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|The Risks Of Using Criminal Statutes To Collect Construction Debts|
John R. Lockard; Vandeventer Black LLP;
July 15, 2015, previously published on July 15, 2015The failure to make payment on a construction contract may not only result in a claim for money damages in a civil lawsuit, but it may also result in a violation of a criminal statute. For example, Code of Virginia Section 43-13 makes it a felony to use funds received for a particular construction...
|Construction Cases: Statute of Repose Commences When the Contract, Not the Construction, Is Completed|
Robert Garcia; Marshall Dennehey Warner Coleman & Goggin, P.C.;
July 14, 2015, previously published on July 6, 2015The appellant condominium complex filed suit against various defendants for construction defects. The appellee subcontractor moved to dismiss the appellant’s claims on the basis that they were filed outside the ten-year statute of repose. Pursuant to section 95.11(3)(c), Fla. Stat., an action...
|What New Attorneys Should Know About Construction Law|
Nicole A. Poltash; Gentry Locke Rakes & Moore, LLP;
July 13, 2015, previously published on July 2015Attorneys often pride themselves on being objective—on being able to see both sides of the story and then adamantly argue for that side which is their client’s. Of course, there are also two sides to practicing in each area of the law. Below are some of the dual lessons I have learned...
|Should You Agree to Provide Performance Guarantees and Warranties? It Depends On the Project Delivery Method.|
Jay R. Houghton; Smith, Currie & Hancock LLP;
July 9, 2015, previously published on June 1, 2015When confronted by a project delivery method other than the traditional design-bid-build method, owners and contractors must be cognizant of exactly how that changes the project’s risk profile. One obvious risk on every project is whether the project will satisfy the owner’s performance...
|Erosion of the Spearin Doctrine of Implied Warranty in Alternative Project Delivery Methods|
Joseph R. Young; Smith, Currie & Hancock LLP;
July 9, 2015The United States Supreme Court ruled nearly a century ago that a contractor is not responsible for consequences of defects in the plans and specifications when that contractor is bound to build according to plans and specifications prepared by the owner. U.S. v. Spearin, 248 U.S. 132 (1918). This...
|Collecting Judgments Across State Lines|
Joseph J. Dinardo; Smith, Currie & Hancock LLP;
July 9, 2015, previously published on March 12, 2015In recent years, many in the construction industry have found themselves in the situation of having obtained a judgment against an owner, general contractor, or subcontractor in one state only to find out that the debtor has moved its operations or assets to another state to avoid its creditors....
|Strategic Considerations for Pay-If-Paid Provisions in Ohio|
Lowell T. Woods; Taft Stettinius & Hollister LLP;
July 7, 2015, previously published on July 2, 2015In Ohio, as confirmed by the Ohio Supreme Court in Transtar Electric, Inc. v. A.E.M. Electric Services Corp., 140 Ohio St.3d 193, 2014-Ohio-3095, pay-if-paid clauses are enforceable provided that appropriate language is used. While such provisions are considered unreasonable from a subcontractor's...
|Illinois Mechanics Lien Act to Allow Substitution of Bond for Property as Security for Payment of Claims|
Elizabeth J. Boddy; Taft Stettinius & Hollister LLP;
July 7, 2015, previously published on July 2, 2015Illinois is about to join the ranks of at least 35 other states and territories that permit substitution of a surety bond in lieu of real estate as security for payments due contractors who assert mechanics liens on private projects. Illinois House Bill 2635, adding new Section 38.1 to the Illinois...
|Changes to Florida's Construction Defect Notice Statute|
Matthew Stock, Peter C. Vilmos; Burr & Forman LLP;
July 1, 2015, previously published on June 2015Florida Governor Rick Scott signed a new bill that changes Florida's construction defect notice statute, effective October 1, 2015. Changes to the Florida statute include: (I) an amendment to section 558.001, revising legislative intent; (II) an amendment to section 558.002, revising the definition...
|Variation to the Lump Sum Contract: the Deductive Change Directive|
Andrew N. Felice; Rees Broome, PC;
June 26, 2015, previously published on Spring 2015On your current project and like many general contractors, you front end loaded your schedule of values, perhaps excessively. The project has been humming along as planned, with the owner paying all of your payment requests without objection. But now halfway into the project, the owner decides to...