ConstructLaw® discusses recent cases and current issues in construction law
Paragon Constr. Co. v. Dep’t of Pub. Works
2013 Conn. Super LEXIS 789 (Conn. Super. Ct. 2013)
The Connecticut Department of Public Works and the Connecticut Department of Corrections (collectively “the State”) solicited bids for the renovation of a correctional center. Paragon Construction Co. (“Paragon”) was awarded the contract, and it subcontracted with MacKenzie Painting Co. (“MacKenzie”) for work relating to de-leading and painting security bars on the windows of the correctional center.…
Cresci Constr. Servs., Inc. v. Martin
2013 Pa. Super. LEXIS 154 (Pa. Super. Ct. Mar. 28, 2013)
Martin hired Cresci to build a home in exchange for $184,730. The Contract included a liquidated damages clause that applied if Martin canceled the contract before Cresci began constructing the home. The Contract did not include any other liquidated damage clauses.…
Lydon-Millwright, Inc. v. Ernest Bock & Sons, Inc.
2013 U.S. Dist. LEXIS 65019 (E.D. Pa. May 7, 2013)
This case arises out of a construction project at the Philadelphia International Airport to install a baggage handling system. Bock was the general contractor. Bock contracted Lydon to install the mechanical portion of the baggage handling system. The parties’ purchase order required Lydon to submit a release of liens and claims with each monthly payment application. Over the course of the project, Lydon submitted 54 payment applications, all of which contained the required release of liens and claims.…
SRC Constr. Corp of Monroe v. Atl. City Housing Auth.
2013 U.S. Dist. LEXIS 47301 (D.N.J. April 2, 2013)
The U.S. District Court for the District of New Jersey denied a defendant architect’s motion for summary judgment, holding that the economic loss doctrine applies only to bar tort claims between parties to a contract.…
SAK Construction of CA, L.P. v. PSC Industrial Outsourcing, L.P.
2012 U.S. Dist LEXIS 123473 (E.D. Mo. 2012)
This action arose out of the Los Coyotes Water Reclamation Plant Interceptor Project in Los Angeles County, California. General Contractor, SAK Construction of CA, L.P. (“SAK”) was retained by the County to perform sewer rehabilitation work. SAK subcontracted with PSC Industrial Outsourcing, L.P. (“PSC”) to perform the inspection, cleaning, waste removal and disposal work on the Project. The Project consisted of rehabilitating 16 stretches or “shots” of pipeline.…
Maisel v. Erickson Construction, Inc.
2012 U.S. Dist. LEXIS 108726 (D. Colo. August 3, 2012)
Plaintiff contracted with Charles Cunniffe & Assoc. Architects (“CCA”) for architectural services. Plaintiff separately contracted with Erickson Construction, Inc. (“Erickson”) for construction and general contractor services. No contract existed between CCA and Erickson.
Plaintiff sued both CCA and Erickson for various defects and design deficiencies, and asserted claims for breach of contract, breached of implied warranties, negligence and vicarious liability. Erickson cross-claimed against CCA for negligence, breach of contract (on a third-party beneficiary theory), indemnification and contribution.…
Genesee/Wyoming YMCA v. Bovis Lend Lease LMB, Inc
2012 N.Y. App. Div. LEXIS 6358(N.Y. App. Div. Sept. 28, 2012)
The Genesee/Wyoming YMCA (“YMCA”) contracted with Bovis Lend Lease LMB, Inc. (“Bovis”) and Thomas Associates Architects & Engineers (“Thomas”) for the construction of a new swimming complex. Bovis was the construction manager for the project, and Thomas was the architect. Shortly after the project was completed, defects were discovered in the roof and insulation system. An inspection indicated that the roof and insulation system were defectively designed and that improper materials had been selected.…
Structure Tone, Inc. v. Universal Services Group, Ltd.
929 N.Y.S. 2d 242 (App. Div. 2011)
This action arose out of the construction of a Whole Foods Market in the AOL/Time Warner Center at Columbus Circle in Manhattan. The general contractor, Structure Tone, Inc., (“STI”) retained Universal Service Group (“USG”) to waterproof the market. STI sued USG, claiming that the waterproofing failed on 15 occasions, causing water to leak from the Whole Foods Market into various tenant spaces below. STI undertook to remedy the problem, and as a result, allegedly sustained damages totaling $1.2 million. STI alleged causes of action for negligence and breach of contract, seeking as damages the costs of remediation, loss of profit, recovery of the amounts paid to USG and contract balances not paid by Whole Foods.…
Atlantic City Associates, LLC v. Carter & Burgess Consultants, Inc., et al
2011 U.S. App. LEXIS 9191 (3rd Cir. May 4, 2011)
* Please note that the Third Circuit issued this opinion as a non precedential opinion pursuant to Third Circuit Internal Operating Procedure Rule 5.7.
Atlantic City Associates (“ACA”) hired Carter & Burgess Consultants, Inc. (“C&B”) to oversee construction of a development in Atlantic City, New Jersey. Following numerous delays, ACA sued C&B and obtained a total recovery, including attorneys’ fees, costs and interest, of nearly $13 million. On appeal, C&B argued that the District Court failed to apply several clauses of the parties’ agreement waiving consequential damages, and failed to enforce an additional clause limiting C&B’s total liability to its compensation.…
Los Angeles Unified School District v. Great American Insurance Company
49 Cal. 4th 739 (July 12, 2010)
On July 12, 2010, the California Supreme Court filed a ruling significant to public entities entering into contracts for public works projects. In Los Angeles Unified School District v. Great American Insurance Company, the Court held that a public entity “may be required to provide extra compensation if it knew, but failed to disclose, material facts that would affect the contractor’s bid or performance,” even when the failure to disclose information was not fraudulent. Articulating a test modeled after the federal courts’ superior knowledge doctrine, the high court articulated four conditions that must be met for such liability to attach.…
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