Owner successfully denies contractor’s “extra” and quantum meruit claims for additional payment on sewer system work repair and retrofit work needed to satisfy local government requirements. The decision: Archon Construction Co. v. U.S. Shelter (PDF). Backstory – Archon Construction Co. v. U.S. Shelter Owner develops a subdivision for new homes. The subdivision needs a sewer… Continue Reading
Category Archives: Claims
Subscribe to Claims RSS FeedPresumption Against Pay-if-Paid in Construction Contracts – Beal Bank Nevada v. Northshore Center THC
Posted in ClaimsOwner 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 FormationPrime 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, StatesFees 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
Krahl Construction: Owner Claims Over-Billing Led to Tipping Off the FBI
Posted in Claims, Construction Finance and Insolvency, Illinois, StatesKrahl Construction customer sues alleging over-billing and tipping-off law enforcement
Construction Claims and Cases On The Rise
Posted in Claims, Countries (Other Than USA), Damages (Liquidated), Great BritainFinancial Times reports that construction claims are on the rise in the UK
Illinois Home Repair and Remodeling Act: Contractors Must Still Beware
Posted in Alternative Dispute Resolution, Arbitration, Claims, IllinoisThe Illinois Home Repair and Remodeling Act: recent decisions on whether contractors who fail to comply can get paid and the Home Builders Association of Illinois report on how to raise your odds of successful compliance
FDIC Stay of Litigation Powers
Posted in Claims, Construction Finance and Insolvency, FDIC & Bank Failures, Statute of LimitationsHow the FDIC can stay all litigation and other proceedings involving a failed bank for up to 90 days
Prior Work Clauses in Construction Contracts and Architects Agreements
Posted in Claims, Prior Work ClausesAfter years of working on architects agreements, I’ve noticed that it seems like more often then not the architect starts work on a design before they and the owner get around to actually signing an architects agreement. The same goes for contractors and construction contracts. This brings up a problem that actually has a couple… Continue Reading
Defining Claims in Construction Contracts and Architects Agreements
Posted in ClaimsWhy 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