Justia Construction Law Opinion Summaries

Cuevas Machine Company entered into a subcontract with O’Neal Constructors for fabrication and machining work at a filtration plant owned by Calgon Carbon Corporation in Mississippi. Under the subcontract, Cuevas was to be paid after Calgon paid O’Neal. Despite nonpayment from O’Neal, Cuevas continued its work. In October 2023, Cuevas recorded two construction liens totaling over $1.2 million against Calgon’s property, but the lien documents did not explicitly state the last date labor, services, or materials were supplied—a statutory requirement. Instead, Cuevas attached invoices to the liens, which included dates, but it was unclear whether these dates satisfied the statutory requirement.After Cuevas filed suit to foreclose on the liens in Mississippi state court, Calgon removed the case to the United States District Court for the Southern District of Mississippi and moved to dismiss. The district court granted Calgon’s motion, dismissing Cuevas’s complaint with prejudice under Rule 12(b)(6). The district court concluded, making an Erie guess, that the liens were unenforceable because they did not clearly specify the required “last date” in the manner demanded by Mississippi law, and found that the attached invoices did not sufficiently cure this defect.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s decision de novo. Finding Mississippi law ambiguous on whether attachments that do not plainly state the “last date” can satisfy the statutory requirement, the Fifth Circuit certified the following question to the Mississippi Supreme Court: whether attaching invoices that do not explicitly state the “last date labor, services or materials were supplied” satisfies the requirement under Miss. Code Ann. § 85-7-405(1)(b) that a lien “specify the date the claim was due.” The Fifth Circuit did not decide the merits, instead certifying the question for authoritative resolution. View "Cuevas Machine v. Calgon Carbon" on Justia Law

The case involves a dispute arising from alleged breaches of a partnership agreement between PNC Bank, N.A., Columbia Housing SLP Corporation (collectively, the "PNC Parties"), and Rene O. Campos, along with 2013 Travis Creek GP, LLC, as general partner. The partnership was formed to acquire, construct, develop, and operate an affordable housing apartment complex in Austin, Texas, with anticipated federal tax credits. A mechanic’s lien was placed on the property, leading to a default on the construction loan. The PNC Parties sought to remove the general partner and replace it with Columbia, resulting in a lawsuit.The PNC Parties filed the lawsuit in the United States District Court for the Western District of Texas, invoking diversity jurisdiction. The district court retained supplemental jurisdiction over the enforcement of the settlement agreement that resolved the 2017 lawsuit. In 2021, the Eureka Parties moved to re-open the case to enforce the settlement agreement, leading to competing motions to enforce. The district court severed the motions from the original lawsuit, creating a new case, and granted each motion in part, offsetting the balance owed. The Eureka Parties and the Partnership appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the parties failed to establish an independent jurisdictional basis for the severed motions. The court noted that severed claims must have an independent jurisdictional basis and that the record lacked sufficient evidence to establish diversity of citizenship. Consequently, the court remanded the case to the district court for the limited purpose of determining whether such jurisdiction exists. The panel retained jurisdiction over the limited remand. View "PNC Bank v. 2013 Travis Oak Creek" on Justia Law

This appeal arose out of a dispute over a construction contract between Golden Nugget and Yates. On appeal, Yates challenged the dismissal of its claim for a statutory lien under the Louisiana Private Works Act (LPWA), La. Stat. Ann. 9:4822, which grants general contractors a privilege to secure payment for their work. However, the LPWA requires that the contractor must preserve their lien by filing a statement of claim or privilege in a timely manner. In this case, although Yates did not file a lien statement within the time required by statute, the court found that because Golden Nugget never filed a notice of substantial completion, Yates's lien statement was timely filed. Accordingly, the court reversed and remanded. View "Golden Nugget Lake Charles v. W. G. Yates & Son" on Justia Law