Justia Construction Law Opinion Summaries

Articles Posted in Civil Procedure
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Jeanne and Nevin Tergesen appealed a judgment dismissing their complaint and awarding Nelson Homes, Inc. damages for its breach of contract counterclaim. The Tergesens argued the district court erred in dismissing their rescission and breach of contract claims, and the court erroneously found the Tergesens breached the contract. After review, the North Dakota Supreme Court concluded the district court did not err in dismissing the Tergesens’ claims or finding the Tergesens breached the contract, but the court did err in calculating the amount of prejudgment interest on Nelson Homes’ damages. View "Tergesen, et al. v. Nelson Homes" on Justia Law

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Glacier Northwest Inc. claimed the International Brotherhood of Teamsters Local Union No. 174 (Local 174) was liable for concrete product loss during a strike and for an alleged misrepresentation by a union representative that Glacier claims interfered with its ability to service a concrete mat pour. The trial court ruled the strike-related claims were preempted by the National Labor Relations Act (NLRA) and granted summary judgment for Local 174 on the misrepresentation claims. Glacier appealed, and the Court of Appeals reversed on the preemption issue but affirmed the trial court’s dismissal of the misrepresentation claims. The Washington Supreme Court granted review and accepted amicus curiae briefing from the American Federation of Labor and Congress of Industrial Organizations, to address whether an employer’s state tort claims against its truck drivers’ union were preempted by the NLRA, and whether any claims that were not preempted were properly dismissed by the trial court. The Supreme Court concluded the NLRA preempted Glacier’s tort claims related to the loss of its concrete product because that loss was incidental to a strike arguably protected by federal law. The Court also affirmed the dismissal of Glacier’s misrepresentation claims because the union representative’s promise of future action was not a statement of existing fact on which those claims could be properly based, and because the statement was not a proximate cause of Glacier’s losses. View "Glacier Nw., Inc. v. Int'l Bhd. of Teamsters Local Union No. 174" on Justia Law

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This appeal stemmed from a construction defect lawsuit involving waterfront townhomes on Lake Keowee in Oconee County, South Carolina. After a two-week trial, Petitioners-Respondents Stoneledge at Lake Keowee Owners' Association, Inc. (the HOA) received plaintiff's verdicts against several defendants, including Respondents-Petitioners Marick Home Builders, LLC and Rick Thoennes. Marick Home Builders, Thoennes, and other defendants appealed, and in a pair of published opinions, the court of appeals affirmed in part and reversed in part. The South Carolina Supreme Court granted several writs of certiorari to review the court of appeals' decisions. Here, the Court reviewed "Stoneledge I" and addressed the trial court's: (1) jury charge; (2) denial of Marick's directed verdict motions; (3) finding of amalgamation; and (4) calculation of damages. The Supreme Court affirmrf the court of appeals as to the jury charge and as to the trial court's denial of Marick's motions. The Court reversed the court of appeals as to amalgamation. The Court affirmed in part and reversed in part the court of appeals as to the amount of the judgment in favor of the HOA and remanded to the circuit court for final calculation and entry of judgment. View "Stoneledge at Lake Keowee v. IMK Development Co., LLC" on Justia Law

