but even though the Legislature was quiet, Nevada’s electorate was not. Nevadans approved State Question No. 1 at the ballot box. This measure amends the Nevada...more

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