The Construct - May 2015

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In This Issue:

- Construction Contract Claims Against a Third-Party Lender? The Unforeseen Consequences of a Standard Practice:

For those of us who commonly represent lenders, there is nothing more unsettling than hearing the words "course and pattern of conduct" or "dominion and control" or some variation of the same. Any suit where someone seeks to impose liability on a bank for something above and beyond the amounts loaned and repaid is a scary one for lenders (and ultimately should be a scary one for anyone who may need to borrow money in the future). One area in which lender liability has been recently trending is the construction area. A recent example of that trend came in the case of Atlantic Builders Group, Inc. v. Old Line Bank (In re Prince Frederick Investment, LLC), 516 B.R. 778 (Bankr. D. Md. 2014)....

- North Carolina Gearing Up for Major Road Improvement Projects:

Few things shout "economic development" louder than substantial road improvement projects. For Division 9 of the North Carolina Department of Transportation, many more developments are underway. The Winston-Salem Northern Beltway is currently under construction. What does this mean for you?

- Virginia Legislation Significantly Impacts Construction Industry:

At its recently concluded 2015 Regular Session, the Virginia General Assembly passed legislation which will significantly affect those persons who deal with potential mechanic's lienors. The revision to section 43-3 of the Virginia Code declares that any attempt by a subcontractor or materialman to "waive" or "diminish" his lien rights prior to furnishing labor or materials is "null and void." The legislation may be notable for who and what it does not affect.

- Righting a Wrong in West Virginia: The Residential Construction Right to Cure:

In residential construction, problems can arise with customers that cause expensive litigation. In West Virginia, a right to cure in residential construction by statute can alleviate such costs...

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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