U.W. Marx, Inc. v. Koko Contracting, Inc., No. 518611, 2015 N.Y. App. Div. LEXIS 600 (N.Y. App. Div. Jan. 22, 2015)

The Appellate Division of the Supreme Court of New York affirmed judgment in favor of a subcontractor holding that although the subcontractor failed to comply with a contractual provision requiring it to give timely notice of its intent to stop work due to contractor’s failure to make payment, the contractor’s prior failure to make three consecutive progress payments to subcontractor constituted an uncured, material breach that relieved the subcontractor from performing its remaining obligations under the parties’ contract.

Hill International, Inc. v. Atlantic City Board of Education, 2014 N.J. Super. LEXIS 177 (App. Div. Dec. 30, 2014)

The Superior Court of New Jersey, Appellate Division held that, in order to support of claim of professional malpractice or professional negligence, New Jersey’s Affidavit of Merit Statute, NJSA 2A:53A-26 to -29, requires that the affidavit of merit must be signed by an affiant who is licensed within the same profession as the defendant.

Transportation Eng’g, Inc. v. Cruz, 2014 Fla. App. LEXIS 18273 (Fla. Dist. Ct. App. 5th Dist. Nov. 7, 2014)

The Florida Department of Transportation (“DOT”) hired Transportation Engineering, Inc. (“TEI”) to design, and D.A.B. Constructors, Inc. (“DAB”) to install, median guardrails along the Florida Turnpike.  After the installation project, a woman was killed when a vehicle in which she was a passenger struck an uncushioned guardrail end in a “clear zone,” an area next to a road where drivers can attempt to regain control of errant vehicles.  The woman’s estate filed suit against DOT, TEI, and DAB, alleging, in relevant part, that TEI and DAB negligently designed and constructed the guardrail ends without “crash cushions.”

Indalex, Inc. v. Nat’l Union Fire Ins. Co., 99 A.3d 926 (Pa. 2014)

In a per curiam decision without a published opinion, the Pennsylvania Supreme Court denied National Union Fire Insurance Company of Pittsburgh’s (“National”) appeal from a Superior Court decision holding that National had a duty to defend its insured, Indalex, Inc. (“Indalex”) in multiple state court lawsuits.  The Superior Court opinion, reported at 83 A.3d 418, highlighted the limits of prior case law and confirmed an insurer’s duty to defend under commonly-used commercial general liability policy language when the underlying claimant alleges personal injury or damage to other property resulting from the insured’s negligence.

Philadelphia Auth. for Indus. Dev. v. United States, 114 Fed. Cl. 519 (2014)

In this action, the United States Court of Federal Claims denied the Government’s motions to dismiss and for summary judgment, holding that plaintiff had sufficiently pled and supported claims against the Government based upon misrepresentations and omissions in data supplied by the Government in a negotiated procurement.  The Court held that negligent estimate, superior knowledge, misrepresentation and mutual mistake were viable theories upon which to pursue such a claim.  It rejected the Government’s position that a claim for negligent estimate could not be maintained in the context of a negotiated procurement, and also held that the plaintiff’s expectation of a limited loss did not negate the element of reliance with respect to much larger losses attributable to undisclosed or misrepresented information.

Scungio Borst & Assocs. v. 410 Shurs Lane Developers, LLC et al., 2014 Pa. Super. LEXIS 4527 (Pa. Super. Ct. 2014)

On reconsideration of an earlier panel decision of the Pennsylvania Superior Court, the Court en banc rejected a contractor’s contention that Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) extends liability for non-payment beyond the actual contracting parties.

This action arose out of the construction of a condominium project in Philadelphia’s Manayunk neighborhood (the “Project”).  The owner, 410 Shurs Lane Developers, LLC (the “Owner”), entered into a written contract with Scungio Borst & Associates (the “Contractor”) for the construction of the Project.  The Contractor performed the contracted-for construction services, as well as $2.6 million in additional work at the direction of the Owner and the Owner’s President and fifty percent shareholder, Robert DeBolt.  When the Contractor was not paid approximately $1.5 million incurred due to the additional work, it filed suit against the Owner and Mr. DeBolt individually, alleging, inter alia, breach of contract and violation of CASPA.

Frontier Contr. Inc. v. Allen Eng’g Contr., Inc., 2014 U.S. Dist. LEXIS 136474 (E.D. Cal. Sept. 2014)

Frontier Contracting Inc. (Frontier) entered into a teaming agreement with Allen Engineering Contractor, Inc. (Allen) to complete two U.S. Federal Highway projects in Sequoia and Kings Canyon National Parks.  During the course of the projects, disputes arose and Allen refused to issue full payments to Frontier.  Frontier then filed a complaint against Allen alleging, in part, a Miller Act claim.

Spectro Alloys Corp. v. Fire Brick Eng’rs Co., Inc., 2014 U.S. Dist. LEXIS 140817 (D. Minn. Oct. 3, 2014)

Spectro Alloys Corporation (“Spectro”) operates a smelter, and it hired Fire Brick Engineers (“FBE”) to install refractory lining to two furnaces in Spectro’s plant.  When that refractory lining failed prematurely, Spectro sued FBE for breach of express and implied warranties and for breach of contract.  Spectro sought recovery of repair costs and profits lost while its plant was shut down for repairs.

C. Szabo Contracting, Inc. v. Lorig Construction Co., 2014 IL App (2d) 131328; 2014 Ill. App. LEXIS 699 (Sept. 29, 2014)

In May of 2006, the Illinois State Toll Highway Authority (“Highway Authority”) retained Defendant Lorig Construction Company (“Lorig”) as general contractor on a construction project for improvements to Interstate 355. The Highway Authority required that Lorig subcontract a portion of its work to a “Disadvantaged Business Enterprise” (“DBE”), and that the project be performed with union labor.

Milton Reg’l Sewer Auth. v. Travelers Casualty & Surety Co., 2014 U.S. Dist. LEXIS 155419 (M.D. Pa. Nov. 3, 2014)

The United States District Court for the Middle District of Pennsylvania ruled that multiple instances of incomplete and/or defective performance by a contractor did not amount to a material breach so as to excuse the owner from providing notice and an opportunity to cure prior to termination.