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The Utah Court of Appeals delivered a significant ruling – including its length, approximately 12,500 words – underscoring the critical importance of adhering to contract provisions, particularly regarding payment terms in...more
GRSM’s Construction Group is pleased to publish the latest issue of our Construction Law Update, a quarterly take on trends of interest to design professionals, contractors, and developers throughout the country....more
“Ensuing loss” provisions have long been the subject of nuanced arguments in insurance litigation. The provisions, which sometimes afford coverage for a “covered loss” stemming from an expressly excluded peril, serve as...more
All breaches are not created equal. A minor, technical breach may be deemed “immaterial.” Other breaches – so-called “material” breaches — deprive the non-breaching party of something important or essential to the purpose of...more
In Twigg v. Admiral Insurance Co.,[1] the Oregon Court of Appeals recently resolved an insurance coverage dispute arising out of a construction project. Two homeowners hired a contractor to build a new home. The homeowners...more
n Mid-Century Insurance Co., v. HIVE Construction, Inc., a Colorado court of appeals recently reversed the decision of a lower court that had refused to apply the economic loss rule to a negligence claim alleging wanton or...more
If you are an executive involved in a Massachusetts construction project, the routine pay applications you exchange in the ordinary course must now receive your utmost attention — as any failure to reject a pay application in...more
On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”). In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more
The Tennessee Court of Appeals recently issued an opinion extending application of the economic loss doctrine to certain construction claims. Among other things, the economic loss doctrine prevents a party from recovering on...more
In September 2021, the Washington Supreme Court issued its decision in Lake Hills Investments, LLC v. Rushforth Construction Co., Inc., 198 Wash.2d 209 (2021). This case is significant because it establishes a comparative...more
Last November, Arizona’s Court of Appeals issued a memorandum decision analyzing Arizona’s Prompt Pay Act. Though the decision was not published and is not binding authority, it does guide the construction industry and...more
On August 5, 2020, Georgia Governor Brian Kemp signed a new law, Senate Bill 315, changing Georgia’s lien law statute, O.C.G.A. 44-14-366. The new statute, effective January 1, 2021, makes clear that lien waivers only waive...more
Can a breach of one contract give rise to liability for lost profit on a related contract? Or is the loss too "remote"? A Privy Council decision from Monday of this week addressed this issue in the context of a design, build,...more
Often times, both contract and tort claims co-exist in a subrogation matter and the line between the two can be blurred. This is especially true in the context of damages resulting from new home construction defect claims....more
SMJ Gen. Constr., Inc. v. Jet Commer. Constr., LLC, No. S-16785/16985, 2019 BL 131640 (Alaska Apr. 12, 2019) - In 2016, Jet Commercial Construction, LLC (“Jet”) entered into a subcontract with SMJ General Construction,...more
Practical completion represents the physical completion of works on construction projects. Despite its importance, it is not a legal term of art, and whether or not practical completion has been achieved requires...more
Dep’t of Transp. v. Seattle Tunnel Partners, 2019 BL 36988, 2 (Wash. App. Div. 2 Feb. 05, 2019) - On January 8, 2019, the Court of Appeals for the State of Washington reversed and remanded in part a trial court’s grant of...more
Paulozzi v. Parkview Custom Homes, L.L.C., 2018 Ohio App. Lexis 4739 ( Nov. 1, 2018) - This case arose out of a dispute between homeowners and their contractor. Dissatisfied with the work, the Paulozzis sued their...more
During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more
A new English Court of Appeal decision shows how to allocate concurrent delay risk successfully. Our worldwide construction team helps your drafting reflect this growing tendency for courts and arbitrators globally to prefer...more
Ambac Assur. Corp v. Knox Hills LLC, 2018 Ky. App. Lexis 188 (June 15, 2018) - This case involves a February 1, 2007 design/build agreement governing the rights of the several parties involved with a military housing...more
Sovereign immunity is the legal doctrine, dating back to the days of the British monarchy, that a sovereign or state cannot commit a legal wrong and is immune from suit: in essence, “the king can do no wrong.” ...more
Koudela v. Johnson & Johnson Custom Builders, LLC, 2017 Ohio App. Lexis 5800 (December 29, 2017) - In this case, Nicolas and Monica Koudela (the “Koudelas”) entered into a construction contract with “Johnson & Johnson...more
You’ve identified a killer issue for appeal, no doubt a winner. Congratulations! You still lose. How can that be? In Novum Structures, LLC v. Choate Construction Company, Inc., 698 Fed. Appx. 608 (11th Cir. 2017), the...more
The West Virginia Supreme Court of Appeals recently closed an avenue for bad faith claims. In this case, the insured, CMD, sued its own liability insurance company, State Auto, for not settling the claims asserted against it...more