Justia Construction Law Opinion Summaries

Following an automobile crash for which United Tool Rental (UTR) and DeLyle Paulsen admitted negligence, UTR and Paulsen sought contribution from the state DOT and several construction entities (construction parties), alleging their negligent design, construction, and maintenance of the highway contributed to the crash. After a jury trial, the district court determined UTR and Paulsen were entirely at fault for the crash and rejected their contribution claim. On appeal, the Supreme Court affirmed, holding (1) the district court did not abuse its discretion in excluding evidence the DOT erected a "no left turn" sign after the crash and a post-crash memorandum prepared by the highway patrol; (2) the district court did not deprive UTR and Paulsen a fair trial by allowing the construction parties' counsel to inquire what caused Paulsen to drive inattentively; and (3) the jury's verdict was not defective. View "United Tool Rental, Inc. v. Riverside Contracting, Inc." on Justia Law

Stephen and Dawn Steadele contracted with Montana Component Housing Corporation (MCHC) to construct a home. MCHC did not complete the home by the deadline and eventually abandoned the project without completing the home. The Steadeles filed suit against MCHC. The district court entered a default judgment against MCHC when it failed to respond to the suit. The Steadeles then requested payment from Colony Insurance Company, MCHC's insurer. Colony denied coverage and refused to pay because MCHC never notified it of the Steadeles' claim. The Steadeles then filed this action, arguing that Colony's refusal to issue payment on the underlying judgment was a violation of Mont. Code Ann. 33-18-201, which prohibits unfair claim settlement practices. The district court granted summary judgment to Colony. The Supreme Court affirmed, holding that the district court did not err in granting summary judgment to Colony because MCHC's failure to notify Colony of the Steadeles' claim was a material breach of MCHC's obligations under the policy. View "Steadele v. Colony Ins. Co." on Justia Law

In 2000, Dick Anderson Construction (DAC) entered into a contract with Monroe Construction to do construction work on Paws Up Ranch, which was owned by Monroe Property. When each phase of the construction was completed, Monroe Construction sold that phase to Monroe Property. When DAC was not paid for the last $800,000 of its billings, it filed a construction lien to secure its claim. In 2001, DAC sued Monroe Property to foreclose the lien. On remand to the district court, Monroe Property argued since it was not a party to the construction contract with DAC, it was not a contracting owner against whom the lien could be foreclosed under the construction lien statutes. The district court granted Monroe Property's motion for summary judgment, and DAC appealed. The Supreme Court reversed, holding the facts of the case demonstrated that Monroe Construction was the actual agent of Monroe Property for the purpose of engaging DAC to complete construction work on the ranch. Therefore, under the statutes, Monroe Property, acting through its agent Monroe Construction, was a contracting owner with regard to the construction contract with DAC.