Justia Construction Law Opinion Summaries

Continental Partners bought a lot with two building pads from Yellowstone Development that was part of the Yellowstone Club subdivision. The purchase and sale agreement included an assurance that the houses Continental intended to build on the lot would have ski-in and gravity ski-out access built by the Yellowstone Club. During construction, Continental sold the homes to separate buyers, including the managing member of WLW Realty Partners, LLC. Before construction on the ski-out access on the two homes had begun, the Yellowstone Club filed for bankruptcy protection. The subsequent owners of Yellowstone Club informed the new owners that ski-out access to the homes would not be constructed. WLW Realty filed this action against Continental, alleging, inter alia, negligent misrepresentation and violation of the Montana Consumer Protection Act (MCPA). After a bench trial, the district court entered judgment for WLW Realty. The Supreme Court reversed, holding that the district court erred by (1) imposing liability on Continental for negligent misrepresentation, as WLW Realty failed to satisfy the first and second elements of the tort; and (2) finding that Continental had violated the MCPA, as Continental did not engage in unfair or deceptive acts or practices. View "WLW Realty Partners, LLC v. Continental Partners VIII, LLC" on Justia Law

Wayne Kelly was killed while working at a construction site in Hattiesburg. His family sued, among other defendants, Hanco Corporation, Inc., the general contractor for the project on which Wayne Kelly had been working at the time he died, and American Air Specialists of Mississippi, Inc., the subcontractor that had leased the services of Kelly and his coworkers from Landrum Professional Employer Services, Inc. The Kellys and Hanco/American Air moved separately for summary judgment. The circuit court denied summary judgment to Hanco and American Air. Hanco filed a petition for interlocutory appeal and the Kellys filed a cross-petition for interlocutory appeal. The Supreme Court granted interlocutory appeal and consolidated the cases. After review, the Court affirmed the denial of summary judgment because Hanco waived its exclusive-remedy affirmative defense despite section 71-3-6 of the Mississippi Workers' Compensation Act provided an exclusive remedy to claimants for on-the-job injuries. View "Hanco Corporation v. Goldman" on Justia Law

Jim Hein hired John Sott and his companies (collectively, Sott) to construct a log home for him and then, later, an addition to the home. Hein eventually filed a complaint against Sott alleging negligence, negligent misrepresentation, and violation of the Montana Consumer Protection Act (CPA). The district court dismissed Hein’s claims related to the construction of the home as time-barred and then dismissed Hein’s remaining claims on the ground that Hein had not provided expert evidence that Sott’s work was either defective or caused Hein damage. The Supreme Court affirmed, holding that the district court (1) correctly determined that Hein’s negligence and negligent misrepresentation claims arising from water damage to his home were barred by the statute of repose; (2) did not err in determining that Hein’s CPA claims for damages arising two years before Hein filed his complaint were barred by the statute of limitations but erred in determining that Hein’s CPA claims based on alleged deceptive acts or practices in the performance of repairs occurring less than two years before Hein filed his complaint were barred by the statute of limitations; and (3) erred in determining that Hein was required to produce expert evidence for his CPA claim arising from Sott’s billing for work on the addition. View "Hein v. Sott" on Justia Law

Cody McDonald was injured while working on the construction of a building. RTK Construction, Inc. hired Ponderosa Enterprises Inc. to frame the building, and Ponderosa hired McDonald as an independent contractor to assist with the framing. McDonald brought suit against Ponderosa and RTK, alleging, inter alia, negligence and violation of the Montana Occupational Safety and Health Act (MOSHA). The district court granted partial summary judgment on the MOSHA claims, concluding that because McDonald was an independent contractor at the time of his injury, Ponderosa and RTK did not owe him any duties of safety under MOSHA. RTK was subsequently dismissed from the case, and a jury found that Ponderosa was not negligent. The Supreme Court affirmed, holding that MOSHA does not create a duty for employers to meet certain safety guidelines with respect to independent contractors. View "McDonald v. Ponderosa Enters., Inc." on Justia Law

At issue in this residential construction dispute was whether the statutory cap on exemplary damages is waived if not pleaded as an affirmative defense or avoidance. The trial court affirmed an exemplary damages award in excess of the statutory cap because Petitioner did not assert the cap until her motion for a new trial. The court of appeals affirmed the exemplary damages award, concluding that the statutory cap on exemplary damages did not apply because Petitioner failed to expressly plead the cap as an affirmative defense. The Supreme Court (1) reversed the court of appeals’ judgment in relation to the exemplary cap, holding (i) the exemplary damages cap is not a matter ”constituting an avoidance or affirmative defense” and need not be affirmatively pleaded because it applies automatically when invoked and does not require proof of additional facts, and (ii) because Petitioner timely asserted the cap in her motion for new trial, the exemplary damages must be capped at $200,000; and (2) affirmed in all other respects. View "Zorilla v. Aypco Constr. II, LLC" on Justia Law

Plaintiff entered into a verbal contract with Jerry Morrison for the construction of a log home on her property. Plaintiff entered into a second verbal contract with James Phillips to build the basement walls and a chimney with two fireplaces. Concerned about the number of apparent defects in the construction and excessive costs of the labor and materials, Plaintiff fired Morrison. Plaintiff later filed suit against Morrison and Phillips (together, Defendants), alleging fraud and misrepresentation, breach of contract, and negligence, among other claims. The jury returned a verdict in favor of Plaintiff only with respect to her negligence claim against Morrison. The jury further found that Plaintiff had failed to mitigate her damages and/or was comparatively negligent. The Supreme Court affirmed, holding that the trial court did not err in (1) limiting the time the parties had to present the case to the jury; (2) placing limitations on expert testimony; (3) granting judgment as a matter of law in favor of Phillips; (4) denying Plaintiff’s motion for judgment as a matter of law with respect to her negligence and breach of warranty claims against Morrison; (5) instructing the jury on comparative negligence; (6) instructing the jury on outrageous conduct; and (7) denying Plaintiff’s motion for a new trial. View "Sneberger v. Morrison" on Justia Law

