Triple B Servs., LLP v. City of Conroe, No. 09-21-00096-CV, 2022 Tex. App. LEXIS 4824, 2022 WL 2720451 (Tex. App. July 14, 2022)
The Texas Court of Appeals recently affirmed a ruling granting the city of Conroe governmental immunity from a contractor’s lawsuit asserting claims for breach of contract and violation of the Texas Public Prompt Pay Act.Continue Reading Texas Appellate Court Affirms Grant of Governmental Immunity From Suit Seeking Delay Costs
P.A.L. Environmental Safety Corp. v. North American Dismantling Corp. Et Al., No. 19-11630, 2020 BL 198779 (E.D. Mich. May 28, 2020)
A Michigan federal court partially granted Consumers Energy Company’s (“CEC”) motion to dismiss P.A.L. Environmental Safety Corporation’s (“PAL”) complaint alleging numerous causes of action in connection with its suit against CEC and contractor North American Dismantling Corporation (“NADC”) for outstanding payment stemming from asbestos abatement work at a CEC-owned power plant in Essexville, Michigan (the “Power Plant”).
According to the decision, CEC, as owner, and NADC, as prime contractor, entered into a written contract whereby NADC agreed to abate, dismantle, and demolish the Power Plant. In turn, NADC subcontracted with PAL to perform abatement of all asbestos containing material at the Power Plant. While the subcontract price was $7,996,331, PAL alleged entitlement to an adjusted price of $23,841,833 in unpaid labor and materials for its asbestos abatement work. Specifically, PAL alleges that it performed additional work not accounted for in the subcontract including fly ash and coal dust removal, refractory brick abatement, and extra asbestos removal.
While PAL’s complaint included numerous counts against Defendants NADC, CEC, and labor and material payment bond surety North American Specialty Insurance Company (“NASIC”), the opinion is most notable for its treatment of CEC’s motion to dismiss several counts against it including: (i) quasi-contractual claims; (ii) a third-party breach of contract claim; and (iii) a negligent misrepresentation claim.
Continue Reading Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering the Same Subject Matter
Skanska USA Building, Inc. v. J.D. Long Masonry, Inc., No. 1:16-cv-00933, 2019 BL 336852, (D. Md. Sept. 9, 2019)
On September 9, 2019, a Maryland federal court awarded Skanska USA Building, Inc. (“Skanska”) compensatory damages, pre- and post-judgment interest, and litigation expenses including attorney and expert fees in its suit against subcontractor J.D. Long Masonry, Inc. (“Long”) for defective masonry work at a Johns Hopkins University research facility.Continue Reading Maryland Federal Court Upholds Contractual Indemnity Clause and Awards Judgment Interest and Attorneys Fees in Masonry Suit
DAK Americas Mississippi, Inc. v. Jedson Engineering, Inc. et al, No. 1:18cv31-HSO-JCG, 2019 BL 208838 (S.D. Miss. June 6, 2019)
This dispute arose out of the design and construction of a concrete storage slab at DAK’s polymer resin manufacturing facility located in Hancock County, Mississippi. DAK hired Ohio-based Jedson to design and oversee the construction of a cement slab suitable for commercial operating loaders and other heavy equipment necessary to transport, unload, and stack shipping containers. DAK allegedly discovered substantial cracking and chipping of the cement, and filed suit in federal court claiming Jedson failed to design a slab suitable for DAK’s intended purposes. DAK asserted claims for negligent design, negligent construction management, and breach of contract.Continue Reading Federal Court Finds That Ambiguous Limitation-of-Liability Clause Did Not Clearly Restrict Owner’s Claims
On June 12, 2019, the World Bank announced that China-based Dongfang Electronics Co. Ltd. (“Dongfang”) would be debarred for fifteen (15) months for fraudulently bidding on a $60 million electrical expansion project in Liberia. The debarment renders Dongfang, a state-owned enterprise specializing in manufacturing and installing electrical equipment in connection with energy and infrastructure projects, ineligible to participate in any projects financed by the World Bank. Dongfang’s debarment by the World Bank highlights the compliance risks contractors and subcontractors face when pursuing contracts associated with foreign projects financed by institutions such as the World Bank.
Continue Reading World Bank Debars Chinese Engineering Company for Fraudulent Bidding Practices in Connection With Liberian Infrastructure Project
Bribery and corruption have long plagued the construction industry, particularly in emerging markets in Latin America, Eastern Europe, the Middle East and Asia-Pacific. Large contracts often trickle down through layers of subcontractors and consultants, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions where public officials may expect payment in exchange for state-issued licenses or government contracts.
Continue Reading Enhanced Anti-Corruption Scrutiny in Construction Industry
Tampa D Fluor Enterprises, Inc. v. Duke Energy Florida, LLC, No. 8:19-cv-00224, 2019 BL 135007, at *1 (M.D. Fla. Apr. 16, 2019)
On April 16, 2019, a Florida federal court dismissed without prejudice Fluor Enterprises’ claim that Duke Energy wrongfully drew down a $67 million letter of credit issued in connection with Fluor’s construction of a gas-fired electrical generation facility in Citrus County, Florida. In addition to the core breach of contract claim which suffered from several procedural issues, the court dismissed extra-contractual claims for conversion, civil theft, breach of the implied covenant of good faith and fair dealing, and violation of the Florida Deceptive and Unfair Trade Practices Act.Continue Reading Florida Federal Court Dismisses Fluor Enterprises’ $67M Claim Against Duke Energy for Wrongful Draw Down of Credit Letter
