Construction

Failure to Promptly Reserve Rights on Coverage = Loss of Ability to Disclaim

From the 2nd Circuit Court of Appeal comes a reminder that undertaking defense of a claim without any reservation of rights can bar an insurer from disclaiming coverage nine months later – even if the claim was not within the policy language from t… Read More
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Complete and Strict Compliance, or Substantial Performance? The Legal Standard Is . . .

Yes. The Massachusetts high court, with an opportunity to address construction contract performance standards, has held that the contractor must provide “complete and strict performance” with respect to design and construction matters, but that c… Read More
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Violation of Home Improvement Contractor Act is Subject to Statute of Repose

A sharply divided Supreme Judicial Court has held that claims by a homeowner against a contractor, under the state home improvement contractor law, are subject to the statute of repose. Thus, when improper work done in 2001 was not discovered until 2… Read More
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An Unfortunate Reminder About Statutes of Limitation: The Triggering Event!

A developer sought to recover $749,000 in fees it claimed should not have been charged by a town. The fees were paid on October 18, 2013, and the developer filed suit to recover the fees on October 17, 2016. The statute of limitations for the develop… Read More
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Contract Ambiguity Affected Accrual of Claim, and Statute of Limitations Analysis

A seemingly minor ambiguity in contract terms, probably unnoticed at the time, has affected the timeliness of a claim for construction defects. The contract was signed in 2008, after the 2007 updates to the AIA contract forms had been published. The… Read More
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Rental Agreement Indemnity – A Setback for Rental Companies

Readers of this blog know that the terms and conditions in equipment rental agreements favor the rental company. Those agreements typically have one-sided indemnity clauses, on the basis that the rental company expects the renting contractor to carry… Read More
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Construction Wage Law Protections – Good Intentions Run Amok!

We can all agree that workers should be paid their wages. And the rank and file worker should not suffer if her employer goes under. But when a company fails, should there be any “usual suspects” to make amends to unpaid workers? And how wide a n… Read More
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Unfortunate (and Unexpected) Restriction on Additional Insured Status

The New York Court of Appeals, in a split decision, has focused on one word in deciding that a owner’s construction manager was not entitled to additional insured status on the general contractor’s policy. The contract required the GC to include… Read More
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Payment Bond Does Not Cover Claim for Lost Work Opportunity

A subcontractor claiming that the general contractor failed to use and pay for a minimum number of workers made a claim against the GC’s payment bond, for the value of the workers not hired. A federal court has held that the Miller Act bond does no… Read More
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Licensing Board Review Is Not Limited by Contracted Scope of Services

A Vermont licensing board refused to adopt a registered engineer’s argument, that his professional services were circumscribed by a contract scope of work, in assessing whether he had “failed to conform to the essential standards of acceptable an… Read More
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