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Construction Contracts Unenforceable Contract Terms

Warner Norcross + Judd

Contractors Beware: Licensure Foot-faults Could Make Your Construction Contract Unenforceable

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Under the Michigan Occupational Code, residential building, maintenance and alteration contractors must be licensed to perform certain types of work. The Michigan Supreme Court held in Stokes v. Millen Roofing, 649 N.W.2d 371...more

Davis Wright Tremaine LLP

Washington Supreme Court Finds a One-Year Contractual Limitations Period to Be Substantively Unconscionable

A recent 5-4 decision issued by the Supreme Court of Washington, Tadych v. Noble Ridge Construction, Inc., reflects the importance of carefully crafting claim limitation language in residential development and construction...more

White and Williams LLP

In All Fairness: Illinois Appellate Court Finds That Arbitration Clause in a Residential Construction Contract Was Unconscionable...

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In Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between...more

Fox Rothschild LLP

No License, No Contract, No Claim

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Can an unlicensed general contractor enforce a construction contract in North Carolina? “No,” and as Judge Conrad explains, “[t]his is an unyielding rule.” JCG & Associates, LLC vs. Disaster America USA, LLC, 2021 NCBC...more

Buchalter

That’s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component

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What’s a goocher?  If you saw the movie, Stand By Me, then you know exactly what I mean.  And there are times when parties to a construction contract face a goocher. ...more

Troutman Pepper Locke

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

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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

Pierce Atwood LLP

The Intersection of Workers’ Compensation Immunity and Contractual Indemnity

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The workers’ compensation statute in many states provides that the workers’ compensation benefits received by an injured employee is the employee’s exclusive remedy. The benefits are paid based on a no-fault basis and the...more

Troutman Pepper Locke

Federal Arbitration Act Preempts Florida State Statute Which Prohibits Out-of-State Resolution of Construction Claims Involving...

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Sachse Constr. & Dev. Corp. v. Affirmed Drywall, Corp., 2018 Fla App. Lexis 9998 (July 18, 2018) - Sachse Construction, a Michigan-based general contractor, entered into a subcontract (the “Subcontract”) with Affirmed...more

Troutman Pepper Locke

Claim Of Fraudulent Inducement Of A Construction Contract Does Not Invalidate Arbitration Clause In That Same Contract

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Koudela v. Johnson & Johnson Custom Builders, LLC, 2017 Ohio App. Lexis 5800 (December 29, 2017) - In this case, Nicolas and Monica Koudela (the “Koudelas”) entered into a construction contract with “Johnson & Johnson...more

Snell & Wilmer

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

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Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

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