News & Analysis as of

Sometimes it Depends on “Whose” Hand is in the Cookie Jar

In a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that...more

Construction Case Law Update - January, 2015

FLORIDA STATE CASES - Slavin Doctrine; Design Contracts - Under the Slavin doctrine, a subcontractor design company was not liable despite negligently designing intersection traffic lights that resulted in a fatal car...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

Health Care Industry Finds Cure to Save Time and Money on New Facilities

To meet the demands of an aging population and health care reform, many new hospitals and other health care facilities are being built. These projects are typically large, costly and complex and, therefore, merit careful...more

En Banc Pennsylvania Superior Court Rejects Extending CASPA Liability Beyond Contracting Parties

Scungio Borst & Assocs. v. 410 Shurs Lane Developers, LLC et al., 2014 Pa. Super. LEXIS 4527 (Pa. Super. Ct. 2014). On reconsideration of an earlier panel decision of the Pennsylvania Superior Court, the Court en banc...more

Compliance With Notice Provisions Can Make Or Break Your Bottom Line

Over the past decade, courts in Ohio have confirmed time and time again that they will strictly enforce notice requirements in construction contracts where a contractor or subcontractor seeks additional time or compensation. ...more

What’s in that Contract Again? Reflections on the Recent Recession

During and immediately after the most recent recession, construction litigation seemed to hit an apex. New pre-litigation matters to resolve monetary disputes from recession-era construction projects continue to keep many...more

Prepare Now for Minnesota Responsible Contractor Law

Contractors should prepare for Minnesota's Responsible Contractor Law, which will apply to most bid solicitations for state and local construction contracts in Minnesota issued after December 31, 2015. The law will apply to...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

General Contractor’s Prospective Waiver of its Lien Rights is Enforceable in California

In an opinion published in September 2014, entitled Moorefield Construction, Inc. v. Intervest Mortgage Investment Company, et al., D065464, the California Court of Appeal held an original contractor can contractually waive...more

Illinois Court Holds Relief Available to a Sub-Subcontractor Under an Unjust Enrichment Theory for Work Requested but Not Paid for...

C. Szabo Contracting, Inc. v. Lorig Construction Co., 2014 IL App (2d) 131328; 2014 Ill. App. LEXIS 699 (Sept. 29, 2014) - In May of 2006, the Illinois State Toll Highway Authority (“Highway Authority”) retained...more

Recent Changes to the Mechanics’ Law

Mechanics’ Lien - • An In Rem lien (against real property). • For the payment of all debts due by an owner to a contractor (or by a contractor to his subcontractors) for Labor or Materials furnished....more

Ninth Circuit Enforces Waiver of Subrogation Clause in Design/Build Agreement Against Post-Construction Property Insurer

Travelers Indem. Co. v. Crown Corr, Inc., 2014 U.S. App. LEXIS 21101 (9th Cir. 2014) - This action arose out of the construction of the University of Phoenix Stadium (the “Stadium”), home of the Arizona Cardinals. ...more

DOL Issues Final Rule on Enforcement of Contractors' Minimum Wage Executive Order

On October 1, 2014, the Department of Labor (DOL) issued its "Final Rule" on enforcement of Executive Order No.13658: Minimum Wage for Contractors, which was signed by President Obama on February 12, 2014.The Executive Order...more

Mechanics Liens — Smart Tools of Construction Industry Professionals, and Bane of Property Owners

In 1791, Thomas Jefferson and James Madison proposed the first mechanics liens legislation in order to promote development in Washington. The Maryland Assembly (which governed Washington at that time) passed the...more

Construction Case Law Update - October 2014

Applying the Ameris factors, the Middle District of Florida abstained from and dismissed indemnitor’s declaratory judgment action to determine indemnity provision’s (1) scope, (2) duty to defend against third-party...more

Condo Developers Getting Relief From Washington

In an uncharacteristic bipartisan style, the House of Representatives of the U.S. Congress passed H.R. 2600 on September 26, 2013, and almost a year later, on September 19, 2014, the Senate followed by enacting S.2101....more

2014 Connecticut Legislative Summary - September 2014

The 2014 regular session of the Connecticut General Assembly closed with only a few new laws on the books that will affect the design and construction industry. The summaries below highlight the most significant of these....more

Construction Case Law Update - September #2 2014

FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

Connecticut Court Again Holds That Certificates of Insurance Do Not Confer Rights

A Connecticut Superior Court has further clarified the construction industry whether a certificate of insurance naming a party as an additional insured confers any rights on that party. In Hobbs, Inc. v. Charter Oak Fire...more

New Changes to Pennsylvania Mechanics' Lien Law Take Effect

On July 9, 2014, Pennsylvania Governor Tom Corbett signed a bill (S.B. 145) into law that amends the Pennsylvania Mechanics’ Lien Law of 1963 (the “Lien Law”). The new law took effect on September 8, 2014 and affects...more

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