Construction Civil Procedure

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The Construction Advantage – Issue 18

Bonding Off A Lien In Maine – It’s Time For A New Statute - With the recovering economy, there is certainly more construction work going on, and that tends to lead to more fights over people getting paid, and many...more

Construction Licensing – Substantial Compliance – Settlements and Suspension of License

Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. - Court of Appeal, Second Appellate District (May 18, 2015) - Business and Professions Code Section 7031 precludes a contractor from maintaining any action...more

In Overhead and Profit Class Actions, The Third Trade’s No Longer The Charm

When repairs to a damaged home reach a certain level of complexity, they call for supervision by a general contractor, who receives a percentage of the actual repair costs as “general contractor’s overhead and profit” or...more

US District Court in New York Holds Owner’s Interference Bars Claim that Contractor Breached By Abandoning Project

NYU Hosps. Ctr. v. HRH Constr. LLC, 2015 U.S. Dist. LEXIS 31967 (S.D.N.Y. Mar. 12, 2015) - NYU Hospitals Center (“NYU”) hired HRH Construction LLC (“HRH”) to renovate NYU’s radiology center. HRH entered into...more

All is Fair in Lovell and Litigation

Most California construction attorneys know, or should know, that you need to “prove” you’re a licensed contractor in a construction case. And, by “prove,” that means more than simply alleging in a pleading that you are...more

Florida Appellate Court Rejects Bid to Curb Insureds’ Assignments to Contractors

Many property insurance policies contain terms that prohibit assignment, but Florida law has long deemed those terms inoperative once a loss has occurred. E.g., W. Fla. Grocery Co. v. Teutonia Fire Ins. Co., 74 Fla. 220...more

Eleventh Circuit Case Delivers Big Win for Contractors Seeking Insurance Coverage

The U.S. Court of Appeals for the Eleventh Circuit has issued an important opinion that is good for contractors making claims on general liability policies, and not so good for the insurers issuing those...more

Changes to Florida's Construction Defect Notice Statute

Florida Governor Rick Scott signed a new bill that changes Florida's construction defect notice statute, effective October 1, 2015. Changes to the Florida statute include: (I) an amendment to section 558.001, revising...more

Utah Legislative Update

The 2015 Legislative Session in Utah came to a close earlier this year and the lien laws once again got a makeover, although not as significant as prior changes the past few years. Prior to this session, the biggest change...more

Nevada Legislature Passes Reform on General Contractor Liability for Unpaid Subcontractor Labor Benefits

The 2015 Nevada Legislature appears to have brought common sense reform to one of the state’s most controversial statutes – NRS 608.150 – which made “original contractors” liable to its subcontractor employees (or labor...more

Pennsylvania Appeals Court Finds Public Owner Waived Written Change Order Requirement By Conduct

Coast Paving & Sealcoating, Inc. v. N. Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Mar. 6, 2015). - North Allegheny School District (“Owner”) hired East Coast Paving & Sealcoating, Inc. (“Contractor”) to pave...more

California Supreme Court Paves the Way for Ownership Inclusionary Housing - Many Developers Maintain That the Costs Associated...

In a highly anticipated case affecting residential development throughout California, the California Supreme Court unanimously rejected the California Building Industry Association’s (CBIA) challenge to the City of San Jose’s...more

California Supreme Court Upholds Validity of Inclusionary Housing Ordinances

On June 15, 2015, the California Supreme Court issued its decision in California Building Industry Association v. City of San Jose, No. S212072, unanimously upholding the validity of inclusionary housing programs in...more

Changes to Arizona Purchaser Dwelling Act Affect Sellers and Construction Professionals

In its last session, the Arizona legislature amended the statutes governing Purchaser Dwelling Actions, A.R.S. 12-1361 et seq., and Homeowner Association Dwelling Actions, A.R.S. 33-2001 et seq., relating to claims against...more

California Supreme Court Holds Inclusionary Zoning Subject to Rational Basis Review

2013 was a banner year for developers under the takings clause, as both the U.S. Supreme Court and California Supreme Court issued decisions expanding the developers’ ability to challenge exactions as unconstitutional. In...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

Let Freedom of Contract Ring - NC Supreme Court Upholds Enforceability of Long-Term Express Warranties

In the summer of 2013, a divided North Carolina Court of Appeals caused a stir in the construction community when it held in Christie v. Hartley Construction, Inc., 745 S.E.2d 60 (N.C. App. 2013) (hereinafter “Christie 1”)...more

California Supreme Court Holds Facial Challenge to Inclusionary Zoning Ordinance Subject to Deferential Standard of Review

In a decision with major repercussions for the building industry in California, the California Supreme Court unanimously rejected a constitutional challenge to San Jose's affordable housing ordinance. California Building...more

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

Arizona has long protected the rights of subcontractors and material suppliers to seek recovery from the payment bond surety on public bonded projects. Arizona’s Little Miller Act, A.R.S. § 34-223, provides that claimants...more

California Supreme Court Upholds Inclusionary Housing Ordinance as a Valid Exercise of Police Power

In a major loss for the building industry, the California Supreme Court upheld an inclusionary housing ordinance ("IHO") adopted by the City of San Jose (“City") in California Building Industry Association v. City of San...more

When the Federal Govt acts badly, but not badly enough to show bad faith – what’s a contractor to do?

In the prior issue of this newsletter, we included an article on the high standard of proof and the practical considerations for a federal government contractor claiming that the federal government acted in bad faith in its...more

Case Summaries: Equivalency of Registration Requirements

Registrar of the Association of Professional Engineering of Ontario v. Gurpersaud, 2015 ONSC 804 (Ont. Div Ct), dismissing an appeal by the Registrar of the Registration Committee’s decision to issue a licence to...more

Under Construction - June 2015

Letter from the Editor - Welcome to the summer edition of our Under Construction newsletter. In this issue, we highlight several hot topic items affecting the construction industry such as what happens when the...more

Bonding off a Private Mechanic’s Lien In Kentucky

In my previous post, I discussed the basics of filing a private mechanic’s lien in Kentucky. Today, the subject will turn to the release of a private mechanic’s lien by execution of a bond. Execution of a bond for release of...more

California Court of Appeals Holds Subcontract Unable to Collect Compensation Under Business & Professions Code 7031 Because...

In Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. [2015 Cal. App. LEXIS 426], a subcontractor’s license with the Contractors State License Board (CSLB) was automatically suspended due to an unsatisfied stipulated...more

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