Indiana Court Enforces Contract Provisions rather than Construction Drawing Markings
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFTimothy J. Abeska, a vice-chair of Barnes & Thornburg LLP’s Construction Law Practice Group, analyzed Goodrich Quality Theaters, Inc. v. Fostcorp Heating and Cooling, Inc., 16 N.E.3d 426 (Ind. Ct. App. 2014), which “provides an example of a court enforcing contract provisions rather than markings on construction drawings that are inconsistent with contract requirements.”
The case evolved from a dispute on a construction of an IMAX theater, when the general contractor did not understand the architect’s markings for non-standard joist girders, and ordered standard joist girders, per the contract. The error created delays and other problems, which led to payment disputes and mechanic’s liens against the project.
Abeska stated that “[t]his case shows the importance of making sure all documents which comprise a construction contract are consistent with each other, as courts will enforce contracts negotiated by the parties. The case also demonstrates that litigation is not a quick process, as the Court of Appeals Opinion was issued more than seven years after the project was completed.”
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Philadelphia Proposed Best Value Procurement Bill
December 08, 2016 —
Wally Zimolong – Supplemental ConditionsAn opinion piece in today’s Philadelphia Inquirer concerning proposed legislation that would change the way the City of Philadelphia awards public construction projects is causing quite a stir. The article concerns legislation that would allow the City to award public construction contracts based on a “best value” approach rather than the current requirement that the contract be awarded to the lowest responsible and responsive bidder. The author worries that by removing the current objective criteria and replacing it with subjective ones, contracts can be steered to politically favored contractors. The author cites the recent no-bid contract awarded to a law firm run by the friend of Mayor Jim Kenney as an example of the chaos would ensue if this bill was passed.
Considering that the Bill’s sponsor, Bobby Hennon, is under FBI investigation, and some of the Mayor’s biggest supporters are as well, the author has ever right to be concerned. However, article comes up short in explaining what the Bill says and what best value procurement, if adopted, would mean for public construction work in Philadelphia.
First, the Bill that Councilman Hennon is proposing is actually a Bill that would make the best value procurement question a ballot question next November. In other words, the Bill, if passed, would but to a City wide vote the question of whether the City should change it procurement practices to permit the best value approach to be used in addition to the low bid approach that is current used.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Weslaco, Texas Investigating Possible Fraudulent Contractor Invoices
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city of Weslaco in Texas fears that they have received “fraudulent invoices from the contractor of the…Valley Nature Center facility,” according to the Mid-Valley Town Crier. The project had been stalled due to “problems with numerous subcontractors claiming they hadn’t received payment.” Furthermore, “[c]onstruction is more than 14 months delayed and now halted as contractor GAS Enterprises demands more money from the city.”
City Manager Leo Olivares informed GAS President Rene Salinas “that the city was aware of ‘forged requests for payments,’ ‘padding invoices’ and ‘requests for reimbursement for items, materials and labor that you did not pay,’” reported the Mid-Valley Town Crier. While Salinas did not respond to the Mid-Valley Town Crier when asked for a comment, he did send a letter to the city “arguing that none of the subcontractors had questioned the documents to him.”
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Residential Interior Decorator Was Entitled to Lien and Was Not Engaging in Unlicensed Contracting
August 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesResidential construction disputes can sometimes take nasty turns. This is not attributed to one specific reason, but a variety of factors. Sometimes, there are not sophisticated contracts (or contracts at all). Sometimes, relationships and roles get blurred. Sometimes, parties try to skirt licensure requirements. Sometimes, a party is just unreasonable as to their expectations. And, sometimes, a party tries to leverage a construction lien to get what they want. In all disputes, a party would certainly be best suited to work with construction counsel that has experience navigating construction disputes.
