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West Virginia Supreme Court Offers Guidance on Contractual and Implied Indemnity Claims

The West Virginia Supreme Court of Appeals recently reversed, in part, and affirmed, in part, a lower court decision regarding dismissal of contractual indemnity and implied indemnity claims. WW Consultants was the design...more

The Limits of Third-Party Beneficiary Rights in New York

On complex construction projects, there may be multiple contractors, subcontractors, vendors, suppliers, and sub-subcontractors working along side one another. With various entities working parallel there are substantial...more

Improper Application of Arbitration Clause Leads to Remand in Properplates Case

Indiana, like other states, has a strong policy favoring arbitration agreements, and Indiana courts construe arbitration clauses broadly to make matters abitrable so long as they reasonably fit within the language of the...more

Miller Act Suit Stayed until CDA Remedies Exhausted

A federal district court in Washington recently rejected a subcontractor’s motion for reconsideration of a previously granted motion to stay in a Miller Act lawsuit (the Miller Act governs prime contractor bond requirements...more

Risk Assessment — Construction Claims: How to Calculate the Recoverable Costs and Damages

When negotiating a complex change order or preparing to litigate a claim, calculating actual recoverable costs incurred can be a difficult exercise. You will want to first review your contract to determine what kinds of costs...more

Best Practices: Change Orders - Things to Watch for in Negotiations

It is the rare construction project that is completed without any change in the work. In most sophisticated construction projects, the contractual mechanism for managing these changes involves the issuance of a change order....more

Federal Prompt Pay Act Does Not Afford Subcontractors Right to Sue General Contractor

On October 15, 2020, in EMTA Insaat Taahhut ve Ticaret A.S. v. Cosmopolitan Incorporated, a federal district court held that the federal Prompt Pay Act (PPA) (31 U.S.C. §§ 3901, et al.) does not create a private right of...more

Contract, Project, and Arbitration in Florida? State Has Personal Jurisdiction Over Action to Enforce Arbitration Award

On June 24, 2020, in Sayers Constr., LLC v. Timberline Constr., Inc., et al., a Florida District Court of Appeal affirmed a trial court’s denial of a contractor’s motion to dismiss. The contractor moved to dismiss for lack of...more

Fraudulently Filing Lien Backfires on Contractor

Liens represent one of the primary mechanisms by which contractors, subcontractors, and other downstream parties secure payment rights under a construction contract. When utilized properly, filing a lien may induce an owner...more

New York is Pro-Choice on Forum Selection Clauses

In Somerset Fine Home Building, Inc. v. Simplex Industries, Inc., the Appellate Division of the Second Department in New York upheld a dismissal based on the plaintiff’s breach of the parties’ forum selection clause. Somerset...more

Prior Material Breach May Excuse Performance, but the Factfinder Must Agree It Was a Material Breach

In most jurisdictions, a party may be excused from any future performance under a contract by the prior material breach of the other party. A “prior material breach” is typically defined as conduct that deprives the injured...more

Does Your Construction Contract Involve Interstate Commerce? If So, Expect Your Arbitration Agreement to Be Enforced

Whether an arbitration agreement is enforceable is a frequently litigated matter in construction disputes. Federal policy strongly favors arbitration. Typically, the Federal Arbitration Act (FAA) will preempt any contrary...more

Promises to Pay Sub-subcontractor may Expose General Contractor to Liability for Unjust Enrichment

On May 14, 2020, in James G. Davis Constr. Corp. v. FTJ, Inc., the Virginia Supreme Court upheld a judgment on an unjust enrichment claim in favor of FTJ, a drywall supplier on a condominium project, against Davis, the...more

In Georgia, Rely on an Affiliate’s or Individual’s General Contractor’s License at Your Own Peril

On May 5, 2020, the Georgia Court of Appeals affirmed a trial court summary judgment ruling dismissing a residential contractor’s claims against an owner because the contractor was not properly licensed. In LFR Investments,...more

Federal Court Rules Contractor Is Not Intended Third-Party Beneficiary under Owner-Engineer Agreement

In March, a Massachusetts federal court addressed whether a design-builder contractor could recover for breach of contract under an intended third-party beneficiary theory against a design firm hired by the project owner to...more

Oregon Anti-Indemnity Statute Voids Sub-sub’s Duty to Indemnify Sub for the Sub’s Own Negligence

The Ninth Circuit Court of Appeals recently upheld the application of Oregon’s anti-indemnity statute to a contractual indemnity provision requiring a sub-subcontractor’s insurer to indemnify the subcontractor for the...more

Dealing with Difficult Parties on a Project - Modern Contractor Solutions

If you have been involved in the construction industry for any substantial amount of time, you have likely encountered an individual or an entity on a project who appears to be completely unreasonable or irrational. You may...more

Contractor Licensing Requirements: Ignore at Your Peril

On March 9, 2018, the Georgia Court of Appeals reaffirmed the applicability of Georgia’s contractor licensing requirements (Ga. Code, Title 43, Ch. 41) to residential and general contractors. In Baja Properties, LLC v....more

Florida Statutory Limitation on Indemnity Does Not Apply to Excavation Subcontract on Utility Line Project

Fla. Stat. § 725.06 limits the scope of indemnification provisions in construction contracts. Specifically, the statute limits the ability of an indemnitee (e.g., owner) to require an indemnitor (e.g., contractor) to...more

My Roof, My Rules: Arbitrators May Determine Their Own Jurisdiction When the Parties Delegate that Authority

An issue that repeatedly comes up in construction disputes is the scope of an arbitration agreement. Courts generally interpret agreements to arbitrate broadly, and, where the arbitrability of a specific claim has been at...more

Alabama Supreme Court Confirms that Mutual Consent Is Not Required to Enforce an Arbitration Clause

Mandatory arbitration clauses have become commonplace in construction contracts. Various groups have formulated generic arbitration language to insert into disputes clauses of contracts. A good example of such language comes...more

Solar in the Frost: What to Watch Out For

As solar technology continues to become more efficient, construction of solar plants is expanding rapidly around the world, including in colder environments that, in the past, may have lacked the irradiance necessary to make...more

Subcontractor Working on a Federal Project in Tennessee Protected by Tennessee Prompt Pay Act

The operation and applicability of prompt pay acts in various states is something that contractors ignore to their detriment. A recent Tennessee case drives home the importance of understanding the applicability of any prompt...more

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