Justia Construction Law Opinion Summaries

Jeremy Myers challenged the district court's dismissal of his malicious prosecution claim, alleging violations of his Fourth and Fourteenth Amendment rights. Specifically, he argued that Detective Brian Koopman obtained an arrest warrant by fabricating facts to create the illusion of probable cause. As a result, Myers spent three days in custody. Upon careful consideration of the facts of this case, the Tenth Circuit concluded that the district court did not err in dismissing Myers’ Fourteenth Amendment claim because an adequate state remedy existed, but the district court improperly dismissed Myers’ Fourth Amendment malicious prosecution claim as untimely after recasting it as a claim for false imprisonment. View "Myers v. Koopman" on Justia Law

In 1983, Appellant, the owner and chief executive officer of an asphalt company, pled guilty to violating the Sherman Antitrust Act for unlawfully bidding on state highway construction contracts. In order to have his company's privilege of bidding on new contracts reinstated, Appellant agreed to cooperate with the Attorney General's (AG) investigation and proffered information pertaining to Appellant's involvement in a scheme to "rig" bids for highway construction contracts with the Kentucky Department of Transportation. In 2009, reporters for several newspapers submitted an Open Records Act (ORA) request to have the proffer disclosed. When Appellant learned the AG intended to release the proper, Appellant brought this action against the AG and ORA reporters seeking to have the release enjoined under the privacy exemption or the law enforcement exemption to the ORA. In 2011, the trial court ruled that the proffer should be released to the ORA requestors. The court of appeals affirmed. The Supreme Court affirmed, holding (1) Appellant did not have standing to invoke the law enforcement exemption provision to the ORA; and (2) matters of sufficient public interest warranted an invasion of Appellant's limited privacy interest in keeping his proffer from being disclosed.View "Lawson v. Office of Attorney Gen." on Justia Law

The Gagnards built a house in Los Altos, California, then sold the home to Goldman in January, 2004. Since then, Goldman has sued the Gagnards and those involved with the construction and sale of the house in various tribunals. In 2011, Goldman registered a foreign arbitral award in Illinois. She then sought citations to discover and collect assets. The district court issued denied reconsideration motions and granted a turnover order. After filing an appeal, the Gagnards paid $1.3 million to Goldman in satisfaction of the judgment. Goldman accepted the payment, and refunded money she had collected in excess of the judgment balance. The district discharged all pending citations and allowed the Gagnards to file a counterclaim against Goldman, claiming unjust enrichment, but subsequently dismissed the counter-complaint. The Seventh Circuit affirmed, based on the failure, by the Gagnards to act in a timely manner. View "Goldman v. Gagnard" on Justia Law

Gambro Renal Products, Inc. hired The Facility Group, Inc. ("TFG"), as the general contractor for the construction of a facility designed to produce kidney dialysis filters in Opelika. TFG contracted with the Hardy Corporation for specialized piping work on the project. Absolute Welding Services, Inc. ("AWS"), is a subsidiary of Rayco Industrial, Inc., a subsubcontractor hired by Hardy. Although the negotiations on the subcontract at issue in these appeals were between AWS and Hardy, the subcontract was executed by Rayco and Hardy. A dispute arose over whether the exclusion of "passivation" and the installation of piping in Rayco's offer was incorporated into its subcontract. Rayco filed a complaint against Hardy, Gambro and 15 fictitiously named parties, seeking an accounting, a declaratory judgment, a reformation of the contract, and perfection of a lien. Rayco asserted claims for damages for breach of contract, unjust enrichment/quantum meruit, and "work and labor done." Both parties unhappy with the eventual trial court order resolving the dispute, appealed the order. After careful consideration of the contracts and the trial court record, the Supreme Court reversed in part, and affirmed in part. The case was remanded with instructions for further proceedings.View "Hardy Corporation v. Rayco Industrial, Inc. " on Justia Law

