Justia Construction Law Opinion Summaries

SAMS contracted with Environs to provide architectural services for construction of a Homewood Suites hotel in Fort Wayne. Environs was to be paid a flat fee of $70,000. The contract stated: The Owner [SAMS] agrees that to the fullest extent permitted by law, Environs Architects/Planners, Inc. total liability to the Owner shall not exceed the amount of the total lump sum fee due to negligence, errors, omissions, strict liability, breach of contract or breach of warranty. The hotel was nearly complete when serious structural defects were discovered. The building department condemned the structure. Attempts to remedy failed; the hotel was demolished without opening. SAMS estimated its loss at more than $4.2 million. While SAMS’s suit against Environs was pending, the Indiana Supreme Court held that the “economic loss rule” applies to construction contracts under Indiana law: a party to a contract cannot be liable under a tort theory for any purely economic loss caused by negligent performance of the contract, absent any personal injury or damage to other property. The district court applied the rule to grant summary judgment rejecting SAMS’s negligence claim and held that SAMS’s recovery on its breach of contract claim would be limited to $70,000. The Seventh Circuit affirmed. View "Sams Hotel Grp., LLC v. Environs, Inc." on Justia Law

Compass Construction and First Baptist Church were named as defendants in an action arising from a construction accident. Ultimately, First Baptist prevailed against the plaintiff in the main action and on its cross-claim for indemnity against Compass. First Baptist was awarded attorneys fees as part of its indemnity claim, but the parties disagreed about the appropriate hourly rate at which the fee for First Baptist's attorney should be calculated. In the main action, First Baptist's insurance company assigned an attorney to represent First Baptist. The attorney had a written fee agreement with the insurance company providing that attorney would be paid $170 per hour. In an alternative fee recovery clause, however, the agreement provided that if anyone other than the insurance company was required to pay attorney's fees, the attorney's hourly rate would be $300. The trial court calculated the award at the higher rate. The court of appeal reversed. The Supreme Court reversed, holding that the alternative fee recovery clause was valid. Remanded for reinstatement of the judgment awarding attorney's fees. View "First Baptist Church of Cape Coral, Fla., Inc. v. Compass Constr., Inc." on Justia Law

Western Wyoming Construction Company (WWC) submitted a bid for a highway project in Sublette County. The Board of County Commissioners of Sublette County (Commissioners) awarded the contract to another resident contractor whose bid was higher than WWC's. WWC filed a complaint in district court for an order awarding it the contract for the project. The district court granted summary judgment in favor of the Commissioners. At issue on appeal was whether Wyo. Stat. 16-6-102(a) required the Commissioners to award the contract to the responsible certified Wyoming resident making the lowest bid. The Supreme Court reversed, holding (1) section 16-6-102 has no application in the context of two resident contractors; and (2) because no evidence was presented showing where the funds came from to pay for the project, (i) there could be no finding as to what statutory provision, if any, was applicable, and (ii) a judicial determination as to the appropriateness of the bid award was not possible. Remanded. View "W. Wyo. Constr. Co., Inc. v. Bd. of County Comm'rs" on Justia Law

Plaintiffs entered into a contract with DJ Construction (DJ) to build a home on their property. Construction was halted two years later after Plaintiffs discovered significant water damage in the home. Plaintiffs sued DJ, seeking to recover for the damage to their home and DJ's failure to complete the house. Auto-Owners Insurance Company, DJ's insurer, denied DJ's requests for defense and indemnity against Plaintiffs' claims, determining coverage was not provided for under the terms of the policy. Plaintiffs subsequently entered into a stipulated judgment and settlement agreement with DJ in which DJ confessed judgment and assigned its rights and claims against Owners to Plaintiffs. Plaintiffs then filed suit against Owners based on Owners' failure to defend and indemnify DJ. The circuit court granted summary judgment in favor of Owners, determining there was no coverage under the policy because multiple policy exclusions applied. The Supreme Court affirmed, holding that the circuit court did not err in granting summary judgment in favor of Owners on Plaintiffs' breach of contract and bad faith claims based upon its determination that multiple policy exclusions applied. View "Swenson v. Owners Ins. Co." on Justia Law

After falling down a staircase at a bar and restaurant in Boston, a college student died. Plaintiffs, the student's parents, filed this action against the restaurant and trustees of a trust that owned the land and buildings within which the restaurant operated. The complaint alleged claims against the restaurant and trustees for wrongful death and for violation of Mass. Gen. Laws ch. 93A. Plaintiffs based their chapter 93A claim on Defendants' alleged building code violations, which Plaintiffs claimed constituted unfair or deceptive conduct. A jury returned a verdict for Defendants on Plaintiffs' wrongful death claims, and the trial judge found in favor of Plaintiffs on the chapter 93A claim, finding that the student fell and suffered a fatal injury because the stairs were in an unsafe, defective condition having been rebuilt without necessary building permits. The Supreme Court vacated the judgment, holding that Plaintiffs were entitled to recover on their chapter 93A claim but that the judge erred in her calculation and award of damages. Remanded. View "Klairmont v. Gainsboro Rest., Inc." on Justia Law

This dispute centered on a contract for the construction of a residence. The contract between the general contractor (Contractor) and the owners (Owners) was contingent upon Owners obtaining financing. After construction was completed, Contractor asserted a materialman's lien on the house, arguing that Owners had refused to fully compensate Contractor. After Owners filed suit to protest the lien, the parties agreed to discharge the lien. Contractor later sued Owners based on Owners' failure to disclose that they had obtained inadequate financing. The circuit court dismissed the complaint on the grounds that Contractor's claims were statutorily barred for failure to strictly comply with requirements for the notice of its lien. The order was silent as to the other two grounds Owners had asserted for dismissal and with respect to any of the arguments raised in defense of Owners' motion to dismiss. Contractor appealed, arguing reversal based on other arguments raised below but not ruled on. The Supreme Court affirmed, as (1) the circuit court did not provide a ruling on Contractor's first three arguments, and they were therefore not preserved for appellate review; and (2) Contractor's fourth argument had no merit given the Court's summary affirmance on the first three points. View "TEMCO Constr., LLC v. Gann" on Justia Law

