Justia Construction Law Opinion Summaries

Articles Posted in Construction Law
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In a wrongful death action, the jury returned a special verdict that awarded damages to the individual loss-of-consortium claimants but not to the decedent’s estate. The decedent’s surviving spouse and children (collectively Plaintiffs) filed a motion for a new trial, arguing that the award of zero damages to the estate was not supported by substantial evidence. The issue before the New Mexico Supreme Court was whether Plaintiffs waived the right to challenge the jury verdict on appeal by failing to object to the verdict prior to the jury’s discharge. After review, the Supreme Court concluded that they did: “A party is deemed to have waived a challenge to an ambiguous, inconsistent, or incomplete jury verdict if the party had an opportunity to raise the objection before the jury was discharged but failed to do so.” In this case, Plaintiffs created ambiguity in the verdict by modifying the uniform jury instruction on wrongful death damages and drafting the special verdict form in a way that failed to advise jurors how to allocate damages between the individual loss-of-consortium claimants and the decedent’s estate. During its deliberations, the jury submitted a question to the district court which confirmed that the jury was confused about how to allocate damages on the special verdict form. As a result of this confusion, it was unclear whether the jury deliberately intended to award zero wrongful death damages to the estate or whether the jury mistakenly included wrongful death damages in its award to the individual claimants. View "Saenz v. Ranack Constructors, Inc." on Justia Law

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The Supreme Court withdrew its opinion issued on January 24, 2018 in this case and substituted this opinion in its place, holding that the circuit court properly denied Appellant’s motion filed pursuant to Fla. R. Crim. P. 3.851.Appellant’s motion sought relief pursuant to Hurst v. Florida, 136 S. Ct. 616 (2016), and this court’s decision on remand in Hurst v. State, 202 So. 3d 40 (Fla. 2016). The Supreme Court held that Appellant’s valid waiver of postconviction proceedings and counsel in 2008 precluded him from claiming a right to relief under Hurst. Moreover, even if Appellant’s postconviction waiver did not preclude him from raising a Hurst claim, Hurst would not apply retroactively to Appellant’s sentence of death. View "Trease v. State" on Justia Law

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Scott and Anne Davison appealed the grant of summary judgment in favor of DeBest Plumbing (DeBest). In 2012, the Davisons hired Gould Custom Builders, Inc. (Gould) to perform an extensive remodel of their vacation home in Idaho. Gould hired DeBest as the plumbing subcontractor. A bathtub installed by DeBest developed a leak that caused significant damage before it was noticed and repaired. The Davisons sought damages based upon the contract between Gould and DeBest and for negligence. The district court granted DeBest’s motion for summary judgment on the contract claims because the Davisons were not in privity of contract with DeBest. Later, the district court granted summary judgment in favor of DeBest on the negligence claim, finding that the Davisons had failed to comply with the requirements of the Notice and Opportunity to Repair Act (NORA), Idaho Code sections 6-2501–2504. On appeal, the Davisons argued they satisfied the requirements of NORA because DeBest received actual notice of the claim and sent a representative to inspect the damage. Finding that the Davidsons satisfied the requirements of NORA when they gave DeBest actual notice, and DeBest had an opportunity to inspect the defect, the Idaho Supreme Court determined the district court erred in granting DeBest's motion for summary judgment on the Davidsons' negligence claim. The Supreme Court reversed as to negligence, but affirmed the district court in all other respects. View "Davison v. DeBest Plumbing" on Justia Law

