Construction Civil Procedure

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Obligation to Perform Work and Incur Costs Under Construction Contract is a Section 752 Liability

In a recently issued Private Letter Ruling (PLR 201608001), the IRS determined that a taxpayer-partnership’s obligation to perform work and incur costs under a long-term construction contract constituted a partnership...more

Nuisance Claim Against Architect Dismissed

“Use the right tool for the job” is also a good bit of advice in litigation, as underscored by a recent decision out of the Connecticut Appellate Court. The case is Fisk v. Redding, AC 37537 (April 19, 2016)....more

Employer May Terminate Pre-Hire Agreement with Union, Sixth Circuit Rules

On April 21, 2016, resolving a situation not previously decided by the Sixth Circuit Court of Appeals, the court held that a construction company that was a party to a pre-hire collective bargaining agreement lawfully...more

Montana Supreme Court Revisits General Liability Coverage for Construction Defect Claims

In its recent decision in Emplrs Mut. Cas. Co. v. Fisher Builders, Inc., 2016 MT 91 (Mont. Apr. 16, 2016), the Supreme Court of Montana had occasion to consider what constitutes an “occurrence” in the context of a defective...more

Exceptions to the temporary finality of interim payment certificates and the architect’s role in enforcement proceedings - A case...

The issue before the Court of Appeal was whether an employer could establish any exceptions in clause 31(13) of the Singapore Institute of Architects Articles and Conditions of Building Contract (“SIA Conditions”) to...more

Government Contractors Not Protected by New Jersey Tort Claims Act’s Pre-Suit Notice Provisions

On April 14, 2016, the New Jersey Appellate Division, in a precedential decision, determined that injured parties are not obligated to serve pre-suit tort claims notices under the New Jersey Tort Claims Act (“TCA”) on private...more

Automated People Mover at LAX – Submittal Instructions Issued for Operating System Suppliers

On April 18, 2016, Los Angeles World Airports (LAWA) reached an initial milestone in its Landside Access Modernization Program (LAMP) by issuing instructions for how automated people mover operating system suppliers can...more

To Arbitrate or Not to Arbitrate? That is the Question

It’s been the fodder of debate of philosophers, academics and the rest of us for ages: - Do we have free will or are our actions predetermined and the result of preceding events? - Are human beings...more

Standing tall – The “Independent Contractor” defence for builders and construction professionals

The High Court has recently ruled that main contractors and architects may rely on the independent contractor defence to defeat claims in negligence brought by management corporations. The court’s inquiry focused on whether...more

Yet Another Trap for the Unwary : Forum Selection – Don’t Get Dragged Across the Country

Recently I came across an article that led me to a case that dealt with the seemingly innocuous and often perfunctory forum selection clause. In the case (Liddell Bros. v. Impact Recovery Sys., 2016 U.S. Dist. LEXIS 36258...more

A Double Standard in Construction Defect Coverage Cases?

The recent decision of Allied Property & Casualty Insurance Co. v. Metro North Condominium Associates highlights why only a minority of jurisdictions still hold to the fiction that construction defects cannot give rise to an...more

Federal Court in Georgia Holds Specific Contractual Intent to Benefit Required for Tenant to Be Third-Party Beneficiary of...

J.C. Penney Props. v. Hiram LL, LLC, 2016 U.S. Dist. LEXIS 8027 (N.D. Ga. Jan. 25, 2016) - In January 2008, Hiram LL, LLC (“Hiram”) leased property to J.C. Penney Properties, Inc. (“J.C. Penney”) for the construction and...more

California Appeals Court Rejects Insurer’s Reliance on Contractual Escape Clause

According to a closely watched decision, an “other insurance” clause in a comprehensive general liability policy will not, as a matter of public policy, permit the insurer to avoid having to pay a share of the insured’s...more

Maryland Appellate Court Holds Economic Loss Doctrine Bars Contractor’s Tort Claims Against Government’s Design Professional on...

Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLP, 226 Md. App. 420, 130 A.3d 1024, 2016 Md. App. LEXIS 3 ( Md. Ct. Spec. App. Jan. 28, 2016) The City of Baltimore retained a design professional, Rummel...more

Appellate Court Notes

Supreme Court Advance Release Opinions: SC19408 - NPC Offices, LLC v. Kowaleski - In this case, the Supreme Court reversed the Appellate Court. The Appellate Court had agreed with the Trial Court that a driveway...more

Proceed Wisely, Ninja Contractor, Because Suing Your DOT May Have Limitations

No self-respecting Ninja goes into battle without a plan, right? You need to know your environment, your opponent and the rules of the battle. For you Ninja contractors, it’s a good thing to fully understand your potential...more

U.S. Supreme Court Denies Review of California Supreme Court Decision Upholding San Jose Inclusionary Housing Ordinance

February 29, 2016 was a notable leap year day for the United States Supreme Court. To the surprise of most in the courtroom that day, Justice Clarence Thomas asked his first question from the bench in more than 10 years. The...more

Arbitration vs. Litigation: The Great Debate

Many of the “form” commercial construction contracts (e.g., AIA forms) contain “dispute resolution” clauses proposing binding arbitration as opposed to courtroom litigation. Most U.S. courts, faced with the number of cases...more

West Coast Real Estate Update: April 2016 #1

Residential Communities: Calderon Process for HOAs Likely to Be Extended Again - The California Assembly Committee on Judiciary in early April unanimously passed Assembly Bill (AB) 1963 to extend the pre-litigation...more

First Circuit Denies Review in Building Products Case

On October 2, 2015, we posted about the District of Massachusetts' denial of class certification in a case in which we represent a building products company that sold allegedly defective decking. We're pleased to announce...more

Can Active Interference by Owner Invalidate A No Damages for Delay Clause? Sometimes.

In C and H Electric, Inc. v. Town of Bethel, 312 Conn. 843 (2014), the Connecticut Supreme Court held that a Contractor’s claims against a Town for delay damages could not overcome the “no damages for delay” clause because...more

California Court Rejects Primary Carrier’s Excess Other Insurance Position

In its recent decision in Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co., 2016 Cal. App. LEXIS 275 (Cal. App. Apr. 11, 2016), the Court of Appeal of California for the Third Appellate District had occasion...more

Contractor loses lawsuit against city for alleged breaches of OHSA’s asbestos-disclosure rules

A construction contractor has lost its bid for damages from a city, relying on a little-used section of the Ontario Occupational Health and Safety Act that permits contractors to sue a building owner for damages for failing...more

Contractual Liquidated Damages Update 3.0

Several editions ago, we published an article relating to the Boone Coleman v. Village of Piketon case, which struck down a $278,000 liquidated damages award for construction delays because the amount was disproportionately...more

Kentucky Court of Appeals Denies CGL Coverage For Damage To Property Other Than Insured’s Work

In Acuity v. Martin/Elias Props., LLC, 2016 Ky. App. Unpub. LEXIS 237 (Ky. Ct. App. Mar. 25, 2016), the Court of Appeals of Kentucky held that commercial general liability insurer Acuity did not owe coverage for a claim that...more

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