Construction

Owner’s Assignment to Contractor, of Claims Against Architect, Not Barred by Anti-Assignment Clause

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… Read More
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New Jersey Prompt Payment Act Supports Recovery of Fees that Exceed Contract Balance Due

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… Read More
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Complaint Dismissed for Failure to Mediate First

“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… Read More
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Reckless Misclassification under Davis-Bacon Creates False Claims Act Liability

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… Read More
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No Agreement to Arbitrate Arose from Browsewrap Agreement

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… Read More
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Notice by Email Was Sufficient for Miller Act Bond Claim

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… Read More
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Arbitration Demand Timely Despite Complicated Backdrop

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… Read More
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Performance Bond Surety Not Liable if Underlying Contract Was Not Terminated

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… Read More
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Statute of Repose Bars Claim for Implied Warranty of Habitability

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… Read More
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Prompt Pay Law Enforced Against Non-Paying Project Owner

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… Read More
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