Construction

Waiver of Subrogation: How Broad Is It?

Many contractors believe a waiver of subrogation clause protects them from any effort by the owner’s property or builder’s risk carrier to recover damages covered by that insurance. As a federal court decision emphasizes, the protection afforded… Read More
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Generic Reservation of Rights Letters Are Inadequate Notice of Coverage Issues

A common practice in reservation of rights letters has been heavily criticized by the South Carolina Supreme Court. In fact, the court rejected a generic reservation of rights letter. It stated: “It is axiomatic that an insured must be provided suf… Read More
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Construction Analogies to Describe the Scope of Privilege

Why the discussion of a construction project in a case concerning Facebook? The judge was making an analogy in a dispute as to whether communications between Mark Zuckerberg and Goldman Sachs, channeled through counsel, were privileged. Using a const… Read More
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NH Municipalities Cannot Invoke Same Statute of Limitations Protections as the State

Some states recognize the doctrine expressed in English as “no time runs against the king” and in Latin as “nullum tempus occurrit regi.” The doctrine arises from time to time when a state agency seeks to recover against a private company on… Read More
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Pursuing a Performance Bond? Follow the Terms of the Bond

A contractor seeking almost $1 million in claimed cost overruns against a subcontractor’s bond has been reminded that the bond terms must be followed. Or else. The bond required the prime contractor, as bond obligee, to do three things: (a) give no… Read More
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An Expensive Lesson About Notice of a Professional A/E Malpractice Claim

The University of Pittsburgh has come out on the losing end of coverage battles with two different malpractice carriers for the architecture firm, The Ballinger Co., hired by Pitt to design a renovation project to Pitt’s Salk Hall (named for Jonas… Read More
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Two Instances Where One Party Could Not Compel a Non-Party to Arbitrate

The Maryland Court of Special Appeal has recently issued decisions in two separate matters, reaching similar conclusions on very different sets of facts. The outcomes were (1) a related non-party could not be compelled to arbitrate, nor (2) could a p… Read More
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Undocumented Oral Agreement Came Within Scope of Written Arbitration Clause

A hauling company submitted bids for removal of three different types of construction debris, and the parties agreed on and signed a contract covering two of those categories. Later, by oral agreement the third category initially bid on was added at… Read More
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The Long Arm of Construction Trust Fund Law Affects Discharge in Bankruptcy

A corporate manager with control over construction funds, facing personal liability under the NY trust fund law to an unpaid sub and the homeowner for improper diversion of funds, cannot discharge that liability in a personal bankruptcy. Even when th… Read More
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Unsuccessful P3 Proposals Are Not Subject to Public Records Laws

In the ordinary course of public project procurement, bids of the competing companies become subject to public review after the bid opening. The Pennsylvania Commonwealth Court (an intermediate appellate court; see more below) recently held that the… Read More
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