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Construction Lender Found Liable for Payments to General Contractor Despite Lack of Contractual Relationship

A Delaware trial court, applying New Jersey and Delaware law, recently ruled that a general contractor, despite not being a party to either a loan agreement or loan commitment, could successfully recover damages from a...more

Massachusetts Federal Court: Contractor and Contractor's Owner Personally Liable for Fraud and Conversion for Failing to Pay...

A recent decision from the United States District Court for Massachusetts held a contractor and its owner personally liable for failing to pay a subcontractor and held that the contractor was liable for millions in damages to...more

Notice and Opportunity to Cure: Only if Specifically Required in a Construction Contract

A Texas appellate court recently ruled that an owner properly terminated its contract with a contractor, despite the owner’s failure to provide the contractor notice and an opportunity to cure. See TPG (Post Oak) Acquisition,...more

Massachusetts Trial Court: Construction Prompt Payment Statute Requires Strict Compliance

A recent Massachusetts trial court decision ruled that any objections to a payment application are waived unless a reviewing owner or contractor strictly follows the Massachusetts Prompt Payment Statute, Prompt Payment Act,...more

Michigan Supreme Court: CGL Insurance Policy May Provide Contractor With Coverage for Subcontractor’s Faulty Work

On June 29, 2020, the Michigan Supreme Court ruled that a subcontractor’s commercial general liability (CGL) insurance policy may provide a contractor listed as an additional insured on the CGL policy with insurance coverage...more

COVID-19 Shutdown Orders Allow Construction Work to Proceed in Some States but Limit it in Others - May 2020 Update

Jurisdictions Limiting Construction Work - Massachusetts: Construction generally is allowed in Massachusetts for all residential construction and certain “essential” commercial construction, including in the City of Boston,...more

U.S. Eighth Circuit Court of Appeals Holds No CGL Insurance Coverage for Damages Arising from Contractor’s Shoddy Work

On May 12, 2020, the United States Eight Circuit Court of Appeals, applying Missouri law, rejected a contractor’s contention that its commercial general liability (CGL) policy provided coverage for claims arising out of the...more

COVID-19 Shutdown Orders Allow Construction Work to Proceed in Some States but Limit it in Others

Jurisdictions Limiting Construction Work: Massachusetts: Construction generally is allowed in Massachusetts for all residential construction and certain “essential” commercial construction. However, certain cities and towns...more

COVID-19 Shutdown Orders Allow Construction Work To Proceed In Some States But Not In Others (Updated)

This update tracks COVID-19 shutdown orders as of April 29, 2020, 12:00 p.m. EDT that affect construction projects in Delaware, the District of Columbia, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York and...more

Construction Performance Bond Surety Relieved of Liability Because Bond Owner Did Not Provide Timely Notice of Default

A recent decision from the D.C. Circuit Court of Appeals provides notice to construction performance bond owners and sureties that a bond owner may forfeit its rights under a bond if timely notice of default is not provided...more

COVID-19 Shutdown Orders Allow Construction Work To Proceed In Some States But Not In Others

This update tracks COVID-19 shutdown orders as of April 16, 2020, 12:00 p.m. EDT that affect construction projects in Delaware, the District of Columbia, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York and...more

Coronavirus Shutdown Orders Allow Construction Work to Proceed in Some States but Not in Others

This update tracks COVID-19 shutdown orders as of April 2, 2020, 12:00 p.m. ET that affect construction projects in Delaware, the District of Columbia, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York and...more

COVID-19 Shutdown Orders Largely Allow Construction Work To Proceed

This update tracks COVID-19 shutdown orders as of March 26, 2020, 12:00 p.m. EDT that affect construction projects in Delaware, the District of Columbia, Florida, Massachusetts, Minnesota, New Jersey, New York and...more

Pardon the French but Is COVID-19 Covered by the Force Majeure Clause of Your Construction Contract?

As the CDC issues guidelines progressively cautioning against attending activities with more than 1000, then 500, then 250, and now 50 people, it was only a matter of time before the coronavirus (COVID-19) impacted...more

Saul Ewing Arnstein & Lehr’s 2020 Construction Risk Management Symposium: Three Key Takeaways

From environmental risks and shifting OSHA regulations to community engagement and emerging workplace issues involving medical marijuana use, the construction industry faces many challenges. ...more

Personal Liability for Prevailing Wage Violations in Massachusetts

Owners of a Massachusetts waste collection, recycling and removal company recently were held personally liable for their failure to pay their employees at prevailing wages.  See Donis v. American Waste Services, LLC, 95...more

Court Enforces Contractual Agreement for Mediation Before Filing Lawsuit

Construction contracts often contain agreements requiring mediation before a party may file a lawsuit. However, a party may not want to wait through the mediation process and instead may prefer to go straight to a lawsuit....more

Builder’s Risk Insurance Coverage for $3 Million Loss Denied Due to Failure to Adequately Secure Construction Site

A recent Federal Court summary judgment decision provides a stark warning for contractors and owners to adequately secure their construction sites, or risk denial of insurance coverage. ...more

Update: New Jersey Supreme Court Refuses to Overturn Decision Allowing Salvaged Materials to Pay Lien Claimants

In late April we reported on a New Jersey Appellate Court decision holding that funds obtained from salvaged materials could be used to pay lien claimants. ...more

10/12/2018  /  Construction Industry , Demolition , Liens

General Contractor's Threats to Subcontractor Are a Material Breach of Contract Under Missouri Law

The United States Court of Appeals for the Eighth Circuit recently upheld an Eastern District of Arkansas decision (applying Missouri Law) ruling that a general contractor’s threats to a subcontractor constituted a material...more

Massachusetts: Contractor Might Recover on Claims Despite Breaching Contract

Until last week, Contractors in Massachusetts only could succeed on a breach of contract claim if the contractor proved complete and strict performance of all contractual terms. Furthermore, a contractor only could recover...more

Construction Manager Denied Insurance Coverage as an Additional Insured

Construction owners often require their contractors to name the owner as an additional insured on the contractor’s insurance policy. But what happens when the owner requires the contractor to name the owner’s construction...more

Massachusetts Governmental Agency May Terminate Contract for Cost Savings

Termination for convenience clauses are common in construction contracts with governmental entities and provide the government with disproportionate power over whether a contractor will be able to fully perform its contract. ...more

Contractor Denied Insurance Coverage for Delay, Contract, and Property Damage Claims

A recent decision from the Northern District of Ohio denied insurance coverage for claims involving construction delays, breach of contract, and property damage claims. See Maxum Indemnity Co. v. The Robbins Co., No. 1:17 CV...more

Massachusetts Condominium Developers Have Increased Exposure

A recent Massachusetts Supreme Judicial Court decision held that condominium developers cannot create a condominium that “makes it extraordinarily difficult or even impossible for the trustees to initiate any litigation...more

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