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Rocky Mountain Steel Foundations, Inc. appealed a judgment invalidating its oil and gas construction liens and awarding attorney fees to Mitchell's Oil Field Services, Inc., also known as Wood Group, and Travelers Casualty and Surety Company of America (collectively "Mitchell's"). Mitchell's, as general contractor, entered into a contract with Brockett Company, LLC, as subcontractor, and Amber Brockett, as personal guarantor (collectively "Brockett"), to purchase construction materials for installation on certain oil wells. Brockett purchased materials from Rocky Mountain to fulfill Brockett's contract with Mitchell's. Mitchell's paid Brockett in full. Rocky Mountain delivered the materials, and Mitchell's installed the materials. Rocky Mountain thereafter recorded two oil and gas well liens against the wells because Brockett had not paid Rocky Mountain. Mitchell's recorded lien release bonds, with the liens attached to the bonds. Mitchell's received payment in full, then Rocky Mountain filed to foreclose on the liens. The parties agreed Mitchell's paid Brockett in full before Rocky Mountain delivered the materials to the wells and before Mitchell's or the leaseholders received notice of the liens. The parties agreed Rocky Mountain timely and properly satisfied all statutory and other requirements to create, perfect, and foreclose on the liens. Rocky Mountain recorded the liens on well leaseholds by ConocoPhillips Company and Burlington Resources Oil & Gas Co. (the "owners"). Brockett did not answer or appear at any hearings and admitted to nonpayment, but asserted it has no assets with which to pay. The district court granted summary judgment in favor of Rocky Mountain for its breach of contract claim against Brockett. The parties submitted their remaining claims to the district court solely on interpretation of the oil and gas construction liens provided by N.D.C.C. ch. 35-24. The court found N.D.C.C. 35-24-04 invalidated Rocky Mountain's liens after the owners paid Mitchell's. The primary issue before the North Dakota Supreme Court was whether N.D.C.C. 35-24-04 permitted a subcontractor's oil and gas construction lien when an owner fully paid the general contractor. Rocky Mountain argued the district court erred in finding Rocky Mountain's liens were invalidated when the owners fully paid Mitchell's. The Supreme Court agreed: Section 35-24-02, N.D.C.C., allowed contractors to file liens for unpaid materials furnished or services rendered "in the drilling or operating of any oil or gas well upon such leasehold." The district court erred in interpreting N.D.C.C. sections 35-24-04 and -07 to invalidate Rocky Mountain's liens, and also erred in awarding attorney fees to Mitchell's. View "Rocky Mountain Steel Foundations, Inc. v. Brockett Company, LLC" on Justia Law

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The Supreme Court reversed the order of the circuit court dismissing Petitioners’ civil action as a sanction for alleged discovery violations, holding that the circuit court abused its discretion by imposing the sanction of dismissal.Petitioners bought this civil action against Respondent alleging unfair and deceptive acts, breach of express and implied warranties, breach of contract, and other causes of action. Respondent eventually filed a second motion to dismiss the civil action as a sanction for alleged discovery violations. The circuit court identified ten instances of alleged wrongful conduct by Petitioners and granted Respondent’s motion to dismiss. The Supreme Court reversed, holding that, even assuming that there was a discovery violation, the circuit court’s imposition of the extreme sanction of dismissal was an abuse of discretion. View "Smith v. Gebhardt" on Justia Law

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In this billing dispute between a general contractor, Dudley Construction, Ltd., and a pipe supplier, ACT Pipe and Supply, Inc., the Supreme Court affirmed the judgment of the court of appeals in part and reversed it in part, holding (1) in defending a favorable judgment notwithstanding the jury’s verdict, ACT successfully raised a “cross-point” in the court of appeals that preserved an alternative argument proscribing the jury’s original verdict, even though ACT did not formally label its argument a “cross-point”; and (2) attorney’s fees are not recoverable for a claim brought under the Texas Construction Trust Fund Act. The Court remanded this case to the trial court for further proceedings. View "Dudley Construction, Ltd. v. ACT Pipe & Supply, Inc." on Justia Law

