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	<title>Justia Construction Law Opinion Summaries</title>
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	<description>Daily Opinion Summaries for the Construction Law by Justia</description>
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		<title>PR Highway and Transp. Auth. v. Redondo Constr. Corp.</title>
		<link>http://constructionlawopinions.justia.com/2012/05/11/pr-highway-and-transp-auth-v-redondo-constr-corp/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/11/pr-highway-and-transp-auth-v-redondo-constr-corp/#comments</comments>
		<pubDate>Fri, 11 May 2012 20:05:19 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[U.S. 1st Circuit Court of Appeals]]></category>

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		<description><![CDATA[During the early 1990s, debtor Redondo entered into three construction contracts with the Authority: the Patillas project, construction of a bridge and access road; the Dorado project, replacement of a different bridge; the Mayguez project, highway imp... <a href="http://constructionlawopinions.justia.com/2012/05/11/pr-highway-and-transp-auth-v-redondo-constr-corp/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[During the early 1990s, debtor Redondo entered into three construction contracts with the Authority: the Patillas project, construction of a bridge and access road; the Dorado project, replacement of a different bridge; the Mayguez project, highway improvements. The Authority retained the right to modify the plans; Redondo had the right to seek extra compensation. Redondo also could claim extra compensation for certain contingencies requiring substantial additional work. Each project encountered unanticipated problems, including unforeseen site conditions and flawed design plans.  Redondo completed all three projects and submitted claims for additional amounts owed under the contracts, including claims for two subcontractors on the Mayaguez project. With the claims unresolved, Redondo filed for bankruptcy protection, 11 U.S.C. 1101-1174, and served the Authority with adversary complaints. The bankruptcy court awarded the debtor a total of $12,028,311.92 plus prejudgment interest at 6.5 percent, later reduced by $69,792.26. The district court affirmed. The First Circuit affirmed in part, rejecting claims concerning timely notice on one project and Redondo's standing to assert subcontractor claims.  The court vacated and remanded calculation of extended overhead damages and the award of prejudgment interest.]]></content:encoded>
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		<title>BMD Contractors, Inc. v. Fid. &amp; Deposit Co. of MD</title>
		<link>http://constructionlawopinions.justia.com/2012/05/11/bmd-contractors-inc-v-fid-deposit-co-of-md/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/11/bmd-contractors-inc-v-fid-deposit-co-of-md/#comments</comments>
		<pubDate>Fri, 11 May 2012 15:49:49 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Business Law]]></category>
		<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[U.S. 7th Circuit Court of Appeals]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/federal/appellate-courts/ca7/11-1345/11-1345-2012-05-11.html</guid>
		<description><![CDATA[BMD was a subcontractor for Industrial, a subcontractor for Walbridge, the general contractor for construction of a factory near Indianapolis. Fidelity was surety for Industrial’s obligations to BMD. The project proceeded for about a year before the ... <a href="http://constructionlawopinions.justia.com/2012/05/11/bmd-contractors-inc-v-fid-deposit-co-of-md/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[BMD was a subcontractor for Industrial, a subcontractor for Walbridge, the general contractor for construction of a factory near Indianapolis. Fidelity was surety for Industrial’s obligations to BMD. The project proceeded for about a year before the manufacturer declared bankruptcy.  Walbridge failed to pay Industrial, Industrial failed to pay BMD, and Fidelity refused to pay BMD, which sued Fidelity on the bond. Their subcontract conditioned Industrial's duty to pay on its own receipt of payment. The district court held that the pay-if-paid clause required Industrial to pay BMD only if Industrial received payment from Walbridge, rejecting an argument that it controlled only the timing of Industrial's obligation.  The court held that pay-if-paid clauses are valid under public policy and that Fidelity could assert all defenses of its principal. The Sixth Circuit affirmed. The subcontract expressly provides that Industrial's receipt of payment is a condition precedent to its obligation; it could have stated that BMD assumed the risk of the owner’s insolvency, but additional language was not necessary. Pay-if-paid clauses are valid under Indiana law and, under surety law, Fidelity may assert all defenses of its principal. Industrial was never obligated to pay BMD; BMD may not recover on the bond.]]></content:encoded>
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		<title>Ins. Co. of the West v. Island Dream Homes, Inc.</title>
		<link>http://constructionlawopinions.justia.com/2012/05/08/ins-co-of-the-west-v-island-dream-homes-inc/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/08/ins-co-of-the-west-v-island-dream-homes-inc/#comments</comments>
		<pubDate>Tue, 08 May 2012 18:50:46 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Injury Law]]></category>
		<category><![CDATA[Insurance Law]]></category>
		<category><![CDATA[Real Estate & Property Law]]></category>
