Indirect Benefit Does Not Support Unjust Enrichment Claim Against Prime Contractor
July 05, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent case out of the Northern District of Florida dealing with a federal project provides an interesting discussion about a sub-subcontractor asserting a claim against the prime contractor for unjust enrichment. The prime contractor argued any benefit to it was indirect which does not support an unjust enrichment claim as the actual direct benefit flowed to the owner of the project – the government. The federal district court agreed and dismissed the sub-subcontractor’s unjust enrichment claim against the prime contractor because an indirect benefit does NOT support an equitable unjust enrichment claim. See U.S.A f/u/b/o Eco Universe Contracting, LLC v. Calvary Construction Group, Inc., 2023 WL 3884642 (N.D.Fla. 2023).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Statutes of Limitations May be the Colorado Contractors’ Friend
April 18, 2011 —
Beverley BevenFlorez CDJ STAFFAlbert Wolf, a principal in Wolf Slatkin & Madison P. C., has written an interesting article on statutes of limitations in construction defect claims in Colorado. While Wolf states that in most cases, “construction defect claims against construction industry participants (contractors, subcontractors, architects, engineers, etc.) requires that suits be started within two years after construction defects have been or should have been—in the exercise of reasonable diligence (care)—discovered,” if a project used the AIA General Conditions (AIA Document A2010) before the 2007 edition, the “statutes of limitations begin to run (accrue) at either substantial completion or breach by the contractor (installation of defective work), depending on the circumstances.”
“That’s a huge difference,” Wolf writes in his article. “For example, if the structural defect caused by faulty foundation work is not discovered or discoverable until walls begin to exhibit cracking more than two years after the building is completed, the owner’s claim against the contractor may be barred if the AIA provision is applied.”
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Construction Spending Highest Since April 2009
October 25, 2013 —
CDJ STAFFThe Commerce Department has announced that construction spending has increased by 0.6 percent, but that modest gain puts it at the highest it has been in four and a half years. The last time construction spending was this high was April 2009.
The rise in construction spending is due to increases in both public and private construction project. Public construction was up, despite a decrease in spending by the federal government. Private residential construction is at a five-year high.
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Court of Appeals Invalidates Lien under Dormancy Clause
January 05, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPOn October 27, 2016, the Georgia Court of Appeals determined whether the Dormancy Statute, which bars the enforcement of judgments after seven years, applied to a lienholder’s action to foreclose its lien.
A property owner (“Owner”), contracted with a contractor Contractor (“Contractor”) to build a home in January 2006. Contractor purchased building materials from a supplier (“Supplier”). In September 2006, Contractor failed to pay for the materials, and Supplier filed a lien on Owner’s property in November 2006. Supplier filed a claim of lien and instituted a lien action against Contractor. In March 2007, a default judgment was entered in favor of Supplier for the lien amount.
It was not until November 2014 that Supplier sued Owner, seeking a declaration of a special lien in the amount of $14,655.65. The trial court granted Supplier’s motion for summary judgment and awarded Supplier a special lien in the amount of $14,655.65 plus $8,305 in accrued interest. Owner appealed, arguing that the lien was rendered unenforceable by the Dormancy Statute.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Construction Bright Spot in Indianapolis
March 01, 2012 —
CDJ STAFFThe downtown Indianapolis area is the site of about 85 major building projects that are from groundbreaking to just complete. The Indianapolis Star reports that the cumulative worth of the projects is about $3 billion, a level of construction that Indianapolis has seen only once before.
About thirty of the projects are residential. The main commercial project is a $754 million hospital building. The boom in downtown Indianapolis is not matched elsewhere, with the Indianapolis Star reporting that in the rest of Central Indiana, construction has slowed.
