M.A. Mortenson Co. v. City of Grand Rapids,
1995 U.S. Dist. LEXIS 11626 (W.D. Mich. July 27, 1995)
For the construction of a water filtration system, the City of Grand Rapids (“Grand Rapids”), as the owner of the project, contracted with, inter alia, Greeley and Hansen to provide engineering services, and Envirex, Inc. (“Envirex”) for flocculation and sedimentation equipment (the “equipment”). After delivery and installation, the equipment allegedly did not work properly, and it sustained stress related damage. Several claims ensued.

Tym v. Ludwig,
1995 Wisc. App. LEXIS 974 (Wisc. Ct. App. Aug. 9, 1995)
Slander of Title – Lawyer who filed a mechanics’ lien against a homeowner’s property on behalf of contractor that constructed the home was not entitled to summary judgment on homeowner’s slander of title claim because the record had not been sufficiently developed regarding the issue of whether the lawyer had a reasonable ground or believing the truth of the facts pleaded in the mechanics’ lien claim.

Resurgence Properties., Inc. v. W.E. O’Neil Construction Co., et. al.,
1995 U.S. Dist. LEXIS 11633 (E.D. Ill. August 11, 1995)
Incorporation by Reference – AIA standard form of agreement between owner and contractor, AIA Document A101/CM, incorporated general conditions, AIA Document A201/CM, by reference even though agreement never specifically identified AIA Document A201/CM. Contractor’s warranty to developer also protects Architect as a third-party beneficiary.

Royal Electric Construction Corp. v. Ohio State University,
73 Ohio St. 3d 110, 652 N.W.2d. 687, 1995 Ohio LEXIS 18905 (Ohio Sup. Ct. Aug. 15, 1995)
Prejudgment Interest – Contractor that succeeded on delay and disruption claim was entitled to pre-judgment interest from the date of substantial completion; Ohio rejects rule that pre-judgement interest is only available when claim is “liquidated” or “capable of ascertainment.”

Al Munford, Inc. v. United States,
1995 U.S. Claims LEXIS 163 (Cl. Ct. August 15, 1995)
False Claims Act – Federal contractor violated the False Claims Act, 41 U.S.C. 3729 (1988) when it submitted a certified claim to the contracting officer which included amounts which the Government had previously paid.

McNally Wellman Company v. New York State Electric & Gas Corporation,
1995 U.S. App. LEXIS 23312 (2d Cir. August 18, 1995)
Exclusion of Consequential Damages – A no-damage-for-delay clause insulated a construction supplier from liability for delays in delivery of six spillway gates on a dam project. The application of the UCC prevented the project owner from invoking the common law exceptions to enforcement of a no-damage-for-delay clause.

Fru-Con Constr. Co. v. Southwestern Redevelopment Corp. II,
1995 Mo. App. LEXIS 1443 (Mo. Ct. App. Aug. 15, 1995)
Arbitration Claims Limit – The Contractor submitted a $20 million claim and then commenced lawsuit against the Owner. After nearly two years of litigation, the Owner requested the architect to evaluate claim and the architect determined that the claim was actually a group of small claims, all of which (except one) were less that $200,000 and, therefore, subject to arbitration provision in contract.

Architectural Metal Systems, Inc. v. Consolidated Systems, Inc.,
58 F.3d 1227 No 94-3898 (7th Cir. July 5, 1995)
Offer and Acceptance – Under the Illinois U.C.C., a price quotation that specifies the items to be sold, the quantity and price of each specified item, and the delivery terms is not hopelessly vague, as long as the remaining terms regarding warranty, excuses, remedies and the like can be inferred from trade usage. Promissory Estoppel and the Statute of Frauds – Under the Illinois U.C.C., while the statute of frauds is applicable to a claim of promissory estoppel, if the alleged promise is a price quotation and such term is in writing, the statute of frauds is not a bar to the claim. Discrepancy in Bids Does Not Create Presumption of Mistake – a bid that is more than 50% lower than another bid does not, as a matter of law place the buyer on notice that the low bid contains a mistake.

United States of America, for the Use and Benefit of Evergreen Pipeline Construction Co., Inc. v. Me,
No. 90 Civ. 5106, 890 F. Supp. 1213, 1995 U.S. Dist. LEXIS 9385 (S.D.N.Y. July 7, 1995)
Oral Requests for Extra Work – Under New York law, either oral directions to perform extra work, or a general course of dealing may effectuate a waiver or modification of contract provisions which otherwise expressly require written authorization or notice of such extra work claims. No Damage for Delay – Under New York law, an exculpatory “no damage for delay” clause will not be enforced where the delay was: 1) not contemplated by the parties 2) caused by the contractor’s bad faith, or willful, malicious, or grossly negligent conduct; 3) so unreasonable that it constituted an intentional abandonment of the contract; or, 4) the result of a fundamental breach of the contract by the contractor. Punitive Damages – Punitive damages on purely contractual claim will not be awarded where there is insufficient evidence for a jury to conclude that public rights were implicated or that objectionable conduct was directed at the public generally. Prejudgment Interest – Subcontractor is entitled to prejudgment interest for services rendered seven years before judgment was entered. Rule 11 Sanctions – Defendants’ assertion of a civil RICO counterclaim without sufficient basis therefor warrants imposition of sanctions under Rule 11. Attorney’s fees awarded as a Rule 11 sanction is a matter committed solely to the discretion of the district court. In ascertaining “reasonable” fees, the court must bear in mind that the principined a verdict in favor of subcontractor Evergreen and found that Merritt materially breached the subcontract and that certain provisions regarding extra work and delay damages were either waived or eliminated by the parties. Merritt filed various post trial motions challenging the jury’s verdict regarding: the oral requests for extra work under a contract which required that all such requests be in writing; the award of delay damages under a contract with an express “no damage for delay” provision; and challenging the propriety of permitting a claim for punitive damages to be submitted to the jury. Evergreen also filed various post trial motions seeking prejudgment interest and attorney’s fees incurred in defending baseless civil RICO claims.

Buhler, Inc. v. Reuter Recycling of Florida, Inc.,
889 F. Supp. 1126, 1995 U.S. Dist. LEXIS 9815 (D. Minn. Jul. 10, 1995)
Based on interpretation of two differing arbitration provisions, an owner did not waive its right to arbitrate its claim against designer of facility and seller of equipment by failing to consolidate the arbitration proceeding with the proceeding against its general contractor.