Construction Law › Bankruptcy

Mississippi District Court Defers to New York Court in Bond Action

The United States District Court for the Northern District of Mississippi denied the motion of defendant ACA Financial Guaranty Corporation (ACA) to dismiss a class action complaint, finding that the issues were previously...more

Your Last Resort: The Unpaid Account

A suit on an unpaid account against your customer will likely entitle you to the principal balance plus interest and attorney fees. But a suit on an unpaid account is only as good as your customer’s ability to satisfy the...more

Insolvency in the Building and Construction Industry: Proposed Amendments to the Building and Construction Industry Security of...

The Industry and Current Legislation - The NSW building and construction industry (the Industry) is plagued by a high level of insolvencies. In the 2012 financial year, almost 25% of the external administrations...more

TRANSACTIONAL: Bankruptcy: Contractor Insolvency Issues in Large Project Transactions

An issue that is often overlooked, but should be considered in the context of large project transactions, is the potential insolvency of contractors and subcontractors. A bankruptcy proceeding involving a key contractor can...more

Energy Newsletter - February 2013

In This Issue: - DISPUTE RESOLUTION: - International Arbitration: EU Member State Defends Measures Adverse to Energy Sector Investments on the basis of EU law - REGULATORY: - Competition Law/Russia: Russia...more

Suppliers Must Take Affirmative Steps to Determine Source of Payments to Protect Construction Lien Claim Rights

In L&W Supply Corp. v. Joe DeSilva, et al., (Docket No. A-2960-10T2, December 19, 2012) (“L&W Supply”), a decision recently approved for publication, the Appellate Division provides guidance to material suppliers seeking to...more

Baker & McKenzie: Inquiry into Construction Industry Insolvency

The NSW Government has announced an independent Inquiry into Construction Industry Insolvency in NSW. Announced by NSW Minister for Finance & Services the Hon. Greg Pearce, the Inquiry will examine the extent and causes of...more

Commercial Restructuring & Bankruptcy Alert - June 2012

In this issue: - Construction Lenders Beware - Supreme Court Upholds Secured Creditor’s Right to Credit Bid in a Bankruptcy Case - Jointly Administered Plans Must Obtain Impaired Class Approval ‘Per Debtor’...more

What if Your Insurer Goes Bankrupt and No One Tells You? Perspectives on Insurance Recovery Newsletter - Summer 2012

"Does an insurance broker, after procuring an insurance policy for a developer on a construction project, owe a duty to apprise a subcontractor that was later added as an insured under that policy of the insurance company's...more

Breaking News: Insurance Coverage for "Hidden" Mechanics' and Materialmen's Lien Claims in North Carolina is Disappearing

Even in good economic times, lien claims asserted by subcontractors and material suppliers abound and lead to costly disputes. As in many states, North Carolina’s materialmen’s lien statutes create a system where “hidden” or...more

Bankruptcy Court Delivers Next Chapter In Developing Law Regarding Post-Petition Lien Perfection By Subcontractors

In a prior alert (Subcontractors and Suppliers Win Support for Lien Perfection During North Carolina Bankruptcies) we told you about the order from the United States District Court for the Eastern District of North Carolina...more

Subcontractors Take Note - Appellate Division Confirms That Construction Lender Has No Duty To Subcontractor Absent Express...

The New Jersey Appellate Division recently ruled in Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania, Docket No. A-3844-10T1 (March 5, 2012), that a construction lender has no obligation to pay an...more

Subcontractors and Suppliers Win Support for Lien Perfection During North Carolina Bankruptcies

By order issued on February 23, 2012, the United States District Court for the Eastern District of North Carolina vacated the bankruptcy court’s decision in In re Mammoth Grading, Inc. This decision and the companion decision...more

Massachusetts Appeals Court Invalidates Mechanic's Liens Against Condo Common Areas

A Massachusetts Appeals Court decision last month portends far-ranging implications for the construction industry. The court ruled that a subcontractor's mechanic's lien filed against the common areas of a condominium was...more

How To Minimize Construction Default Consequences

The abandoned construction project can present a nightmare for a property owner. This article details precautions an owner can take pre-construction to minimize the consequences of a failed project....more

Involuntary Bankruptcy as a Collection Tool

Although the tactic does not receive much publicity, the filing of an involuntary bankruptcy petition against a business debtor can be an effective collection tool under the right circumstances. Learn the requirements and...more

Subcontractors and Suppliers Win Support for Lien Perfection During North Carolina Bankruptcies

NC District Court suggests Bankruptcy Court opinions in In re Mammoth and In re Harrelson (EDNC) are inconsistent with constitutional protections afforded lien claimants in North Carolina. Subcontractors/suppliers win...more

Rainbow 215, LLC Chapter 11

Appropriate Rate of Interest in a Cramdown--Judge's Confirmation of Plan of Reorganization of a Single-Asset Real Estate Developer

"APPROPRIATE RATE OF INTEREST" FOR A CHAPTER 11 CRAM-DOWN & THE SUPREME COURT’S "TILL" DECISION According to the Bankruptcy Code, a confirmable Plan of Reorganization must provide dissenting secured creditors a sum...more

Strategic Defaults on Mortgage Loans & Bankruptcy

On the way in to the office this morning there was a news story on the radio about homes in Arizona. A full 50% of home owners owe more on their home than it is worth here in Arizona. You may have the same thought I...more

Developers personally liable: insolvency and the SPV (UK)

Developers can be personally exposed if they control risk on a development through the limited liability of an SPV vehicle. A recent case holds directors persoanlly liable for the SPV's debts after they should have realised...more

McInerney Homes & Ors -v- Companies Acts

JUDGMENT of Mr. Justice Clarke delivered the 10th January, 2011

At an early stage of the hearing discussion took place involving counsel for respectively Homes and Contracting (“collectively McInerney”), the examiner, and the Banking Syndicate. There was broad agreement that the issues...more

Beware: "Broken" Subdivision Pitfalls Will Linger for Years to Come: Top Ten Questions You Need to Ask

We now see signs of hope on the horizon for the battered real estate market. But recovery typically happens in stages and there is no reason that this recovery will differ in that regard. At the initial stages of a recovery,...more

Construction Accident Leads to Important OSHRC Ruling

The Occupational Safety & Health Review Commission, which hears appeals of OSHA citations and penalties, has ruled that employers cannot escape liability for repeat safety violations by reorganizing. The case was an appeal of...more

Developer files for Bankruptcy, Entertainment Center in Jeopardy

A proposed plan to build New England’s first Brunswick Zone at 128 Newbury St., a spot on the highway near the intersection with Winona Street is now in danger of not getting off the ground. The local developer responsible...more

It May Pay For Subcontractor to Get Agressive

Contractors and Subcontractors may have a superior right to unpaid contract funds. ...more