Published: December 11, 2018
Lying about the quality of concrete can result in jail time and a large settlement payment. In Davidheiser v. Universal Concrete Prods. Corp., No. 1:16-cv-00316, a whistleblower, who worked as a lab technician for Universal Concrete Products Corporation ("Universal Concrete"), accused Universal Concrete and his former quality control manager of falsifying concrete quality data and providing concrete for a Washington D.C.
Published: December 7, 2018
In Florida, parties often negotiate and include a waiver of consequential damages in construction contracts and design professional contracts. However, based on a recent decision by one Florida appellate court, waiving the right to recover consequential damages may have a broader impact than intended.
Published: November 19, 2018
United States Court of Appeals for the Federal Circuit recently held, in K-Con, Inc. v. Secretary of Army, that the bonding requirements under the Miller Act apply to federal government construction contracts, even when the bonding provisions were not part of the contract. C.A. No. 2017-2254, 2018 WL 5780251 (Fed. Cir. Nov.
Published: November 15, 2018
Contractors always should put their insurers on notice of a potentially covered claim as soon as possible. In many states, an insured typically will not be denied coverage for the late notice of a claim if there is no prejudice to the insurer, however, there are circumstances under which late notice alone can bar coverage. A recent case before a New York appellate court demonstrates the importance of being aware that liability insurance policies subject to New York Insurance Law § 3420 law which were issued before January 17, 2009 are not subject to a requirement that an insurer
Published: November 1, 2018
Resolution of the question is critical to the application of product liability statutes or construction law and their often differing statutes of limitation and repose. It was recently addressed in Puente v. Resources Conservation Co., Int'l, No. 76604-0-I, 2018 WL 5146983 (Wash. App. Oct.
Published: October 18, 2018
On Oct. 9, 2018, the Ohio Supreme Court denied insurance coverage under a Commercial General Liability ("CGL") policy for a contract's defective work. The Court reasoned that "property damage caused by a subcontractor’s faulty work is not an 'occurrence' under a CGL policy because it cannot be deemed fortuitous."
Published: October 11, 2018
In late April we reported on a New Jersey Appellate Court decision holding that funds obtained from salvaged materials could be used to pay lien claimants. Despite opposing arguments that non-monetary payments should not be considered as part of the contract payment, the New Jersey Appellate Court held that salvaged materials valued at over $2,000,000 from a demolition project were part of the lien fund used to pay unpaid subcontractors. Subsequently, the property owner and subcontractor appealed to New Jersey’s highest court. In a recent decision, the New Jersey Supreme C
Published: September 25, 2018
Contrary to what many construction contractors and owners may believe, construction arbitration often involves substantial document production. This may include production of documents from third parties not directly involved in the arbitration. The question often arises as to whether an arbitrator can compel production of documents from a third party prior to a hearing. Various Federal Circuit Courts of Appeal have reached different conclusions on this question.
Published: September 11, 2018
Those active in the construction industry are all too familiar with the increasingly common struggle of contractors and subcontractors getting paid for the work they perform. When financial disputes arise, the outcome is often a lengthy battle resulting in payments being withheld for weeks, months or even years after work is complete. In 1994, the Pennsylvania General Assembly enacted the Contractor and Subcontractor Payment Act (73 P.S.
Published: September 6, 2018
In Florida, the Slavin Doctrine is alive and well. The Slavin Doctrine, nationally known as the "Completed and Accepted Doctrine," holds that after a contractor's work is accepted by the owner, whether residential or commercial, the contractor cannot be held liable for injuries to third parties caused by patent defects. The Florida Third District Court of Appeal recently held that under the Slavin Doctrine, a landscaping contractor was not liable as a matter of law to an injured third party when the project’s owner accepted the contractor’s work, and t