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Tioga Properties, LLC, appealed a district court judgment awarding Wades Welding, LLC $27,669.90 relating to Wades Welding’s lawsuit for enforcement of construction liens and unjust enrichment. Janice Ellsworth owned Tioga Properties. Tioga Properties owned a restaurant and home (referred to by the parties as a “mobile home”) adjacent to each other in Tioga, North Dakota. Susan Gordon leased the restaurant from Tioga Properties. Gordon delivered rent payments to John Ellsworth Jr., Janice Ellsworth’s son. Gordon resided in the home but had no written lease for that property. In late 2016 and early 2017, Gordon hired Wades Welding to repair the home and restaurant. Wades Welding performed $19,840 of work on the home and $2,500 of work on the restaurant. Wades Welding delivered the invoices for its work to Ellsworth Jr. A day after Wades Welding completed its work at the home, Ellsworth evicted Gordon from the restaurant and home. Ellsworth Jr. supervised the eviction and Gordon left both properties within 48 hours. In December 2017, Wades Welding recorded construction liens against the properties after Tioga Properties failed to pay for the repairs. Tioga Properties sold the restaurant in July 2019. In September 2019, Tioga Properties served on Wades Welding a demand to enforce the home lien. In October 2019, Wades Welding sued Tioga Properties for breach of contract, foreclosure of the construction liens and unjust enrichment. Tioga Properties denied the allegations, claiming it did not authorize Wades Welding's work on the properties. The district court found Wades Welding's construction liens on both properties were valid, and ordered foreclosure of the home lien. The court found the lien on the restaurant was unenforceable due to a service error, but nonetheless awarded Wades Welding the amount of the repaired under the doctrine of unjust enrichment. Finding no reversible error in the district court's judgment, the North Dakota Supreme Court affirmed judgment in favor of Wades Welding. View "Wades Welding v. Tioga Properties" on Justia Law

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Brent Meyer appealed pro se a district court’s judgment granting Adam Walker’s breach of contract claim against him. Walker hired Meyer to assist him with the demolition and remodel of a home he had purchased in Soda Springs, Idaho. Walker alleged that in June 2018, the parties entered into an agreement in which Walker agreed to pay Meyer $18,000 in exchange for Meyer’s labor on the home. This contract was subsequently modified by the parties as Meyer performed work on other areas of the home not covered by the contract and Walker paid Meyer more money than provided in the original contract – roughly $60,000. On October 16, 2018, Walker fired Meyer from the job, alleging the labor was not up to industry standards and did not add value to the home. Walker hired another contractor to fix or redo the work completed by Meyer and his subcontractors. Meyer argued the district court erred in concluding he was not a “construction professional” as defined by Idaho’s Notice and Opportunity to Repair Act (“NORA”), Idaho Code sections 6-2501–04, and claimed the case should have been dismissed because Walker failed to comply with the notice requirement of NORA. Finding no reversible error, the Idaho Supreme Court affirmed the district court. View "Walker v. Meyer" on Justia Law

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At issue in this case was an action to foreclose a materialman's lien filed on property located in Garvin County, Oklahoma. Wynnewood Refining Co., LLC owned an oil refinery and entered into an Environmental Services Agreement with the original contractor, now WSP USA, Inc. to provide labor and materials to improve the Property. Thereafter, WSP entered into a subcontract with Techsas, Inc. to provide labor and materials to improve the property. The Techsas Contract contained a waiver clause whereby Techsas waived all liens and claims, statutory or otherwise, resulting from the labor done and materials furnished on the project. The waiver clause also required Techsas to insert a similar waiver clause into any subcontracts it engaged in. The parties agreed that sometime in 2019, Techsas entered into a subcontract (H2K Contract) with plaintiff-appellant H2K Technologies, Inc., (H2K or materialman) to provide materials and labor to improve the property. When Techsas failed to pay H2K, the H2K served a preliminary lien notice on Wynnewood, Techsas and WSP for the estimated price of the provided labor, services, equipment and materials. H2K thereafter filed a lien statement to the Garvin County Clerk. Months later, H2K filed its petition to foreclose the lien. Both plaintiff and defendants filed competing motions for summary judgment; the trial court ruled in favor of defendants' motion and denied plaintiff's, ruling: (1) although the Techsas Contract was governed by New York law, which prohibited waiver clauses, contract provisions that subject a construction contract to the laws of another state were against public policy in Oklahoma pursuant to 15 O.S. 2011, 821(B)(1); and (2) H2K was charged with constructive notice of the subcontract between Techsas and WSP and because Techsas had waived its rights to all liens and claims, H2K did not have a legal right to impress a lien on the Property. H2K appealed. The Oklahoma Supreme Court held that under the limited issues of law presented on appeal, H2K was not bound by the waiver of lien clause in the Techsas Contract. The Court also held that the provisions of 15 O.S. 2011, section 821(B)(2) were not applicable to mechanics' and materialmen's liens. The Court therefore reversed the trial court's order granting summary judgment and remanded for further proceedings. View "H2K Technologies v. WSP, USA" on Justia Law