		<category><![CDATA[U.S. 11th Circuit Court of Appeals]]></category>

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		<description><![CDATA[IWC appealed the district court's judgment as a matter of law in favor of IDH. Hawaiian, a Florida condominium, contracted with IDH for roof repair. While IDH was conducting the repairs, a large stone veneer wall fell, causing damage to the condominium... <a href="http://constructionlawopinions.justia.com/2012/05/08/ins-co-of-the-west-v-island-dream-homes-inc/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[IWC appealed the district court's judgment as a matter of law in favor of IDH. Hawaiian, a Florida condominium, contracted with IDH for roof repair. While IDH was conducting the repairs, a large stone veneer wall fell, causing damage to the condominium. Hawaiian's insurer, ICW, sued IDH for negligence. IDH alleged that the wall fell because it was structurally unsound. During trial, at the close of ICW's case, the district court granted IDH's motion for judgment as a matter of law, holding that no reasonable jury could find that IDH was negligent because ICW failed to present any evidence on the standard of care in the roofing industry. Without reaching the issue of whether roofers were "professionals" under Florida law, the court held that ICW was required to put forth some evidence of the standard of care in the roofing industry in order to meet its burden. Because ICW failed to do so, judgment as a matter of law was appropriate. Further, the specificity requirement in Rule 50(a)(2) did not bar the granting of judgment as a matter of law. Accordingly, the court affirmed the judgment.]]></content:encoded>
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		<title>The Building Industry Electric Contractors Assoc., et al. v. City of New York et al.</title>
		<link>http://constructionlawopinions.justia.com/2012/05/04/the-building-industry-electric-contractors-assoc-et-al-v-city-of-new-york-et-al/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/04/the-building-industry-electric-contractors-assoc-et-al-v-city-of-new-york-et-al/#comments</comments>
		<pubDate>Fri, 04 May 2012 18:11:01 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Contracts]]></category>
		<category><![CDATA[Government Contracts]]></category>
		<category><![CDATA[Labor & Employment Law]]></category>
		<category><![CDATA[U.S. 2nd Circuit Court of Appeals]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/federal/appellate-courts/ca2/11-3590/11-3590-2012-05-04.html</guid>
		<description><![CDATA[Plaintiffs appealed the dismissal of their complaint challenging a number of agreements entered into by the City of New York with respect to labor conditions on certain City construction projects. Plaintiffs argued that the agreements regulated the lab... <a href="http://constructionlawopinions.justia.com/2012/05/04/the-building-industry-electric-contractors-assoc-et-al-v-city-of-new-york-et-al/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[Plaintiffs appealed the dismissal of their complaint challenging a number of agreements entered into by the City of New York with respect to labor conditions on certain City construction projects. Plaintiffs argued that the agreements regulated the labor market and were therefore preempted by the National Labor Relations Act, 29 U.S.C. 151-169. The court found the project labor agreements in this case materially indistinguishable from agreements the Supreme Court found permissible under the market participation exception to preemption in Building and Construction Trades Council of Metropolitan District v. Associated Builders and Contractors of Massachusetts/Rhode Island Inc. Because the City acted as a market participant and not a regulator in entering the agreements, its actions fell outside the scope of NLRA preemption. Therefore, the court affirmed the judgment of the district court.]]></content:encoded>
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		<title>Barr Inc. v. Town of Holliston</title>
		<link>http://constructionlawopinions.justia.com/2012/05/03/barr-inc-v-town-of-holliston/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/03/barr-inc-v-town-of-holliston/#comments</comments>
		<pubDate>Thu, 03 May 2012 23:18:47 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Government & Administrative Law]]></category>
		<category><![CDATA[Massachusetts Supreme Court]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/massachusetts/supreme-court/2012/sjc-10899.html</guid>
		<description><![CDATA[This case stemmed from the town's solicitation of bids for the construction of a new police station. Barr Inc. submitted the lowest bid but the town determined that Barr was not a "responsible and eligible bidder," and that the contract should instead ... <a href="http://constructionlawopinions.justia.com/2012/05/03/barr-inc-v-town-of-holliston/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[This case stemmed from the town's solicitation of bids for the construction of a new police station. Barr Inc. submitted the lowest bid but the town determined that Barr was not a "responsible and eligible bidder," and that the contract should instead be awarded to the next-lowest bidder. Under G.L.c. 149, 44A(2)(D), contracts for the construction of public buildings estimated to cost above $100,000 "shall be awarded to the lowest responsible and eligible general bidder." At issue was whether, when an awarding authority was making a determination as to bidder responsibility, it was constrained to look only at materials compiled as part of the Department of Capital Asset Management's (DCAM's) contractor certification process. The court concluded that the competitive bidding statute placed no such restriction on awarding authorities. Therefore, the court could not conclude that the town exceeded its statutory authority by conducting an investigation into Barr's performance in past projects.]]></content:encoded>
