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…
Continue Reading Northern District of Illinois: Personal Liability Against Construction Company CEO and President for Breach of Contract and Fraud
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Virginia Invalidates "Pay-If-Paid" Clauses Starting January 1, 2023
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…
Continue Reading Virginia Invalidates "Pay-If-Paid" Clauses Starting January 1, 2023
Florida Court of Appeals Holds That County's "Active Interference" Overrides "No Damages for Delay" Clause
Earlier this year, the Second District Court of Appeal of Florida held that a “no damages for delay” clause “will not be enforced in the face of governmental fraud, bad faith, or active interference with performance under the contract.” Sarasota County, Fla. v. Southern Underground Industries, Inc…
Continue Reading Florida Court of Appeals Holds That County's "Active Interference" Overrides "No Damages for Delay" Clause
Construction Lender Found Liable for Payments to General Contractor Despite Lack of Contractual Relationship
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…
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Illinois Appellate Court Invalidates Arbitration Provision in Owner-Contractor Construction Contract
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.
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Illinois Joins Trend Making General Contractors Liable for Paying Subcontractors' Workers
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…
Continue Reading Illinois Joins Trend Making General Contractors Liable for Paying Subcontractors' Workers
Delaware Court Shows Importance of Order of Priority Clauses
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…
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Federal Court of Appeals Holds Contractor Liable for Employee's OSHA Violation
A recent decision from the United States Court of Appeals for the Fifth Circuit held a Texas highway contractor liable for its supervisor’s involvement in a subordinate employee’s violation of workplace safety rules. See Angel Brothers Enterprises, Ltd. v. Walsh , No. 20-60849, 2021 WL 5627103 (5th…
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Sixth Circuit Dissolves Stay of OSHA Vaccine ETS
On December 17, 2021, the U.S. Court of Appeals for the Sixth Circuit dissolved the Fifth Circuit’s stay of OSHA’s Emergency Temporary Standard (ETS) on COVID-1 vaccination and testing for employers with at least 100 employees in a consolidated multidistrict litigation. See In re: MCP No. 165,…
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Federal Contractor Vaccination Mandates Enjoined Nationwide Following Stay of OSHA's Vaccination Mandate for Companies of 100 or More Employees
The decision of the U.S. Court of Appeals for the Fifth Circuit in BST Holdings, L.L.C. v. Occupational Safety and Health Administration , 2021 WL 5279381 (5th Cir. Nov. 12, 2021)(Unpublished), recently extended a sweeping stay of OSHA’s vaccination mandate for companies with 100 employees or more…
Continue Reading Federal Contractor Vaccination Mandates Enjoined Nationwide Following Stay of OSHA's Vaccination Mandate for Companies of 100 or More Employees
Federal Infrastructure Bill Set to Supercharge P3 Spending
Development through public-private partnerships or “P3s” has increased sharply in the past several years, and is poised for an even bigger jump thanks to Uncle Sam. The infrastructure bill, which passed the U.S. House of Representatives last week as H.R. 3684 and which President Biden signed into…
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Federal Infrastructure Bill to Codify Streamlining of Federal Permitting Process in Major Infrastructure Projects
The Infrastructure Investment and Jobs Act, which passed in the House of Representatives on Friday, November 4th and is expected to be signed into law in the coming weeks, includes an important, permanent streamlining to the federal permitting and environmental review process for large…
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Delaware Federal Court Imposes Limit on Surety's Liability Under Performance Bond
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…
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Massachusetts Federal Court: Contractor and Contractor's Owner Personally Liable for Fraud and Conversion for Failing to Pay Subcontractor; Contractor Also Liable for Millions Resulting From Termination for Cause
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…
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Notice and Opportunity to Cure: Only if Specifically Required in a Construction Contract
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…
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Combating Material Supply Disruptions and Cost Escalation
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.
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