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Timothy and Rebecca Hillhouse entered into a contract with Chris Cook Construction for the construction of their home. The contract contained an arbitration provision mandating that arbitration be conducted before a forum that was unavailable at the time the contract was executed. The trial court entered an order compelling arbitration and appointing an arbitrator. The Mississippi Supreme Court concluded the trial court erred in so doing: because the forum was a contract requirement, the arbitration provision was unenforceable, and appointing an arbitrator required courts to reform the contractual agreement between the parties. Judgment was reversed and the trial court’s order compelling arbitration and remanded the case for further proceedings. View "Hillhouse v. Chris Cook Construction, LLC, et al." on Justia Law

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Builder Systems, LLC, appealed an order, certified as final pursuant to Rule 54(b), Ala. R. Civ. P., entered in favor of George "Jerry" Klamer and his wife Lisa Klamer arising from a remediation and new-construction project performed by Builder Systems on the Klamers' house. Because the Alabama Supreme Court determined that the order was not appropriate for Rule 54(b) certification, it dismissed the appeal. View "Builder Systems, LLC v. Klamer" on Justia Law

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KD Oak Grove and KP Westwood entered into two separate contracts with Coumanis Allen, a general contractor. Subsequently, Coumanis did not pay subcontractors for their work, and Warren & Warren, one of Coumanis’s subcontractors, filed construction liens on Oak Grove’s and Westwood’s separate real property. In both payment actions, Warren admitted to failing to file its lis pendens notice along with its construction liens, waiting 110 days to file it. The two separate legal actions were brought before the Chancery Court of Lamar County, Mississippi, and were assigned to separate chancellors. Oak Grove and Westwood filed separate motions for summary judgment, which were denied by the chancellors; they timely appealed. The crux of the appeals was one of statutory interpretation: whether the failure to comply with Mississippi Code Section 85-7- 405(1)(c)(i) (Supp. 2020), which required the simultaneous filing of a lis pendens notice with the commencement of the payment action, rendered Warren’s liens unenforceable and ineffective. Chancellor Sheldon erred by denying Oak Grove’s motions for summary judgment, and Chancellor Gambrell erred by denying Westwood’s motion to dissolve. Therefore, the Mississippi Supreme Court reversed the chancellors’ decisions and entered summary judgment in favor of KD Oak Grove and KP Westwood. View "KD Oak Grove, LLC v. Warren & Warren Asphalt Paving, LLC" on Justia Law

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In case number 1190525, Paul Childs and Granger Construction Company, LLC ("Granger Construction"), appealed a circuit court judgment entered in favor of Harry ("Bud") and Brenda Pommer. In their cross-appeal, case number 1190580, the Pommers appealed the trial court's judgment entered in favor of Melissa Granger ("Melissa"), as the administratrix of the estate of Daniel Granger ("Granger"), deceased. In 2014, the Pommers decided to build a garage on property that they owned in Fairhope, Alabama. Childs was referred to Bud for the work. Childs brought Granger into the project as the licensed contractor for the work. The evidence presented at trial indicated that the project experienced significant delays. Evidence was presented indicating that Granger and Childs performed some of the physical labor on the project. In March 2015, when an invoice was presented to the Pommers, Bud and Brenda told the Childs and Granger that they did not want to give them another check based on how things had been going. A "heated" meeting between the parties resulted in the Pommers hiring an attorney. Bud requested the City conduct an inspection; the garage did not pass. The Pommers subsequently hired another contractor and other companies to repair work done by Granger Construction and to complete unfinished work on the project. The Pommers ultimately sued Childs and Granger Construction for breach of contract. Childs and Granger Construction filed their answer to the amended complaint and a counterclaim, asserting breach of contract/unjust enrichment against the Pommers. After review, the Alabama Supreme Court affirmed the trial court as to Granger Construction in case number 1190525. The Court reversed the trial court as to Childs, and rendered judgment in favor of Childs. In case number 1190580, the Court affirmed the trial court. View "Childs et al. v. Pommer" on Justia Law