Construction Disputes

News & Analysis as of

News for Contractors and Construction Lenders in Arizona and Nevada – The Contractors' Lien May Trump the Bank's

In addition to an arid climate and plenty of sunshine, Arizona and Nevada have something more to offer contractors: a potentially advantageous position over lenders when a project goes bad. When a project derails and...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

Privilege Issues Are Important in Homeowner Association Construction Defect Litigation

Attorneys in Homeowners Association (“HOA”) construction defect cases must meet with the homeowners to provide litigation updates and it can sometimes be difficult to preserve the attorney-client privilege for the...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

A perspective on the continuing saga of construction defects law

Ever since 2003, when comprehensive legislation was passed to address abuses in the pursuit by the plaintiff’s bar of windfalls from massively overstated litigation claims regarding alleged construction defects in the...more

More Legal Developments for the Construction Industry in the Southeast

Alabama - The Alabama Supreme Court reversed itself and concluded that faulty workmanship can constitute an “occurrence” under a commercial general liability insurance policy which triggers coverage for the insured. In a...more

Iowa Court of Appeals Rejects Argument to Impose Implied Warranty upon Land Developers

On April 16, 2014, land developers and sellers breathed a sigh of relief after the Iowa Court of Appeals ruled that a purchaser of a residential building lot cannot sue the land developer for perceived deficiencies with the...more

10 Development Due Diligence Considerations

New development projects are on the rise again. Here is a quick checklist of 10 issues to consider before getting started on any development project...more

Collateral Estoppel Sinks LLC Members' Claim

It might seem uncontroversial that the members of a limited liability company cannot follow with a personal lawsuit for injuries after their LLC litigates, and loses, claims based on the same issues. But it took the Business...more

New York and New Jersey Hold Fast to No “Occurrence” for Faulty Workmanship Claims

During the past year, five state supreme courts (Alabama, Connecticut, Georgia, North Dakota and West Virginia) have found that faulty workmanship by a construction contractor or subcontractor can be a covered “occurrence.”...more

Construction Defect Disputes and the Abandoned Policyholder: Getting the Carrier to the Table

There is much that can go wrong in any large construction project: improper installations, defective products, errors and omissions made by designers, unexpected site conditions—the list is long. Insurance coverage or a...more

No Lawsuit for You! When Subcontractors Cannot Sue the General Contractor

Can a subcontractor sue a general contractor over a work site accident? A recent decision by the Pennsylvania Supreme Court loudly and clearly said, "NO." Why not? The court ruled in Patton v. Worthington Associations, Inc....more

Is Defective Construction an “Occurrence”? More States Are Answering Yes

Last year, we examined the different approaches states have adopted to resolve whether defective construction by itself is an “occurrence” within the meaning of liability insurance policies. See Is Defective Construction...more

Ten Myths of Government Contracting: Myth No. 5: My prime contractor will tell me what clauses should be in our subcontract

I have lost count of the number of times I have heard this one. Anyone who believes it is true needs some immediate counseling, because this is a recipe for disaster. Let’s start by stating the obvious: a prime contractor has...more

Commercial Developers and Unions’ “Political Pull”

Threat to File a Formal Proceeding Seeking State Action - Commercial developer (Developer) is developing a shopping center in X Township (Township). Developer is considering non-union general contractor (Non-U) to...more

License? We Don’t Need No Stinking License!

I know. You’ve heard it from me, or your construction attorney, ad naseum. When in doubt get a license. We’ve paraded out the list of terribles: If you don’t get paid, and you were required to...more

It is Critical to Understand the Applicable Lien Law

Recently, a Louisiana Appellate Court affirmed a lower court's ruling that, to preserve its lien claim under Louisiana state law, a material supplier on a public works project must provide notice of nonpayment for each month...more

Condominium Construction Defects Legislation Introduced

Proposed legislation to reduce the cost of construction defect claims and encourage condominium construction has been introduced in the Colorado legislature. The long-awaited bill, Senate Bill 14-220, sponsored by Sen. Jessie...more

Mississippi's New Construction Lien Law

On Friday, April 11, 2014, Governor Bryant signed Senate Bill 2622 and thus made that bill the new construction lien law, effective immediately, applicable to public, private and residential construction works in Mississippi....more

Did you know? Recent changes in the law that may impact your construction projects in the Southeast.

Forum Selection Clause - The U.S. Supreme Court recently held that forum selection clauses should be upheld in most circumstances. Have you used a forum selection clause in your contracts which would maximize the...more

Construction E-Note - April 9, 2014

In This Issue: - Ongoing Or Completed Operations? Fifth Circuit Finds No Duty To Defend Contractor Under Additional Insured Endorsement - Your Venue, My Bond Claim: A Florida Law Primer - The Condominium Form Of...more

Significant Changes Made By ROC To Its Complaint And Hearing Process

For the last 25 years, the Arizona Registrar of Contractors’ enforcement procedures have been best described as “complainant driven.” That is, the ROC typically deferred to the claimant (usually a homeowner) as to whether a...more

Business Court Makes North Carolina Safe For Construction Lawyers

Construction lawyers in North Carolina can breathe a sigh of relief. On Friday of last week, the Business Court ruled that the service of on-line service provider Lienguard in preparing claims of lien constitutes the...more

The Most [Fill in the Blank] Bid Dispute, Ever

We’ve all heard of those lawsuits which cause us to scratch our heads wondering, what were they thinking? Think woman sues fast food restaurant for serving hot coffee, man sues beer company when beautiful women did not...more

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