Justia Construction Law Opinion Summaries

ACT brought this suit against PCI and First National, alleging claims of breach of contract, quantum meruit, and recovery on a payment bond under the Miller Act, 40 U.S.C. 3131(b). Because United States ex rel. Celanese Coatings Co. v. Gullard was clearly irreconcilable with intervening higher authority, the court overruled it and held that the Miller Act's statute of limitations was a claim-processing rule, not a jurisdictional rule. Because nothing on the face of ACT's complaint indicated that it did not work on the project or rent equipment to PCI within one year of the date it filed the complaint, the complaint could not have been dismissed if the district court had treated the Miller Act's statute of limitations as a claim-processing rule. Accordingly, the court vacated and remanded. View "Air Control Tech. v. Pre Con Indus." on Justia Law

After a general contractor (Perini) was sued in connection with alleged reinforcing steel defects on commercial construction project, Perini filed a counterclaim against the steel installer (Century) and the company to whom the steel installer assigned its assets (PCS). Century and PCS in turn filed third- and fourth-party complaints against several entities, including the company that provided structural engineering services for the project (Halcrow), alleging negligence, indemnity, contribution, an declaratory relief. Halcrow moved to dismiss the third- and fourth-party complaints, arguing that unintentional tort claims against design professionals in commercial construction projects are barred when the claimant incurs purely economic losses. The district court granted Halcrow's motion. The district court subsequently granted Century's and PCS's motions to amend their complaints to allege a claim for negligent misrepresentation. Halcrow then filed this petition for extraordinary relief. The Supreme Court issued the writ and directed the district court to vacate its order granting PCS and Century leave to amend their third- and fourth-party complaints, holding that, in commercial construction defect litigation, the economic loss doctrine applies to bar claims against design professionals for negligent misrepresentation where the damages alleged are purely economic. View "Halcrow, Inc. v. Dist. Court" on Justia Law

The Utilities Board of the City of Opp appealed a circuit court's order that denied its motion to dismiss a third-party complaint filed by Shuler Brothers, Inc. The Alabama Electric Company (AEC) had filed suit against Shuler Brothers seeking recovery for services performed and for breach of contract when Shuler Brothers refused to pay an invoice for repairs AEC made to some equipment. Shuler Brothers argued that the repairs did not solve its equipment issue. Shuler Brothers alleged the Utilities Board was negligent in maintaining power lines going to its facility that was part of its equipment troubles. In its motion to dismiss, the Utilities Board argued that a two-year statute of limitations applied to Shuler Brothers' claim, and that the alleged negligence was not discovered until AEC served Shuler Brothers with its complaint. Upon review of the matter, the Supreme Court affirmed the circuit court's judgment to deny the Utilities Board's motion to dismiss; reversed the circuit court's decision denying Shuler Brothers' breach-of-contract claim; and reversed the circuit court's denial of the Board's motion to dismiss Shuler Brothers' negligence claim. View "Utilities Board of the City of Opp v. Shuler Brothers, Inc. " on Justia Law

Richard and Lisa Keane and the companies they managed, and Bald, Fat & Ugly, LLC (BFU) had a disagreement arising from a development deal involving the Houston Professional Plaza. They went to mediation, but the parties had a disagreement regarding the terms of the mediated agreement. They then turned to arbitration. The arbitrator granted two awards in favor of BFU. The award did not specify any date by which the Keanes were to pay the money, nor did the award include interest. The district court confirmed the arbitration awards, and issued a writ of execution. The sheriff returned the writ not satisfied. BFU then obtained an order for a debtor's examination. A partial satisfaction of judgment was made, but the Keanes did not direct how the payment made was to be applied to the two arbitration awards. BFU applied the partial satisfaction to one of the awards, and filed a motion to have the Keanes held in contempt for failing to pay the second. The Keanes challenged the contempt action. The Supreme Court, after its review of the matter, found that because the order confirming the arbitration award did not require the Keanes to do anything and because contempt cannot be used to enforce payment of the debt in this case, the Court reversed the judgment of the district court finding them in contempt and the order later entered awarding the respondent attorney fees and court costs. View "Bald, Fat & Ugly v. Keane" on Justia Law

The issue before the Supreme Court centered on the grant of summary judgment in favor of Respondent Action Concrete Contractors, Inc. in a mechanic's lien foreclosure action. Owners Elvira Chappelear, Craig Chappelear, Premier Southern Homes, LLC, Henry G. Beal, Jr. and First Citizens Bank and Trust Co., Inc. argued on appeal there were material issues of fact and that the grant of summary judgment was inappropriate. The Supreme Court disagreed after its review of the trial court record and affirmed. View "Action Concrete v. Chappelear" on Justia Law

The Wicks Law requires public entities seeking bids on construction contracts to obtain separate specifications for three subdivisions of the work to be performed. Until 2008 when the law was amended to raise the threshold, the Wicks Law applied to contracts whose cost exceeded $50,000. The new, higher thresholds, unlike the old one, were not uniform throughout the State. Plaintiffs claimed, inter alia, that the amendments violated the Home Rule section of the State Constitution by unjustifiably favoring the eight counties with higher thresholds. Supreme Court dismissed the complaint, holding that Plaintiffs lacked standing to assert the Home Rule cause of action and that, in any event, the challenged amendments did not violate the Home Rule section because they "were enacted in furtherance of and bear a reasonable relationship to a substantial State-wide concern." The Appellate Division affirmed. The Court of Appeals affirmed as modified, holding (1) at least one plaintiff had standing to assert the Home Rule claim, but that claim failed on the merits; and (2) most of Plaintiffs' other claims failed, but four causes of action challenging the apprenticeship requirements as applied to out-of-state contracts should be reinstated. View "Empire State Chapter of Associated Builders & Contractors v. Smith" on Justia Law

Ground Control, LLC appealed the grant of summary judgment in favor of Capsco Industries, W.G. Yates & Sons Construction and Harrah's Entertainment, Inc. The parties contracted to build the "Margaritaville Spa and Hotel" in Biloxi. The circuit court held in part that Ground Control's failure to obtain a certificate of responsibility rendered its contract with Capsco null and void. After its review of the circuit court record, the Supreme Court agreed (and affirmed) that the lack of the certificate of responsibility rendered the contract null and void. However, the Court reversed the grant of summary judgment in part so that the circuit court could determine whether Ground Control was entitled to recover based on claims of unjust enrichment and/or quantum meruit. View "Ground Control, LLC v. Capsco Industries, Inc." on Justia Law

Guardian Builders, LLC, and Wayne Tackett (collectively "Guardian") appealed an order that denied its motion to vacate or modify an arbitration award entered in favor of Randy and Melissa Uselton. In April 2010, the Useltons sued Guardian alleging several claims arising from Guardian's construction of a house. Guardian subsequently filed a motion to compel arbitration, and the circuit court granted that motion. The arbitrator entered a final award in favor of the Useltons in the amount of $452,275.20. Upon review, the Supreme Court construed Guardian's motion to vacate or modify the arbitration award of as a notice of appeal under Rule 71B, thus effectuating the appeal of the award to the circuit court. However, because the clerk of the circuit court never entered the award as the judgment of that court, the circuit court's order denying Guardian's motion to vacate or modify was void. "Essentially, Guardian's appeal remains pending in the circuit court, awaiting further procedures under Rule 71B. Further, because Guardian has appealed from the arbitration award under Rule 71B, that award could not be entered as the judgment of the court under 71C. Thus, the circuit court lacked authority to enter a judgment on the award under Rule 71C and to award Better Business Bureau fees and facility costs in connection with the entry of that judgment." View "Guardian Builders, LLC v. Uselton " 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