Monthly Archives: October 2007

US Claims Court Explains Limits of Spearin Doctrine – Denies Contractor Recovery Where Testimony Regarding Defective Design Was Conclusory

Caddell Construction Co., Inc. v. United States 2007 U.S. Claims LEXIS 285, No. 04-461C, (September 7, 2007) The United States District Court of Federal Claims held that the design deficiencies alleged by the plaintiff contractor did not rise to the … Continue reading

Posted in Delay, Subcontract, Warranty | Tagged , , , ,

Federal Circuit Court of Appeals Holds that a Payment Bond Surety that Discharges a Contractor’s Obligation to Pay a Subcontractor is Equitably Subrogated to the Rights of Both the Contractor and Subcontractor and May Bring Suit Directly Against the United States

National American Insurance Company v. United States No. 2007-5016, 2007 U.S. App. LEXIS 20058 (Fed. Cir. August 23, 2007) The US Court of Appeals for the Federal Circuit upheld the lower court’s grant of a motion for summary judgment. The … Continue reading

Posted in Miller Act, Payment bond, Performance Bond, Subcontract | Tagged , , , ,

Federal District Court in PA Holds Contractor’s Use of Subcontractor’s Conditional Bid Proposal in its Bid to Owner Insufficient to Form Enforceable Contract

Neshaminy Constructors, Inc. v. Concrete Building Systems, Inc. 2007 U.S. Dist. LEXIS 69197, Civil Action No. 06-1489 (E.D. Pa. 2007) The United States District Court for the Eastern District of Pennsylvania conducted a bench trial in which the primary question … Continue reading

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Pennsylvania Supreme Court Reverses Commonwealth Court Ruling Barring Use of RFP Process for Procurement of Construction Work

Pa. Associated Builders and Contractors, Inc. v. Dep’t of Gen. Servs 2007 Pa. LEXIS 2175 (Oct. 17, 2007) On October 17, 2007 the Pennsylvania Supreme Court ruled that a lower court decision misinterpreted the state’s Procurement Code and that the … Continue reading

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Massachusetts Court Holds Owner’s Oral Promise to Pay Subcontractor Enforceable Under Main Purpose Exception to Statute of Frauds

Central Ceilings, Inc. v. Nat’l Amusements, Inc., 70 Mass. App. Ct. 172, 873 N.E.3d 754 (Sept. 18, 2007) National Amusements, Inc., entered into a contract with Old Colony Construction Corporation for the construction of National’s cinema theater complex. Old Colony … Continue reading

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