Construction
Owner’s Assignment to Contractor, of Claims Against Architect, Not Barred by Anti-Assignment Clause
December 14th, 2021
A school district and architect signed a contract, with a common anti-assignment clause, for design of an elementary school building . During construction of the project, disputes arose between the district and contractor, and the contractor claimed…
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Categories: Construction
New Jersey Prompt Payment Act Supports Recovery of Fees that Exceed Contract Balance Due
September 24th, 2021
A subcontractor owed $30,500, who had to jump through multiple hoops to recover its money, was entitled to recover legal fees and costs exceeding the contract balance due. JHC Industrial Services, a second-tier sub, performed demolition work for Cent…
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Complaint Dismissed for Failure to Mediate First
July 28th, 2021
“Mandatory mediation” may seem an oxymoron, since mediation is a process whereby parties seek to resolve their dispute in an elective process. But a federal court judge has held that a contract clause mandating mediation prior to litigation is to…
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Reckless Misclassification under Davis-Bacon Creates False Claims Act Liability
July 16th, 2021
A US Court of Appeal has held that “reckless misclassification” of workers under Davis-Bacon can – due to amendments of the False Claims Act (FCA) in 2009 – can result in a contractor being liable under the FCA. And this liability could cover…
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No Agreement to Arbitrate Arose from Browsewrap Agreement
July 13th, 2021
Courts have enforced arbitration agreements arising from clickwrap agreements, even when the user has not bothered to read the fine print. A recent New Jersey appellate court has held, though, that mere reference to terms and conditions (including a…
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Notice by Email Was Sufficient for Miller Act Bond Claim
May 7th, 2021
We knew this day would come, since email is now the primary means of written communication. A material supplier made a payment bond claim solely via email. No letter was sent by mail, much less sent by certified mail as required under the Maryland Li…
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Arbitration Demand Timely Despite Complicated Backdrop
February 21st, 2021
Consider the project vendor situation: August 2010 – project complete August 2011 – warranty expires (but is extended by the vendor for a few more months) Throughout 2012 – continued problems with the equipment July 2013 – parties sign to…
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Performance Bond Surety Not Liable if Underlying Contract Was Not Terminated
February 15th, 2021
A modular construction subcontractor provided a performance bond to the prime contractor in the AIA form A312-2010. The GC later claimed that the modular sub failed to properly perform its work, including “that more than 260 windows were leaking an…
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Categories: Construction
Statute of Repose Bars Claim for Implied Warranty of Habitability
February 3rd, 2021
The Rhode Island Supreme Court has held that the statute of repose applies to a claim for breach of the implied warranty of habitability. Homeowners bought a house directly from they builder in 1997. In 2012, the homeowners discovered water infiltrat…
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Prompt Pay Law Enforced Against Non-Paying Project Owner
December 11th, 2020
A Massachusetts court has entered summary judgment against a project owner who failed to follow the terms of the prompt payment act. Judgment has been issued in the amount of $4,600,109, for payment shortages or non-payment on seven requisitions. Jud…
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