May 2013

Miner Dederick Constr., LLP v. Gulf Chemical & Metallurgical Corp.
2013 Tex. App. LEXIS 4589 (Tex. App. April 11, 2013)

Gulf Chemical & Metallurgical Corporation (“Gulf”) hired Miner Dederick Construction, LLP (“Miner”) in May 2005 to construct an addition to a hazardous waste containment building. The addition, designed by a third-party engineer, included a 140-foot expansion joint between the existing and new foundations. Due to the hazardous materials stored in the facility, the expansion joint included a specialty sealant system and was designed prevent fluid leakage. Miner completed construction in January 2006, but by June 2006 Gulf discovered leakage through the expansion joint.

Gulf requested that Miner implement the engineer’s design for repairing the expansion joint under the contract warranty provisions. Miner refused, claiming that it installed the expansion joint per the original design and the repair was a redesign. Gulf bid the repair work and hired a different contractor to repair the expansion joint.Continue Reading Texas Appeals Court Reverses Jury Verdict for Owner, Holding Owner’s Repair of Allegedly Defective Expansion Joint Without Allowing Contractor to Inspect for Conformity to Design Constituted Spoliation

Engeman Enterprises, LLC, v. Tolin Mechanical Systems Company
2013 Colo. App. LEXIS 345 (Colo. App. Mar. 14, 2013)

Engeman operates a cold storage facility and Tolin designs, installs, maintains, and repairs cooling systems. In 2008, Engeman engaged Tolin for an emergency repair at Engeman’s facility. The parties entered into two agreements, both of which stated that Tolin would perform its work in a “prudent and workmanlike manner,” and which disclaimed Tolin’s liability beyond repairing issues caused by defective workmanship.Continue Reading Colorado Court of Appeals Upholds Summary Judgment Barring Owner Tort Claims Against Service Contractor Pursuant To Economic Loss Rule

Paragon Constr. Co. v. Dep’t of Pub. Works
2013 Conn. Super LEXIS 789 (Conn. Super. Ct. 2013)

The Connecticut Department of Public Works and the Connecticut Department of Corrections (collectively “the State”) solicited bids for the renovation of a correctional center. Paragon Construction Co. (“Paragon”) was awarded the contract, and it subcontracted with MacKenzie Painting Co. (“MacKenzie”) for work relating to de-leading and painting security bars on the windows of the correctional center.Continue Reading Connecticut Superior Court Affirms Judgment for Contractor on Claim for Extra Work, Holds Substantial Compliance Satisfies Notice Requirement and Approves Damages Calculated on Variants of the Total Cost Method and Eichleay Formula

TRG Construction, Inc. v. District of Columbia Water & Sewer Authority
2013 D.C. App. LEXIS 257 (May 9, 2013)

Appellant, TRG Construction, Inc. (“TRG”), was hired by the District of Columbia Water and Sewer Authority (“D.C. Water”) to renovate bathrooms at D.C. Water’s central operations facility. When TRG initially contracted with D.C. Water it agreed to complete the bathroom renovations by June 13, 2004. The project suffered delays, however, and the deadline for completion was extended to July 31, 2005. Before that deadline, TRG requested another extension. D.C. Water declined to grant the request. Shortly thereafter, D.C. Water sent TRG a cure notice detailing several alleged deficiencies in TRG’s work. TRG declined to fix the problems asserting that its work was not defective. On September 2, 2005, D.C. Water terminated TRG’s contract for convenience.Continue Reading DC Court Holds that Authority’s Consideration Of Contractor’s Claim on Merits Raises Issue of Fact as to Waiver of Late Notice Defense

Cresci Constr. Servs., Inc. v. Martin
2013 Pa. Super. LEXIS 154 (Pa. Super. Ct. Mar. 28, 2013)

Martin hired Cresci to build a home in exchange for $184,730. The Contract included a liquidated damages clause that applied if Martin canceled the contract before Cresci began constructing the home. The Contract did not include any other liquidated damage clauses.Continue Reading Superior Court of Pennsylvania Holds Award of Prejudgment Interest on Damages for Breach of Contract is Discretionary in Most Circumstances

United States of America ex rel Duncan Pipeline, Inc. v. Walbridge Aldinger Co.
2013 U.S. Dist. LEXIS 45982 ( S.D. Ga. Mar. 29, 2011)

This action arose out of a subcontractor’s claim for additional compensation for extra work. Walbridge Aldinger Co. (“Walbridge”), general contractor for the U.S. Army Corps of Engineers on construction project at Fort Stewart in Georgia (the “Project”), entered into a subcontract with Duncan Pipeline, Inc. (“Duncan”). Pursuant to the subcontract, Duncan was to supply labor and material for the Project’s water distribution system. Duncan began its work in August 2009, and shortly thereafter, Walbridge ordered work that Duncan considered to be outside the scope of the subcontract, including installation of bell restraints, additional excavation work, and remobilization of crews because of interferences encountered during excavation. Duncan performed the allegedly extra work in August and September 2009, and submitted a bond claim to Walbridge and its surety in May 2010.Continue Reading U.S. District Court in Georgia Considers Effect of Releases Submitted with Applications for Payment, Notice Requirement as to Extra Work and Defective Specification Claims and No-Damage for Delay Provision

Lydon-Millwright, Inc. v. Ernest Bock & Sons, Inc.
2013 U.S. Dist. LEXIS 65019 (E.D. Pa. May 7, 2013)

This case arises out of a construction project at the Philadelphia International Airport to install a baggage handling system. Bock was the general contractor. Bock contracted Lydon to install the mechanical portion of the baggage handling system. The parties’ purchase order required Lydon to submit a release of liens and claims with each monthly payment application. Over the course of the project, Lydon submitted 54 payment applications, all of which contained the required release of liens and claims.Continue Reading U.S. District Court in Pennsylvania Denies GC’s Motion for Summary Judgment, Holding Issue of Fact Existed as to Whether GC’s Conduct During Settlement Discussions Waived Its Right to Rely on Claim Releases Submitted with Monthly Invoices

SRC Constr. Corp of Monroe v. Atl. City Housing Auth.
2013 U.S. Dist. LEXIS 47301 (D.N.J. April 2, 2013)

The U.S. District Court for the District of New Jersey denied a defendant architect’s motion for summary judgment, holding that the economic loss doctrine applies only to bar tort claims between parties to a contract.Continue Reading U.S. District Court in New Jersey Holds Economic Loss Doctrine No Bar to General Contractor’s Delay Claims Against Architect