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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

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

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

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

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

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

The Construction Advantage – Issue 8

In our eighth issue of The Construction Advantage, we provide you with three new cases, with two of them coming from the Maine courts. We hope that this newsletter has been helpful and informative to you so far in 2014....more

Being a Contractor Just Got a Whole Lot Scarier

If you’re fortunate enough to live and work in California you have a lot to be thankful for. Temperate weather, beautiful beaches, rugged mountains and an array of attractions whether you’re an urbanite, outdoorsman or thrill...more

Talk is Cheap – Promises to Pay Are a Poor Substitute for Adherence to Contractual Notice Provisions

A recent Wyoming case – JEM Contracting, Inc. v. Morrison – Maierle, Inc. – serves as a reminder to contractors and subcontractors of the importance of following the contractual requirements for notice when differing site...more

Summary of Mississippi’s New Construction Lien Law

Mississippi recently enacted a new construction lien law. This article addresses certain key provisions of the new law - codified at Mississippi Code Annotated § 85-7-401 (Rev. 2014) - that apply to commercial projects. ...more

North Dakota Supreme Court Establishes Defense to “No Damage for Delay” Clause

In June 2014, the North Dakota Supreme Court issued its decision in C&C Plumbing & Heating, LLP v. Williams County et al, No. 20130297. The Court articulated a new defense to the application of a “no damage for delay” clause....more

CSLL Does Not Bar Successor Entity’s Compensation Claims After Contractor’s Change of Business Entity During Construction

A recent decision by the California Court of Appeal imposed a sensible limit on the prohibition of compensation claims by unlicensed contractors under the Contractors’ State License Law (“CSLL”), specifically California Bus....more

The Alabama Supreme Court Changes Its Mind on Coverage Under CGL Policy

Last September the Alabama Supreme Court issued an opinion addressing the applicability of the “own work” exclusion to claims against a contractor for defective construction. However, on March 28, 2014, the Alabama Supreme...more

Court of Appeal Ameliorates (a Bit) the "Harshness" of Business and Professions Code Section 7031

California courts have variously described Business and Professions Code section 7031 as “draconian,” “harsh[ ]“ and “[u]njust[ ],” but nonetheless enforceable. Section 7031 both prohibits unlicensed or improperly...more

Construction Contracts – Limitation on Recovery For Unlicensed Contractor

E.J. Franks Construction, Inc. v Bhupinder K. Sahota, et al. - Court of Appeal, Fifth Appellate District (June 5, 2014) - The purpose of the Contractors’ State License Law (Business & Professions Code sections...more

The Construction Advantage – Issue 6

In our sixth issue of The Construction Advantage, we provide you with an all New England edition, focusing on the increased employment in the construction sector in Maine, a large court award related to the Big Dig, and the...more

Construction Lenders Beware: Unbonded Stop-Payment Notices May Be Worth More Than The Paper They Are Written On

A common perception in the construction industry is that the most valuable part of an unbonded stop payment notice is the paper it is written on, at least when it is served on a construction lender. While an unbonded stop...more

Legal Alert: Supreme Court of Texas Finds Contractors Cannot Recover Delay Damages for Negligent Misrepresentation Against an...

On June 20, Texas joined a number of states that apply the economic loss rule to damages claims arising from negligent misrepresentation between contractors and the owner’s architect. In LAN/STV v. Martin K. Eby Construction...more

N.C. Supreme Court Poised to Decide Value of Long-Term Express Warranties on Construction Projects

Is a twenty-year product or construction warranty really good for twenty years? The North Carolina Supreme Court is poised to hear arguments in the case of Christie v. Hartley Construction, Inc. and the outcome will be...more

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