Justia Construction Law Opinion SummariesArticles Posted in Maryland Court of Appeals
Brawner Builders, Inc. v. Maryland State Highway Administration
The Court of Appeals affirmed the decision of the Maryland State Board of Contract Appeals (MSBCA) granting summary disposition as to the Maryland State Highway Administration's (SHA) claims against Brawner Builders, Inc. and Faddis Concrete Products, Inc., holding that there was no error in the MSBCA's decision to grant SHA's motion for summary decision.SHA and Brawner entered into a contract for the construction of noise barriers along a section of interstate. Faddis manufactured noise wall panels for Brawner's use in connection with the project. SHA subsequently suspended approval of Faddis-produced noise panels. Faddis filed a procurement contract claim. The MSBCA issued summary disposition to the SHA, concluding that Faddis had no standing to file such a claim. At issue on appeal was whether Faddis's status as a "pre-approved supplier" of concrete panels on construction projects administered by the SHA constituted a "procurement contract" with the State under the State Finance and Procurement Article. The circuit court reversed. The court of special appeals reversed the circuit court. The court of Special Appeals affirmed, holding that the MSBCA properly dismissed Faddis's claims and entered judgment in SHA's favor. View "Brawner Builders, Inc. v. Maryland State Highway Administration" on Justia Law
Nationwide Property & Casualty Insurance Co. v. Selective Way Insurance Co.
The Court of Appeals affirmed the judgment of the court of special appeals concluding that prejudgment interest on defense costs where a party breaches its duty to defend does not fall within the exception to the "modified discretionary approach" and is within the discretion of the fact-finder.The modified discretionary approach used by Maryland courts in awarding prejudgment interest generally places the award of prejudgment interest within the discretion of the trier of fact but also recognizes exceptions where a plaintiff is entitled to prejudgment interest as a matter of right. At issue was whether prejudgment interest should be awarded as a matter of right. The Court of Appeals held (1) prejudgment interest on defense costs is left to the discretion of the fact-finder; and (2) where the jury in this case was not presented with a claim of prejudgment interest, was not instructed on the issue, and did not separately state an award of prejudgment interest in the verdict, the circuit court was not authorized to award prejudgment interest. View "Nationwide Property & Casualty Insurance Co. v. Selective Way Insurance Co." on Justia Law
C&B Construction, Inc. v. Dashiell
In this breach of contract case stemming from the failure to pay for labor and materials provided by a construction subcontractor (Petitioner) to a general contractor through six construction contracts, the Court of Appeals affirmed the judgments of the circuit court and the court of special appeals in favor of Respondents.The Court of Appeals held (1) where there has been an invocation of the Maryland Construction Trust Statute, there must be a showing that the statute applies to the contracts in dispute; (2) Md. Code Real Prop. 9-204(a) contains a requirement that the contracts be subject to the Maryland Little Miller Act or the Maryland Mechanics’ Lien Statute; and (3) Petitioner failed to demonstrate that the protections afforded by the Maryland Construction Trust Statute were applicable. View "C&B Construction, Inc. v. Dashiell" on Justia Law
Young Electrical Contractors, Inc. v. Dustin Construction, Inc.
The award of summary judgment in favor of the general contractor against the subcontractor in this case based on a pay-if-paid clause was improper because the pay-if-paid clause did not apply to the issues in this case.Pay-if-paid clauses make the project owner’s payment of the general contractor a condition precedent of the general contractor’s obligation to pay the subcontractor. Thus, the pay-if-paid clause can relieve the general contractor of liability to the subcontractor even where the subcontractor has fully performed its part of the subcontract. Here, Subcontractor sued General Contractor for breach of contract relating to a construction project. The circuit court granted summary judgment to General Contractor, concluding that, under Virginia law, a pay-if-paid provision in the subcontract applied to the damages sought. The Supreme Court reversed and remanded the case, holding (1) the pay-if-paid clause did not necessarily apply to the costs at issue in this case; and (2) the other provision relied upon by the circuit court did not create a condition precedent for payment of subcontractors. View "Young Electrical Contractors, Inc. v. Dustin Construction, Inc." on Justia Law
Kent Island, LLC v. DiNapoli
Petitioner entered into a consent order with the several Queen Anne's County officials regarding resolution of their disputes over Petitioner's proposed construction of a project in the county. The consent order terminated litigation in Kent Island I in the Anne Arundel County circuit court. Seeking invalidation of the consent order, Respondents filed suit in the Queen Anne's County circuit court (Kent Island II). On Petitioner's motion, the case was transferred to the Anne Arundel County circuit court, which granted summary judgment for Petitioner. The court of special appeals vacated the judgment, finding that venue was appropriate in the Queen Anne's County circuit court. The Supreme Court reversed, holding (1) the circuit court for Queen Anne's County did not have jurisdiction to modify or revise the consent order, a final judgment, entered by the Anne Arundel County circuit court; and (2) moreover, the Anne Arundel County circuit court was not empowered to revise or modify the judgment entered in Kent Island I in a manner sought by Respondents, as none of Respondents were a party in Kent Island I, and therefore, they could not maintain an action seeking either circuit court to exercise revisory power over the judgment in Kent Island II. View "Kent Island, LLC v. DiNapoli" on Justia Law
