Justia Construction Law Opinion Summaries

Americaribe, a general contractor, appealed the district court's award of attorney's fees to Fidelity, the surety on a performance bond issued for a construction subcontract between Americaribe and the subcontractor CPM. The Eleventh Circuit reversed and held that Fidelity was not entitled to recover the attorney's fees it incurred in this litigation because neither the performance bond nor the subcontract provided for such an award of prevailing party attorney's fees. Because the district court abused its discretion in awarding Fidelity attorney's fees, the court remanded for further proceedings. View "International Fidelity Insurance Co. v. Americaribe-Moriarity JV" on Justia Law

Plaintiff Jose Sandoval was severely burned by an "arc flash" from a live circuit breaker while working with contractor TransPower Testing, Inc. and its principal Frank Sharghi, at a cogeneration plant owned by defendant Qualcomm Incorporated (Qualcomm). The jury returned a special verdict finding that Qualcomm retained control over the safety conditions at the jobsite; that it negligently exercised such control; and that its negligence was a substantial factor in causing Sandoval's harm. The jury found Sandoval's employer, ROS Electrical Supply (ROS), not liable, and apportioned fault between the defendants. Following the verdict, Qualcomm moved for judgment notwithstanding the verdict (JNOV) and for a new trial. The trial court denied the JNOV motion but granted the motion for new trial on the theory the jury had improperly apportioned liability. Qualcomm appealed order denying its JNOV motion, arguing Sandoval failed to proffer any evidence to show that Qualcomm, as the hirer of an independent contractor, "affirmatively contributed" to Sandoval's injury under the "retained control" exception to the general rule that a hirer is not liable for the injuries of an independent contractor's employees or its subcontractors; the order only partially granting its new trial motion; and the original judgment. Sandoval appealed the order granting Qualcomm a new trial on the apportionment of fault issue. The Court of Appeal concluded substantial evidence supported the jury's finding that Qualcomm negligently exercised retained control over the safety conditions at the jobsite. Therefore, the Court concluded the trial court properly denied Qualcomm's JNOV. Furthermore, the Court concluded the trial court properly exercised its discretion when it granted Qualcomm a limited new trial only on the issue of apportionment of fault as between Qualcomm and TransPower. View "Sandoval v. Qualcomm Incorporated" on Justia Law

In 1999, Appellant Leo Dolan, Jr. and Cherie Dolan entered into an agreement of sale with Bentley Homes, Ltd., Garvin Mitchell Corporation, Chadwell Associates, L.P., Chadwell Realty, Inc. and Harrison Community Association (hereinafter “Bentley”) for a new custom house. Hurd Millwork Company, Inc. (Hurd) provided many of the windows used in the construction of Appellant’s home. Within a year, the house developed substantial defects, including air and water leaks around the windows. Hurd filed an action against Bentley for unpaid invoices related to the construction of Appellant’s home and other homes in the same development. Bentley filed a counterclaim against Hurd for providing defective windows. In October 2002, Bentley and Hurd entered into a settlement containing admissions that numerous homes in the development suffered from extensive defects and leaks. During the pendency of the litigation between Hurd and Bentley, Appellant experienced additional problems with his home including severe leaks, rotted wood and issues with a stucco wall. Bentley made some repairs to the home, but the leaks continued to worsen. Appellant hired a civil engineer to assess the home and determine what repairs were required to fix the problems with the house. The repairs and associated costs amounted to $826,695.99. The house was purchased for $1,941,669.00. In this appeal by permission, the issue presented for the Pennsylvania Supreme Court's review was the proper role of an appellate court when reviewing a non-jury decision where it deems the trial court’s opinion pursuant to Pennsylvania Rule of Appellate Procedure 1925(a) inadequate, but the trial judge is no longer available to provide a supplemental opinion. The Supreme Court concluded that where a Rule 1925(a) opinion is deemed inadequate and the trial judge is unavailable to provide a supplemental opinion, the appellate court should review the legal issues raised in the appellant’s Rule 1925(b) statement of errors complained of on appeal. When deciding issues of law an appellate court is not required to defer to the conclusions of a trial court. Applying this standard and scope, the Superior Court will be able to review the entire record and ultimately determine whether the trial court correctly decided the legal issues raised in Bentley’s appeal. View "Dolan v. Hurd Millwork Co., Inc." on Justia Law

