Harris Constr. Co., Ltd. v. GGP-Bridgeland, L.P.
2010 U.S. Dist. LEXIS 46477 (S.D. Tex. May 12, 2010)

The U.S. District Court for the Southern District of Texas determined that the issue whether the Texas Supreme Court would recognize a claim for breach of implied warranty against an owner or a design professional providing defective plans had been resolved by the Fifth Circuit in Interstate Contracting Corp. v. City of Dallas, 407 F.3d 708 (5th Cir. 2005). The Court concluded that the Texas would apply the Lonergan rule, which requires contractual language indicating an intent to shift the burden of risk of defective design to the owner or a design professional hired by the owner to make the plans and specifications.

Centex/Vestal J.V. v. Friendship West Baptist Church
2010 Tex. App. LEXIS 4346 (Tex. App. June 10, 2010)

The trial court denied a motion to confirm an arbitration award and granted a motion to vacate finding that the arbitrator exceeded his authority when he determined the validity of and awarded the general contractor damages on its pass through subcontractor claims. On appeal, the Court of Appeals reversed the trial court, holding that because of the breadth of the arbitration clause, the arbitrator was authorized to determine the pass through subcontractor claims, and entered an order confirming the arbitrator’s award.

Cleveland Construction, Inc. v. Kent State University
2010 Ohio 2906, 2010 Ohio App. LEXIS 2407 (Ohio Ct. App. June 24, 2010)

The Ohio Court of Appeals held that a contractor’s failure to submit claims in accordance with the contract’s dispute process and its failure to exhaust administrative remedies prescribed by statute would bar its claims regardless of assertions as to the futility or unfairness of such procedures.

Blesi-Evans Co. v. Western Mechanical Service, Inc.
2010 U.S. Dist. LEXIS 36302 (S.D. April 13, 2010)

Defendant Western Mechanical Services, Inc. entered into a contract with the state of South Dakota to replace boilers on the South Dakota School of Mines and Technology campus Western, in turn, solicited bids for the boilers. Western accepted Plaintiff Blesi-Evans Co.’s proposal to supply one of the boilers. A dispute arose out of the delay in the production and delivery of that boiler.

Lillibridge Health Care Services, Inc. v. Hunton Brady Architects, P.A.
2010 U.S. Dist. LEXIS 34210 (M.D. Fla. April 7, 2010)

Lillibridge Healthcare Services, Inc. sued Hunton Brady Architects, P.A. and Heery International, Inc. for breach of contract, negligent design, and negligent misrepresentation.

Hunton had entered into an agreement with Mediplex Medical Building Corporation (“MMBC”) to prepare documents and to provide other services for the construction of a four story, steel frame medical office building located in Celebration, Florida. MMBC assigned its rights under that contract to Lillibridge. Heery had assumed obligations under a subcontract with Hunton to perform the engineering work for the Project.

Acme Contracting, Ltd. v. Toltest, Inc.
2010 U.S. App. LEXIS 6144 (6th Cir. Mar. 24, 2010)

The Court of Appeals for the Sixth Circuit affirmed a District Court decision that a “no damage for delay” clause was void and unenforceable pursuant to Section 4113.62 of the Ohio Revised Code. The clause contained provisions requiring that any “delay must be reported in writing and an extension of time shall be the sole and exclusive remedy of Contractor for any such delays or suspensions, but only to the extent that a time extension is obtained from the Owner,” and that “no claims will be accepted for costs incurred due to delays caused by others except to the extent that such delays exceed four (4) months.”

Penava Mechanical Corp. v. Afgo Mechanical Services, Inc.
2010 N.Y. App. Div. LEXIS 1973 (N.Y. App. Div. March 16, 2010)

In a contract dispute, the trial court granted motions for summary judgment filed by the general contractor and owner, dismissing counterclaims asserted by the subcontractor, and denied the subcontractor’s motion for summary judgment as to liability for such counterclaims. On appeal, the Appellate Division reversed the trial court’s order to the extent it granted the general contractor’s and owner’s motions for summary judgment.

Raito, Inc. v. Cardi Corp.
2010 R.I. Super LEXIS 61 (R.I. Super. April 10, 2010)

Cardi contracted with the State of Rhode Island for the construction of a new bridge over the Providence River on Interstate I-95. Cardi subcontracted with Raito to install a series of concrete foundation shafts for the bridge. With regard to the subcontract, Raito, as principal, and Western Surety Company, as surety, executed a standard AIA A312 performance bond.

Razorback Contractors Inc. v. Board of County Commissioners
227 P.3d 29 2010 Kan. App. LEXIS 35 (Kan. Ct. App. April 2, 2010)

The Court of Appeals of Kansas recently upheld a trial court’s decision to strictly enforce a written notification of differing site conditions provision in a construction contract.

The matter before the Court of Appeals involved construction of a sanitary sewer line in Southern Johnson County, Kansas. Defendant the Johnson County Board of County Commissioners contracted Plaintiff Razorback Contractors of Kansas, Inc., the successful bidder on the Project, to provide construction services in connection with the Project.

GEM Industrial, Inc. v. Sun Trust Bank
2010 U.S. Dist. LEXIS 31042 (N.D. Ohio Mar. 31, 2010)

The United States District Court for the Northern District of Ohio denied a contractor’s claims against a project’s lenders, where the contractor’s claims were based on the lender’s representations that the contractor would be paid.

GEM Industrial was the mechanical contractor for the construction of an ethanol production plant owned by GOE Lima, LLC. Due to budget overruns and cash flow problems, GOE fell behind on monthly payments to GEM. Eventually, GOE requested that GEM enter into a formal payment deferral. Before agreeing to the deferral, GEM asked to meet with representatives of the project’s debt and equity investors, SunTrust Bank and Paladin Homeland Security Fund, LP and Paladin Capital Group, LLC to confirm that sources of funding were available to pay construction costs. GEM asserts that, during its calls with SunTrust and Paladin, representatives for both entities promised and assured GEM that it would be paid for both its already completed work and its work going forward on the plant. After its calls with SunTrust and Paladin, GEM agreed to the payment deferral and continued to perform its mechanical work at the plant.