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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...
A recent decision from the United States District Court for Massachusetts held a contractor and its owner personally liable for failing to pay a subcontractor and held that the contractor was liable for millions in damages to the owner resulting from owner’s termination of the contractor for cause...
A Texas appellate court recently ruled that an owner properly terminated its contract with a contractor, despite the owner’s failure to provide the contractor notice and an opportunity to cure. See TPG (Post Oak) Acquisition, LLC, et al. v. Greystone Multi-Family Builders, Inc., et al., First Court...
A recent Massachusetts trial court decision ruled that any objections to a payment application are waived unless a reviewing owner or contractor strictly follows the Massachusetts Prompt Payment Statute, Prompt Payment Act, G.L. c. 149, § 29E, which applies to most projects with a prime contract...
On June 29, 2020, the Michigan Supreme Court ruled that a subcontractor’s commercial general liability (CGL) insurance policy may provide a contractor listed as an additional insured on the CGL policy with insurance coverage for correcting the subcontractor’s faulty work. See Skanska USA Bldg. Inc...
On May 12, 2020, the United States Eight Circuit Court of Appeals, applying Missouri law, rejected a contractor’s contention that its commercial general liability (CGL) policy provided coverage for claims arising out of the contractor’s allegedly defective construction work.
Unlicensed contractors in Georgia recently were dealt a blow by the state's Court of Appeals when three judges held that a contractor's failure to possess a valid state contractor's license precluded the contractor from bringing a lawsuit for unpaid fees. In Fleetwood v. Lucas, __ S.E.2d __, 2020 WL...
A bill pending in the Illinois legislature (HB2838) exemplifies a nationwide trend in the construction industry to hold a contractor who has a direct contract with an owner (“Direct Contractor”) liable for the unpaid wage and fringe benefit obligations of its subcontractors on a private project.
A recent decision from the United States District Court for the District of Connecticut is a reminder to contractors and developers that indemnification agreements tied to bonds usually heavily favor and give a large amount of discretion to insurers issuing bonds. See Arch Ins. Co. v. Centerplan...
A recent Federal Court summary judgment decision provides a stark warning for contractors and owners to adequately secure their construction sites, or risk denial of insurance coverage. See Praetorian Ins. Co. v. Axia Contracting, LLC, No. 17-CV-2034-WJM-KLM, 2019 WL 1002939 (D. Colo. Mar. 1, 2019)...
A United States Department of Justice investigation of two construction companies and their owners has resulted in a $3.6 million settlement following allegations that the companies defrauded the Small Business Administration (SBA). The fraud resulted from false statements in the SBA bid process for...