Delay Claims

News & Analysis as of

What I Learned from My Kids About Delay Claims

This past week, I came to a complete mess in our backyard—it was littered with debris, trash, plates and utensils, and overturn patio furniture. My instruction to the kids yesterday morning was stern: “Clean up this mess by...more

Third Circuit Decertifies Class on Numerosity Grounds, Listing Relevant Factors for the First Time

The Modafinil decision bodes well for defendants and represents another step toward increased scrutiny of the class action device in the Third Circuit. On September 13, a divided panel of the U.S. Court of Appeals for...more

Court of Appeals of Michigan Holds Contractor Cannot Recover Eichleay Damages from Supplier Absent Contractual Right and Proof...

ITT Water & Wastewater USA, Inc. v. L. D’Agostini & Sons, Inc., 2016 Mich. App. LEXIS 579 (March 17, 2016) - This action arises out of a contract dispute between plaintiff, ITT Water & Wastewater USA, Inc. (“ITT”), and...more

Texas District Court Rejects Rail Contractor’s Delay and Prompt Payment Claims and Awards Owner More Than $3 Million

Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016) - The contractor contracted with owner to install 65 miles of railroad track, for a price of...more

Subcontractor’s Failure to Strictly Comply With Notice Provision Costs $200,000

Whether you are an owner, contractor, subcontractor or supplier, you will want to read the rest of this post since it illustrates precisely what all those attorneys have been telling you for years: “Please, please, please...more

Evaluating a Dispute During a Major Construction Project

Assume your major construction project has experienced an unexpected event that threatens to cause delays or increase costs. You have made a preliminary investigation and have tried to manage the impact by quickly engaging...more

Federal District Court in Florida Considers Damages (Including Delay Costs and Attorneys Fees) and Defenses Available Under the...

United States ex rel Jack Daniels Construction, Inc. v. Liberty Mutual Insurance Company, 2015 U.S. Dist. LEXIS 172189 (M.D. Fla. Dec. 28, 2015) - This action arises from the construction of the Joint Intelligence...more

Recent Washington Decisions Illustrate Need to Handle Property Claims in Timely Manner

An issue that often arises in the context of property insurance is whether a carrier’s delay in adjusting a claim can create a basis for a viable bad faith claim.  The law in each state is different and the prudent practice...more

Contractual Liquidated Damages Update 3.0

Several editions ago, we published an article relating to the Boone Coleman v. Village of Piketon case, which struck down a $278,000 liquidated damages award for construction delays because the amount was disproportionately...more

Provide Notice (and 10 Other Tasks) When Pursuing a Construction Claim

When dealing with construction claims—whether one for construction defects, outstanding payment, or delay damages—an initial hurdle is making sure that proper notice has been given. Generally, you have to make sure that you...more

Fifth Circuit Court of Appeals: Establishing an Arguable Basis for Delay or Denial of a Claim Precludes a Finding of Bad Faith

Dey v. State Farm Mut. Auto. Ins. Co., No. 14-60300, 2015 WL 3772762 (5th Cir. June 17, 2015). Fifth Circuit holds that “pocketbook dispute” between insured and insurer over value of the insured’s claim and insurer’s...more

Insurance Recovery Law - July 2015 #3

Two Years, Too Long for Coverage Under Claims-Made-and-Reported Policy - Why it matters: Claims-made-and-reported policies require that the claim be both made against the insured and reported to the insurer within the...more

Mohsenzadeh v. Lee (Fed. Cir. 2015)

Last month, in Mohsenzadeh v. Lee, the Federal Circuit affirmed the decision by the District Court for the Eastern District of Virginia granting summary judgment to the Director of the U.S. Patent and Trademark Office that...more

B.C. Court Allows Environmental Approvals Delay Claim to Proceed

In Carhoun & Sons Enterprises Ltd. v. Canada (Attorney General), the British Columbia Court of Appeal allowed a lawsuit to proceed against the federal government by a private developer for losses caused by delays in the...more

Delay and Disruption Claims: Big Impacts on Your Bottom Line

“Time is money” in construction. Owners, design professionals and contractors use time to calculate the impact of lost performance. Yet delay and disruption can be commonplace in construction projects. The reasons for the...more

Under Construction - March 2015

Welcome to the spring edition of our Under Construction newsletter. There have been some interesting legal changes that have taken place recently with the potential to significantly impact the construction...more

Owners’ demurrage claim succeeds where Charterers fail to bring themselves within a force majeure clause

A vessel was chartered for one voyage from “1-2 load berth chop always afloat Santander” to a port in the UK. Charterers ordered the vessel to load bulk bauxite at a berth adjacent to one where cars were waiting to be loaded....more

Construction Case Law Update - February 2015

Delay Damages; “Total Cost” vs. “Modified-Total-Cost” Approach – A party may not establish delay damages under the “total cost” or “modified-total-cost” approach when uncontroverted record evidence attributes delay costs to...more

Insurance Alert: Insurer Delay Extends Time to Repair or Replace Damaged Property

In Stephens & Stephens XII v. Fireman's Fund Ins. (No. A135938, filed November 24, 2014), the plaintiffs obtained property insurance on a warehouse. Within a month, it was discovered to be stripped of all wiring and metal....more

Sixth Circuit Expands Availability of Remedies Under ERISA

The Sixth Circuit recently concluded that a disability plan participant was entitled to relief consisting of benefits under the plan and disgorgement of defendant’s profits for delaying payment. In so ruling, the Court found...more

Effective Use of CPM Scheduling

In a relatively recent case, Metcalf Construction Co. v. U.S., 107 Fed. Cl. 786 (2012), the U.S. Court of Federal Claims once again looked to the critical path method (CPM) in determining the allocation of damages in a...more

E-mails May Save You From a Final Release, But Don’t Count On It

Construction contractors that have litigated delay claims probably know, all too well, that Government attorneys will exploit any opportunity to dismiss a claim on summary judgment, particularly when a release is involved. ...more

Bad Faith Sentinel - February 2013

In This Issue: CONTENTS - Southern District Of California: Excess Insurer Liable For Bad Faith For Two Month Delay In Responding To Insured’s Demand To Either Pay Negotiated Settlement Or To Take Over Insured’s...more

NY State Appellate Court Sides with Airlines, Dismisses Tarmac Delay-Related Claims

The Second Department in Biscone v. JetBlue Airways Corporation recently dismissed airline passengers’ tort claims against an airline based on the failure to provide food, water and facilities during an 11-hour tarmac delay,...more

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