Caliber Builders, Inc., sought to develop a parcel of land commonly referred to as "Golden Orchards." A small portion of the parcel is in Washington Township, but the bulk of it is in the Borough of Hillsdale, where it is included in the residential (R-2) zone. Intending of constructing an age-restricted housing development, which was a conditional use in the R-2 zone, Caliber submitted a preliminary site plan application to the Hillsdale Planning Board. Plaintiff Northgate Condominium Association, Inc., manages and operates a previously-existing condominium community built on an adjacent parcel of land in Washington Township. In this appeal, the issue before the Supreme Court was whether the lot designations contained in the notice of public hearings on an application for a conditional use approval sufficiently complied with the provisions of the Municipal Land Use Law to confer jurisdiction on the Planning Board, and whether the project design of the internal roadway complied with requirements of the Residential Site Improvement Standards. Upon review, the Supreme Court concluded that the developer's notice of public hearings, although using lot numbers that were not included on the official tax map, did not misidentify the lot to be developed, complied with the provisions of the Municipal Land Use Law, and conferred jurisdiction on the Planning Board. "Plaintiff fail[ed] to point to anything in the record supporting its claim that the project design of the internal roadway did not comply with density requirements under the Residential Site Improvement Standards." View "Northgate Condominium Association, Inc. v. Borough of Hillsdale Planning Board" on Justia Law

The Supreme Court granted certiorari to review the court of appeals decision affirming the circuit court's order that upheld an arbitration award. The underlying dispute arose from a construction contract whereby general contractor respondent C-Sculptures, LLC agreed to build a home for Petitioners Gregory and Kerry Brown. The contract price was in excess of $800,000. However, Respondent only possessed what is referred to as a Group II license, limiting Respondent to construction projects that did not exceed $100,000. A dispute arose between the parties, and Respondent filed an action in circuit court seeking to enforce a mechanic's lien against Petitioners. Upon Petitioners' motion and pursuant to an arbitration clause in the parties' contract, the circuit court matter was stayed pending arbitration. Petitioners sought to have the matter dismissed after they learned Respondent held only a Group II license. The arbitrator was apprised of the applicable law, but nevertheless denied Petitioners' motion to dismiss "after due consideration of all the evidence and authorities presented by the parties in this Arbitration." Respondent prevailed at arbitration, receiving an award of damages and an award of attorney's fees as the prevailing party pursuant to S.C. Code Ann. section 29-5-10(b) (Supp. 2012). Petitioners challenged the arbitration award, contending the arbitrator's denial of their motion to dismiss amounted to a manifest disregard of the law. Following adverse decisions in the circuit court and the court of appeals, the Supreme Court granted a writ of certiorari. Petitioners argue the court of appeals erred in refusing to find the arbitrator manifestly disregarded the law in declining to dismiss the action. Upon review, the Court agreed, and reversed the appellate court and directed that judgment be entered for Petitioners. View "C-Sculptures v. Brown" on Justia Law

Defendant-appellant Stanley Taylor appealed his convictions on: eighteen counts of Unlawful Sexual Conduct Against a Child by a Sex Offender; one count of Attempted Unlawful Sexual Conduct Against a Child by a Sex Offender; and two counts of Endangering the Welfare of a Child. The indictment was based on allegations that Defendant engaged in unlawful sexual conduct with his two minor step-granddaughters. To avoid prejudice to Defendant, the sex offender element of his crimes was redacted from the indictment and a separate bench trial was held on that element after the jury returned its verdict. The State dismissed five counts at the close of the evidence. The jury was ultimately left to consider the following charges: four counts of Rape in the First Degree; four counts of Rape in the Second Degree; seven counts of Sexual Exploitation of a Child; one count of Continuous Sexual Abuse of a Child; and one count of Endangering the Welfare of a Child. Defendant was found guilty of all of the offenses presented to the jury. Thereafter, in a bench trial, the Superior Court found that Defendant was a registered sex offender at the time of the offenses, resulting in guilty verdicts on all of the sex offender charges. Defendant was sentenced to eight life sentences, plus an additional 225 years of incarceration. Defendant has raised four arguments in his direct appeal to the Supreme Court: (1) that the prosecutor made an improper closing argument that jeopardized the fairness and integrity of his trial; (2) that the trial judge abused his discretion and violated Defendant's right to a fair trial when, despite Defendant's request, he refused to strike allegedly irrelevant and highly prejudicial testimonial evidence by a nurse; (3) the trial judge abused his discretion when he allowed the jury to view one of the complainant's out-of-court statements; and (4) the cumulative impact of all of the errors amounts to plain error. Upon review, the Supreme Court concluded that each of Defendant's first three assignments of error were without merit. Accordingly, there was no cumulative impact amounting to plain error. View "Taylor v. Delaware" on Justia Law

The Steel institute appealed the district court's grant of the City's motion for summary judgment and dismissal of its complaint, which alleged that the City's regulation of cranes and other hoisting equipment was preempted by federal law. The court granted some weight to OSHA's view in reaching its conclusion that local regulatory schemes such as the City's crane regulations have the aim and primary effect of regulating conduct to secure the safety of the general public, rather than the safety of workers in the workplace. Therefore, the City's crane regulations were saved from preemption as laws of general applicability and the court affirmed the judgment. View "Steel Institute of New York v. City of New York" on Justia Law