Justia Construction Law Opinion Summaries

The Phenix City Board of Education ("the Board") sought mandamus relief from the Russell Circuit Court's denial of the Board's motion to dismiss or, in the alternative, for a summary judgment on claims brought against it by The Lisle Company, Inc. ("Lisle"). Because the Board is immune from suit pursuant to § 14, Ala. Const. 1901, the Supreme Court granted the Board's petition and issued the writ. View "Lisle Company, Inc. v. Phenix City Board of Education" on Justia Law

In this appeal from the denial of a preliminary inunction, plaintiff labor unions claimed that sections 6.007-.010 of Law 222, Puerto Rico's campaign finance law, placed an unconstitutional burden on the union's First Amendment right to engage in political speech. Both the district court and the government declined to address the merits of Plaintiffs' claims. The First Circuit Court of Appeals issued an appellate injunction enjoining enforcement of the challenged provisions of Law 222 pending the final disposition of this appeal. In this opinion the First Circuit outlined the reasons it ordered entry of the appellate injunction, holding, among other things, that it was incumbent upon the district court to engage with the merits of Plaintiffs' claims. The Court also ordered the district court to enter a preliminary injunction enjoining the enforcement of certain sections of the law. View "Puertorriqueno v. Fortuno" on Justia Law

Riverbend Community, LLC and Parkway Gravel, Inc. jointly owned a parcel of land (the Property), which they intended to develop into residential real estate. Before purchasing the Property, Riverbend and Green Stone Engineering, LLC signed a August 2005 Contract, which required Green Stone to perform four tasks: (1) Site Evaluation and Regulatory Review, (2) Wetlands Restoration Conceptual Design, (3) Wetland Enhancement Conceptual Layout, and (4) Regulatory Meetings and Presentation. In March 2006, the parties signed a second contract which required Green Stone to provide design services for the site and roadways, the stormwater collection and conveyance systems, the sanitary sewer system, the water supply piping system, the stormwater management plans, the sediment and erosion control plans, and the landscape plans. Green Stone left the project in late 2007. Riverbend hired a new engineering firm to complete the work, but the new firm needed Green Stone's work product. Green Stone would not release its work product unless Riverbend executed a release. In 2009, the U.S. Army Corps of Engineers issued two Cease and Desist Letters against Riverbend because of the work in the wetlands. Meanwhile, the Delaware Department of Natural Resources and Environmental Control filed a complaint against Riverbend too. As a result of the federal and state issues, Riverbend could not sell houses, and its lender foreclosed on and purchased the Property at a sheriff's sale in April 2012. Riverbend sued Green Stone for breach of contract, professional negligence, and simple negligence. Green Stone moved for summary judgment on the grounds that the economic loss doctrine barred the tort claims and the general release barred all claims. The trial judge granted the motion, and Riverbend appealed. Upon review, the Supreme Court interpreted the release as a general release, and did not address the application of the economic loss doctrine. Because the Court found the release was a general release that unambiguously waived all claims, the Court affirmed the grant of summary judgment below on both the tort and contract claims. View "Riverbend Community, LLC, et al. v. Green Stone Engineering, LLC, et al." on Justia Law

This case concerned the remedy under Louisiana law for the purchaser of a newly constructed home with a construction defect that has not resulted in actual physical damage to the home. The court held that the Louisiana New Home Warranty Act, La. Rev. Stat. Ann. 9:3141, 9:3150, provided the exclusive remedy against a builder for a purchaser of a new home. The court also held that a claim brought under the Act must allege that the defect in question resulted in actual physical damage to the home. Accordingly, the court affirmed the judgment of the district court dismissing the case. View "Gines v. D.R. Horton, Inc., et al" on Justia Law

Younglove Construction entered into a contract with PSD Development for the construction of a feed-manufacturing plant. When PSD withheld payment, Younglove brought this diversity suit against PSD and three other defendants. In its answer, PSD alleged it had sustained damages as a result of defects in a steel grain bin constructed by Custom Agri Systems, Inc. as a subcontractor. Younglove filed a third-party complaint against Custom Agri Systems, Inc. for contribution and indemnity. Custom turned to its insurer, Westfield Insurance Company, to defend and indemnify it in the litigation. Westfield intervened to pursue a judgment declaring it had no such duty under the terms of its commercial general liability (CGL) policy with Custom. At issue was whether the claims against Custom sought compensation for "property damage" caused by an "occurrence" under the policy. The district court granted summary judgment for Westfield. On appeal, the federal court of appeals certified questions of state law to the Supreme Court. The Court answered by holding that claims of defective construction or workmanship brought by a property owner are not claims for "property damage" caused by an "occurrence" under a CGL. View "Westfield Ins. Co. v. Custom Agri Sys., Inc." on Justia Law