This case stems from the foreclosure and lien priority case arising out of the failed Idaho Club golf course and residential housing development project. The developer, Pend Oreille Bonner Development, LLC (“POBD”), took out several loans on the real property, agreed to promissory notes, and mortgaged the Idaho Club real property with several lenders, including JV, LLC and, as relevant to this appeal, three other lenders: RE Loans (“REL”), LLC, Pensco Trust Co., and Mortgage Fund ’08 LLC (“MF08”) (collectively, the three “lenders”). JV’s interest in the Idaho Club arose out of a mortgage (the “JV Mortgage”) it recorded against five parcels on the Idaho Club property that JV sold to POBD. POBD ultimately defaulted on its obligations on the promissory notes associated with the mortgages. In addition to defaulting on the notes, POBD failed to pay property taxes to Bonner County for several years and failed to pay various mechanics and materialmen, one of which was Genesis Golf Builders, Inc. (“Genesis”). JV appealed the district court's conclusion that Valiant Idaho, LLC (“Valiant”) held a priority position in the mortgages on the development. JV also appealed the district court’s award of costs against it, as well as a judgment by the district court that awarded sanctions against JV and its attorney. The Idaho Supreme Court affirmed in part and vacated in part, finding JV's redemption deed did not subordinate it to Bonner County's right, title, claim and interested based on a tax deed. The Supreme Court also found the district court abused its discretion in the way that it applied the formula announced in Valiant Idaho, LLC v. North Idaho Resorts, LLC (No. 44583, 2018 WL 4927560) to arrive at its costs award. View "Valiant Idaho v. JV, LLC" on Justia Law

At issue was whether a general contractor’s commercial general liability (CGL) policy that is nearly identical to the one considered in Westfield Insurance Co. v. Custom Agri Systems, Inc., 979 N.E.2d 269 (Ohio 2012), covers claims for property damage caused by a subcontractor’s faulty work.The Supreme Court resolved the issue by applying the holding of Custom Agri which provides that property damage caused by a subcontractor’s faulty work is not an “occurrence” under a CGL policy because it cannot be deemed fortuitous. The Court then reversed the judgment of the court of appeals, which reversed the trial court’s conclusion that the insurer in this case had no duty to defend the CGL policy owner, a general contractor. The Supreme Court held that the insurer was not required to defend the insured against suit by the property owner or indemnify the insured against any damage caused by the insured’s contractor. View "Ohio Northern University v. Charles Construction Services, Inc." on Justia Law

The Supreme Court dismissed the appeal from several orders related to the disposition of mechanic’s liens, holding that the Court lacked appellate jurisdiction because the Utah R. Civ. P. 54(b) certifications were flawed.Acting pursuant to Rule 54(b), the district court sought to certify as final and appealable the orders at issue. Plaintiff appealed those orders to the Supreme Court. The Court, however, found that the Rule 54(b) certifications were flawed and therefore dismissed the appeal, taking the opportunity of this case to readdress and refine the steps that parties and district courts must take to ensure proper certification under Rule 54(b) in order to avoid unnecessary remands. View "Copper Hills Custom Homes, LLC v. Countrywide Bank, FSB" on Justia Law

