Construction Civil Remedies

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News & Analysis as of

Constitutional Default Interest Rate of 7% Rather Than 10% Default for Breach of Contract, Applies to Prejudgment Interest on a...

Addressing an issue of first impression, the Fourth Appellate District has determined that in a mechanic's lien foreclosure action against an innocent property owner who did not contract with the mechanic's lien claimant, the...more

The Construction Advantage – Issue 10

Wyoming Supreme Court Concludes Contractor to Pay For Damages In Excess of Original Project Cost - An opinion released in a mid-August from the Wyoming Supreme Court concluded that repair damages were appropriate in a...more

Missouri Court Imposes Bad Faith Liability Despite Judicial Finding Of No Coverage For Underlying Claim

In Advantage Building, the Western District of Missouri Court of Appeals affirmed a judgment against an insurer for extra-contractual liability for bad faith failure to settle a claim within the policy limits. Interestingly,...more

When Your General Contractor Files Bankruptcy

The case is Branch Banking & Trust Co. v. Construction Supervision Services Inc. (In re Construction Supervision Services Inc.), 753 F.3d 124 (4th Cir. 2014). After a general contractor filed bankruptcy, several of its...more

California District Court Errs in Dismissing Insurer’s Equitable Reimbursement Claim without Leave to Amend

In the contentious matter of Travelers Indemnity Company of Connecticut, et al. v. Centex Homes, et al., 2014 U.S. Dist. LEXIS 115598 (E.D. Cal. 2014), the Eastern District of California recently reconsidered its July 30,...more

Texas Supreme Court Orders 10/14 (Six Petitions Granted)

Because there are no opinions and no grants in the Supreme Court's order list this morning, this is a good opportunity for me to do the promised post on the petitions granted in the October 3, 2014 order list. ...more

Get Exhausted! The Tenth Circuit Schools an Excess Insurer on How to Preserve Subrogation Claims in a Settlement

Claims against insured businesses sometimes implicate multiple liability policies issued by several different carriers, and it is sometimes prudent for some of those carriers to settle the underlying action, even if others...more

Construction Case Law Update - October 2014

Applying the Ameris factors, the Middle District of Florida abstained from and dismissed indemnitor’s declaratory judgment action to determine indemnity provision’s (1) scope, (2) duty to defend against third-party...more

Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By...

Wyman v. Ayer Properties, LLC, 469 Mass. 64, 2014 Mass. LEXIS 524 (July 10, 2014) - The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of...more

Missouri Court of Appeals Affirms Award of Compensatory Damages Against Insurer Based Upon Bad Faith Failure to Settle and Overall...

The Missouri Court of Appeals recently affirmed an award of compensatory damages against an insurer based upon bad faith in Advantage Bldgs. & Exteriors, Inc. v. Mid-Continent Cas. Co., 2014 Mo. App. LEXIS 975 (Missouri Court...more

Easements Made Easier: Building Pipelines with the Power of Eminent Domain Under the Natural Gas Act

Any person or entity seeking to construct a natural gas pipeline and successful in obtaining a certificate of convenience and necessity from the Federal Energy Regulatory Commission may exercise the power of eminent domain to...more

Connecticut Supreme Court Construes “Active Interference” Exception to “No-Damage-for-Delay” Clause

C&H Electric, Inc. v. Town of Bethel, 312 Conn. 843, 2014 Conn. LEXIS 263 (Aug. 5, 2014) - This dispute arose out of a project to renovate and build an addition at a high school in the Town of Bethel, Connecticut. The...more

The Legal and Financial Consequences of Moving to a More Contractor Friendly No-Damage-For-Delay Cause

According to the New York City Building Congress, Manhattan is poised to add roughly nine million square feet of new office space to its inventory between 2013 and 2015. If realized, this would be the highest volume of new...more

Mechanics Lien Subordination: Illinois Further Limits Construction Lenders’ Ability To Ensure Priority Against Mechanics Liens

On July 16, 2014, Illinois enacted Public Act 98-764 (Senate Bill 3023) (“SB 3023”), which amends the Illinois Mechanics Lien Act (770 ILCS 60/ et seq.) (the “Act”) to prohibit subordination of mechanics liens on Illinois...more

Texas Supreme Court Recognizes Exceptions to Enforcement of No-Damages-for-Delay Clauses

On August 29, 2014, in Zachry Construction Corp. v. Port of Houston Authority of Harris County, No. 12-0772, 2014 WL 4472616 (Tex. 2014), the Texas Supreme Court found that no-damages-for-delay clauses that purport to waive...more

Construction Alert: "Texas Supreme Court Sinks Port Authority's Ship - Port Authority's No Damages for Delay Clause Held...

The Texas Supreme Court recently issued an important decision regarding “no damages for delay” clauses in construction contracts. In Zachry Construction v. Port of Houston Authority, the Court found that the owner, the Port...more

Illinois Court Holds Insurer Improperly Delayed Declaratory Judgment Action

In FCCI Ins. Co. v. Westfield Ins. Co., 2014 Ill. App. Unpub. LEXIS 1421 (Ill. App. June 27, 2014), the Appellate Court of Illinois had occasion to consider whether an insurer was estopped from asserting policy defenses to...more

Summary of California’s Prompt Payment Laws

The California legislature has enacted a comprehensive series of prompt payment statutes that are designed to ensure the prompt payment of progress payments and retention payments to downstream contractors by imposing harsh...more

Zachry v. Port of Houston Authority: Texas Supreme Court rules for contractor despite no-damages-for-delay clause

The Texas Supreme Court has issued a decision that could have a huge impact on the construction industry in Texas involving several high-profile issues the industry has passionately debated for years. In Zachry...more

Arizona Contractors Confront Cardinal Change

The Cardinal Change Doctrine - The “cardinal change doctrine” is a legal theory pursuant to which a contractor who is presented excessive, cumulative or otherwise material contract change orders has the right to...more

Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’...

The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at...more

Pennsylvania Supreme Court Rules Only Original Purchasers May Recover Damages for Breach of the Builder’s Implied Warranty of...

The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers. In Conway v. The Cutler Group, Inc., the Court reversed an...more

Renowned Architect Wins Retraction From The New York Review of Books

On August 25, 2014, The New York Review of Books issued a retraction in response to a defamation suit filed in New York State Court by well-known architect Zaha Hadid. Hadid was selected to design one of the stadiums for the...more

Pennsylvania Supreme Court Holds Contractor May Recover in Quantum Meruit Where Home Improvement Contract Does Not Satisfy...

Homeowners Raymond and Donna Mantia contracted Shafer Electric & Construction (“Shafer”) to build a two-car garage addition onto their house. Shafer’s proposal was extremely detailed as to the work to be completed. Despite...more

Are You Done Yet? Compensation for Impacts of Public Works in Alberta

During the recent resurfacing of Bow Trail there was a message posted on a pylon sign by an adjacent business owner that read “Bow Trail is not Rome. Please Complete” (see “Road Construction Delays Cause Headaches for...more

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