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The Connecticut Appellate Court Decides That Construction Contractor Was Not Obligated To Continue Accelerated Schedule to Mitigate Its Damages Following Late Delivery of Materials by Supplier
April 11, 2022 —
Robert M. Barrack - Gordon & ReesIn United Concrete Prods. v. NJR Constr., LLC, 207 Conn. App. 551, 263 A.3d 823 (2021), the Connecticut Appellate Court has issued a decision that should be of interest to the Connecticut construction industry and the construction bar. The lawsuit arose out of the late delivery of materials on a construction project, which is a frequent problem on construction projects. In United Concrete Products, the defendant general contractor, NJR Construction, LLC (“NJR”) was retained by the State of Connecticut Department of Transportation (“DOT”) to replace a bridge over the Hockanum River (“Project”). Id. at 555-58 (2021). The Prime Contract provided that NJR with an eight-week time-frame to perform the work, at which time the road would be closed to traffic. Id. The Prime Contract also provided for a bonus of $3,000 for each day the road was opened to traffic prior to the eight week deadline of August 8, 2016, and for liquidated damages of $3,000 for each day the road remained closed beyond the deadline. Id.
NJR subsequently entered into a purchase order (“Subcontract”) with the plaintiff, United Concrete Products, Inc. (“United”), whereby United agreed to provide certain concrete components for the Project, including ten pre-stressed concrete beams. Id. The Subcontract required that United deliver the concrete beams by June 7, 2016, but, NJR did not actually schedule the delivery until June 29, 2016. Id. Nevertheless, even with that schedule NJR could have reopened the road by July 19, 2016, which would have allowed it to receive the full $60,000 incentive bonus. However, United did not deliver the concrete beams until July 26, 2016, which caused NJR to lose the incentive bonus, be assessed liquidated damages by the DOT, and to incur additional delay damages. Id. After deducting the amount of $179,500 in damages that it incurred due to United’s late delivery of the beams, NJR paid United the balance of $66,074.75. Id.
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Robert M. Barrack, Gordon Rees Scully Mansukhani, LLPMr. Barrack may be contacted at
rbarrack@grsm.com
$24 Million Verdict Against Material Supplier Overturned Where Plaintiff Failed to Prove Supplier’s Negligence or Breach of Contract Caused an SB800 Violation
November 21, 2017 —
Jon A. Turigliatto, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger BulletinOriginally published by CDJ on March 16, 2017
Acqua Vista Homeowners Assoc. v. MWL Inc. (2017) 2017 WL 371379
COURT OF APPEAL EXTENDS GREYSTONE HOMES, INC. v. MIDTEC, INC., HOLDING THAT CIVIL CODE §936 CREATES A NEGLIGENCE STANDARD FOR CLAIMS AGAINST MATERIAL SUPPLIERS BROUGHT UNDER SB800.
The Fourth District California Court of Appeal recently published its decision Acqua Vista Homeowners Assoc. v. MWI, Inc. (2017) 2017 WL 371379, holding that claims against a material supplier under SB800 (Civil Code §895 and §936) require proof that the SB800 violation was caused by the supplier's negligence or breach of contract.
Civil Code §936 states in relevant part, that it applies "to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that the general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals caused, in whole or in part, a violation of a particular standard as the result of a negligent act or omission or a breach of contract .... [T]he negligence standard in this section does not apply to any general contractor, subcontractor, material supplier, individual product manufacturer, or design professional with respect to claims for which strict liability would apply."
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Jon A. Turigliatto, Esq., Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Esq., Chapman Glucksman Dean Roeb & Barger
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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NEHRP Recommendations Likely To Improve Seismic Design
November 09, 2020 —
Nadine M. Post - Engineering News-RecordCode-based earthquake engineering is on the verge of getting simpler, thanks to the National Earthquake Hazards Reduction Program’s recommendation to replace the traditional seismic hazard maps with an improved seismic hazards database. The recommendation is one of the most significant changes put forth in the 2020 update of the NEHRP seismic design provisions, which are the foundation for the prescriptive seismic design code for buildings and other structures.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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