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2015 Construction Law Update - Construction Practice Newsletter

Over 2,200 bills were introduced during the second and final year of the 2013-2014 legislative session, of which 931 were signed into law. For the design and construction industry the end of the second session, like...more

Court Dismisses Case For No Diversity Jurisdiction 2 Days After Filing

In an unusual display of speedy discretion, federal District Judge Sheri Polster Chappell wasted no time in dismissing the complaint on a public works payment bond filed by Advance Industrial Coating, LLC in Advance Indus....more

HUD issues notice updating Section 3 regulation

The U.S. Department of Housing and Urban Development (HUD) recently published a notice updating the interim regulation at 24 CFR Part 135, which provides for compliance with Section 3 of the Housing and Urban Development Act...more

TOP TEN Construction Clauses - The “Work” Clause

This clause defines the scope of work in a construction project and the definition varies by source. For instance, American Institute of Architects Document A201-2007 defines "Work" as "construction and services required by...more

Failing to Pay Prevailing Wages May Have Just Cost You More Than You Thought

Mechanics lien claims, payment bond claims, stop payment notice claims, delay claims, defect claims, abandonment claims . . . With the variety of claims unique to construction projects it’s easy to forget that...more

Legal Considerations for Homebuilder Franchises

When you think of a “franchise” you probably think of fast food restaurants, car dealerships and gas stations; not homebuilders. Nevertheless, homebuilder franchises are becoming more and more popular. ...more

Construction E-Note - March 2015

In This E-Note: - What Should Parties Do With Unusually Severe Weather on a Construction Project? - Excerpt from What Should Parties Do With Unusually Severe Weather on a Construction Project?: Rain....more

They Can’t Take That Away From Me. Well, At Least Not At First

Some of you may recall the George and Ira Gershwin song, They Can’t Take That Away From Me made famous by Fred Astaire and Ginger Rogers in the film, Shall We Dance. A recent amendment to a mechanic’s lien statute will limit...more

Construction Case Law Update - March 2015 #2

Sinkholes; “Structural Damage” – When undefined in a homeowner’s insurance policy, “structural damage” caused by a sinkhole is best defined as “damage that impairs the structural integrity of the building.” Homeowners argued...more

Court Denies Stay and Revives FCA Claims Based on "Implied Certification" Theory

In a False Claims Act lawsuit against an armored car manufacturer, Judge Kiser recently denied a motion to stay the case, pending resolution of related criminal charges, and granted a motion for reconsideration, thus reviving...more

What Should Parties Do With Unusually Severe Weather on a Construction Project?

Rain. Snow. Sleet. Ice. The winter elements this year have been unusually severe throughout the country. While weather affects our everyday lives, it can be especially crippling to the delivery of materials, the schedule of...more

OHSA charges were adequately particularized, court finds: disclosure showed violations Crown intended to prove

A judge has rejected an employer’s argument that Occupational Health and Safety Act charges against it were unclear and that the Crown was required to provide further “particulars” of the charges so the employer could defend...more

Utah Clarifies Lien Amounts and Bonding Requirements

The Utah Supreme Court recently clarified that the only permissible amounts to claim under Utah’s mechanic lien statutes are those “equivalent to the value of the services rendered, labor performed, or materials or equipment...more

Federal Court Holds That Immigration Law Does Not Preclude FLSA Liquidated Damages Award

In many ways, federal immigration laws and various labor and employment laws, including the FLSA, may appear fundamentally at odds with each other: prohibiting work by undocumented workers on one hand, but allowing them to...more

IRS Extends "Begun Construction" Guidance

Earlier yesterday, the IRS released Notice 2015-25, 2015-13 IRB 1, which updates the guidance provided in Notice 2013-29, 2013-1 C.B. 1085, Notice 2013-60, 2013-2 C.B. 431, and Notice 2014-46, 2014-36 I.R.B. 520...more

Energy Tax Law Alert: IRS Updates "Beginning of Construction" Guidance

The IRS today issued Notice 2015-25, updating its prior guidance in Notices 2013-29, 2013-60, and 2014-46, regarding the “beginning of construction” requirement for the production tax credit (PTC) under Section 45 of the...more

Osceola County BCC to vote on Transportation Mobility Fee Ordinance on March 2015

The Osceola County Board of County Commissioners (BCC) is scheduled to vote on a proposed Mobility Fee Ordinance on March 16, 2015. Public officials have indicated that the proposal is likely to be enacted, with an effective...more

Analysis: Prevailing Party In Jury Trial Finds Uncertainty In Remedies Available Under Pennsylvania Contractor And Subcontractor...

Since 1994, Pennsylvania law has provided enhanced remedies for prevailing in a payment dispute arising out of a construction project. The prevailing party in a recent jury trial discovered uncertainty in the precise...more

Colorado Supreme Court: Construction Lender's Subsidiary Is Not a Subsequent Purchaser - Negligence Claim May Not Be Asserted...

Lenders and contractors may want to take additional precautions before they take title to a newly constructed home through foreclosure (or deed in lieu of foreclosure) following a recent decision by the Colorado Supreme...more

SEC Charges Tipping Without A Newman – Dirks Personal Benefit

The U.S. Attorney’s Office in Manhattan is trying to have the Second Circuit’s decision in U.S. v. Newman, No. 13-1837, 13-1917 (2nd Cir. Decided December 10, 2014 ) reheard and reversed. In seeking that rehearing the...more

Pennsylvania Supreme Court Declines Review of Case Applying Statute of Repose to Asbestos Claims

As we reported in our July 2014 edition, the Superior Court of Pennsylvania held, in Graver v. Foster-Wheeler Corp., 96 A.3d 383 (Pa. Super. Ct. 2014), that the 12-year statute of repose applicable to claims against designers...more

Homebuilder Series Webinar: Protecting Your Company From Misrepresentation Claims Through Contractual Exculpatory Clauses [Video]

Watch an in-depth Bilzin Sumberg Homebuilder Series webinar that discusses protecting your company from misrepresentation claims through contractual exculpatory clauses. This seminar discusses the case of Duggan, LLC v....more

Chapter 40 Reform Provides Relief for Nevada Homebuilding Industry

Nevada Gov. Brian Sandoval signed into law AB 125 (2015) ushering in critical reforms for Nevada’s construction defect laws. The law, which the Nevada Legislature passed this past Friday, Feb. 20, 2015, provides crucial...more

Senate Bills Tackle Construction Defect Litigation Reform

Two bills recently introduced in the Colorado Senate propose to change Colorado’s construction defect claims process. If passed, Senate Bill 15-177 would amend Colorado’s Common Interest Ownership Act, C.R.S. §...more

Appellate Court Lets Broad General Release Stand in SB 800 Case

Under California's SB 800 "Right to Repair Act," a builder may obtain a "reasonable release" to resolve a construction defect claim in exchange for a cash payment. ...more

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