Construction Contracts Appeals

News & Analysis as of

Court rejects contractor’s mechanic’s lien because of ‘intent’

The Illinois Court of Appeals’ recent decision in AUI Construction Group, LLC v. Vaessen highlights the need for careful planning in structuring development agreements, construction contracts, and the use of an easement as...more

Overpayments in Construction Projects: Getting Repaid (Or Not)

Construction and engineering contracts usually contemplate interim payments being made "on account", meaning that any overpayments or underpayments can be redressed in later payment claims, or in the final account. However,...more

Unpaid Subcontractors Beware

Alberta Court of Appeal confirms no duty to disclose existence of labour and material bond unless asked - Labour and material payment bonds (L&M Bonds) serve an important purpose on a construction project by providing...more

Limitations of Liability Clause Does Not Violate Ohio's Consumer Sales Practices Act

Contractors often attempt to limit their liability by including a limitations of liability clause in the contract. Plaintiffs attempt to avoid the limitations of liability by asserting that the clause is unconscionable under...more

California Court Limits Recovery for General Contractors Relying on Subcontractor Bids

The court’s decision allows subcontractors to place unforgiving terms in their bids and gives them an ultimate out if general contractors do not agree to those terms. General contractors should pay attention to a...more

Defence & Indemnity - June 2016: V. SURETY AND BOND ISSUES

Obligee's claim against surety can survive despite Obligee's claim against principal being unenforceable as a result of wording of completion agreement - HOOPP Realty Inc. v. The Guarantee Company of North America, 2015...more

Transmission Planning and Construction Right of First Refusal Ruled Unduly Discriminatory, Not Mobile-Sierra Protected

The provision contained in incumbent electric utility tariffs—conferring on the holder the right of first refusal (ROFR) to construct additions to the high-voltage electrical grid, regardless of who conceived of and proposed...more

Homeowners Who Purchase Directly from Homebuilders May Seek Recovery of Attorneys’ Fees on Claims for Breach of the Implied...

Three things have long been settled law in Arizona regarding residential construction: (1) a homebuilder owes a homeowner an implied warranty of workmanship and habitability with regard to the construction of the home; (2)...more

Fed. Circ. Further Dulls CDA's Statute Of Limitations

A few years back, a string of decisions at the Armed Services Board of Contract Appeals and the Court of Federal Claims invoked the Contract Disputes Act’s six-year statute of limitations to dispose of several long-pending...more

Defence & Indemnity - April 2016: V. SURETY AND BOND ISSUES

Liability of surety in Quebec under a labour and material payment bond consistent with common law principles L’Unique Assurances Générales inc., Appelante, c Échafauds Plus (Laval) inc., Intimée, 2015 QCCA 1725 [4174]...more

Financial information and set-off requirements under the FIDIC Red Book

The Privy Council’s recent judgment in NH International (Caribbean) Limited v National Insurance Property Development Company Limited (Trinidad and Tobago) provides a rare example of a common law court interpreting specific...more

Subcontractor Performing Services may be Liable in Strict Liability For Purchasing and Installing Defective Products in Fulfilling...

Jovana Hernandezcueva v. E. F. Brady Company, Inc. - Court of Appeal, Second Appellate District, Division Four (December 22, 2015) - The doctrine of strict liability is ordinarily inapplicable to transactions...more

Appellate Court Notes

Appellate Court Advance Release Opinions: Released after 11:30 a.m. AC36320 - Valencis v. Nyberg - This decision upheld the granting of a PJR for ~ $1.5 million in favor of the plaintiff property owner when the...more

Appellate Court Notes

Supreme Court Advance Release Opinions: - SC19165 - Dept. of Transportation v. White Oak Corp. - SC19165 Dissent - Dept. of Transportation v. White Oak Corp. Despite a very convoluted history, the essence of...more

“Contractor?” I Do Not Think That Employers’ Liability Exclusion Means What You Think It Means

Over the summer, this blog reported on how the Supreme Court of Pennsylvania managed to parse an employer’s liability exclusion to find that it did not exclude claims by employees of additional insureds. As the leaves started...more

Proving Contractor Licensure in California. The Tribe Has Spoken.

As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate  – the judge or the jury?...more

Pennsylvania Court Refuses to Enforce “No Damages for Delay” Clause

A Pennsylvania appellate court recently refused to enforce a “no damages for delay” clause and upheld an award of delay damages against a school district where the district actively interfered with a general contractor’s...more

Attorneys Fees Under California’s Prompt Payment Statutes. Contractor’s “Win” Fails the Sniff Test

This past month, the California Court of Appeals for the Third District, in  James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., Case No. C072169 (August 27, 2015), handed down a decision in a construction...more

11th Circuit Finds a Covered “Occurrence” Under CGL Policy For Damages Resulting From Contractor’s Faulty Work and Rejects...

In Pennsylvania National Mutual Insurance Company v. St. Catherine of Siena Parish, 790 F.3d 1173 (11th Cir. 2015), a judgment was obtained by the Parish (a Catholic Church) against Kiker Corporation (“Kiker”), which was...more

Breathing Room: The Alberta Court of Appeal Addresses the New Limitation Period for Third-Party Claims

The limitation period for a defendant seeking contribution from a third party has changed. In last month's Alberta Court of Appeal decision of Whitecourt Power Limited Partnership v Elliott Turbomachinery Canada Inc., 2015...more

Appellate Court Notes

Appellate Court Advance Release Opinions - AC36506 - Sidorova v. East Lyme Board of Education - Due to budget cuts, the Board of Education laid off the plaintiff who was a tenured French teacher. She sued for...more

Court Calls Lease-Leaseback Project What it is: A Design-Bid-Build Project

First there was “Prince.” Then there was “The Artist Formerly Known As Prince.” Then there was “The Artist Formerly Known As Prince Because he Changed His Name to a Symbol, But Then Realized That No One Could...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

Fitness for purpose or reasonable skill and care, which is it to be?

Introduction - The Court of Appeal recently considered the interpretation of conflicting fitness for purpose and reasonable skill and care provisions in a contract for a large engineering and construction project....more

B.C. Court of Appeal Overturns Restrictive Public Disclosure Standards for Development Projects

The City of Vancouver and Brenhill Developments Ltd. successfully appealed the January 27, 2014, decision of the BC Supreme Court (BCSC) in Community Association of New Yaletown v Vancouver (City), 2015 BCSC 117. The appeal...more

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