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		<title>Eclipse Architectural Group, Inc. v. Lam</title>
		<link>http://constructionlawopinions.justia.com/2012/05/03/eclipse-architectural-group-inc-v-lam/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/03/eclipse-architectural-group-inc-v-lam/#comments</comments>
		<pubDate>Thu, 03 May 2012 00:31:59 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Minnesota Supreme Court]]></category>
		<category><![CDATA[Real Estate & Property Law]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/minnesota/supreme-court/2012/a10-1607.html</guid>
		<description><![CDATA[This case involved two mechanic's liens foreclosed against a hotel property. An agent of the lien claimants personally served mechanic's liens statements on the property owner. Appellant, a community bank, challenged the validity of this service. Appel... <a href="http://constructionlawopinions.justia.com/2012/05/03/eclipse-architectural-group-inc-v-lam/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[This case involved two mechanic's liens foreclosed against a hotel property. An agent of the lien claimants personally served mechanic's liens statements on the property owner. Appellant, a community bank, challenged the validity of this service. Appellant argued that a lien claimant may not personally serve a mechanic's lien statement, and therefore, service was improper. As a result, Appellant contended that the mechanic's liens were invalid and could not be foreclosed. The district court determined that service was proper and entered judgment in favor of the lien claimants. The court of appeals affirmed. The Supreme Court affirmed, holding that a lien claimant may personally serve a mechanic's lien statement, and therefore, service of the mechanic's lien statements in this case was proper.]]></content:encoded>
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		<title>Matter of Ovadia v Office of the Indus. Bd. of Appeals</title>
		<link>http://constructionlawopinions.justia.com/2012/05/01/matter-of-ovadia-v-office-of-the-indus-bd-of-appeals/</link>
		<comments>http://constructionlawopinions.justia.com/2012/05/01/matter-of-ovadia-v-office-of-the-indus-bd-of-appeals/#comments</comments>
		<pubDate>Tue, 01 May 2012 18:35:59 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Contracts]]></category>
		<category><![CDATA[Labor & Employment Law]]></category>
		<category><![CDATA[New York Court of Appeals]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/new-york/court-of-appeals/2012/72.html</guid>
		<description><![CDATA[This case arose when a real estate developer hired HOD to act as general contractor for the construction of two multi-family residences. HOD entered into a subcontract with Well Built for the masonry work. At issue was whether a general contractor acte... <a href="http://constructionlawopinions.justia.com/2012/05/01/matter-of-ovadia-v-office-of-the-indus-bd-of-appeals/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[This case arose when a real estate developer hired HOD to act as general contractor for the construction of two multi-family residences. HOD entered into a subcontract with Well Built for the masonry work. At issue was whether a general contractor acted as a joint employer of masonry workers, who were employed by one of its subcontractors, thereby owing unpaid wages to the subcontractor's workforce. The court held that the Board erred as a matter of law in relying on the federal six-factor test in Zheng v. Liberty Apparel Co., Inc. in reaching its determination of joint employment. Because the Board's factual findings indicated nothing more than that the usual contractor/subcontractor relationship existed between HOD and Well Built during the three-month period that Well Built's principal, Martin Bruten, was on the job, the court need not resort to federal precedent to resolve the issue. In any event, even if the court were to apply the Zheng test, the court would hold that HOD was not a joint employer of Well Built's employees. Accordingly, the judgment of the Appellate Division should be reversed and the matter remitted with directions to remand to the Board for further proceedings.]]></content:encoded>
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		<title>Stonebrook Construction, LLC v. Chase Home Finance, LLC</title>
		<link>http://constructionlawopinions.justia.com/2012/04/27/stonebrook-construction-llc-v-chase-home-finance-llc/</link>
		<comments>http://constructionlawopinions.justia.com/2012/04/27/stonebrook-construction-llc-v-chase-home-finance-llc/#comments</comments>
		<pubDate>Fri, 27 Apr 2012 14:14:41 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Business Law]]></category>
		<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Idaho Supreme Court - Civil]]></category>
		<category><![CDATA[Real Estate & Property Law]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/idaho/supreme-court-civil/2012/37868.html</guid>
