RDP Royal Palm Hotel, L.P. v. Clark Construction Group
Nos. 04-16203 and 05-11713, 2006 U.S. App. LEXIS 3815 (11th Cir. Feb. 17, 2006)
RDP Royal Palm Hotel, L.P. v. Clark Construction Group, Nos. 04-16203 and 05-11713, 2006 U.S. App. LEXIS 3815 (11th Cir. Feb. 17, 2006) held that an Owner could not enforce the substantial completion date where the Owner continued to issue change orders and construction change directives after this date had passed. As a result of this waiver, the court further held that the Owner could not hold the Contractor liable for any damages incurred by the Owner as a result of the failure to achieve substantial completion by the substantial completion date.
Continue Reading Owner Waives “Time Is Of The Essence” Provision Of The Contract And Right To Delay Damages Where It Continued To Issue Change Orders And Construction Change Directives After The Substantial Completion Date Had Passed

City of Ferndale v. Florence Cement Co
2006 Mich. App. LEXIS 129, No. 254572 (January 17, 2006)
In City of Ferndale v. Florence Cement Co. and Hartford Casualty Insurance Co., 2006 Mich. App. LEXIS 129, No. 254572 (January 17, 2006), the Court held that the engineer’s decision under the disputes resolution provision of the contract did not constitute a final and binding arbitration award.
Continue Reading Engineer’s Decision Did Not Constitute an Arbitration Award

Webber v. McBride & Sons Contracting Co.
No. ED86076, 2005 Mo. App. LEXIS 1846 (Mo. Ct. App. Dec. 13, 2005)
A painter suffered personal injuries after falling through a stairwell hole in the floor of an unfinished single-family residence. The stairwell hole had been cut by predecessor subcontractors no longer on the site. At the time of the fall, the general contractor, which also owned the residence, had already accepted the work of the subcontractors as completed.
Continue Reading Acceptance of Subcontractor’s Work by General Contractor Relieves the Subcontractor of Liability to Employee of Following Subcontractor

Environmental Energy Partners Inc. v. Siemens Building Technologies,Inc., et al.
Nos. 26521 & 26702, 2005 Mo. App. LEXIS 1568 (Mo. Ct. App., Oct. 25, 2005)
In Environmental Energy Partners Inc. v. Siemens Building Technologies, Inc., et al., Nos. 26521 & 26702, 2005 Mo. App. LEXIS 1568, a payment dispute arose between a contractor and its subcontractor on a hospital renovation project. When the contractor refused to pay the subcontractor the remaining subcontract balance ($201,178.75) on the basis that the subcontractor’s work was not completed, the subcontractor filed a mechanic’s lien against the property. The subcontractor then filed a petition to enforce its lien, naming the contractor and owner as defendants. Because of the subcontractor’s lien, the owner withheld the last installment payment of $148,475 due to the contractor under their agreement. Thereafter, and unbeknownst to the contractor, the subcontractor and the owner entered into a confidential “Settlement Agreement and Release” under which the owner agreed to pay directly to the subcontractor the $148,475 amount that it was withholding from the general contractor in exchange for a release of the lien upon entry of judgment in the litigation.
Continue Reading Missouri Court Holds Subcontractor Tortiously Interfered with Contractor’s Agreement with Owner by Seeking Payment Directly from Owner

Cleveland Constr., Inc. v. Reynoldsburg City Schools,
1996 Ohio App. LEXIS 2751 (June 28, 1996)
No-damage-for-delay clause in contract is not enforceable if the extent and magnitude of the delay was unforeseeable at the time the contract was executed and, therefore, summary judgment was improperly granted where question of material fact existed concerning the foreseeability of the delay.
Cleveland Construction, Inc. (“Contractor”) entered into a contract with the Reynoldsburg City Schools (“Owner”) for the construction of several projects. The contract provided that the Contractor would begin its work in May 1993 and complete its work ten months later, by February 1994. The Contractor, however, was delayed for two months in beginning the project, was further delayed as a result of difficulties experienced by another of the Owner’s contractors, and was at one point required to temporarily abandon its work and return to the project at a later time. In the end, the originally contemplated ten-month project became an eighteen-month project.
Continue Reading Ohio Court of Appeals reverses summary judgment; question of material fact existed as to whether Owner could enforce no-damage-for delay clause against Contractor.

Stratton & Co., Inc. v. Argonaut Ins. Co.,
1996 Ga. App. LEXIS 303 (Ga. Ct. App., March 14, 1996).
Provision in the standard form of comprehensive general liability insurance policy which excludes coverage for “property damage to the named insured’s products arising out of such products or any part of such products,” did not apply because the damage the “building” constructed was not the named insured’s “product.”
Stratton & Co., Inc. (“Contractor”) completed the construction of an office building and parking deck for Goldome Credit Realty Corporation (“Owner”). After complaining about the quality of the Contractor’s work, the Owner filed a lawsuit against the Contractor. The Contractor tendered the defense of that lawsuit to its insurance company, Argonaut Ins. Co. (“Insurer”), but the Insurer denied coverage and refused to defend the Contractor. Contractor ultimately settled the lawsuit with the Owner and paid $468,464.
Continue Reading Georgia Court of Appeals Rules That a "Building" is not a "Product" Under CGL Insurance Policy