Construction
Homeowner’s alleged waiver of building code requirement did not absolve contractor from liability for the same
January 12th, 2016
The contractor installed a membrane roof on top of three existing layers of roofing, claiming that the homeowner orally directed this step and orally directed that the existing roofing not be stripped. The building code prohibits more than two layers…
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Categories: Construction
Tower crane is neither “temporary works” nor “incidental” to construction; damage excluded from builder’s risk coverage
December 24th, 2015
Many readers will remember seeing photos and videos of a dangling tower crane boom, high above the Manhattan skyline, resulting from Hurricane Sandy. A divided (3-2) New York appellate court has ruled against the One57 building owner and construction…
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An issue outside the scope of the arbitration clause? Handle with care!
December 21st, 2015
One of the limited bases to object to an arbitration award, under the Federal Arbitration Act or any of the state arbitration laws, is that the arbitrator ruled on an issue outside the scope of the arbitration agreement. Another concept, supported by…
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Contractor liable for completing last phase of contract nine years later, at original price
December 15th, 2015
A paving contractor has been found liable for providing the top coat of paving, when the binder coat was installed nine years earlier. And its liability extends to installing the top coat at the price given nine years before! Factoring into this deci…
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Categories: Construction
Contractor's Court Judgment against Sub Did Not Resolve or Eliminate Sub-Sub’s Payment Bond Rights
December 8th, 2015
When third-party creditors sought to garnish an electrical sub’s contract balance, the general contractor, McMillan-Pitts, commenced an interpleader action against the electrical sub and its known creditors, and deposited the remaining subcontract…
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Can Faulty Workmanship Give Rise to a Covered Insurance Claim? Illinois Court Says Yes
November 30th, 2015
The court states the issue in its first sentence: “This case presents a straightforward, but unsettled, question of Illinois law: Is there an ‘occurrence’ under standard-form comprehensive general liability (“CGL”) policies…
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Lien Rights without an “Improvement” to the Property
November 22nd, 2015
A surveyor who laid out a subdivision where only one house was built was nonetheless entitled to a lien under Illinois law, per the Illinois Supreme Court. As many readers know, mechanic’s lien laws have historically derived from the idea that cons…
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Categories: Construction
Statute of Repose Does Not Bar Fraudulent Concealment Claim
November 7th, 2015
A condo association will be allowed to proceed with a lawsuit against the original developers filed 15 years after completion of the project, and despite a 10-year statute of repose. A divided Illinois Supreme Court has applied a “fraud-based” ex…
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Categories: Construction
Release between Two Parties Also Released Claims against Non-Party
November 4th, 2015
The language and scope of a release between two parties has been held by the South Dakota Supreme Court to encompass potential claims against a third party, releasing those claims as well. So an aggregate producer that released claims against the Sou…
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Categories: Construction
Owner’s Claim for Defective Work Not Barred by Prior Arbitration
October 26th, 2015
A contractor who successfully pursued payment in arbitration objected when the public authority owner subsequently filed a lawsuit claiming defective work. The contractor argued that the lawsuit was barred by doctrines of res judicata or collateral e…
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