		<description><![CDATA[This appeal arose from an action brought by Stonebrook Construction, LLC against Chase Home Finance, LLC where it sought to foreclose a mechanic's lien. The district court granted Chase's motion for summary judgment, holding that Stonebrook was preclud... <a href="http://constructionlawopinions.justia.com/2012/04/27/stonebrook-construction-llc-v-chase-home-finance-llc/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[This appeal arose from an action brought by Stonebrook Construction, LLC against Chase Home Finance, LLC where it sought to foreclose a mechanic's lien. The district court granted Chase's motion for summary judgment, holding that Stonebrook was precluded from placing a lien against the subject property because it did not properly register under the Idaho Contractor Registration Act (ICRA) Stonebrook appealed, arguing that Chase lacked standing to assert this defense and was not within the class intended to be protected by the ICRA. Alternatively, Stonebrook contended that the good-faith registration of one member of the LLC constituted actual or substantial compliance with the requirements of the ICRA. Upon review of the matter, the Supreme Court affirmed: "the plain language of the Act unambiguously indicates that the Legislature intended to require all limited liability companies engaged in the business of construction to register as contractors and to preclude those that do not register from enforcing mechanic's liens. Although the result for Stonebrook is harsh, it is the result the Legislature intended. [The Court was] not at liberty to disregard this legislative determination as to the most effective means of protecting the public." Thus, the Court declined to vacate the district court’s decision.]]></content:encoded>
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		<title>V&amp;M Star Steel v. Centimark Corp.</title>
		<link>http://constructionlawopinions.justia.com/2012/04/25/vm-star-steel-v-centimark-corp/</link>
		<comments>http://constructionlawopinions.justia.com/2012/04/25/vm-star-steel-v-centimark-corp/#comments</comments>
		<pubDate>Wed, 25 Apr 2012 15:20:58 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Contracts]]></category>
		<category><![CDATA[Injury Law]]></category>
		<category><![CDATA[U.S. 6th Circuit Court of Appeals]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/federal/appellate-courts/ca6/10-3584/10-3584-2012-04-25.html</guid>
		<description><![CDATA[V&#38;M filed suit against Centimark alleging breach of contract and negligence after metal roof sheeting panels being installed at its steelwork facility fell into an electrical substation, causing loss of power for more than 30 hours. Damages for repairs... <a href="http://constructionlawopinions.justia.com/2012/04/25/vm-star-steel-v-centimark-corp/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[V&M filed suit against Centimark alleging breach of contract and negligence after metal roof sheeting panels being installed at its steelwork facility fell into an electrical substation, causing loss of power for more than 30 hours. Damages for repairs and lost profits were around $3 million  The district court granted Centimark  summary judgment, ruling that V&M failed to produce sufficient evidence of causation to sustain either legal claim.  The Sixth Circuit reversed and remanded, holding that genuine issues of material fact exist.

]]></content:encoded>
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		<title>Envtl. Staffing Corp. v. B &amp; R Constr. Mgmt.</title>
		<link>http://constructionlawopinions.justia.com/2012/04/21/envtl-staffing-corp-v-b-r-constr-mgmt/</link>
		<comments>http://constructionlawopinions.justia.com/2012/04/21/envtl-staffing-corp-v-b-r-constr-mgmt/#comments</comments>
		<pubDate>Sat, 21 Apr 2012 00:31:05 +0000</pubDate>
		<dc:creator>Justia Inc</dc:creator>
				<category><![CDATA[Construction Law]]></category>
		<category><![CDATA[Contracts]]></category>
		<category><![CDATA[Virginia Supreme Court]]></category>

		<guid isPermaLink="false">http://law.justia.com/cases/virginia/supreme-court/2012/111067.html</guid>
		<description><![CDATA[A developer contracted with B&#38;R Construction Management (B&#38;R) for the demolition a redevelopment and housing authority facility (hereafter referred to as the Contract). B&#38;R subcontracted some of the demolition work to Beamon Enterprises (Beamon). Beamo... <a href="http://constructionlawopinions.justia.com/2012/04/21/envtl-staffing-corp-v-b-r-constr-mgmt/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[A developer contracted with B&R Construction Management (B&R) for the demolition a redevelopment and housing authority facility (hereafter referred to as the Contract). B&R subcontracted some of the demolition work to Beamon Enterprises (Beamon). Beamon, in turn, subcontracted with Environmental Staffing Acquisition Corporation (En-Staff) to provide labor. After Beamon failed to pay En-Staff for the work performed, En-Staff filed a complaint against B&R seeking the amount it was owed under its contract with Beamon. En-Staff asserted it had standing to bring a breach of contract claim against B&R as a third-party beneficiary of the Contract. B&R filed a demurrer disputing En-Staff's status as a third-party beneficiary. The circuit court sustained B&R's demurrer and dismissed En-Staff's claims against B&R with prejudice. The Supreme Court affirmed, holding (1) the trial court erred in finding that the language of the Contract precluded third-party action against B&R, but the error was harmless; and (2) En-Staff was not a third-party beneficiary of the Contract because it benefitted only incidentally from the Contract.
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