Wilson Paving & Excavating, Inc. was one of several subcontractors retained to perform services in connection with a renovation project at Sand Springs Memorial Stadium at Charles Page High School. Specifically, Wilson Paving contracted to dig trenches and lay pipe for a storm drainage system being installed under the athletic field. Wilson Paving utilized a local staffing agency, Labor Ready, to secure temporary workers to assist on the project. Steven Broom went to the offices of Labor Ready to obtain employment. Broom was directed by Labor Ready to work with Wilson Paving at Sand Springs High School. He reported to the high school and, at the instruction of Wilson Paving, began work laying pipe. The trench in which Broom was working collapsed twice - the first time covering him in dirt to his waist and the second time covering him in dirt to his neck. People on the job site freed Broom from the neck to the waist while waiting on emergency personnel to arrive. Once on the scene, emergency personnel could not enter the trench to rescue Broom until the trench was safely reinforced. During this time, Broom remained buried from the waist down. Emergency personnel eventually removed Broom from the trench, and he was transported to the hospital where he was treated for serious injuries, including rib fractures, collapsed lungs, pulmonary contusions, blood within the chest, fluid around the spleen and kidney, and a left kidney laceration. Before the trench collapsed, one of Wilson Paving's employees, Jack Bailey, was using a backhoe to dig the trench and to retrieve pipe from an area adjacent to the trench. Wilson Paving believed the trench collapse was due to the work of another contractor who had allegedly removed a monument and flag pole near the area of the collapse but failed to alert Bailey of such before he began digging the trench. Broom pursued and received workers' compensation benefits from Labor Ready for the injuries he sustained in the accident. Broom also sued Wilson Paving for his injuries in a third-party action to collect for his injuries as a result of Wilson's employee. The trial court found in favor of Broom and entered judgment against Wilson Paving for $1,150,000.00. Broom then sought post-judgment garnishment of Wilson Paving's Commercial General Liability Policy issued by Mid-Continent Casualty Company. The trial court entered summary judgment in favor of Mid-Continent, finding that coverage for Broom's injuries was precluded under the "earth movement" exclusion clause in Mid-Continent's policy. The Court of Civil Appeals found that the earth movement exclusion clause did not prevent coverage for Broom's injuries, but affirmed summary judgment on different grounds. Upon review, the Supreme Court held that Mid-Continent's Commercial General Liability Policy provided coverage for Broom's injuries. View "Broom v. Wilson Paving & Excavating" on Justia Law

In 2011, the Town of Middletown issued an invitation for bids on a drainage improvement project. Two contractors submitted bids, including HK&S Construction Holding Corp., which provided the lowest bid. Woodard & Curran, Inc. recommended against awarding HK&S the project and in favor of negotiating a contract with the second bidder. The town counsel concluded that HK&S’s bid was non-responsive and awarded the contract to the second bidder. Plaintiff filed a complaint against the Town and Woodard & Curran alleging, among other claims, that the Town violated state and local law when it denied the contract award for the project. The superior court granted summary judgment for Defendants. The Supreme Court affirmed, holding (1) there was no error in disposing of HK&S’s claims against the Town in summary judgment where HK&S failed to submit a responsive bid; and (2) HK&S’s claim of negligence against Woodard & Curran also failed. View "HK&S Constr. Holding Corp. v. Dible" on Justia Law

A property developer filed suit against several defendants involved in a construction project asserting claims for negligence and breach of contract. Defendants filed motions to compel arbitration, which the trial court denied. The court of appeals affirmed. The Supreme Court held that the developer must arbitrate its claims against the general contractor but not its claims against the other defendants, as (1) the developer agreed to arbitrate its claims against the general contractor, and the general contractor did not waive its right to demand arbitration; (2) the developer’s argument that a contractual deadline barred the general contractor’s demand for arbitration was itself a claim that must be arbitrated; (3) the developer did not agree in the general contract to arbitrate its claims against the other defendants; (4) the developer was not equitably estopped from denying its assent to its purported agreement that the other defendants could enforce the general contract’s arbitration provisions; and (5) the subcontracts did not require the parties to arbitrate these claims. View "G.T. Leach Builders, LLC v. Sapphire V.P., L.P." on Justia Law

Roland and Sandra Crouch appealed the grant of summary judgment in favor of North Alabama Sand & Gravel, LLC, now operating as Alliance Sand & Gravel, LLC, and Austin Powder Company ("Austin Powder") on the Crouches' claim asserting property damage resulting from Alliance Sand & Gravel's blasting operations. The Crouches sued Alliance Sand & Gravel and Austin Powder (collectively, "Alliance"), seeking compensation for damage to their property, which, they say, was caused by Alliance's blasting operations. Upon review, the Supreme Court affirmed the trial court's summary judgment in favor of Alliance on the Crouches' trespass claim. The Court reversed the summary judgment in favor of Alliance on the Crouches' claims alleging an abnormally dangerous activity, wantonness, and nuisance, and the case was remanded to the trial court for further proceedings. View "Crouch v. North Alabama Sand & Gravel, LLC" on Justia Law