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Yes, Virginia, Contract Terms Do Matter: Financing Term Offers Owner an Escape Hatch

November 25, 2024 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday, Musings welcomes Timothy R. Hughes, Esq., LEED AP. Tim (@vaconstruction on Twitter) is Of Counsel to the Arlington, Virginia firm of Bean, Kinney & Korman, P.C. In his practice as a business, corporate, and construction law attorney, Tim served as the previous Chair of the Construction Law and Public Contracts Section of the Virginia State Bar. He has served in numerous volunteer, board and leadership roles with such organizations as the Arlington Chamber of Commerce, the Northern Virginia Building Industry Association, Vanguard Services Unlimited, Leadership Arlington, Associated Builders & Contractors (Metro DC and Virginia), and numerous other volunteer and construction trade association activities. A regular speaker and writer, Tim is the lead editor of his firm blog, Virginia Real Estate, Land Use and Construction Law. A recent Virginia case once again demonstrates that contract terms matter. An unusual financing term allowed the owner of a project a complete escape from any liability on a project despite significant work being performed. The opinion from the Circuit Court of Norfolk involved five separate cases consolidated together, four claims by subcontractors and one by the general contractor Turner. All five cases hinged on an unusual financing clause in Turner’s contract with the other. That provision stated: 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

The Case For Designers Shouldering More Legal Responsibility

November 21, 2018 — Richard Korman - Engineering News-Record
Ujjval Vyas is dignified, articulate and persistent. In past years he earned a law degree and a PhD where his thesis concerned Philip Johnson and architectural modernism. He is a founder of a hydrogen energy company. He is also leading a crusade, largely by himself, advocating that designers should be held to a "clients come first" approach applied to other professionals—an idea that would burden engineers and architects with the weight of vastly increased legal liability. The reactions to his ideas in the past have ranged from scornful to sympathetic. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

Pallonji Mistry, Indian Billionaire Caught in Tata Feud, Dies at 93

August 15, 2022 — Bhuma Shrivastava - Bloomberg
Pallonji Mistry, the Indian-born billionaire whose engineering empire built luxury hotels, stadiums, palaces and factories across Asia and whose family’s epic showdown with the Tata Group sparked India’s biggest corporate feud, has passed away in Mumbai. He was 93. A company spokesperson confirmed the death of the Indian tycoon after social media posts on the news spread. Mistry and his family control the Shapoorji Pallonji Group, which started more than 150 years ago and today employs more than 50,000 people in over 50 countries, according to its website. Its landmark projects include the Reserve Bank of India and the Oberoi Hotel in Mumbai and the blue-and-gold Al Alam palace for the Sultan of Oman. Read the court decision
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Reprinted courtesy of Bhuma Shrivastava, Bloomberg

Type I Differing Site Conditions Claim is Not Easy to Prove

May 30, 2018 — David Adelstein - Florida Construction Legal Updates
A differing site condition claim will almost universally result in both a cost and time impact. There will be additional, unanticipated costs incurred. And there will likely be a delay requiring additional time to perform. A Type I differing site condition claim is when the contractor encounters conditions at the site different than those indicated in the contract documents. That seems easy enough to prove, right. Nope. And, I mean nope! If you don’t believe me, consider the recent decision in Meridian Engineering Co. v. U.S., 885 F.3d 1351 (Fed.Cir. 2018). Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Louisiana Couple Claims Hurricane Revealed Construction Defects

January 22, 2013 — CDJ STAFF
A Louisiana couple has sued the company that raised their home, claiming that faults with the work were revealed after Hurricane Isaac hit the home. Crescent City Construction raised the Marcev’s home in 2006. They were satisfied with the work until the 2012 hurricane. The Marcevs claim in their suit that the work is covered by a ten-year warranty. They are suing for a full refund of their payments to Crescent City Construction, as well as architectural fees, damages, interest, and attorney costs. Their claim is that as a result of the work, their home now has structural defects and fails to meet building codes. Read the court decision
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Reprinted courtesy of

Dump Site Provider Has Valid Little Miller Act Claim

October 19, 2020 — Christopher G. Hill - Construction Law Musings
You may have thought that a Virginia “Little Miller Act” bond claim, like a mechanic’s lien, could only be brought by those that provide materials and labor incorporated into the construction project. If you did, you aren’t alone. In fact, Safeco Insurance Co. of America, a surety, made exactly the above argument in Yard Works LLC v. GroundDown Constructors LLC. In that case, a debris hauling company failed to pay Yard Works, the company that provided the dumping site for the debris. Yard Works sued pursuant to the Little Miller Act to get paid. In response, the surety sought to have the claim against the payment bond dismissed and argued that because Yard Works did not actually improve the property or provide improvements and that Yard Works only passively provided a dump site, Yard Works could not claim under the payment bond. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter

October 10, 2013 — Tred Eyerly — Insurance Law Hawaii
The Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013). The insured received two letters from the EPA notifying it of potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter was received in January 2008, and stated that the EPA sought the insured's cooperation in its investigation of the release of hazardous substances at the site. The letter enclosed an extensive, 82-question "Information Request" seeking information about the insured's current and former activities at the site. The letter informed the insured that its voluntary cooperation was sought, but compliance with the Information Request was required by law and failure to respond could result in an enforcement action and civil penalties of $32,500 per day. The insured tendered the 104 (e) letter to St. Paul and requested a defense and indemnity pursuant to the CGL policy. St. Paul declined to provide a defense because the letter did not constitute a "suit," which was required by the policy to trigger the duty to defend. The second letter from the EPA, received in November 2009, was entitled "General Notice Letter for the Portland Superfund Site" and notified the insured that it was a "potentially responsible party ("PRP"). Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Suspend the Work, but Don’t Get Fired

May 20, 2015 — Craig Martin – Construction Contractor Advisor
Getting paid for your work is often times one of the hardest parts of a project. If you find yourself working without getting paid, it’s easy to think, “I’ll just stop working until I get paid.” While the law may support you in that decision, the contract may not and you may be found in breach of the contract if you walk off the job. Nebraska Law Nebraska courts have held that a contractor or subcontractor may stop working on a project if the owner or upstream contractor is in material breach. This, of course, raises the question of “What is a material breach?” The facts of the particular circumstance will control. But, the risk is significant. If the unpaid contractor is wrong, in that the breach is not material, he will face the claim by the upstream party for all costs necessary to finish the contractor’s work. If the upstream party is in material breach, he will face a claim for profit on the remaining portion of the project. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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