General Contractors

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The Construction Advantage – Issue 13

Welcome to the thirteenth edition of The Construction Advantage! In this issue, we bring you cases of expanded insurance coverage in New Hampshire and fraudulent concealment cases from California and Minnesota. We hope that...more

Post-Confirmation: Ignoring Court Orders Is Not A Good Idea

In re Castle Home Builders, Inc., 520 B.R. 98 (Bankr. N.D. Ill. 2014) – The debtors obtained confirmation of plans of reorganization that restructured prepetition mortgage loans.  When the servicer for some of the...more

Construction Law Alert: Concrete Supplier Botches Concrete Mix, Gets Thrashed By Court of Appeal for Trying to Blame Third Party

On January 8, 2015, the Second Appellate district affirmed judgment of the lower court in State Ready Mix Inc. v. Moffatt & Nichol, and barred a concrete supplier from blaming a third party consultant for the concrete...more

New This Month: MO Supreme Court Limits the Construction Industry's Use of Certain Sales and Use Tax Exemptions

On January 13, 2015, the Missouri Supreme Court issued three decisions on sales and use tax that have limited the construction industry's ability to utilize certain exemptions in those areas. Companies that utilize such...more

The Status of Lien Waivers in Utah Remains Cloudy

On December 19, 2014, the Utah Supreme Court issued its opinion in Lane Myers Construction, LLC v. National City Bank, et al. 2014 UT 58 (UT 2014). In this case, a total of nine Utah jurists considered the question of whether...more

Recent New York Decision Reaffirms Limits to Surety's Liability on a Delay Claim Made Under a Payment Bond

Advanced Automatic Sprinkler Co., Inc. v. Seaboard Surety Co., Inc., No. 650321/2001, N.Y.L.J. 1202678994141, at (Sup. Ct. New York County Dec. 3, 2014), the Court (Hon. Marcy Friedman) granted the defendant surety’s motion...more

No Damages for Delay Exceptions: Active Interference?

While a contractor generally has a right to a time extension and damages stemming from a delay caused by the owner, the owner (or general contractor if the harmed party is a subcontractor) may be able to assert several...more

Your “Independent Contractor” Clause Just Got a Little Less Relevant

Construction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon. When subcontracting work, parties usually make it...more

Where, Oh Where, Can My Lawsuit be Filed?

When preparing or negotiating the terms of construction contracts, parties often indicate where any dispute that may arise between the parties must be litigated. Courts will generally enforce such “venue” or “forum selection”...more

New York State Court Dismisses Construction Manager’s Third Party Claims Against Subcontracting Geotechnical Engineer

In Board of Mgrs. of the A Bldg. Condo. v. 13th & 14th St. Realty, LLC, 2014 N.Y. Misc. LEXIS 5632; 2014 NY Slip Op 33353(U) (New York Cty. Sup. Ct. Dec. 18, 2014), Hudson Meridian Construction Group, LLC, s/h/a Hudson...more

The Demise of the Economic Loss Rule in Construction Defect Litigation

The Massachusetts Supreme Court recently held in Wyman v. Ayer Properties, LLC, that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s...more

Equitable Subordination: Construction Lenders Beware

Atlantic Builders Group, Inc. v. Old Line Bank (In re Prince Frederick Inv., LLC), 516 B.R. 778 (Bankr. D. Md. 2014) – A construction contractor contended that the claim of the debtor’s construction lender should be...more

Construction Law Advisory - December 2014

In This Issue: - Retainage limited to 5 percent in Massachusetts: Outlier or coming to your state? - Pennsylvania overhauls mechanic’s lien law with creation of state construction notices directory -...more

It's Not the Crime, It's the Cover-Up: Equitable Estoppel in Construction Defect Claims

More than 20 years ago, the Watergate scandal taught us “it’s not the crime, it’s the cover-up” that does the damage. The ensuing decades have brought a steady stream of individuals and companies that had to learn the truth...more

Connecticut Supreme Court Rejects Effort to Read Default Liability Provision into Public Works Payment Bond Law

In a unanimous decision, the Connecticut Supreme Court has declared that a public works payment bond surety does not forfeit its substantive defenses to a bond claim by failing either to pay or deny a claim within the...more

PA Supreme Court Grants Important Victory for Insurers Regarding CGL Coverage for Progressive Property Damage

In a comprehensive and sweeping opinion, the Pennsylvania Supreme Court affirmed several key principles of commercial general liability (CGL) policy interpretation in Penn National v. St. John, decided on December 15, 2014....more

Heaven or Las Vegas

I was at the Construction SuperConference in Las Vegas this past week. It was good. Heard former Los Angeles Mayor, Antonio Villaraigosa, the self proclaimed “Transportation Mayor,” talk about Los Angeles’ mass transit...more

December 2014 - Real Estate FOUNDATION

In this issue - The CERCLA Divisibilty Defense: Back from the Dead? - Springing Recourse for Breach of Solvency and Debt Payment Covenants? Does New York Need Cherryland Legislation? - Mid-Construction...more

Oregon Court Denies HOA’s Effort to Proceed Against Subcontractors for Construction Defect

In Liberty Oaks Homeowner’s Ass’n v. Liberty Oaks, LLC, 2014 Ore. App. LEXIS 1696, the Liberty Oaks Homeowners’ Association (“HOA”) sued the developers of townhomes, alleging that they were responsible for construction...more

Right of Contractor to Stop Work Upheld by Board of Contract Appeals

In an extraordinary decision, the U.S. Civilian Board of Contract Appeals upheld the right of Kiewit-Turner, JV, to stop work and walk off a VA hospital project in Colorado....more

D.C. Circuit Rejects Challenge To Section 503 Regulations Administered by OFCCP

On Friday, December 12, 2014, the D.C. Circuit rejected a challenge by Associated Builders and Contractors, Inc. (“ABC”) to the recent rules promulgated by OFCCP under Section 503 of the Rehabilitation Act protecting...more

A Wolf in Sheep's Clothing is Still a Wolf: The FLSA Regular Rate and Breach of Contract

Recently, I read about a construction contractor in Los Angeles caught in the middle of litigation between its subcontractors and the city, on behalf of the subcontractor’s former employees. According to the employees, the...more

General Contractors Beware of Subordination Clauses

In California, a general contractor can usually rest assured that in the event of nonpayment, it can rely upon the remedy of a mechanics lien, which remedy is, in fact, even a constitutional right....more

Tenth Circuit: Property Damage Surrounding Defective Windows Is an “Occurrence” Because Damage Is Unexpected from Insured’s...

In Cincinnati Insurance Company v. AMSCO Windows, No. 13-4155 (10th Cir. November 26, 2014), Cincinnati insured AMSCO, which manufactures windows for use in homes and sells the windows to distributors. Certain AMSCO windows...more

AIA Construction Contract Issues: An Owner’s Perspective

MANY CONSTRUCTION PROJECTS ARE DOCUMENTED USING AIA FORMS. These forms focus on issues concerning the architect and contractor. It is in the owner’s interest to protect itself by negotiating the key provisions in the...more

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