CR-RSC Tower I, LLC v. RSC Tower I, LLC
The owners of two properties leased them to developer-tenants for the purpose of building an apartment building on each. As construction was beginning, the landlords breached the leases by refusing to provide estoppel certificates and contesting the tenants' building permits. The landlords' breach prevented the tenants from obtaining financing, which ended the development project. The tenants sued for lost profits. Before trial, the circuit court ruled against the landlords on several motions, holding in part (1) the landlords could not introduce evidence of the 2008 crash in the real estate market to show that the tenants would not have made profits, and (2) the tenants could introduce evidence of the landlords' reasons for breaching, including communications with their former counsel. The jury awarded the tenants over $36 million in damages, holding the landlords jointly and severally liable. The court of special appeals held the landlords could not be held jointly and severally liable but otherwise affirmed. The Court of Appeals affirmed, holding (1) the trial court did nor err in excluding all evidence of post-breach market data in measuring damages; and (2) the landlord waived the attorney-client privilege as to communications relevant to the subject matter of the claim of bad faith. View "CR-RSC Tower I, LLC v. RSC Tower I, LLC" on Justia Law
Bldg. Materials Corp. of Am. v. Bd. of Educ.
For some years, the Board of Education of Baltimore County belonged to a governmental group purchasing consortium, which competitively bid a roofing services contract on behalf of its members. The Board relied on that contact to fulfill its needs for roofing repair services. Appellant Building Materials Corporation of America, a nationwide manufacturer of roofing materials, questioned the Board's authority for that practice under the pertinent statutes. The circuit court granted summary judgment in favor of the Board. The Court of Appeals affirmed, holding that when viewed in the context of the entire education law and regulations promulgated under that law, the competitive bidding statute did not bar the Board from using its membership in an intergovernmental purchasing consortium for the procurement of roofing repair services. View "Bldg. Materials Corp. of Am. v. Bd. of Educ." on Justia Law
State v. Coleman
After Leon Coleman failed to perform eight construction contracts for detached homes, he was convicted of eight counts of theft by deception and eight counts of failure to escrow under Deposits on New Homes Subtitle (Act). The court of special appeals reversed, holding that the Act did not apply and that there was insufficient evidence of intent to support the theft convictions. The Court of Appeals affirmed, holding (1) the evidence was insufficient to conclude that Coleman intentionally deprived buyers of their property, as required under the theft statute; and (2) the plain meaning of the Act indicated that it did not apply to Coleman. View "State v. Coleman" on Justia Law
Poole v. Coakley & Williams Constr., Inc.
While making a delivery during the course of his employment, Appellant George Pool walked through a stream of running water that flowed across a parking lot. As a result, Appellant slipped and fell on black ice and suffered injuries. Appellant sued Defendants, the construction company that allegedly pumped the water into the parking lot and the owner of the parking lot, alleging negligence. Several additional defendants were subsequently added. The trial judge granted summary judgment in favor of the original defendants and the two defendants named in Appellant's amended complaint on the ground that Appellant had assumed the risk of his injury. Appellant appealed. The Court of Appeals (1) reversed summary judgment entered in favor of the original defendants because Appellant did not assume the risk of his injury as a matter of law; (2) affirmed the grant of summary judgment in favor of one later-named defendant and the dismissal in favor of the other later-named defendant; and (3) disavowed the reasoning related to assumption of the risk in Allen v. Marriott Worldwide Corp. View "Poole v. Coakley & Williams Constr., Inc." on Justia Law
Stalker Bros. v. Alcoa Concrete Masonry, Inc.
Plaintiff, an unlicensed subcontractor, filed a complaint against Defendants, licensed contractors, alleging that it was entitled to a judgment in the amount that Defendants agreed to pay for home improvement work that Plaintiff performed as a subcontractor for Defendants. The circuit court dismissed the complaint, finding that contracts made by unlicensed home improvement contractors or subcontractors were illegal. The court of appeals reversed and reinstated the complaint, holding that the Maryland Home Improvement Law, which regulates contracts between contractors and owners, did not bar Respondent from recovering on its subcontract with Petitioner. The Supreme Court affirmed, holding that the Maryland Home Improvement Law did not render unenforceable a contract between a home improvement general contractor and an unlicensed subcontractor. View "Stalker Bros. v. Alcoa Concrete Masonry, Inc. " on Justia Law