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California Court of Appeal allows construction defect class action to proceed against homebuilders

In an unpublished decision on August 19, the California Court of Appeal, Fourth District, reinstated a class action asserting construction defect claims against a nationwide homebuilder. The case is located at 2015 WL...more

11th Circuit to decide whether construction defect notice under Florida repair statute is a “suit”

Recently, the United States District Court for the Southern District of Florida addressed what constitutes a “suit” within the context of Florida’s right-to-repair procedure for construction defect disputes. In Altman...more

American Arbitration Association Revises Construction Industry Rules and Mediation Procedures

The American Arbitration Association (AAA) recently revised its Construction Industry Rules and Mediation Procedures (Rules). The revised Rules, which took effect on July 1, 2015, are intended to provide a more efficient and...more

JAMS Global Construction Solutions Newsletter, Summer 2015

Construction Lawyering in the U.K. and U.S.: Contrasts and Similarities - Introduction - There are important differences between the American and British styles of lawyering, but there is also much common...more

Eastern District of Texas Rules that Insurer’s Delayed Acceptance of the Duty to Defend Constitutes a Breach of that Duty

In Yowell v. Seneca Specialty Ins. Co., 2015 WL 4575450, 2015 U.S. Dist. LEXIS 98719 (E.D.Tex., Jul. 28, 2015), the Eastern District of Texas ruled that an insurer’s unexplained, 140-day delay in agreeing to defend its...more

Update on Labor Depreciation Class Action Litigation: Kansas Federal Court Rules for Insurer

As an update to my March 29, 2015 blog post on the status of class actions on the labor depreciation issue, a Kansas federal court recently granted summary judgment in favor of an insurer. In Graves v. American Family...more

For “At-Issue Waiver,” The Best Defense May Not Be An Affirmative Defense

As this blog has repeatedly documented, it can be hard for insurers to assert the attorney-client privilege in the context of bad faith litigation. One difficulty arises in states that enforce a presumption against the...more

Construction Case Law Update - July 2015 #2

CGL Policies; Declaratory Judgments; Appeal of a Partial Final Judgment – A commercial general liability insurer and its insured sought declaratory relief over the question of insurance coverage and the duty to defend...more

“If You See Something, Say Something” Applies to Construction Contract Bidding

In Otis Elevator Co. v. W.G.Yates & Sons Construction Co., 589 Fed. Appx. 953; 2014 U.S. App. LEXIS 20214 (11th Cir. 2014), a subcontractor installed a series of escalators for an airport expansion project and sued the...more

Contractor Barred from Using the “Total Cost” or “Modified Total Cost” Approach to Establish Delay Claim

In a recent ruling, Hill York Service Corporation v. Critchfield Mechanical, Inc., the U.S. District Court for the Southern District of Florida held that a contractor may not establish damages for delay under either the...more

Real World: An Update from Dechert's London Finance and Real Estate Group - July 2015: Enforcement of Restrictive Covenants Under...

Under a building scheme, where restrictive covenants are imposed on the original plot owners within a development for the mutual benefit of the plots, subsequent owners may enforce those covenants against each other. In...more

AAA Revises Construction Industry Arbitration Rules and Mediation Procedures

The American Arbitration Association (AAA) has revised its Construction Industry Arbitration Rules and Mediation Procedures (Rules), effective July 1, 2015. Although some changes are relatively modest, others expand the...more

Significant Changes to AAA's Construction Arbitration Rules Effective July 1, 2015

The American Arbitration Association (AAA) recently issued several significant revisions to its Construction Industry Arbitration Rules, which became effective July 1, 2015. The revised rules apply to construction arbitration...more

Arbitrator and Mediator. Member of AAA National Panel of Construction Arbitrators

AAA issued revised Construction Industry Arbitration Rules which took effect July 1, 2015. There are significant changes in the new rules which are intended to make the arbitration process more efficient and cost-effective. ...more

Construction Case Law Update - July 2015

Involuntary Dismissal of Counterclaims – In a suit between a developer and general contractor, the trial court erred in dismissing the general contractor’s counterclaims, without a motion by the developer, before the...more

Alberta Court of Appeal Finds That Certificate of Lis Pendens to Perfect Builders’ Lien May Not Be Required

In a recent decision, TRG Developments Corp. v. Kee Installations Ltd. (TRG Developments), the Alberta Court of Appeal (Court) was required to determine whether the failure to register a certificate of lis pendens (CLP)...more

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...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

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

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

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