Articles Posted in Supreme Court of Virginia

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Defendant recorded a mechanic’s lien for work done on two properties that had been placed in a trust. The trustee filed a petition challenging the validity of the liens, arguing that the memoranda for mechanic’s lien were defective because they failed to specifically name the trustee, improperly identified the claimant, and failed to list either a date from which interest was claimed or a date on which the debt was due. The Supreme Court affirmed, holding that the memoranda for mechanic’s lien either complied with the relevant statutes outright or were substantially compliant. View "Desai v. A. R. Design Group, Inc." on Justia Law

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In 1997, Virginia Polytechnic Institute & State University awarded General Contractor a prime contract for construction work. General Contractor hired Subcontractors to complete portions of the project. Sureties acted as sureties to Subcontractors. After construction was substantially completed, Virginia Tech made final payment to General Contractor in 1999, which made final payment to Subcontractors. All work was concluded in 2000. In 2012, Virginia Tech asserted a claim against General Contractor seeking compensation for the cost of remedying defective workmanship. In 2014, General Contractor settled the claim with Virginia Tech and, the same year, filed this action alleging breach of contract and common law indemnity claims against Subcontractors and breach of contract claims against Sureties. In 2015, the court dismissed the case in its entirety, concluding, as relevant to this appeal, that the statute of limitations barred the breach of contract claims. The Supreme Court affirmed, holding that the statute of limitations had run by the filing of the suit in 2014, and because any breach of Subcontractors occurred at the time of their respective performances, the statute of limitations had similarly run against Sureties. View "Hensel Phelps Construction Co. v. Thompson Masonry Contractor, Inc." on Justia Law

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Church entered into an engineering contract with Civil Engineer (Engineer) to design site plans for a rain tank system. Church entered into a contract with General Contractor (GC) for the construction of the rain tank. After GC installed the rain tank, the tank collapsed. Engineer designed and GC installed a different storm water management system, but Church refused to pay GC for installing the new storm water system. GC sued Church for payment, and Church counterclaimed against GC for breach of contract. Church filed a third-party claim against Engineer for repair and replacement costs it was found to owe GC because of the rain tank collapse. Church filed a separate suit against Engineer. The circuit court concluded that the rain tank collapse was the failure of Engineer, entered judgment for GC on its claims against Church, and awarded Church damages for delay and other damages associated with removing and replacing the rain tank. Engineer appealed. The Supreme Court (1) affirmed the judgment of the circuit court finding Church’s claims timely and Engineer liable on Church’s breach of contract claims; and (2) reversed the circuit court’s judgment granting Church damages in the form of construction loan interest that was not incurred as a result of the breach of contract. Remanded. View "William H. Gordon Assocs. v. Heritage Fellowship, United Church of Christ" on Justia Law