Subcontract

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SME Indus., Inc. v. Thompson, Ventulett, Stainback & Assocs., Inc.
C.A. No. 990869, 2001 Utah LEXIS 90 (June 26, 2001)
In SME Indus., Inc. v. Thompson, Ventulett, Stainback & Assocs., Inc., the Supreme Court of Utah addressed the ability to assign of claims for damages for breach of contract to a party who is not in privity with the alleged wrongdoer. That court determined that summary judgment was inappropriate because it was ambiguous whether the parties intended to include the assignment of causes of action under a “no assignment” clause. Id. at *16.

BAE Automated Sys., Inc. v. Morse Diesel Int’l, Inc.
01 Civ. 0217 (SAS), 2001 U.S. Dist. Lexis 6682 (S.D.N.Y. May 22, 2001)
The United States District Court for the Southern District of New York granted an order staying all proceedings in a construction dispute pending resolution by a dispute resolution board (“DRB”) in this case. This case involved a breach of contract claim brought by BAE Automated Systems, Inc. (“BAE”), a baggage handling subcontractor, against AMEC Construction Management, Inc. (“AMEC”), the construction manager of a project to build a new terminal at John F. Kennedy International Airport (the “Project”). AMEC then brought a third-party claim against the owner of the Project, Terminal One Group Association (“TOGA”).

McCandlish Electric, Inc. v. Will Construction Co.
No. 18935-0-III, 2001 Wash. App. LEXIS 1364 (June 28, 2001)
Will Construction Co. (“Will”) was awarded a contract from the City of Leavenworth for renovations to a wastewater treatment plant. In its successful bid, Will had used a bid from McCandlish Electric, Inc. (“McCandlish”) submitted for the electrical subcontract. Will also listed McCandlish, pursuant to contract, as the electrical subcontractor in its bid submission to the City.

Cullum Mechanical Construction, Inc. v. South Carolina Baptist Hospital
Case Volume, Reporter: 344 S.C. 426, 544 S.E.2d 838 (2001)
Jenkins, Hancock & Sides Architects & Planners, Inc. (the “Architect”) entered into a design contract for the renovation of a medical center. Under its contract, the Architect was responsible for reviewing the General Contractor’s payment applications and certifying amounts due. Moreover, the Architect had the ability to withhold certification if the General Contractor failed to pay its subcontractors.

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.

Worth Constr. Co. v. I.T.R.I. Masonry Corp.,
2001 U.S. Dist. LEXIS 2144 (S.D.N.Y. Feb. 21, 2001)
Worth Construction entered into a masonry subcontract with ITRI Masonry for a correctional facility in New York. Due to cash flow concerns, ITRI requested and Worth acquiesced to an arrangement where Worth would pay ITRI’s actual payroll costs, but not payroll taxes or benefits, on a weekly basis. These costs would then be deducted from ITRI’s monthly progress payment. Nevertheless, ITRI began to fall behind in its payments to vendors and its workforce. Subsequently Worth began paying ITRI’s payroll and suppliers by joint check. Eventually Worth terminated ITRI for nonperformance on March 13, 1998 and hired all of ITRI’s tradesmen and supervisors to complete the masonry work.

Interwest Construction v. A.H. Palmer & Sons,
292 Utah Adv. Rep. 27, 1996 Utah LEXIS 44 (Utah June 14, 1996)
The Supreme Court of Utah held that the intermediate court of appeals erred in holding that a tort action for negligence and strict liability arising out of a breach of contractually defined obligations was precluded. However, the Supreme Court of Utah also held that the tort claims should be dismissed because the claimant failed to prove causation between the alleged defect and the resultant injury.

Allgood Electric Co. v. Martin K. Eby Constr. Co.,
85 F.3d 1547, 1996 U.S. App. LEXIS 15252 (11th Cir. June 25, 1996)
Under Georgia law, subcontractor’s release of all claims against property on which project was located did not operate to release claims against contractor, nor was contractor entitled to benefit of release in which contractor was not mentioned by name.
Plaintiff Allgood Electric Company (“Allgood”) was the electrical subcontractor on a prison project for the Georgia Building Authority (“GBA”). Defendant Martin K. Eby Construction Company, Inc. (“Eby”) was the general contractor. Allgood sought to recover increased costs allegedly caused by Eby’s failure to coordinate various aspects of the project. Allgood also claimed entitlement to retainage.

St. Lawrence Explosives v. Worthy Bros. Pipeline,
916 F.Supp. 187 (N.D.N.Y. 1996)
The Petitioner, St Lawrence, requested confirmation and judgment to be entered upon an arbitration award in favor of St Lawrence and against the Respondent, Worthy Brothers.
St Lawrence Explosives and Worthy Brothers Pipeline entered into a subcontract for construction of a gas pipeline within New York which would connect into an international pipeline. The subcontract was a Standard Form of Agreement Between Contractor and Subcontractor: AIA Document A401. Article 6.1 of the subcontract provided that if the Prime Contract did not provide for arbitration, then disputes would be resolved in accordance with the Construction Industry Arbitration Rules (“AAA Rules”). Article 6.4 provided that the award shall be final and judgment may be entered upon it. But, Article 6.4 in the above subcontract agreement was crossed out.