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Category Archives: States

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Waiting for Claim Assignment Doesn’t Toll Statute of Limitations: American Family v. Plunkett

Posted in Assignments, Illinois, Insurance, States, Statute of Limitations

After paying a flood damage claim, an insurance company waits too long to get an assignment of the rights to sue a contractor and architect. Result: the insurance company’s lawsuit gets dismissed and the Illinois Appellate Court affirms. The decision: American Family v. Plunkett (PDF). Backstory An owner’s property floods in the summer of 2006…. Continue Reading

Construction Mortgage Foreclosure Does Not Wipe Out Reciprocal Easement Agreement Rights: Bank of America v. Cannonball

Posted in Construction Finance and Insolvency, Illinois, Mechanics Liens, States, Uncategorized

A foreclosing construction lender recently tried to wipe out liens securing debt under a shopping center cross-use and easement agreement. The Illinois Appellate Court denied that attempt. The decision: Bank of America v. Cannonball LLC. Backstory It starts with a new shopping center with a Home Depot, a Kohl’s, and a Target. The local village… 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

No Setoff for FDIC Contract Repudiation Damages Under Placida v. FDIC

Posted in Attorneys Fees and Costs, FDIC & Bank Failures, Florida, States, Uncategorized

When a bank fails and the FDIC repudiates a construction loan—ending further “draws” or disbursements—the borrowers can’t setoff damages they suffer because of repudiation to reduce the amount of debt they owe under the loan. That’s what a panel of judges from the US Court of Appeals for the 11th Circuit decided in Placida v…. Continue Reading

Construction Contract Requires Written Invoice Before Owner Must Pay Contractor: Kasinecz v. Duffy

Posted in Completion, Illinois, Mechanics Liens, States, Uncategorized

A panel of Illinois Appellate Court justices recently reminded contractors: if you want to get paid, comply with your contract. That reminder—along with some other interesting things to remember—comes in this decision: Kasinecz v. Duffy (PDF). Kasinecz v. Duffy Backstory Kasinecz v. Duffy starts as an owner and prime contractor contract to renovate a building…. Continue Reading

Illinois House Votes to Pass HB3636 to Amend Mechanics Lien Act

Posted in Bills and Proposed Legislation, Illinois, Mechanics Liens

This afternoon, the Illinois House voted to pass (PDF) HB3636, a bill to amend the Illinois Mechanics Lien Act and overturn the Illinois Supreme Court’s Cypress Creek v. LaSalle Bank (PDF) on the priority of construction mortgages vs. mechanics liens. Already passed by the Illinois Senate, this bill now goes to Governor Quinn for him… Continue Reading

FDIC vs. Construction Lenders Jury Verdict: IndyMac Bankers Liable for $169 Million

Posted in California, Construction Finance and Insolvency, FDIC & Bank Failures, States

Jurors awarded this $169M verdict (PDF) against three former IndyMac Bank executives for originating dubious construction and development loans. It happened last Friday in Los Angeles at the US District Court for the Central District of California. $169M Verdict Against Former Indyac Bank Executives In their original complaint (PDF), the FDIC alleged: That the former… Continue Reading

Arbitration: Supreme Court Reaffirms It’s Mandatory For State Law Claims Under Federal Arbitration Act

Posted in Alternative Dispute Resolution, Arbitration, Oklahoma, States, Uncategorized

The US Supreme Court just issued another decision reaffirming that the Federal Arbitration Act compels state—as well as federal—courts to recognize and enforce contractual arbitration provisions, even when the focus of the litigants’ dispute is violation of state law. The decision: Nitro-Lift v. Eddie Lee.  

What are Performance Bonds and How Do They Work

Posted in Bonds, Illinois, States, Sureties

Welcome to the second article in a three-part series on Illinois surety bonds, compliments of guest author Danielle Rodabaugh. Danielle is a principal for SuretyBonds.com and is discussing the three basic types of construction bonds: Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4   ●  Bid bonds Normal 0 false false false EN-US X-NONE… Continue Reading

What is a Statute of Repose

Posted in North Carolina, States, Statute of Repose, Statutes of Limitation

We’ve talked about statues of repose and how they affect construction projects in the past.  Well Melissa Dewey Brumback at Construction Law in North Carolina just published a superlative statute of repose piece: Statute of Repose: Putting your Risk to Bed.  I like Melissa’s work so much, especially how she compares a statute of repose to a… Continue Reading

Performance Bonds and Green Building: Interview With Green Building Law Update’s Chris Cheatham

Posted in Bills and Proposed Legislation, District of Columbia, Green Building and Design, States

Chris Birk from SuretyBonds.com recently interviewed Green Building Law Update’s Chris Cheatham about how green building affects performance bonds and the DC green building law.  The interview is informative and I enjoyed listening.  It’s 15 minutes well spent.  Click here to tune-in.