News & Analysis as of

Failure To Pay Construction Litigation

Nossaman LLP

Construction & Claims: May 2024

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Welcome to Construction & Claims, a periodic digest of the headlines, statutory and regulatory changes and court cases involving construction news, claims, bid protests, contract administration and payment-related disputes....more

Pullman & Comley, LLC

Bonding Off Mechanic's Liens:  Not Just for Property Owners

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Property owners are often confronted with a contractor threatening a mechanic’s lien on their property. These liens may stem from a dispute between them and their contractor, or even between a subcontractor and a general...more

Burr & Forman

Court Recognizes Day-to-Day Changes Are Compensable Despite Contractual Waivers

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It happens all the time! The owner-contractor agreement contains a “no damages for delay” clause; a clause requiring that all changes be in writing before work is performed; and a clause requiring partial lien waivers and...more

Troutman Pepper

Level 10 Construction v. Sea World LLC: Can Force Majeure Save Sea World?

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On June 8, 2020, Level 10 Construction, LP (“Level 10”), a construction company hired by Sea World San Diego (“Sea World”), filed a Complaint in California federal court alleging that Sea World is withholding over $3.2...more

Troutman Pepper

Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering...

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P.A.L. Environmental Safety Corp. v. North American Dismantling Corp. Et Al., No. 19-11630, 2020 BL 198779 (E.D. Mich. May 28, 2020) - A Michigan federal court partially granted Consumers Energy Company’s (“CEC”) motion to...more

Burr & Forman

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

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It goes without saying that in the world of construction contracts … words matter! There is language in the Goes decision that a cost-plus contract imposes upon the contractor an implied duty to incur reasonable and proper...more

Troutman Pepper

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

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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

Troutman Pepper

The Lessor of Two Evils: Iowa Supreme Court Holds That Mechanic’s Liens Will Not Attach to the Property of a Lessor for Work...

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Winger Contr. Co. v. Cargill, Inc., No. 17-1169, 2019 BL 132092 (Iowa Apr. 12, 2019). On April 12, 2019, the Iowa Supreme Court affirmed a lower court ruling which held that, inter alia, the Iowa mechanic’s lien statute...more

Troutman Pepper

New York Supreme Court Granted Summary Judgment for Subcontractor Where Contractor Attempted to Utilize Contractual...

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A.E. Rosen Elec. Co. v. Plank, LLC, No. 07862-7, 2019 BL 113951 (Sup. Ct. Mar. 01, 2019) - On March 1, 2019, the Supreme Court of New York, Albany County, granted a subcontractor’s motion for summary judgment on a payment...more

Troutman Pepper

Colorado Court of Appeals Finds Contractor Satisfied Conditions Precedent Under Performance Bond

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Whiting-Turner Contracting Co. v Guar. Co. of N. Am. USA, 2019 BL 97923 (Colo. App. Mar. 21, 2019). This construction dispute involved rights and obligations under a performance bond supplied for an office building...more

Troutman Pepper

Federal Court Enjoins Owner From Withholding Payment Of Disputed Invoices Based On Contract Provision Requiring Parties To...

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Coalview Centralia, LLC v. Transalta Centralia Mining LLC, 2018 U.S. Dist. LEXIS 185914 (W.D. Wash. Oct. 30, 2018) - This case involves a dispute over Coalview Centralia, LLC’s (“Coalview”) performance of environmental...more

Gray Reed

Establishing Personal Liability Without a Guaranty

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When non-payment occurs, suppliers and service providers often first seek relief by suing for breach of contract. Unfortunately, many companies are undercapitalized or otherwise “judgment proof.” A personal guaranty might...more

Troutman Pepper

Subcontract Provision Requiring Subcontractor To Pass Through Its Claims Does Not Prevent The Subcontractor From Suing To Recover...

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Pinnacle Crushing & Constr. LLC v. Hartford Fire Ins. Co., 2018 U.S. Dist. LEXIS 67965 (W.D. Wa. Apr. 23, 2018) - The Army Corps of Engineers (the “Corps”), as owner, and Cherokee General Corporation (“CGC”), as prime...more

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