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On November 30, 2023, the Illinois Supreme Court issued a decision in the case of Acuity v. M/I Homes of Chicago, LLC, et al., 2023 IL 129087 with significant implications for insurance coverage of construction defects under commercial general liability (CGL) policies.

A recent Maryland appellate decision arising from an insurance company’s exercise of subrogation rights against negligent subcontractors in connection with tornado damage to a warehouse illustrates the pitfalls of waiver of subrogation clauses in construction contracts. In XL Insurance America, Inc...

Florida’s lien law is once again under construction with significant changes which went into effect on October 1, 2023. The amendments impact various aspects of lien rights, notice requirements, bond amounts, and attorney fee recovery. Key Provisions and Implications Lien Rights Extended to...

In a recent decision by the Seventh U.S. Circuit Court of Appeals, the court interpreted Illinois law and clarified the rights and obligations of owners, their insurers and public adjusters in the situation in which the public adjuster is identified as a co-payee on a check paying insurance proceeds...

The Illinois Appellate Court reversed a trial court’s statutory fraud judgment against a contractor in a defective construction case. The Appellate Court held that as a matter of law: (1) a contractor’s misstatement of amounts due for work did not support a statutory fraud claim even when the...

A recent decision resolving a dispute arising from pre-pandemic supply chain issues that delayed construction of a wind farm in Illinois illustrates the ever-present risks posed by supply chain disruptions and provides a sobering demonstration of how liability for these risks can be shifted by...

On February 17, 2023, in Cothron v. White Castle System, Inc., 2023 IL 128004, the Illinois Supreme Court issued a sweeping decision concerning the Illinois Biometric Information Privacy Act (“BIPA”), which restricts the collection, retention, and disclosure of any “retina or iris scan, fingerprint...

A federal jury in the Northern District of Illinois recently awarded nearly $23 million to the developer of a luxury hotel in Chicago’s trendy West Loop arising from multiple breaches of contract and fraud by its design-builder. What is particularly striking about the judgment in NHC LLC v. Centaur...

During the 2022 legislative session, the Virginia General Assembly passed Senate Bill 550 (“SB 550”), which Virginia Governor Youngkin signed into law. SB 550 amends a portion of the Virginia Prompt Payment Act and a component of the Virginia wage theft statute, prohibiting “pay-if-paid” clauses in...

A Delaware trial court, applying New Jersey and Delaware law, recently ruled that a general contractor, despite not being a party to either a loan agreement or loan commitment, could successfully recover damages from a construction lender. See BCD Assocs., LLC v. Crown Bank, No. CV N15C-11-062 EMD...

Case: Bain v. Airoom, LLC, 2022 IL App (1st) 211001 A recent Illinois appellate decision warns that overbroad form arbitration agreements in construction contracts may be unenforceable.

On June 10, 2022, Governor J.B. Pritzker signed into law two related bills, HB 5412 and HB 4600, sent to him the previous month by the Illinois legislature that will hold a primary contractor (one who has a contract with an owner) liable for the unpaid wages and other amounts owed to employees of...

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