Construction Disputes

News & Analysis as of

What are the three most important risk-shifting provisions contractors and subcontractors should be concerned about?

“No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering...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

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

“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

Letters of the Law: 'M' is for Mediation

Mediation as a concept is not new in the Middle East but its use as a dispute resolution solution in construction disputes is very much in its infancy. Internationally Mediation is a well-known dispute resolution process and...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

Pennsylvania Supreme Court Clarifies Applicability of Contractor and Subcontractor Payment Act

Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...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

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

Construction Manager at Risk Held to Assume the Risk of Design Changes on Massachusetts Public Construction Project

The Massachusetts Superior Court (County of Worcester) held in Coghlin Electrical Contractors, Inc. v. Gilbane Building Co. and Travelers & Surety Company of America decided on June 24, 2014 that a Construction Manager at...more

Building Contractors Beware!! An Unreported Judgment Can Lead To A Suspension Of Your Contractor’s License And Payment Issues!

On May 18, 2015, the California Court of Appeals, Second District ruled in Pacific Caisson & Shoring, Inc. v. Bernards Bros., Inc. 2015 DJDAR 5486 that a contractor, whose license was suspended for failing to notify the...more

Interaction between on-demand bonds and the underlying contract revisited by the English High Court

Introduction - From our previous alerts, which can be found here and here, we know that bonds and guarantees are complex instruments, the consequences of which depend not on what they are called, but their terms, the...more

Michigan Court of Appeals Reverses Lower Court, Finds An Express Contract

The Michigan Court of Appeals recently reversed a lower court in a contractor-subcontractor dispute, requiring analysis of the contract and unjust enrichment doctrines. In the unpublished decision, Lawrence M. Clarke, Inc. v....more

Security on Large Construction Projects. The Payment Remedy You Probably Never Heard of

California has a number of statutory payment remedies available on construction projects. Some, such as the mechanics lien, are relatively well known and often utilized. Others, such as the stop payment notice, are somewhat...more

DRM Legislative Update - February 2015

In This Issue: - Determination First, Details to Follow - Committee Approves State False Claims Act - Rent-to-Own Legislation Substantially Modified - Senate Judiciary Considers Limit on Building...more

Coffee Beans, Mars and the 50 States: Civil Code 1542 Waivers and Latent Defects

A few years ago, Pulitzer Prize-winning reporter Charles Duhigg wrote a book that was on the New York Times bestseller list for over 60 weeks, The Power of Habit: Why We Do What We Do in Life and Business. As its title...more

The New Jersey Supreme Court has reopened the doors to Affordable Housing Litigation

The New Jersey Supreme Court has unanimously held that the administrative process run by COAH in which municipalities show compliance with affordable housing obligations is no longer working and municipalities are no longer...more

Arbitration’s Diamond in the Rough: Lessons from the Dichele Superior Court Ruling

In construction law, contracts are at the heart of our business; contracts between: owners and architects; owners and general contractors; contractors and subcontractors; and subcontractors and sub-subcontractors....more

The Advantages and Disadvantages of Arbitration vs. Court Litigation

Many business owners and construction industry entities prefer, as a matter of course, that construction disputes be submitted to binding arbitration. Others maintain that, because arbitration lacks facets of the procedural...more

Utah Federal Court Stays Proceedings Under Miller Act Pending Arbitration

The core issue facing a federal court in Utah was whether it should stay the proceedings pending resolution of related arbitration proceedings involving sureties which issued payment bonds under the Miller Act. A dispute...more

California Court of Appeals Determines Subcontractor is Unable to Maintain Cross-Claims for Equitable Indemnity and Contribution...

In State Ready Mix, Inc. v. Moffatt & Nichol, 232 Cal. App. 4th 1227 (2015), the California Court of Appeals considered whether a subcontractor could maintain cross-claims for equitable indemnity and contribution against the...more

Sometimes it Depends on “Whose” Hand is in the Cookie Jar

In a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that...more

Rhode Island Supreme Court Bars Second Arbitration Based On The Doctrine Of Res Judicata

An architectural firm contracted to provide architectural, engineering and design services for a state veterans home for a “not to exceed fee” of $61,500, which was calculated as a percentage of overall expected construction...more

What’s in that Contract Again? Reflections on the Recent Recession

During and immediately after the most recent recession, construction litigation seemed to hit an apex. New pre-litigation matters to resolve monetary disputes from recession-era construction projects continue to keep many...more

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