News & Analysis as of

Construction Litigation

Be Aware of Sovereign Immunity - Construction and Procurement Law News, Q1 2018

Sovereign immunity is the legal doctrine, dating back to the days of the British monarchy, that a sovereign or state cannot commit a legal wrong and is immune from suit: in essence, “the king can do no wrong.” ...more

Federal Court Holds That It Lacks Subject Matter Jurisdiction To Review VA’s Decision To Begin Debarment Proceedings Since That...

by Pepper Hamilton LLP on

Hope v. Dep’t of Veterans Affairs, 2018 U.S. Dist. LEXIS 28479 (E.D. Ark. Feb. 22, 2018) - This matter involved a motion for temporary restraining order and preliminary injunction (the “Motion”) filed by Richard Alan Hope...more

Unstable Foundations: Following Industry Standards During Design Not Enough to Absolve Design/Build Contractor of Liability -...

MT Højgaard A/S (Respondent) v E.ON Climate & Renewables UK Robin Rigg East Limited, involved the construction of foundation structures for an offshore wind farm. The Supreme Court of the United Kingdom analyzed whether a...more

Contractor Who Failed To Challenge Arbitration Award Within Statutory Three Month Period Cannot Resurrect The Challenge As An...

by Pepper Hamilton LLP on

St. George Fire Prot. Dist. No. 2 v. J. Reed Constructors, Inc. 2018, La. App. LEXIS 262 (February 20, 2018) - J. Reed Constructors, Inc. (“J. Reed”) and St. George Fire Protection District No. 2 (“St. George”) entered...more

Divided New York Court Of Appeals Holds That A Third Party Cannot Sue For Breach Of Contract Absent Express Language Naming Them...

by Pepper Hamilton LLP on

Dormitory Auth. of the State of NY v. Samson Constr. Co., 2018 N.Y. Lexis 218 (February 15, 2018) - The Dormitory Authority of the State of New York (“DASNY”) undertook, as project manager, to construct a facility for the...more

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

by Pepper Hamilton LLP on

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

Supreme Court Of Vermont Holds That Contractor Waived Its Right To Challenge The Validity Of Arbitration Agreement By Actively...

by Pepper Hamilton LLP on

Adams v. Barr, 2018 VT 12, 2018 Vt. LEXIS 10 (VT 2018) - On February 24, 2016, Barr Law Group (“Barr”) filed a demand for arbitration with the American Arbitration Association to recover $40,000 in unpaid legal fees from...more

Under Construction - March 2018

by Snell & Wilmer on

Welcome to the spring 2018 edition of our Under Construction newsletter. We hope 2018 is off to a good start for you and your company. We start this issue with an article providing some practical solutions to common legal...more

Appellate Court Notes

by Pullman & Comley, LLC on

AC39565 - Carvalhos Masonry, LLC v. S&L Variety Contractors, LLC - Interesting case. After the conclusion of the evidence in the case, the trial judge urged the parties to settle and even recommended the amount. The...more

Eleventh Circuit Holds That The Statute Of Limitations On Payment Bond Claim Under Georgia Law Commences At Substantial Completion...

by Pepper Hamilton LLP on

Strickland v. Arch Ins. Co., No. 17-10610, 2018 U.S. App. LEXIS 504 (11th Cir. Jan. 9, 2018) - Strickland provided sand to a paving company (“Douglas”) for a Georgia Department of Transportation (“GDOT”) road improvement...more

Oral Argument Preview: G4S Technology LLC v. Mass. Technology Park Corp.

