News & Analysis as of

Construction Contracts Appeals

Under Construction - March 2017

by Snell & Wilmer on

Letter from the Editor - Welcome to the spring 2017 edition of our Under Construction newsletter. We hope 2017 is off to a good start for you and your company. An issue that seems to commonly come up in cost-plus...more

Construction Defect – Application of the Right to Repair Statute to Material Suppliers

by Low, Ball & Lynch on

The Right to Repair Statute in California requires a homeowner show a breach of contract or negligence to succeed. Acqua Vista Homeowners Association v. MWI, Inc. - California Court of Appeals, Fourth Appellate...more

Texas Court of Appeals Holds That Owner’s Change to Contractor’s Means and Methods Resulted in a “Breach,” Instead of a “Change”...

by Pepper Hamilton LLP on

Port of Houston Auth. of Harris Cnty. v. Zachry Constr. Corp., 2016 Tex. App. LEXIS 13306 (Tex. App. Houston 14th Dist. Dec. 15, 2016) - This contract dispute dates back to 2004, when the Port of Houston Authority...more

Significant Government Contract Litigation: A Year in Review

Last year provided a number of important claims and cases that further developed various aspects of litigation regarding the Contract Disputes Act (CDA). The major issues raised in some of the more notable claims include...more

Picerne Construction Corp. v. Castellino Villas (Feb. 18, 2016, C071197)

The Third District Court of Appeal recently held that completion under the mechanics lien statute requires actual completion of the work of improvement, meaning completion of the entire structure or scheme of improvement as a...more

Illinois Court Addresses Contractual "Pay-If-Paid" Provisions - Appellate Ruling: Strict Standard is Required for Forfeiture of...

by Holland & Knight LLP on

The Illinois First District Appellate Court recently addressed the longstanding principle in A.A. Conte Inc. v. Campbell-Lowrie-Lautermilch Corp., 132 Ill. App. 3d 325 (1st Dist. 1985), of barring payments by general...more

Reversal of Fortune: AB 219 is Back!

PREVAILING WAGE LAW is California's "other" minimum wage. It requires workers to be paid union wages on publicly funded construction projects. But in recent years, the law in California has EXPANDED well beyond its initial...more

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

by Thompson Coburn LLP on

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)

by White & Case LLP on

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

by Bennett Jones LLP on

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

Subcontractor Required to Strictly Comply with General Contractor’s Contractual Claim Provisions

by Farrell Fritz, P.C. on

In construction, incorporating a “prime contract” by reference into a subcontract is commonplace. Recently the Courts have broadly construed such “incorporation” provisions, often to the detriment of subcontractors....more

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

by Reminger Co., LPA on

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

by Pepper Hamilton LLP on

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

by Field Law on

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

by McDermott Will & Emery on

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...

by Dickinson Wright on

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

by Morrison & Foerster LLP on

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

by Field Law on

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

by King & Spalding on

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...

by Low, Ball & Lynch on

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

by Pullman & Comley, LLC on

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

by Pullman & Comley, LLC on

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

by Carlton Fields on

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

by Saul Ewing LLP on

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

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