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Eastern District of Pennsylvania Decision Highlights Critical Contract Drafting Issues

A recent federal court decision is an important reminder for construction industry professionals about the precise language needed to make mediation a mandatory step before litigation. On November 18, 2025, the U.S. District Court for the Eastern District of Pennsylvania ruled in Healy Long & Jevin, Inc. v. CQSA Construction, LLC that a dispute resolution clause failed to create a binding condition precedent to litigation, despite the general contractor’s arguments to the contrary.

Like much of the western and southwestern U.S., California has experienced drought conditions on and off for decades. Fortunately, the regulatory landscape is starting to catch up with water treatment technology, paving the way for states and localities to effectively create a new and reliable supply of potable water.

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Fed. Eng’rs & Constructors Inc. v. Relyant Global LLC, No. 3:19-CV-73-KAC-JEM, 2022 U.S. Dist. LEXIS 95617 (E.D. Tenn., May 27, 2022)

This case arises out of the renovation of a U.S. Air Force dormitory in Missouri. The U.S. Army Corps of Engineers hired Relyant Global LLC to act as the prime contractor. Relyant subcontracted with Federal Engineers and Constructors, Inc. (FE&C). Relyant later terminated its subcontract with FE&C. FE&C filed suit against Relyant, and Relyant moved for judgment on the pleadings.

Entech Engineering, P.C. v. Dewberry Engineers, Inc., 204 A.D.3d 467, 167 N.Y.S.3d 55 (1st Dep’t 2022)

The New York Supreme Court Appellate Division recently affirmed a ruling enforcing a pay-if-paid provision.

Defendant Dewberry Engineers, Inc. (Dewberry) contracted with the New York City Economic Development Corporations’ Build-It- Back Hurricane Sandy Program to inspect homes for structural, asbestos, and lead paint issues. Dewberry retained Entech Engineering PC (Entech) to perform pre-construction lead paint inspections of homes. The subcontract contained a pay-if-paid clause that made the city’s payment to Dewberry a condition precedent to Dewberry’s obligation to pay Entech.

On February 28, the New York Senate passed Bill S8430A to amend New York’s Real Property Actions and Proceedings Law Section 881. The current version of Section 881, enacted in 1968, offers a developer judicial recourse when an owner or lessee of a neighboring building refuses access that a developer needs to improve or repair its own building. This judicial recourse comes in the form of a temporary license for access. Section 881 provides limited guidance on how or when courts will issue these temporary licenses, stating only that a “license shall be granted by the court in an appropriate case upon such terms as justice requires.” Over the years, New York courts have filled in the contours of Section 881, providing additional rules for what temporary licenses may cover and when they may be granted. These cases address topics, ranging from required liability insurance to compensation for a landowner’s loss of quiet enjoyment of their property.

In All Seasons Landscaping, Inc. v. Travelers Cas. & Sur. Co. of Am., a Connecticut court considered for the first time whether the performance of warranty work tolls the statute of limitations on payment bond claims. The court ruled that it does not. It dismissed subcontractor All Seasons Landscaping, Inc.’s (ALS’s) bond claim because ALS admitted that it last performed non-warranty work on the project more than one year before filing suit, meaning the statute of limitations barred its claim.