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Federal Court in PA Finds Liquidated Damages Provision Unenforceable Where the Per Day Liquidated Damage Amount Was Copied from...

D.A. Nolt, Inc. v. The Philadelphia Municipal Authority, 2020 BL 199761 (E.D. Pa. May 28, 2020) - The Philadelphia Municipal Authority (the “Authority”) contracted D.A. Nolt, Inc. (“Nolt”) to renovate a building that would...more

Recent Decisions Recognize Limits on Lien Amounts Properly Includable Under Michigan and Connecticut Lien Statutes

Lost profits, not part of unpaid contract balance, may be recoverable as consequential damages in contract claim, but cannot be included in lien. TSP Services Inc. v. National-Standard, LLC, 2019 BL 340267 (Mich. Ct. App....more

Submission of Pre-Suit Claim Notice Required by Construction Defect Statute Timely ‘Commences the Action’ Within the Meaning of...

Gindel v. Centex Homes, 2018 Fla. App. LEXIS 13019 (Fla. 4th DCA Sept. 12, 2018) - A group of townhome owners (the “Homeowners”) sued the contractor and a subcontractor (collectively, “Contractor”) who built their...more

A Contractor That Intentionally And Materially Breaches Its Contract Is Not Precluded From Recovery Under Quantum Meruit;...

G4S Tech. LLC v. Mass. Tech. Park Corp., 2018 Mass. Lexis 357 (June 13, 2018) - A state development agency (the “Agency”), received state and federal funding to build a 1,200-mile fiber optic network. It contracted with...more

A Project Consisting of Several Component Projects Is a Single Project or “Product Purchased by the Owner” Within the Meaning of...

City of Whiting v. Whitney, Bailey, Cox & Magnani, LLC, 2018 U.S. Dist. LEXIS 44943 (N.D. Ind. Mar. 20, 2018) - The City of Whiting, Indiana (the “City”) undertook a 26-acre lakefront development project. It hired an...more

Can a Nonsignatory to an Arbitration Agreement Compel Arbitration by Estoppel? North Carolina Court of Appeals Says Yes — But Not...

Smith Jamison Constr. v. Apac-Atlantic, Inc., 2018 N.C. App. LEXIS 132 (N.C. Ct. App. Feb. 6, 2018) - General contractor APAC-Atlantic (“APAC”) hired Smith Jamison Construction (“Jamison”) as a subcontractor to perform...more

Do You Know Who Will Decide Whether Your Next Dispute Is Subject to Arbitration?

Courts determine whether a dispute is subject to arbitration, also known as questions of “arbitrability,” unless the parties agree to submit arbitrability disputes to the arbitrator. Originally published in AGC Law in...more

Applying Florida’s “Eight Corners Rule,” Eleventh Circuit Finds that Insurer Has a Duty to Defend Claim That Insured’s Faulty...

Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass’n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017) - The owner of a high-rise condominium building in Florida hired a contractor to replace the building’s concrete...more

When Surety Bond Incorporates the Subcontract by Reference, Is the Subcontract’s Arbitration Clause Also Incorporated? Federal...

Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 111021 (D.S.C. July 18, 2017); Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 135948 (D. Kan. Aug. 24, 2017)...more

Federal Court in Nebraska Denies Surety’s Request for Preliminary Injunction Requiring Principal to Post Collateral Security,...

Allied World Specialty Ins. Co. v. Abat Lerew Constr., 2017 U.S. Dist. LEXIS 61794 (D. Neb. Apr. 24, 2017) - Abat Lerew Construction (“ALC”) entered into multiple construction projects which required it to obtain surety...more

Eleventh Circuit Affirms Decision Under Florida Law Barring Contractor’s Performance Bond Claim for Failure to Comply With Notice...

Int’l Fidelity Ins. Co. v. Americaribe-Moriarty JV, 2017 U.S. App. LEXIS 3628 (11th Cir. Feb. 28, 2017) - Americaribe-Moriarty Joint Venture (“Americaribe”) entered into a subcontract with Certified Pool Mechanics I,...more

Federal Court in Idaho Rules That a Government Contractor May Recover Consultant Fees, So Long as Those Fees Were Incurred in...

The United States Department of Veterans Affairs (the “VA”) contracted with Sygnos, Inc. (“Sygnos”) for improvements to the electrical system at a VA hospital in Boise, Idaho. Sygnos subcontracted a portion of the work to...more

Federal Court in North Carolina Holds That Impracticability of Arbitration Clause Which Required Decision Within 30 Days of...

Tribal Casino Gaming Enterprise v. W.G. Yates & Sons Constr. Co., 2016 U.S. Dist. LEXIS 86100 (W.D. NC July 1, 2016) - Tribal Casino Gaming Enterprise (the “Casino”) contracted with joint general contractors, W.G. Yates...more

Federal Claims Court Holds that Government’s Actual Knowledge of Contractor’s Delay and Acceleration Excuses Technical...

Nova Group/Tutor-Saliba v. United States, 125 Fed. Cl. 469 (Fed. Cl. Mar 16, 2016) - The United States Naval Facilities Engineering Command (the “Navy”) contracted with the joint venture of Nova Group and Tutor-Saliva...more

Maryland Appellate Court Holds Economic Loss Doctrine Bars Contractor’s Tort Claims Against Government’s Design Professional on...

Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLP, 226 Md. App. 420, 130 A.3d 1024, 2016 Md. App. LEXIS 3 ( Md. Ct. Spec. App. Jan. 28, 2016) The City of Baltimore retained a design professional, Rummel...more

Federal Court in New York Applies Scope of Duty Analysis in Deciding Claim for Architectural Malpractice

Wax NJ-2, LLC v. JFB Constr. & Dev., 13-cv-4537, 2015 U.S. Dist. LEXIS 74508 (S.D.N.Y. June 9, 2015) - Wax NJ-2, LLC (“Wax”) hired the architectural firm GF55 Partners (“GF55”) to design and then inspect construction of...more

US District Court in New York Holds Owner’s Interference Bars Claim that Contractor Breached By Abandoning Project

NYU Hosps. Ctr. v. HRH Constr. LLC, 2015 U.S. Dist. LEXIS 31967 (S.D.N.Y. Mar. 12, 2015) - NYU Hospitals Center (“NYU”) hired HRH Construction LLC (“HRH”) to renovate NYU’s radiology center. HRH entered into...more

Court of Federal Claims Holds that Contractor’s Defense of Defective Specifications Is Not an Independent Claim Requiring...

Total Eng’g, Inc. v. United States, 2015 U.S. Claims LEXIS 30 (Fed. Cl. Jan. 26, 2015) - The United States Army Corps of Engineers (the “Government”) awarded a contract to Total Engineering, Inc. (“Total”) for preliminary...more

Pennsylvania Supreme Court Denies Appeal In Coverage Dispute; Superior Court Decision Recognizing a Duty to Defend Where Tort...

In a per curiam decision without a published opinion, the Pennsylvania Supreme Court denied National Union Fire Insurance Company of Pittsburgh’s (“National”) appeal from a Superior Court decision holding that National had a...more

U.S. District Court in Minnesota Rejects Owner’s Implied Warranty Claims Against Installation Contractor – Also Holds Recovery of...

Spectro Alloys Corp. v. Fire Brick Eng’rs Co., Inc., 2014 U.S. Dist. LEXIS 140817 (D. Minn. Oct. 3, 2014). Spectro Alloys Corporation (“Spectro”) operates a smelter, and it hired Fire Brick Engineers (“FBE”) to...more

Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

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