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Category Archives: Claims

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Presumption Against Pay-if-Paid in Construction Contracts – Beal Bank Nevada v. Northshore Center THC

Posted in Claims

Owner fails to pay prime contractor. Prime denies payment to a subcontractor, citing subcontract language that the prime contends conditions payment to the subcontractor on prior owner payment to the prime. Result: the subcontract language isn’t clear enough to support the prime’s weight; the prime must pay the subcontractor regardless of whether the owner paid… Continue Reading

Contracts Without Signatures and No Secret Agents: Trapani Construction v. The Elliott Group

Posted in Agents & Agency, Claims, Contract Formation

Prime contractor and owner exchange drafts of a proposed contract. They never sign. But they proceed with work and payment as if they did. Result: that proposed contract is their contract and binds them both. Owner doesn’t want to be liable under that contract, claims they were acting merely as agent for someone else, though… Continue Reading

No Mechanics Lien For Pre-Purchase Due Diligence Consultants

Posted in Claims, Environmental, Illinois, Mechanics Liens, States

Fees for property purchase feasibility consulting are not secured by a mechanics lien. That’s what a panel of Illinois Appellate Court Justices held in Mostardi-Platt Associates v. Czerniejewski. Backstory Power Holdings of Illinois wants to build a new synthetic fuel plant that processes coal into gas. They need land for the proposed plant. So, as… Continue Reading

Defining Claims in Construction Contracts and Architects Agreements

Posted in Claims

Why Define Claims? Designers, contractors, owner, lenders, and the like often get into disputes involving the design or building of a construction project. When this happens, we usually say “they’re making a claim” or something like that.  Other times, we say “they’re waiving their claims.”  But what do we really mean when we refer to claims. … Continue Reading