Contractors Subcontractors

News & Analysis as of

Fifth Circuit Finds Erosion in Texas—Because Endorsements Are Transformative

In Amerisure Mut. Ins. Co. v. Arch Specialty Ins Co., No. 14-20239 (5th Cir. April 21, 2015), a case that applied Texas law, the U.S. Court of Appeals for the Fifth Circuit recently held that the word “expenses,” as used in a...more

Make the Most of Your Mediation: The Single-Family Construction Defect Case

How can you economically and effectively settle the single-family construction defect case? In a recent mediation involving a homeowner, contractor and 15 subs, the participants used the following practices, which resulted in...more

Antitrust Whistleblower Protection Bill Introduced In Senate (Again)

On June 17, 2015, members of the Senate Judiciary Committee introduced the Criminal Antitrust Anti-Retaliation Act of 2015 (Act), a bill that proposes whistleblower protection for employees who provide information to the...more

Construction Case Law Update - July 2015

Involuntary Dismissal of Counterclaims – In a suit between a developer and general contractor, the trial court erred in dismissing the general contractor’s counterclaims, without a motion by the developer, before the...more

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...more

Conclusory Allegations Held Insufficient to Support Declaratory Relief on Right to Independent Counsel or Allocation of Defense...

Centex Homes v. St. Paul Fire & Marine Ins. Co., et al. - Court of Appeal, Fourth Appellate District (May 22, 2015) - In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. E060057, filed 5/22/15), a California...more

Construction Licensing – Substantial Compliance – Settlements and Suspension of License

Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. - Court of Appeal, Second Appellate District (May 18, 2015) - Business and Professions Code Section 7031 precludes a contractor from maintaining any action...more

Reminder: Minnesota Legislature Tweaks on Responsible Contractor Act Take Effect 7/1/2015

The Minnesota legislature recently passed a bill amending Minnesota’s Responsible Contractor Act. Going into the session, contractor lobbyists knew they could not expect of the law to be repealed. Their goal was to reduce...more

All is Fair in Lovell and Litigation

Most California construction attorneys know, or should know, that you need to “prove” you’re a licensed contractor in a construction case. And, by “prove,” that means more than simply alleging in a pleading that you are...more

Cybersecurity for Contractors and Design Professionals

Data breaches and the resulting havoc for companies that must deal with them are all over the news. While most construction industry businesses do not handle large amounts of consumer data, you cannot simply ignore...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

Construction Alert: Don't Overlook the Importance of Additional Insured Endorsements

Whether you are giving one to someone else or asking for one, you need to use additional insured endorsements (AIE) that give you as much protection as possible and that meet the promises you have made in your contracts. A...more

Supreme Court of Pennsylvania Holds Contractor and Subcontractor Payment Act (“CASPA”) Inapplicable to Public Works Projects

Clipper Pipe & Service, Inc. v. The Ohio Cas. Ins. Co., 2015 Pa. LEXIS 1275 (PA June 15, 2015) - The Supreme Court of Pennsylvania held that CASPA, 73 P.S. §§501-516, “does not apply to a construction project where...more

Changes to Florida's Construction Defect Notice Statute

Florida Governor Rick Scott signed a new bill that changes Florida's construction defect notice statute, effective October 1, 2015. Changes to the Florida statute include: (I) an amendment to section 558.001, revising...more

Head Contractors Beware: New Retention Money Requirements in New South Wales

The Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015 (Retention Money Regulation) commenced on 1 May 2015 and brought into effect important requirements for head...more

Nevada Legislature Passes Reform on General Contractor Liability for Unpaid Subcontractor Labor Benefits

The 2015 Nevada Legislature appears to have brought common sense reform to one of the state’s most controversial statutes – NRS 608.150 – which made “original contractors” liable to its subcontractor employees (or labor...more

Contractor and Subcontractor Payment Act Not Applicable to Public Works Project

In a decision issued last week in Clipper Pipe & Service, Inc. v. Ohio Casualty Insurance Company, the Pennsylvania Supreme Court concluded that the Contractor and Subcontractor Payment Act, 73 P.S §§ 501-516 (CASPA) does not...more

A Recent Case's Impact on the Determination of Contractor Licensure

A Florida court of appeals recently ruled that a contractor is considered licensed if it is associated with a qualifying agent licensed to perform the contract work on the effective date of the contract. Other courts...more

What Happens When the Construction Contract is Not Signed and the Work is Underway?

Although it seems self-evident that participants to a construction project would not want to commence work without first obtaining signatures on a written contract, it happens all too frequently, even on big projects. At...more

Disgorgement Penalty for Unlicensed Contractors in California

California has some of the toughest penalties in the country for unlicensed contractors. An unlicensed contractor is not just a contractor without a license, but could also be a contractor who is not correctly licensed or a...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

Arizona State Legislature Expands Prompt Payment to Design Professionals on Public Works Projects

Arizona law has long protected the rights of contractors, subcontractors and suppliers to prompt payment. However, all such protections have not extended to design professionals. For example, in 2013, the Arizona Court of...more

Letters of the Law: 'L' is for Lien

Contractors, subcontractors, suppliers and consultants cite “not getting paid” as one of the biggest challenges to operating in the construction industry in Qatar. Understandably, companies are starting to look for...more

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

Arizona has long protected the rights of subcontractors and material suppliers to seek recovery from the payment bond surety on public bonded projects. Arizona’s Little Miller Act, A.R.S. § 34-223, provides that claimants...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

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