US Supreme Court False Claims Act Decision in Escobar Has Significant Implications for Contractors

Marion T. Hack, Partner
John H. Conrad, Associate

On June 16, 2016, the U.S. Supreme Court ruled in the matter of Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016), changing the legal landscape for False Claims Act qui tam claims concerning the implied false certification theory of liability. This article will discuss the Escobar holding and examine relevant considerations for contractors in light of this ruling. Continue reading “US Supreme Court False Claims Act Decision in Escobar Has Significant Implications for Contractors”

Eastern District of Pennsylvania Distinguishes Bilt-Rite in Dispute Involving Information Provided to Designers by Remedial Contractor

Elliott-Lewis Corp. v. Skanksa USA Bldg., Inc., 2016 U.S. Dist. LEXIS 59406 (E.D.Pa. May 4, 2016)

The Federal District Court for the Eastern District of Pennsylvania held that the narrow exception to the economic loss doctrine carved out in Bilt-Rite Contractors, Inc. v. The Architectural Studio – where the Pennsylvania Supreme Court held that architects and other design professionals may be held liable to third parties that rely to their detriment on false information provided in design documents by architects and other design professionals – does not apply to a contractor that supplied information to design professionals in connection with remedial work performed by the contractor. Continue reading “Eastern District of Pennsylvania Distinguishes Bilt-Rite in Dispute Involving Information Provided to Designers by Remedial Contractor”

Court of Appeals of Michigan Holds Contractor Cannot Recover Eichleay Damages from Supplier Absent Contractual Right and Proof that Delay in Delivery Caused an Actual Loss

ITT Water & Wastewater USA, Inc. v. L. D’Agostini & Sons, Inc., 2016 Mich. App. LEXIS 579 (March 17, 2016)

This action arises out of a contract dispute between plaintiff, ITT Water & Wastewater USA, Inc. (“ITT”), and defendant, L. D’Agostini & Sons, Inc./Lakeshore Engineering Services, Inc. Joint Venture (“D’Agostini”), related to ITT’s supply of eight water pumps to D’Agostini on a project to construct a sanitary and storm water treatment and pumping station.  D’Agostini filed a counterclaim against ITT, alleging that ITT’s late pump delivery delayed the project by 103 days.  The trial court granted ITT’s motion for partial summary disposition and ruled that D’Agostini could not rely upon the Eichleay formula for determining its alleged home office overhead damages.  The parties then dismissed, without prejudice, the remaining claims and D’Agostini appealed. Continue reading “Court of Appeals of Michigan Holds Contractor Cannot Recover Eichleay Damages from Supplier Absent Contractual Right and Proof that Delay in Delivery Caused an Actual Loss”