An example of a construction dispute that took a nasty turn involving an interior decorator is SG 2901, LLC v. Complimenti, Inc., 2021 WL 2672295 (Fla. 3d DCA 2021). In this case, a condominium unit owner wanted to renovate his apartment. He hired an interior decorator to assist. As his renovation plans became more expansive, the interior decorator told him he would need to hire a licensed contractor and architect. The interior decorator arranged a meeting with those professionals and, at that meeting, they were hired by the owner and told to deal directly with the interior decorator, almost in an owner’s representative capacity since the owner traveled a lot. The interior decorator e-mailed the owner about status and requested certain authorizations, as one would expect an owner’s representative to do. At the completion of the renovation job, the owner did not pay the interior decorator because he was unhappy with certain renovations. The interior decorator recorded a construction lien and sued the owner which included a lien foreclosure claim. There was no discussion of the contracts in this case because, presumably, contracts were based on proposals, were bare-boned, or were oral.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
No Duty to Defend Under Renter's Policy
May 03, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court agreed that the insurer had no potential liability under a policy where the insured allegedly concealed facts and made misrepresentations regarding the condition of the property it sold. State Farm Fire & Cas. Co. v. TFG Enterprises, LLC, 2021 Neb. LEXIS 27 (Neb. Feb. 19, 2021).
TFG sold a house to Jeffrey Barkhurst. Thereafter, Barkhurst filed suit alleging that TFG failed to disclose and actively concealed several defects, including water intrusion, the presence of mold, substandard repairs and structural issues. State Farm agreed to TFG defend under a reservation of rights. State Farm then filed a declaratory judgment action to determine its obligations under the policy.
State Farm relied upon various exclusions in the rental policy issued to TFG. The exclusions provided there would be no liability coverage for "property damage to property owned by an insured"; "property damage to property rented to, occupied or used by or in the care of the insured"; or "property damage to premises the insured sells. . . if the property damage arises out of these premises."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Charles Eppolito Appointed Vice-Chair of the PBA Judicial Evaluation Commission and Receives Prestigious “President’s Award”
November 30, 2020 —
Charles Eppolito, III - White and Williams LLPPartner Charles (Chuck) Eppolito, III has been appointed as a Vice-Chair of the Pennsylvania Bar Association (PBA) Judicial Evaluation Commission. His three-year term begins immediately and will expire September 30, 2023. The PBA Judicial Evaluation Commission is responsible for developing and implementing a judicial evaluation process for appellate judicial candidates in the Commonwealth of Pennsylvania. As Vice-Chair, Chuck will oversee reviewing the investigative panel's report, interviewing each candidate, discussing qualifications and reaching an agreement upon and issuing a rating for each candidate for appellate judicial office.
Chuck has a long history of involvement with the 25,000-member organization, serving as PBA Secretary from 2007 to 2010, Chair of the House of Delegates from 2011 to 2013 and President from 2018 to 2019. Most recently, it was announced that Chuck is a recipient of a PBA “President’s Award” for his dedication and commitment to fulfilling the mission of the PBA COVID-19 Task Force. The award will be presented during the virtual PBA Awards Luncheon on Thursday, November 19, 2020.
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Charles Eppolito, III, White and Williams LLPMr. Eppolito may be contacted at
eppolitoc@whiteandwilliams.com
Time to Update Your Virginia Mechanic’s Lien Forms (July 1, 2019)
May 01, 2019 —
Christopher G. Hill - Construction Law MusingsIn a few of my recent posts here at Construction Law Musings, I’ve discussed a few bills that were considered and/or passed in the General Assembly this year. One of the bills is one close to my heart and a subject much discussed here, namely mechanic’s liens.
HB2409 passed both houses of the General Assembly and has been signed by the Governor. This bill reconciled the language found in Virginia Code Sec. 43-4 with the various forms for general contractor, subcontractor and sub-subcontractor/supplier forms found in later sections of the code. As you will see if you download the .pdf of the bill as signed, this involved some tweaks to 43-4 and some updates to the mechanic’s lien forms that are in the code. The recent Desai case from the Virginia Supreme Court made it clear that such action was necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrissghill@constructionlawva.com
Claim Against Broker Survives Motion to Dismiss
January 25, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's complaint against its broker for failure to secure adequate coverage survived a motion to dismiss. Broecker v. Conklin Prop., LLC, 2020 N.Y. App. Div. LEXIS 7399 (Dec. 2, 2020).
Conklin Property, LLC purchased real property and entered into a contract with JJC Contracting, Inc. for construction and renovation of the property. The broker, Total Management Corp. (TMC) was retained by Conklin to secure insurance for the construction phase of the renovation project. During the renovation, an employee of JJC was injured at the property and died. The employee's estate then sued Conklin. US Underwriters, the insurer, disclaimed coverage pursuant to an exclusion for bodily injury to contractors and subcontractors and their workers.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com