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DIRECTORY AND CAPABILITIES

Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?

March 11, 2024 — Christopher G. Hill - Construction Law Musings
Remember BAE Systems and Fluor? This post is the third here at Construction Law Musings relating to this case which is a seemingly never-ending source for content. In the prior post discussing this case, the Court found that Va. Code 1-4.1:1 which bars waiver of a right to payment before work is performed did not apply because Fluor had provided work before execution of the contract or any change orders. In the most recent opinion in this long-running litigation, and after a motion to reconsider by Fluor that was granted, the Court re-examined this finding along with the contractual language found in the Limitation of Damages (LOD) clause and came to the opposite conclusion regarding certain change orders that remained unpaid by BAE. The Court first looked to the language of the contract itself and specifically the language in the LOD provision that states “Except as otherwise provided in this Subcontract.” The Court then looked at the change order provision and its typical equitable adjustment language and the mandatory nature of the equitable adjustment language. The Court found that the LOD provisions did not apply to change orders both because price increases due to change orders are not “damages” and because of the exception language in the LOD provision itself. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Boston Tower Project to Create 450 Jobs

November 18, 2011 — CDJ STAFF

Continuing the development of Boston’s Theater District, Millennium Partners broke ground for the building of Hayward Place, a 15-story residential tower with street-level shops. The project is expected to take two years to complete and will employ about 450 construction workers.

Thomas Menino, the mayor of Boston said that the “ground breaking of Hayward Place is another sign of economic growth and forward progress on the revitalization of this area.” The project will be built by Suffolk Construction. John Fish, their CEO, said they were “fortunate as a contractor to be the beneficiary of this.”

The report in the Boston Herald notes that a few blocks away, the site of the former Filenes department store is still “an empty eyesore.” Menino joked, “anyone want to bid for it?” He promised that site would also be developed.

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One World Trade Center Tallest Building in US

November 13, 2013 — CDJ STAFF
It’s official! The tallest building in the United States is in New York. For forty years, the tallest building in the United States has been the Willis Tower in Chicago (better known by its former name, the Sears Tower). Now, the Council on Tall Buildings and Urban Habitat has decreed that One World Trade Center edges it out with its 1,776 feet of height, surpassing the Willis by 325 feet. There is a caveat. The antennas on the top of the Willis building aren’t counted in. The mast on the top of One World Trade Center is, and it adds 441 feet to the height of the building. If the mast weren’t counted, One World Trade Center would be 116 feet shorter than the building in Chicago. Read the court decision
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Reprinted courtesy of

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“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet

August 24, 2020 — Garret Murai - California Construction Law Blog
Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Florida’s Supreme Court Resolves Conflicting Appellate Court Decisions on Concurrent Causation

December 21, 2016 — Afua S. Akoto – Saxe Doernberger & Vita, P.C.
The Supreme Court of Florida kicked off December with an opinion that determined which theory of recovery applies when multiple perils combine to create a loss, and at least one of those perils is excluded by the terms of a policy. In Sebo v. American Home Assurance Company, Inc.,1 the court resolved the conflict between the Florida Appellate Courts for the Second District and the Third District and declared the concurrent cause doctrine (CCD) as the more applicable theory of recovery over the efficient proximate cause doctrine (EPC). The underlying dispute concerned damage to a home Sebo purchased in Naples, Florida in April 2005. The American Home Assurance Company (AHAC) insured the home under a manuscript policy specifically created for the property with limits of over eight million dollars. In May 2005, Sebo discovered major water leaks in the main foyer, master bathroom, exercise room, piano room, and living room of the home. In August, paint fell off the walls after it rained, and it became clear that the house suffered from major design and construction defects. When Hurricane Wilma struck in October, the house was further damaged by rain water and high winds, and was eventually demolished. Read the court decision
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Reprinted courtesy of Afua S. Akoto, Saxe Doernberger & Vita, P.C.
Ms. Akoto may be contacted at asa@sdvlaw.com

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Blueprint for Change: How the Construction Industry Should Respond to the FTC’s Ban on Noncompetes

May 13, 2024 — Matthew DeVries - Best Practices Construction Law
In a groundbreaking move aimed at fostering fair competition and empowering workers, the Federal Trade Commission (FTC) issued a final rule last week to ban noncompete agreements nationwide. This ruling may carry profound implications for the construction industry, prompting construction businesses to reassess their practices and ensure compliance while maintaining competitiveness. Let’s explore how construction companies, large and small, can navigate this regulatory shift effectively. Noncompete clauses have long been a staple in employment contracts within the construction sector, often used to protect proprietary information and retain skilled talent. However, the FTC’s ban on noncompetes demands a reevaluation of these practices. Employers must recognize the potential consequences of noncompliance, including legal repercussions and reputational damage, and take proactive steps to adapt to the new regulatory landscape. Communications with Employees The FTC rule requires employers to provide a form notice of non-enforcement to all present and former employees subject to an unexpired noncompete provisions. However, given the immediate legal challenges to the FTC’s rule and the fact that the 120-day compliance window has not yet begun, there is no reason to take immediate action or begin notifying employees. Instead, business owners should wait for at least 60 days before taking concrete action in response to the rule to see if any court temporarily enjoins the effectiveness of the rule. Read the court decision
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Reprinted courtesy of Matthew DeVries, Burr & Forman LLP
Mr. DeVries may be contacted at mdevries@burr.com

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UPDATE - McMillin Albany LLC v. Superior Court

June 05, 2017 — Richard H. Glucksman, Glenn T. Barger, & David A. Napper - CGDRB News & Publications
The matter has been fully briefed since last year and the construction industry anxiously awaits the California Supreme Court's highly anticipated decision regarding McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132. Numerous amicus briefs have also been filed including one by the Association of Southern California Defense Counsel, with the immediate past president of the organization, CGDRB's Glenn T. Barger, Esq., listed as the attorney of record. The Supreme Court will consider the issue of whether the Right to Repair Act (SB800) is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2003, thereby resolving the split of authority presented by the Fifth Appellate District's holding in McMillin Albany, which outright rejected the Fourth Appellate District's holding in Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, on this particular issue. Oral argument is still pending and CGDRB will continue to closely monitor the progress of this case. Stay tuned. Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys Richard H. Glucksman, Glenn T. Barger and David A. Napper Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Mr. Barger may be contacted at gbarger@cgdrblaw.com Mr. Napper may be contacted at dnapper@cgdrblaw.com Read the court decision
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Dispute Resolution Provision in Subcontract that Says Owner, Architect or Engineer’s Decision Is Final

March 29, 2021 — David Adelstein - Florida Construction Legal Updates
In subcontracts, it is not uncommon to see a provision that says something to the effect: Should any dispute arise between the parties respecting the true construction or interpretation of the Plans, Specifications and/or the Contract Requirements, the decision of the Owner or the Owner’s designated representative as set forth in the General Contract shall be final. This is a provision in a subcontract dealing with dispute resolution, typically when there is a dispute as to whether the subcontractor is performing extra-contractual or base contract work regarding an “interpretation of the Plans, Specifications, and/or the Contract Requirements.” It is not uncommon for there to be a dispute as to whether certain work is within the subcontractor’s scope of work or outside the subcontractor’s scope of work and subject to a change order. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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