The City of Olympia, Washington contracted with NOVA Contracting, Inc. to replace a deteriorating culvert. The contract contained a "notice of protest" provision, which was taken from the Washington Department of Transportation's "standard Specifications for Road, Bridge, and Municipal Construction (2012) manual. NOVA sued the City for breach of the implied covenant of good faith and fair dealing; the City moved to dismiss based in part on NOVA's filature to file a protest first before taking the City to court. The trial court dismissed NOVA's claim, but the Court of Appeals reversed. The Washington Supreme Court has addressed this written notice issue twice before; the Court of Appeals interpreted those holdings, however, as only applying to claims for cost of work performed and not claims for expectancy and consequential damages. The Supreme Court held the two prior cases applied even to claims of expectancy and consequential damages. Therefore, the Court reversed the appellate court and remanded this case for further proceedings. View "NOVA Contracting, Inc. v. City of Olympia" on Justia Law

The Supreme Judicial Court affirmed the superior court’s dismissal of this complaint under the statute of repose, holding that a claim alleging that a building contractor committed an unfair or deceptive act under Mass. Gen. Laws ch. 93A, 2 and 9 by violating Mass. Gen. Laws ch. 142A, 17(10) is subject to the six-year statute of repose set forth in Mass. Gen. Laws ch. 260, 2B.In 2016, Plaintiff brought this action alleging that renovations performed in 2000 to 2001 by Defendants caused a fire in her home in 2012. A superior court judge dismissed the complaint as untimely under the six-year statute of repose. The Supreme Judicial Court affirmed, holding (1) Plaintiff’s chapter 93A claim was sufficiently tort-like to bring it within the ambit of the statute of repose; and (2) because this action was commenced more than six years after the work was completed, it was barred by chapter 260, section 2B, and therefore properly dismissed. View "Bridgwood v. A.J. Wood Construction, Inc." on Justia Law

In 1999, homeowners Renaul and Karen Abel contracted with Gilliam Construction Company, Inc. for the construction of a house in an upscale Landrum subdivision. In constructing the house, Gilliam used windows manufactured by Eagle & Taylor Company d/b/a Eagle Window & Door, Inc. (Eagle & Taylor). Sometime after the home was completed, the Abels discovered damage from water intrusion around the windows. The Abels brought suit against Gilliam for the alleged defects and settled with Gilliam and its insurer, Nationwide Mutual, for $210,000. Nationwide and Gilliam (collectively Respondents) then initiated this contribution action seeking repayment of the settlement proceeds from several defendants, including Eagle, alleging it was liable for the obligations of Eagle & Taylor. The narrow question presented by this case on appeal to the South Carolina Supreme Court was whether Eagle Window & Door, Inc. was subject to successor liability for the defective windows manufactured by a company who later sold its assets to Eagle in a bankruptcy sale. The Court determined answering that question required a revisit the Court's holding in Simmons v. Mark Lift Industries, Inc., 622 S.E.2d 213 (2005) and for clarification of the doctrine of successor liability in South Carolina. The court of appeals affirmed the trial court's holding that Eagle is the "mere continuation" of the entity. The Supreme Court reversed because both the trial court and court of appeals incorrectly applied the test for successor liability. View "Nationwide Mutual Insurance v. Eagle Window & Door" on Justia Law

AFDI filed suit against WMATA and its then-general manager, alleging that WMATA's refusal to display its advertisements violated its rights to free speech and equal protection under the First and Fourteenth Amendments. The district court granted summary judgment to WMATA.Determining that the case was justiciable, the DC Circuit held that WMATA's advertising space was a nonpublic forum and that its restrictions were viewpoint-neutral. In this case, the court rejected AFDI's as-applied challenge, AFDI's claim that the ban on issue-oriented advertising was facially unconstitutional; and AFDI's claim that Guideline 12 was an unconstitutional prohibition of religious and antireligious views. The court remanded to the district court to determine whether the restrictions were reasonable in light of Minnesota Voters Alliance v. Mansky, 138 S. Ct. 1876 (2018). Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "American Freedom Defense Initiative v. Washington Metropolitan Transit Authority" on Justia Law