Construction Law Review is an update and discussion of current trends in construction law, published by attorneys at Pepper Hamilton LLP with offices in Philadelphia, New York, Boston, Washington DC, Pittsburgh, Princeton, Wilmington, Silicon Valley, Orange County, Los Angeles, Harrisburg, Detroit, and Berwyn.
On April 12, 2019, the Iowa Supreme Court affirmed a lower court ruling which held that, inter alia, the Iowa mechanic’s lien statute would not permit the attachment of mechanic’s liens to the property of a lessor in connection with a contract to supply materials and labor to a lessee.
Stag II Lindon LLC and Stag Industrial Inc. (collectively “Stag”) owned a building in Lindon, Utah. Stag contracted with CentiMark Corp. (“CentiMark”) to perform work on the building’s roof. CentiMark’s work required it to manipulate, move, and reinstall existing heating cables on the roof. Shortly after completion of the work, in March of 2014, a fire occurred on the roof which was traced to the location of heat tape, which CentiMark had removed and replaced.
On March 1, 2019, the Supreme Court of New York, Albany County, granted a subcontractor’s motion for summary judgment on a payment dispute involving a “pay-when-paid” contract provision.
Defendant Plank, LLC (“Contractor”) entered into a construction contract with Dutch Village, LLC (“Owner”) to act as the general contractor for the construction of four apartment buildings (“Project”). Thereafter, Contractor entered into a subcontract with Plaintiff A.E. Rosen Electrical, Inc. (“Subcontractor”) for electrical work on the Project. After nine months of work on the Project, a payment dispute arose between the Owner and Contractor. At that time, Contractor directed the Subcontractor to cease work on the Project.