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HTMLThe Risks Of Using Criminal Statutes To Collect Construction Debts
John R. Lockard; Vandeventer Black LLP;
Legal Alert/Article
July 15, 2015, previously published on July 15, 2015
The 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...


HTMLConstruction Cases: Statute of Repose Commences When the Contract, Not the Construction, Is Completed
Robert Garcia; Marshall Dennehey Warner Coleman & Goggin, P.C.;
Legal Alert/Article
July 14, 2015, previously published on July 6, 2015
The 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...


HTMLWhat New Attorneys Should Know About Construction Law
Nicole A. Poltash; Gentry Locke Rakes & Moore, LLP;
Legal Alert/Article
July 13, 2015, previously published on July 2015
Attorneys 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...


HTMLShould You Agree to Provide Performance Guarantees and Warranties? It Depends On the Project Delivery Method.
Jay R. Houghton; Smith, Currie & Hancock LLP;
Legal Alert/Article
July 9, 2015, previously published on June 1, 2015
When 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...


HTMLErosion of the Spearin Doctrine of Implied Warranty in Alternative Project Delivery Methods
Joseph R. Young; Smith, Currie & Hancock LLP;
Legal Alert/Article
July 9, 2015
The 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...


HTMLCollecting Judgments Across State Lines
Joseph J. Dinardo; Smith, Currie & Hancock LLP;
Legal Alert/Article
July 9, 2015, previously published on March 12, 2015
In 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....


HTMLStrategic Considerations for Pay-If-Paid Provisions in Ohio
Lowell T. Woods; Taft Stettinius & Hollister LLP;
Legal Alert/Article
July 7, 2015, previously published on July 2, 2015
In 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...


HTMLIllinois Mechanics Lien Act to Allow Substitution of Bond for Property as Security for Payment of Claims
Elizabeth J. Boddy; Taft Stettinius & Hollister LLP;
Legal Alert/Article
July 7, 2015, previously published on July 2, 2015
Illinois 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...


Adobe PDFChanges to Florida's Construction Defect Notice Statute
Matthew Stock, Peter C. Vilmos; Burr & Forman LLP;
Legal Alert/Article
July 1, 2015, previously published on June 2015
Florida 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...


HTMLVariation to the Lump Sum Contract: the Deductive Change Directive
Andrew N. Felice; Rees Broome, PC;
Legal Alert/Article
June 26, 2015, previously published on Spring 2015
On 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...


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