This action arose from a bidding dispute between Bidder and Owner over a contract to install rubber flooring for a renovation project. Bidder filed a complaint against Owner, alleging that the biding specifications were ambiguous, the bidding process was unfair, and that Owner improperly imposed a sole source specification in violation of law. Bidder also sought recovery of attorneys' fees incurred in bringing this action. Later, Owner withdrew the solicitation, rendering Bidder's complaint moot. The parties subsequently filed cross-motions for summary judgment on Bidder's request for attorneys' fees. The Court of Chancery granted Owner's motion for summary judgment, holding that Bidder failed to demonstrate that Owner's conduct warranted an award of attorneys' fees and expenses. View "Marra v. Brandywine Sch. Dist." on Justia Law

Plaintiffs, owners of condominium units that were destroyed by Hurricane Katrina, sued defendants after defendants failed to complete construction of the rebuild. Plaintiffs appealed the district court's grant of summary judgment in favor of defendants, based on the district court's finding that the 24-month construction obligations in the Purchase Agreements were not illusory and, therefore, the parties' contracts were exempted from the Interstate Land Sales Full Disclosures Act (ILSA), 15 U.S.C. 1701, et seq. The court found that the language of the Purchase Agreements did not negate plaintiffs' abilities to seek damage and specific performance remedies. Accordingly, the court affirmed the district court's grant of summary judgment. View "Hillman, et al v. Loga, III, et al" on Justia Law

Circle C contracted to construct buildings at the Fort Campbell military base. The agreement included determinations of hourly wages for electrical workers. Circle C has had government contracts for 20 years; its co-owner and a bookkeeper attended training on the prevailing wage requirement for federal government contracts. PT was Circle C’s subcontractor on 98 percent of the electrical work, but did not have a written contract. Circle C provided PT with the wage determination excerpts from its contract, but did not explain the Davis-Bacon Act (40 U.S.C. 3142) prevailing wage requirements nor verify whether PT submitted its own payroll certifications, nor monitor PT’s eight employees’ work on the project, nor take measures to ensure payment of proper wages. One of the PT electricians claimed violation of the federal False Claims Act, 31 U.S.C. 3729(a)(2). The Department of Labor found inaccurate or false payroll certifications. The district court awarded treble damages: $1,661,423.13. The Sixth Circuit affirmed summary judgment in favor of plaintiffs, but remanded for recalculation of the damages. Circle C, an experienced contractor, made false statements, acted in reckless disregard of the truth or falsity of the information, and the false statements were “material” to the government’s decision to make payment.View "Wall v. Circle C Constr., L.L.C." on Justia Law

This litigation arose from the construction of a 143-unit condominium complex. Plaintiff Long Trail House Condominium Association appealed a trial court’s order granting summary judgment to defendant general contractor Engelberth Construction, Inc. on its complaint. The Association argued that the court erred in: (1) applying the economic loss rule to bar its negligence claim; and (2) dismissing its breach of implied warranty claim. Upon review of the trial court record, the Supreme Court affirmed, finding no error in the trial court's decision. View "Long Trail House Condominium Assoc. v. Engelberth Construction, Inc." on Justia Law

In this appeal, the issue before the Supreme Court was whether a contractor's bid was responsive to the Delaware Department of Transportation's (DelDOT) Request for Proposals (RFP). The contractor's bid did not include required paint certifications. In addition, the bid reflected the contractor's plan to use new steel beams, rather than refurbish the existing ones, as required by the RFP. The contractor chose to submit a bid that did not conform to the project specifications. The Supreme Court concluded that the contractor therefore did so at its own risk. DelDOT's decision that the bid was non-responsive was not arbitrary or capricious. Accordingly, the Court affirmed the trial court's entry of summary judgment in DelDOT's favor. View "Julian v. Delaware Dep't. of Transportation" on Justia Law