Prime Contractor Wins Summary Judgment Upholding Right to Terminate Subcontractor For Failure To Provide Submittals And Sufficient Work Force

Quality Trust Inc. v. Cajun Contractors, Inc.
2007 U.S. Dist. Lexis 25431 (D. Kan. 2007)

The District Court granted the prime contractor summary judgment on its right to terminate a subcontractor for failure to provide submittals and sufficient work force, while at the same time holding that the contractor was not entitled to summary judgment on the subcontractor’s claims for delay damages and contract balances.

Prime contractor, Cajun Contractors, Inc. (“Cajun”), entered into a general contract with the United States Army Corps of Engineers (“COE”) for the construction of a wastewater facility at Fort Riley, Kansas. The project entailed the partial demolition of an existing facility and the construction of a new facility. Cajun subcontracted with Quality Trust, Inc. (“QTI”) to erect eight metal buildings as part of the new facility. Under the subcontract, Cajun was to construct the concrete building pads, to procure the buildings through a third party supplier, and to provide the buildings for QTI to erect and finish. Continue reading “Prime Contractor Wins Summary Judgment Upholding Right to Terminate Subcontractor For Failure To Provide Submittals And Sufficient Work Force”

Contractor’s Insistence That Subcontractor Execute Release Not Required By Subcontract As Condition To Final Payment Permits Imposition Of Penalty Interest Under Pennsylvania Contractors And Subcontractors Payment Act

Scandale Associated Builders & Engineers, Ltd. v. Bell Justice Facilities Corp.
No. 4:03-CV-1773, 2007 U.S. Dist. LEXIS 25112 (M.D. Pa. April 4, 2007)

In January 2001, Scandale Associated Builders & Engineers, Ltd. (“Scandale”) entered into a subcontract (“Subcontract”) with Bell Justice Facilities Corporation (“Bell”) for work on the construction of the U.S. Penitentiary/Federal Prison Camp at Canaan, Pennsylvania (“Prison”). The Subcontract required Scandale to perform cast-in-place concrete work on the Prison. Bell was the general contractor and the United States through the Federal Bureau of Prisons was the Owner. Continue reading “Contractor’s Insistence That Subcontractor Execute Release Not Required By Subcontract As Condition To Final Payment Permits Imposition Of Penalty Interest Under Pennsylvania Contractors And Subcontractors Payment Act”

Pennsylvania Court Holds Waiver Of Subrogation Provision Contained In AIA General Conditions Bars Insurer’s Claim Even Though It Did Not Consent To Or Have Notice Of The Waiver

Universal Underwriters Insurance Co. v. A. Richard Kacin, Inc.
916 A.2d 686 (Pa. Super. Ct. 2007)

The Superior Court of Pennsylvania held that the American Institute of Architects’ (“AIA”) form waiver of subrogation clause barred a subrogation claim even where the loss was created by the contractor’s own negligence. Relying on Penn Avenue Place Assoc., L.P. v. Century Steel Erectors, Inc., 798 A.2d 256 (Pa. Super. Ct. 2002), the court held that a warranty provision did not invalidate the waiver of subrogation and opined that the warranty provision provided a remedy only to the extent that losses were not covered by insurance. The court further held that an insurer does not need to be party to the contract containing the waiver of subrogation clause nor does the insurer need to consent to or have notice of the waiver of subrogation clause in order for it to be enforceable. Continue reading “Pennsylvania Court Holds Waiver Of Subrogation Provision Contained In AIA General Conditions Bars Insurer’s Claim Even Though It Did Not Consent To Or Have Notice Of The Waiver”