Construction Dispute

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Accreditation: An extract from Thomas Reuters Practical Law. The full document is available at https://content.next.westlaw.com/practical-law/document/I3e46a7343fed11ed9f24ec7b211d8087/Standard-Arbitration-Clause-for-Construction-Contract.

Troutman Pepper Partners Albert Bates and Zach Torres-Fowler published a Thomas Reuters Practical Law guide for drawing construction arbitration clauses.

RKI Expl. & Prod., LLC v. Ameriflow Energy Servs., LLC, No. 02-20-00384-CV, 2022 Tex. App. LEXIS 4331 (Tex. App. June 23, 2022)

A recent decision by the Court of Appeals of Texas highlights the perils of failing to properly assert a demand for contractual indemnity.

In 2014, a piece of equipment, known as a sand separator, exploded at an oil well in Loving County, TX, killing two individuals and injuring three others. RKI Exploration & Production LLC operated the oil well. RKI contracted with Ameriflow Energy Services LLC and Crescent Services LLC through two master service agreements (MSAs) and a series of work orders.

New York State Thruway Auth. v. CHA Consulting, Inc., 165 N.Y.S.3d 832 (Albany Co., Sup. Ct. 2022).

This case involved a dispute over a wind turbine project. The root cause of the dispute was a bust between the “wind turbulence” at the site, and the wind turbulence that the turbines installed could withstand. Once the project was completed and commissioned, the overworked turbines prematurely failed.

United States ex rel. Spirtas Worldwide, LLC v. SGLC Consulting LLC, No. 3:21-CV-00182-MAB, 2022 U.S. Dist. LEXIS 105589; 2022 WL 2116451 (S.D. Ill. June 13, 2022)

The U.S. District Court for the Southern District of Illinois recently enforced a partially executed agreement to arbitrate where the party that failed to countersign demonstrated assent through its acts and conduct.

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.

Pizzarotti, LLC v. X-Treme Concrete Inc., 205 A.D.3d 487 (N.Y. App. Div. 2022)

A New York appellate court recently affirmed the dismissal of a subcontractor’s counterclaims for delay damages and for unpaid amounts because they were barred by the parties’ no-damage-for-delay provision and executed lien waivers, respectively.

Constructural Dynamics, Inc. v. Thomas P. Carney, Inc., No. 1104 EDA 2021, 2022 Pa. Super. Unpub. LEXIS 1500 (Pa. Super. July 1, 2022), reargument denied (Sept. 8, 2022).

Like many prompt payment acts, Pennsylvania’s Contractor and Subcontractor Payment Act (CASPA) permits owners and contractors to withhold payment for good faith claims — but not forever. Owners and contractors who wait too long could find themselves litigating prompt payment claims and paying the penalties those acts impose on procrastinating payors. A recent decision by the Pennsylvania Superior Court provides some guidance on how long is “too long” to withhold.

Accreditation: An extract from GAR’s Construction Arbitration Know-how. The whole publication is available at https://globalarbitrationreview.com/insight/know-how/construction-arbitration.

Troutman Pepper Partners Albert Bates and Zachary Torres-Fowler are published in GAR Insight with their article, “GAR Know How Construction Arbitration: USA (September 2022).” This chapter summarizes issues commonly raised during international construction arbitrations…

This article summarizes statutory remedies available to contractors, subcontractors and material suppliers when upstream parties fail or refuse to release payments on public and private construction projects. Entities furnishing work or materials have several statutory means to enforce their rights to payment, including mechanic’s liens, payment bond claims, and/or claims…

Bank of America, N.A. v. ASD Gem Realty LLC, 205 A.D.3d 1, 164 N.Y.S.3d 566 (2022).

ASD Gem Realty LLC and ASD Diamond, Inc. (together, ASD or Owner) contracted Sweet Construction Corp. (Sweet) to renovate a commercial space in Manhattan’s Diamond District (the Project). ASD solicited proposals for the supply and installation of partitions in the space (the Work) and ultimately directed Sweet to hire Arenson Office Furnishings, Inc. (Arenson). Arenson subsequently entered into a subcontract with Sweet to complete the Work (the Subcontract).