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    Quick Note: Discretion in Determining Prevailing Party for Purposes of Attorney’s Fees

    January 25, 2021 —
    In prior articles I have discussed that courts apply the significant issues test to determine the prevailing party for purposes of being entitled to attorney’s fees. A party that recovers an affirmative judgement is NOT the de facto prevailing party for purposes of an entitlement to attorney’s fees in a breach of contract action (or a construction lien foreclosure action). This was the issue in a recent appeal discussed here where the party that recovered an affirmative judgment on a breach of contract case was not deemed the prevailing party for purposes of attorney’s fees. While the party prevailed on one of its claims, it did not prevail on others, and it recovered less than half of the damages it originally sought. The appellate court, affirming the trial court, held that the trial court has discretion to determine that the party that recovered an affirmative judgement was not the prevailing party entitled to its attorney’s fees under the signifiant issues test. This was not what the party was expecting when the attorney’s fees it expended far exceeded the judgment it recovered. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    "Decay" Found Ambiguous in Collapse Case

    August 31, 2020 —
    The federal district court granted, in part, the insured's motion for summary judgment seeking coverage for a collapse of a church's ceiling. Derbyshire Baptist Church v. Church Mut. Ins. Co., 2020 U.S. Distl LEXIS 113346 (E.D. Va. June 29, 2020). A large portion of the sanctuary ceiling of the insured's church collapsed. A claim was filed with the insurer. The insurer hired a forensic engineer who found the collapse was caused by the disconnection of wire support hangers from the wood roof beams. Further, "the redistribution of load on the hangers resulted in a progressive failure of the hangers and their supported components." Based on these findings, the insurer denied coverage. The policy excluded coverage for collapse, but in the Additional Coverage portion of the policy, collapse caused by "decay that is hidden from view" was covered. The court pondered the meaning of "decay," which was not defined in the policy. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Feds Outline Workforce Rules for $39B in Chip Plant Funding

    April 10, 2023 —
    Semiconductor chip producers must pay their construction workforce prevailing wages and will be “strongly encouraged” to use project labor agreements if they want a piece of the $39 billion available in federal funding to support fabrication plant construction, expansion or modernization projects, U.S. Commerce Secretary Gina Raimondo says. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
    Read the full story...
    Reprinted courtesy of

    Illinois Couple Files Suit Against Home Builder

    January 15, 2014 —
    Last December, Norman and Valerie Adkins, a couple in Edwardsville, Illinois, filed suit against their home builder, Customary Construction, and contractor Kevin M. Kahrig, alleging that the defendants did not build their deck according to code, Kelly Holleran of the Madison Record reported. According to the complaint as stated by the Madison Record, the Adkins purchased the home from the defendants in October of 2010. The couple notified Kahrig (the Customary Construction owner) regarding cracks along the perimeter of their deck that had not been caulked. Kahrig sent a crew to fix the cracks, but the Adkins were unhappy with the work, the complaint states. The Adkins hired a masonry contractor to fix the deck, and the contractor found “structural issues with the arches and brick columns supporting the deck at the back of their home,” reported the Madison Record. The Adkins then hired an engineer who “inspected the deck and reported that it had been improperly constructed and needed to be removed and replaced,” according to the complaint. The engineer continued, “The current condition of the deck is a safety hazard, as there is a risk of collapse and loose bricks or other masonry materials falling and striking a person within the proximity of the deck.” The Adkins are seeking “a judgment of more than $150,000, plus costs and attorney’s fees,” the Madison Record claims. Read the court decision
    Read the full story...
    Reprinted courtesy of

    Mediation in the Zero Sum World of Construction

    September 26, 2022 —
    Construction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit. Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash. All of this said, if you are in commercial construction for any significant period of time disputes will arise and I have discussed the process in some detail at other places here at Construction Law Musings. As a construction litigator, I am fully aware of this fact of life. Efficient management of these disputes is key, particularly when they escalate to the point where some form of outside “help” (read arbitrator or judge) is necessary. Read the court decision
    Read the full story...
    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Injured Subcontractor Employee Asserts Premise Liability Claim Against General Contractor

    March 22, 2021 —
    In an interesting opinion, an injured employee of an electrical subcontractor sued the general contractor of a parking garage project under a premise liability theory after being injured when stepping on an uncovered floor drain at the project site. There is no discussion in the opinion as to workers compensation immunity. Rather, the discussion centers on the injured employee’s premise liability claim as to whether the general contractor “breached its duty to maintain the premises in a reasonably safe condition by leaving the drain uncovered and failing to warn of the danger of the uncovered drain.” Pratus v. Marzucco’s Construction & Coatings, Inc., 46 Fla.L.Weekly D186a (Fla. 2d DCA 2021) The trial court granted summary judgment in favor of the general contractor finding that the drain was open and obvious on the site. The Second District Court of Appeal reversed the summary judgment with a discussion as to premise liability claims, particularly as it pertains to a business invitee, which is what the injured employee of the electrical subcontractor was. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    The EPA’s Renovation, Repair, and Painting Rule: Are Contractors Aware of It?

    March 12, 2015 —
    Remodeling Magazine reported recently that some remodelers are unaware of the U.S. Environmental Protection Agency’s (EPA) Renovation, Repair and Painting (RRP) rule despite that it took effect back in April of 2010. “There are still quite a few remodelers who have never heard of RRP,” Mark Schlager, president of Access Training Services, an EPA and Occupational Safety and Health Administration (OSHA) trainer in Pennsauken, N.J. told Remodeling Magazine. According to the article, “The RRP rule applies to homes, apartments, and child-occupied commercial facilities built before 1978.” There are two RRP certifications required on every job: “a “Firm” certification for the company that contracts to do the work, and a “Renovator” certification for the person overseeing the work. A solo operator needs both certifications, which are good for five years.” Read the court decision
    Read the full story...
    Reprinted courtesy of

    Resolving Subcontractor Disputes with Pass-Through Claims and Liquidation Agreements

    May 13, 2024 —
    Imagine a project where you are unable to reach final completion due to an unresolved subcontractor claim. If the project owner is responsible for the claim, and both the owner and subcontractor are entrenched in their positions, how would you resolve this dispute? The default option is a three-party lawsuit where the subcontractor sues you in your capacity as general contractor. By denying the claim, you bring the owner into the lawsuit as a liable party to the subcontractor’s claim. This option is efficient from the judicial system’s perspective, as it means one lawsuit instead of two. The subcontractor cannot sue the owner since the two have no contract between them. Thus, the subcontractor’s recourse is limited to suing the contractor. In the three-party lawsuit, you argue that if the subcontractor prevails in its claim against you, the owner is liable. If the owner successfully defends against the claim, the subcontractor takes nothing. Putting judicial economy aside, it may not make economic sense for contractors to have a lawyer involved in litigating a case where they have no skin in the game. Fortunately, there is a better option than the three-party lawsuit on multi-party construction projects. Read the court decision
    Read the full story...
    Reprinted courtesy of Stephanie Cooksey, Peckar & Abramson, P.C.
    Ms. Cooksey may be contacted at scooksey@pecklaw.com