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The terms of the insurance policy at issue in this coverage dispute required a written contract between the named insured and an additional insured if coverage was to be extended to an additional insured, and therefore, Liberty Insurance Underwriters was entitled to summary judgment.Gilbane Building Co. and TDX Construction Corporation (collectively, Gilbane JV) was the construction manager for a new forensic laboratory, and Samson Construction Co. was the general contractor. Samson obtained general liability insurance coverage from Liberty Insurance Underwriters. When disputes arose over the construction, Gilbane JV commerced this lawsuit arguing that it qualified for coverage under the Liberty policy as an additional insured. Gilbane JV had no written contract with Samson denominating it as an additional insured but argued that no such contract was necessary. Supreme Court denied Liberty’s motion for summary judgment, determining that Gilbane JV was an additional insured under the policy. The Appellate Division reversed and granted Liberty’s motion. The Court of Appeals affirmed based on the terms of the policy at issue. View "Gilbane Building Co./TDX Construction Corp. v St. Paul Fire & Marine Insurance Co." on Justia Law

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The terms of the insurance policy at issue in this coverage dispute required a written contract between the named insured and an additional insured if coverage was to be extended to an additional insured, and therefore, Liberty Insurance Underwriters was entitled to summary judgment.Gilbane Building Co. and TDX Construction Corporation (collectively, Gilbane JV) was the construction manager for a new forensic laboratory, and Samson Construction Co. was the general contractor. Samson obtained general liability insurance coverage from Liberty Insurance Underwriters. When disputes arose over the construction, Gilbane JV commerced this lawsuit arguing that it qualified for coverage under the Liberty policy as an additional insured. Gilbane JV had no written contract with Samson denominating it as an additional insured but argued that no such contract was necessary. Supreme Court denied Liberty’s motion for summary judgment, determining that Gilbane JV was an additional insured under the policy. The Appellate Division reversed and granted Liberty’s motion. The Court of Appeals affirmed based on the terms of the policy at issue. View "Gilbane Building Co./TDX Construction Corp. v St. Paul Fire & Marine Insurance Co." on Justia Law

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In this construction dispute, Plaintiff was not entitled to relief on its breach of contract claim or under a quantum meruit theory.Plaintiff and Defendant entered into a subcontract agreement that outlined services that Plaintiff was to perform as a subcontractor for the construction of the Bridge Street Bridge. Plaintiff later sued Defendant for breach of contract and quantum meruit in the alternative, asserting that the parties had entered into a separate agreement before the subcontract agreement and that, under that alleged agreement, Defendant was obligated to pay for additional work performed. The circuit court granted Defendant’s motion for judgment for the pleadings, concluding that the subcontract agreement was a complete integration of the dealings between the parties. The court of appeals determined that it was unclear whether the subcontract agreement was a full integration or a partial integration. Thus, the court declared that whether any additional work Plaintiff allegedly performed was covered by the subcontract agreement was an issue of fact for the jury. The Supreme Court reversed, holding (1) by its own terms, the subcontract agreement was a full integration of the parties’ contract for Plaintiff’s subcontracting work on the bridge; and (2) Plaintiff was not entitled to relief under a quantum meruit theory. View "Vanhook Enterprises, Inc. v. Kay & Kay Contracting, LLC" on Justia Law

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In this construction dispute, Plaintiff was not entitled to relief on its breach of contract claim or under a quantum meruit theory.Plaintiff and Defendant entered into a subcontract agreement that outlined services that Plaintiff was to perform as a subcontractor for the construction of the Bridge Street Bridge. Plaintiff later sued Defendant for breach of contract and quantum meruit in the alternative, asserting that the parties had entered into a separate agreement before the subcontract agreement and that, under that alleged agreement, Defendant was obligated to pay for additional work performed. The circuit court granted Defendant’s motion for judgment for the pleadings, concluding that the subcontract agreement was a complete integration of the dealings between the parties. The court of appeals determined that it was unclear whether the subcontract agreement was a full integration or a partial integration. Thus, the court declared that whether any additional work Plaintiff allegedly performed was covered by the subcontract agreement was an issue of fact for the jury. The Supreme Court reversed, holding (1) by its own terms, the subcontract agreement was a full integration of the parties’ contract for Plaintiff’s subcontracting work on the bridge; and (2) Plaintiff was not entitled to relief under a quantum meruit theory. View "Vanhook Enterprises, Inc. v. Kay & Kay Contracting, LLC" on Justia Law