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Court Rejects Subcontractor’s Safety Excuse for Jumping Ship

A federal judge in Oklahoma last week ruled against an electrical subcontractor who quit work before finishing because it was allegedly unsafe to continue. The court found that the subcontractor was simply losing money, and...more

Not All Construction Performance Bonds Are Created Equally

The Oklahoma Supreme Court has rejected a contractor’s performance bond claim due to the lack of adequate notice to the subcontractor’s surety (see Flintco LLC v. Total Installation Management Specialists, Inc., No. 120,100...more

Whose Terms Govern? An Introduction to the Battle of the Forms

For construction lawyers, the Battle of the Forms presents a familiar fact pattern. A material supplier/seller provides a potential buyer with a price quote along with its standard terms. The buyer, usually a contractor or...more

Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute

Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute The general contractor on the 60-turbine wind farm project in Good Hope, Illinois, is entitled to collect a whopping $1 on its cost-to-complete claim...more

Manifest Disregard Discarded: Fifth Circuit Limits Grounds to Vacate Arbitration Awards

“Manifest disregard of the law” is no longer a valid basis to challenge arbitration awards, at least not in the federal courts of Texas, Mississippi and Louisiana. Rather, according to the Fifth Circuit’s decision in U.S....more

Whiting-Turner Prevails in Wrongful Termination Dispute

A California appeals court has upheld a $5 million award in favor of Whiting-Turner Contracting Company and against the owner of a 12-story, Virgin-brand hotel in San Francisco. Whiting-Turner agreed to construct the hotel...more

Yes, Damages for Delay: Court Permits Delay Damage Claim to Proceed

A federal court in upstate New York is permitting a subcontractor’s delay claim to proceed notwithstanding a “no damages for delay” provision in the subcontract. The case, The Pike Company, Inc. v. Tri-Krete, Ltd., involves...more

Federal Court Emphasizes Strict Adherence to Mechanic's Lien Statute

A federal judge in New York served up a good reminder last week about the importance of dotting your i’s and crossing your t’s when it comes to perfecting a mechanic’s lien.  The case involves a payment dispute between a...more

Maximizing Recovery on Construction Claims: Don’t Forget Bond Claims, Which Could Exceed the Underlying Claim!

As construction claim lawyers, we are always on the lookout for insurance policies or “bonds” that might satisfy our client’s claim. On federal projects, this includes performance and payment bonds known as Miller Act bonds....more

Put Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute

An Illinois federal court ruled in favor of steel subcontractor Nucor in its contract dispute with Direct Steel. The project involved the construction of pre-engineering metal buildings for the Army Corps of Engineers. The...more

Don’t Put Too Much on Your Plate: Practical Advice for Thanksgiving (and Drafting a Complaint)

It’s that time of year again when we Americans stop and give thanks for all that has been provided to us by gathering with friends and family to gorge ourselves on food. The traditional Thanksgiving meal, at least where I am...more

Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act

The court in AECOM v. Flatiron was back at it last week with rulings on the parties’ post-trial motions. As you may recall, the case was tried to a jury earlier this year. The jury returned a verdict for AECOM in the amount...more

Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender

In an unpublished opinion, a California appeals court has upheld a subcontractor’s mechanics lien claim despite the subcontractor’s failure to strictly follow the procedural requirements set forth in the mechanics lien...more

Breach vs. Default — What’s the difference?

The words breach and default are often used interchangeably to indicate that somebody hasn’t done what they were legally required to do. According to Black’s Law Dictionary, the words do appear somewhat interchangeable. ...more

Limitation of Damages Clause in Contract Held Inapplicable to Subcontractor’s Change Order Claim

Construction contracts often include clauses that purport to limit the liability of one or both parties. This includes clauses that completely prohibit any claims for certain types of damages such as lost profits and other...more

Court Affirms Dismissal of Subcontractor’s Wrongful Termination Counterclaim and Clarifies Scope of Upcoming Trial on Damages

Back in April we examined the court’s decision in Boldt v. Black & Veatch, which dismissed a subcontractor’s counterclaim for wrongful termination on a 60-turbine wind farm project. As you may recall, the subcontractor hired...more

Washington Court Affirms $150M Award for Victims of Seattle Crane Collapse

Earlier this month, the State of Washington Court of Appeals affirmed a $150 million jury verdict against subcontractors involved in the disassembly of a tower crane that collapsed in 2019. The collapse, which was caught on...more

Limitation of Liability in Extra Work Order Trumped by Subcontract

A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini...more

Incorporation Clauses: Does the Subcontractor Really Assume All Obligations of the Prime Contractor?

Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or...more

No Written Notice of Delay? Big Problem! Court Sides with Contractor in Termination Dispute

Earlier this week we saw the court in Patriot Construction use the waiver doctrine to excuse a subcontractor’s failure to strictly comply with the documentation requirements of the contract. As a litigant in Illinois federal...more

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