The Supreme Judicial Court (SJC) is slated to hear oral argument in G4S Technology LLC v. Mass. Technology Park Corp. on Monday, March 5, 2017 – a case with significant implications for construction litigation....more

Contractor Recovery of Overhead Expenses – Eichleay Claim

When contractors perform work and incur delays on a project, one often overlooked possible claim is for lost home office overhead. Home office overhead includes home office (not project site) rental or ownership costs, taxes,...more

California Supreme Court Clarifies That “Right To Repair Act” Is Exclusive Remedy For Both Economic Loss And Property Damage...

by Pepper Hamilton LLP on

McMillin Albany LLC v. Superior Court, No. S229762, 2018 Cal. LEXIS 211 (Jan. 18, 2018) - Several homeowners (“Plaintiffs”) brought suit against developer/general contractor McMillin Albany LLC (“McMillin”) for alleged...more

Real Estate and Construction Newsletter - February 2018

by Barley Snyder on

Pennsylvania Construction Contractors Under The Gun For Misclassifying Employees As Independent Contractors - Pennsylvania has been sending a strong message to contractors that it is enforcing a law penalizing contractors...more

Combatting Arbitration Inefficiency

by Pepper Hamilton LLP on

“Arbitration has been proven to be an effective way to resolve disputes fairly, privately, promptly and economically.” So provides the preamble to the Construction Industry Rules of the American Arbitration Association....more

California Supreme Court Holds that the Right to Repair Act is a Homeowner’s Exclusive Remedy for Damages Arising from...

In McMillin Albany LLC et al. v. The Superior Court of Kern County (Van Tassel) [Case No. S229762], the California Supreme Court held that California Civil Code §§ 895 et seq. (the “Right to Repair Act”) provides the...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

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

by Pepper Hamilton LLP on

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

Builders' Right To Repair Pre-Litigation Affirmed as Exclusive Remedy By Supreme Court

by Selman Breitman LLP on

On January 18, 2018, the Supreme Court of California in McMillin Albany LLC et al., v. The Superior Court of Kern County (Supreme Court Case No. S229762, California Official Reports citation pending) unanimously held that the...more

California Supreme Court Holds the Right to Repair Act Provides Exclusive Remedy for Construction Defect Claims

by Wilson Elser on

On January 18, 2018, the California Supreme Court resolved 15 years of debate when it issued McMillin Albany LLC v. Superior Court, S229762 (2018) __ Cal.4th __. In a broadly worded decision, the Court unequivocally held that...more

Michigan Court of Appeals Clarifies That the Offer of Judgment Rule Applies to a Judgment Entered on an Arbitration Award

by Dickinson Wright on

Under Michigan’s “offer of judgment” rule, MCR 2.405, costs and attorney fees may be imposed on a party that rejects an offer to stipulate to entry of a judgment and fails to obtain a more favorable “verdict.” In Simcor...more

“Paid in Full” Wives’ Tale True? When Endorsing A Check, Yes Ma’am!

by Burr & Forman on

Long before I was an attorney, I heard this tale that if you endorsed a check that had the words “PAID IN FULL” written on the check, then you were accepting the check as full payment of what was owed. But I had never really...more

No Privity, No Problem: Louisiana Court Of Appeals Holds That Project Manager Owes A Duty Of Professional Care To General...

by Pepper Hamilton LLP on

Lathan Co. v. State, No. 2016-CA-0913, 2017 La. App. LEXIS 2277 (La. App. 1st Cir. Dec. 6, 2017). On December 6, 2017, the Louisiana Court of Appeals, First Circuit, reversed and remanded the trial court’s decision to...more

Mississippi Federal District Court Permits General Contractor’s Negligence Claim to Proceed Against Project Consultant Given...

by Pepper Hamilton LLP on

S. Indus. Contractors, LLC v. Neel-Schaffer, Inc., No. 1:17CV255-LG-JCG, 2017 U.S. Dist. LEXIS 196804 (S.D. Miss. Nov. 30, 2017) - This case arises out of the West Pier Facilities project at the Port of Gulfport,...more

Appeal it All! Guarding Against Multiple, Independent Grounds

by Carlton Fields on

You’ve identified a killer issue for appeal, no doubt a winner. Congratulations! You still lose. How can that be? In Novum Structures, LLC v. Choate Construction Company, Inc., 698 Fed. Appx. 608 (11th Cir. 2017), the...more

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