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RSP Architects, Ltd. v. Five Star Dev. Resort Communities, LLC
306 P.3d 93 (Ariz. Ct. App. 2013)

This action arose from a payment dispute on a construction project where an architectural firm, RSP Architects, Ltd. (“RSP”), contracted with a developer, Five Star Development Resort Communities, LLC (“Five Star”), to provide architectural services for a development known as the Palmeraie (the “Project”). Pursuant to the architectural services contract (the “Architectural Agreement”), RSP was tasked with several different duties, including “construction administration,” “overall coordination,” and “conceptual design” related to the Project. For its services, RSP was to receive approximately $3,000,000. Prior to completion, however, RSP ceased work on the Project and sued Five Star, alleging, among other claims, a violation of Arizona’s Prompt Payment Act, A.R.S. § 32-1129 et seq. (the “PPA”).…

Continue Reading Arizona Court of Appeals Rules Prompt Payment Act Does Not Apply To Design Professionals When Performing Normal Architectural and Engineering Services

Engeman Enterprises, LLC, v. Tolin Mechanical Systems Company
2013 Colo. App. LEXIS 345 (Colo. App. Mar. 14, 2013)

Engeman operates a cold storage facility and Tolin designs, installs, maintains, and repairs cooling systems. In 2008, Engeman engaged Tolin for an emergency repair at Engeman’s facility. The parties entered into two agreements, both of which stated that Tolin would perform its work in a “prudent and workmanlike manner,” and which disclaimed Tolin’s liability beyond repairing issues caused by defective workmanship.…

Continue Reading Colorado Court of Appeals Upholds Summary Judgment Barring Owner Tort Claims Against Service Contractor Pursuant To Economic Loss Rule

Lasalle Group, Inc. v. JST Properties, LLC
2011 U.S. Dist. LEXIS 83548 (S.D. Mich. July 29, 2011)

LaSalle, as general contractor, obtained a contract for construction of a school building in Gulfport, Mississippi. LaSalle subcontracted the concrete work on the project to Gulf Coast. American Contractors Indemnity Company (“ACIC”) provided performance and payment bonds to support LaSalle’s obligations under the subcontract.…

Continue Reading U.S. District Court in Michigan Denies Performance Bond Claim for Contractor’s Failure to Meet Conditions Precedent – Also Holds that Surety May Proceed with Overpayment Defense and Counterclaim

A. Servidone, Inc. v. Bridge Technologies, LLC,
2001 N.Y. App. Div. LEXIS 1407 (N.Y. App. Div. Feb. 8, 2001)
Servidone contracted with the State Department of Transportation to build three bridges. Pursuant to that contract, Servidone subcontracted with Bridge Technologies, Inc., for installation of the superstructures of two of the bridges. During the performance of the subcontract work, Bridge Technologies, Inc. was dissolved, and its parent corporation, Bridge Technologies Ltd. continued the performance of the subcontract. Servidone, however, was not notified of the dissolution.
Continue Reading New York Court Holds That Parent of Dissolved Subcontractor May Not Sue Prime Contractor or Surety Absent Formal Merger or Prime Contractor’s Assent to Substitution