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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...

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.

A recent bench trial in Delaware State Court ruled that a subcontractor was entitled to payment from a general contractor because an order of priority clause gave priority to a bid proposal contract term that barred a pay-when-paid clause from an owner. See Baltimore Pile Driving & Marine Constr...

A recent decision from the United States District Court for Delaware held that a surety was not liable for consequential damages to a building owner after a default by its contractor because the surety’s liability could not be greater than its principal’s liability. See Iron Branch Associates, LP v...

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...

The construction industry is confronting new post-COVID challenges – construction materials shortages, extreme material price increases and supply chain disruptions, all of which are exacerbated by economic uncertainty.

Under a recent Illinois appellate court decision, local Illinois construction industry groups were held to have standing to sue Cook County, Illinois, but those groups lost on their substantive claim that the County had violated an amendment to the Illinois Constitution. See Illinois Road and...

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...

In a unanimous decision, the U.S. Supreme Court recently ruled that a non-signatory to an agreement requiring arbitration for disputes might be able to compel arbitration under state law equitable estoppel arguments. The decision held that the New York Convention (“Convention”) does not conflict...

On May 26, 2020, the Court of Appeals of Maryland (Maryland’s highest court) held that where one of the two parties to an AIA contract sues or settles with a third party, the AIA contract’s mutual waiver of subrogation precludes that third party from claiming a right of contribution against the...

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...

If an owner terminates a contractor due to a contractor default on a bonded project, can the surety hire the same contractor to complete the work under the bond? Depending on the language of the bond, it may be permissible in Florida. Recently, in Seawatch at Marathon Condominium Association, Inc. v...

Effective August 20, 2019, Illinois law provides that a maximum of 10 percent retainage may be withheld from payments under private construction contracts and, after the contract is one-half complete, retainage must be reduced to 5 percent and kept at 5 percent for the remainder of the contract...

In a case where the jury found both the Architect and the Developer separately responsible for Plaintiff’s damages, an Appellate Division of the New Jersey Superior Court recently held that the Developer is not entitled to be indemnified by the Architect. See Grandview at Riverwalk Port Imperial...

Construction contracts often contain agreements requiring mediation before a party may file a lawsuit. However, a party may not want to wait through the mediation process and instead may prefer to go straight to a lawsuit. Given that mediation is not binding and does not guarantee a resolution, can...

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 decision by Florida’s Fifth District Court of Appeal on Florida’s "anti-indemnity" statute" is one that should catch the attention of lawyers who draft and negotiate construction contracts in Florida. In CB Contractors, LLC v. Allens Steel Products, Inc., 2108 WL 6579215 (Fla. 5th DCA 2018)...

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