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Sometimes it Depends on “Whose” Hand is in the Cookie Jar

January 21, 2015 — Roger Hughes – California Construction Law Blog
In a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that a public entity could unilaterally withdraw retention funds during a pending legal dispute without the court first finding that the contractor had defaulted on the public works project. Background In 2008, general contractor S.J. Amoroso Construction Company, Inc. (“S.J. Amoroso”) entered into a construction contract with the Pittsburg Unified School District (“District”) for the reconstruction and modernization of a high school in Pittsburg, California. Read the court decision
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Reprinted courtesy of Roger Hughes, Wendel Rosen Black & Dean LLP
Mr. Hughes may be contacted at rhughes@wendel.com

Indirect Benefit Does Not Support Unjust Enrichment Claim Against Prime Contractor

July 05, 2023 — David Adelstein - Florida Construction Legal Updates
A 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). 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

Product Defect Allegations Trigger Duty To Defend in Pennsylvania

August 31, 2020 — Stacy M. Manobianca - Saxe Doernberger & Vita
The Third Circuit Court of Appeals recently concluded, in Nautilus Insurance Co. v. 200 Christian Street Partners, LLC., that a duty to defend is triggered when product-related allegations are pled in connection with a claim for defective construction. In Nautilus, the coverage dispute arose out of two independent underlying lawsuits in which homeowners alleged that the homes built by 200 Christian Street Partners (“Christian Street”) were defectively constructed. Christian Street tendered the claim to its insurer, Nautilus Insurance Co. (“Nautilus”), for defense and indemnity.1 Nautilus filed a lawsuit in the United States District Court for the Eastern District of Pennsylvania, seeking a declaration that it was not obligated to defend Christian Street in the underlying actions.2 Specifically, Nautilus asserted that it was not required to provide a defense in the underlying actions because Pennsylvania law does not consider faulty workmanship to constitute an “occurrence” and, therefore, to trigger the policy’s insuring agreement and the insurer’s duty to defend.3 Read the court decision
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Reprinted courtesy of Stacy M. Manobianca, Saxe Doernberger & Vita
Ms. Manobianca may be contacted at smm@sdvlaw.com

U.S. Home Prices Rose More Than Estimated in February

May 07, 2015 — Kathleen M. Howley – Bloomberg
U.S. house prices rose more than economists estimated in February as the strongest labor market in seven years gives Americans the confidence to bid on property. Prices climbed 0.7 percent on a seasonally adjusted basis from January, the Federal Housing Finance Agency said in a report Wednesday. The average economist estimate was for a 0.5 percent increase, according to data compiled by Bloomberg. Housing demand is climbing as consumer confidence hovers close to an eight-year high. Sales of existing homes rose in March by the most in four years, the National Association of Realtors reported today. The number of U.S. households jumped by almost 2 million in 2014, according to data compiled by Bloomberg. Read the court decision
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Reprinted courtesy of Kathleen M. Howley, Bloomberg
Ms. Howley may be contacted at kmhowley@bloomberg.net

Retroactive Application of a Construction Subcontract Containing a Merger Clause? Florida’s Fifth District Court of Appeal Answers in the Affirmative

September 07, 2017 — Sanjo S. Shatley - Florida Construction Law News
Florida’s Fifth District Court of Appeal recently addressed the issue of retroactive application of a construction subcontract on the basis of a merger clause in Don Facciobene, Inc. v. Hough Roofing, Inc.[1] In the case, in late 2010, Don Facciobene, Inc. (“DFI”), a licensed general contractor, contracted with Digiacinto Holdings, LLC, an owner of a home built in 1905 in Melbourne, Florida, known as the Nannie Lee House or the Strawberry Mansion, to perform various renovations in preparation for a restaurant to be opened on the premises. One of the renovations included a new roof. DFI subcontracted the roofing work to Hough Roofing, Inc. (“HRI”), a licensed roofing subcontractor. In mid-March 2011, HRI submitted an estimate and proposed statement of work to DFI. DFI’s project manager signed HRI’s proposal on April 5, 2011, as well as an additional expanded proposal six days later. According to the proposals, payment was due on completion. HRI began work on the roof on April 15, 2011, without a signed subcontract. However, DFI and HRI ultimately executed a subcontract on June 8, 2011, even though HRI had mostly finished its work by the end of May. Read the court decision
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Reprinted courtesy of Sanjo S. Shatley, Cole, Scott & Kissane, P.A.
Mr. Shatley may be contacted at sanjo.shatley@csklegal.com

California Supreme Court McMillin Ruling

January 24, 2018 — Don MacGregor - CDJ STAFF
Reaction to the recent California Supreme Court ruling in McMillin Albany LLC v. The Superior Court of Kern County has been both swift and diverse, with many notable California law firms weighing in on the potential impact this landmark ruling may have on the Construction Industry and construction defect litigation. In our ongoing desire to serve as a meaningful and comprehensive provider of news and information for Construction and Claims Professionals, we have included a selected number of the submissions we have received regarding this very important judicial ruling. Read the court decision
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Reprinted courtesy of

9 Positive Housing Statistics by Builder

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine presented “9 housing stats to start off spring selling season.” For instance, the rate of U.S. homeownership in the fourth quarter of 2014, according to the U.S. Census Bureau, was 63.9% and there were 728,000 housing starts in December of 2014, according to the NAHB. Furthermore, 80% of contracting firms plan to expand payrolls in 2015. Read the court decision
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Reprinted courtesy of

More Fun with Indemnity and Construction Contracts!

June 04, 2024 — Christopher G. Hill - Construction Law Musings
Well, I’m back. It’s been quite a while since my last post due to some busy family times and running my law practice. Hopefully, you will hear from me more often in the future. Now. . . on with the post: I have often discussed indemnity provisions here at Construction Law Musings. I’ve posted on a range of things relating to indemnity from when those sticky clauses are unenforceable to what to look out for in such a clause when reviewing your construction contract. A recent case out of Fairfax examines another wrinkle in these indemnity clauses. In Leesburg Pike, Falls Church, LLC v. Paramount Constr. Servs., LLC, the Court examined the language of a fairly typical indemnity clause in a construction contract. The general facts of the case are as follows. The Plaintiff alleged that it owns the property at 6129 Leesburg Pike, that it entered into a contract with Paramount Construction Services LLC to install clothes washers and dryers in individual units at the property, and that, in the process, Paramount (or one of its subcontractors) negligently severed a water pipe, which caused significant damage to the property. The plaintiff’s property insurance carrier agreed to pay the plaintiff $2,598,918.41. But the actual damages exceeded that payment by $952,020.90. The plaintiff sued Paramount for $952,020, pursuant to an indemnity provision in the contract. Paramount demurred to the Complaint arguing that the indemnity clause did not apply to create liability for Paramount. 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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