Justia Construction Law Opinion Summaries

The dispute arose from a failed attempt to construct an osteopathic medical school in Gaylord, Minnesota. Philip Keithahn formed Minnesota Medical University, LLC (MMU) and retained Heritage Construction Companies, LLC as the general contractor. MMU planned to finance the project through bond proceeds, with a portion immediately available and the remainder contingent on achieving pre-accreditation. Representatives from Heritage sought confirmation of available funds prior to construction, and Keithahn assured them that the project would be funded and that millions would be available after closing. However, after initial payments, MMU ran out of funds when pre-accreditation was denied, leading Heritage to halt construction and terminate its contract.The United States District Court for the District of Minnesota oversaw the case after Heritage and its affiliates faced indemnification claims and filed a third-party complaint against Keithahn and MMU. The defendants’ motion for summary judgment was denied, and the case proceeded to trial on claims including breach of contract, indemnification, negligent misrepresentation, fraudulent misrepresentation, and fraud by omission. MMU admitted liability for breach of contract and damages. The jury found the defendants liable on all claims except fraudulent misrepresentation. Post-verdict, the district court denied defendants’ motions for judgment as a matter of law or for a new trial, addressing issues of jury instructions, violations of in limine orders, improper statements, and impeachment.The United States Court of Appeals for the Eighth Circuit reviewed the appeal. It held that Keithahn’s representations regarding available financing were actionable as negligent misrepresentations, as they concerned present facts susceptible of knowledge rather than mere future assurances. The court found no error in the jury instructions, no prejudicial violation of evidentiary rulings, and no cumulative error warranting a new trial. The Eighth Circuit affirmed the district court’s judgment. View "Heritage Const. Companies, LLC v. Keithahn" on Justia Law

Plaintiffs, E&I Global Energy Services, Inc. and E&C Global, LLC, sued Liberty Mutual Insurance Company for breach of contract and tort claims related to a construction project. The United States, through the Western Area Power Administration (WAPA), contracted with Isolux to build a substation, and Liberty issued performance and payment bonds for Isolux. After Isolux was terminated, Liberty hired E&C as the completion contractor, but E&I performed the work. Plaintiffs claimed Liberty failed to pay for the work completed.The United States District Court for the District of South Dakota granted summary judgment for Liberty on the unjust enrichment claim and ruled in Liberty's favor on all other claims after a bench trial. The court denied Plaintiffs' untimely request for a jury trial, excluded an expert witness report filed after the deadline, found no evidence of an assignment of rights between E&C and E&I, and ruled against Plaintiffs on their fraud, deceit, and negligent misrepresentation claims.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court held that the district court did not abuse its discretion in denying the jury trial request, as Plaintiffs failed to timely file the motion and did not justify the delay. The exclusion of the expert report was also upheld, as the district court properly applied the relevant factors and found the late report was neither substantially justified nor harmless. The court affirmed the district court's finding that there was no valid assignment of rights from E&C to E&I, meaning Liberty's promise to pay was to E&C, not E&I. The court also upheld the findings that Liberty did not have the intent to deceive or induce reliance, and that Bruce did not reasonably rely on Mattingly's statements. Finally, the court declined to address the unjust enrichment claim as Plaintiffs did not raise the argument below. The Eighth Circuit affirmed the district court's rulings in their entirety. View "E&I Global Energy Services v. Liberty Mutual Insurance Co." on Justia Law

The utility and its insurers filed suit against BendTec for negligence, alleging that its pipes were the source of grit and had been improperly cleaned. The district court granted summary judgment to BendTec. The court affirmed the judgment, agreeing with the district court's conclusion that the negligence claim was barred under the two year limitations period in Minn. Stat. 541.051 since the installation of the turbine was an improvement to real property. Because the two year statute of limitations in Minn. Stat. 541.051 applies and the subdivision 1(e) exception does not, and plaintiffs did not file this lawsuit within the limitations period, the district court correctly granted summary judgment to BendTec. View "Associated Electric & Gas Ins. v. BendTec, Inc." on Justia Law

Demien, the unsuccessful bidder for the construction of a new firehouse, filed suit against the District under 42 U.S.C. 1983, alleging that the District violated federal and state constitutional rights, as well as state law, in the bidding process. The district court dismissed the complaint. The court concluded that it need only determine whether Damien has Article III standing under Federal law and not whether Damien has standing under Missouri law. Determining that Demien has Article III standing, the court concluded that Demien has abandoned its claims under the First Amendment by failing to argue them before the district court, and that Demien failed to allege that the District deprived Demien of any entitlement, and so it failed to state a claim under the Fourteenth Amendment Due Process Clause. The court concluded that, under Missouri law, there is no property right to the lowest bidder, and standing to bring a state court claim of deprivation of property rights does not establish a protected property interest. In this case, the District stated that it may accept the lowest bid, but does not need to. Accordingly, the court affirmed the judgment. View "Demien Construction Co. v. O'Fallon Fire Protection Dist." on Justia Law