American General Contractors, Inc. ("AGC"), appealed a judgment assessing liability and awarding damages and interest for the cost of delays in the construction of the Williams County Law Enforcement Center in Williston. C&C Plumbing and Heating, LLP ("C&C"), the successful bidder for the mechanical prime contract, filed suit when construction the center was delayed approximately two years after "substantial completion" was supposed to have happened. The district court concluded it was appropriate for the County and AGC to share responsibility for providing temporary shelter and heat on the project. The court apportioned 47 percent of the liability for the costs of the delay for the three and one-half months of active interference to the County and 53 percent to AGC, for the four months delay inherent to the industry. The court awarded C&C approximately $73,000 on its claim against the County. After offsetting amounts owed between the parties, the court awarded AGC approximately $424,000 on its claim against the County. The court awarded Davis Masonry approximately $96,000 from AGC for masonry work completed under its subcontract with AGC, and rejected AGC's claimed offsets to that amount. Davis had provided heat, cover and shelter for the project during cold weather and sought $649,000 from the County and AGC for that expense including prompt payment interest. Davis had settled with the County for $530,000, and the court ruled AGC was responsible for 53 percent of the remaining $119,000, or $63,070. AGC argues the district court erred in determining AGC was liable for any of the costs incurred from the delay under its contract with the County. Finding no reversible error, the Supreme Court affirmed the district court. View "C&C Plumbing and Heating, LLP v. Williams County" on Justia Law

The issue before the Supreme Court in this case centered on the limitation of liability afforded to a member of a limited liability company (LLC). In 2007, Mary Ogea signed a contract entitled "Custom Home Building Agreement" for Merritt Construction, LLC, to build a home on an undeveloped parcel of land she owned. On behalf of the LLC, its sole member, Travis Merritt, signed the contract. The contract did not specifically describe the type of foundation to be provided for the home. After the construction work had advanced well past the point of building the foundation and framing the home, Ogea hired another concrete contractor to pour a driveway and patio. This concrete contractor informed Ogea that he believed there were problems with the concrete work for the home's foundation. Ogea then hired a licensed engineer, Charles Norman, to inspect the structure. Norman conducted several inspections and concluded there were indeed significant problems with the slab foundation. Ogea notified the LLC of the problems with the foundation. Based on her consultations with Norman, Ogea requested a refund of all monies she paid to the LLC (approximately $94,000) and sought demolition of the unfinished home. The LLC did not reply to the refund request. Ogea did not make the final installment payment called for in the contract, and the LLC ceased all work on the home. Ogea then sued the LLC and Merritt individually. Ogea sought to recover the money she had expended for the home, plus other damages under the New Home Warranty Act. The district court rendered judgment against both Merritt and the LLC "in solido" for various items of damages. Both Merritt and the LLC appealed. The court of appeal reduced the amount of the general damage award, but affirmed the imposition of personal liability on Merritt. After reviewing the record and the controlling legal principles, the Supreme Court reversed the lower courts' judgment of personal liability against Merritt and dismissed the claims against him. View "Ogea v. Merritt" on Justia Law

The issue before the Supreme Court in this matter centered on whether defects in load-bearing walls were a result of "any defect" due to noncompliance with the buildings standards subject to a one year peremptive period, or whether they constituted a "major structural defect" subject to a peremptive period of five years. This case stemmed from damages caused by a home flooding. The District Court found the defects in the four exterior load-bearing walls constituted a major structural defect under the Act to which the five-year warranty period applied and awarded plaintiff Barbara Shaw damages. The Court of Appeal reversed, finding the plaintiff's claim was for a defect in workmanship subject to a one year peremptive period. After review, the Supreme Court reversed, finding the record supported the failure of the load-bearing walls affected the "load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable," as provided by La. Rev. Stat. 9:3143. Thus, it constituted a major structural defect and the five-year warranty applied. View "Shaw v. Acadian Builders & Contractors, LLC" on Justia Law

Continental issued claims-made liability policies to the architectural firm responsible for designing and overseeing the construction of a building for the DASNY. In this declaratory judgment action, the insurer appealed from the district court's ruling on summary judgment that the two design flaws in the same structure were not "related." The court concluded that the 2002 Demand Letter could not be fairly read to concern the Ice Control Issue; and, focuses entirely on the Steel Girt Tolerance Issue, it could not be fairly read as an omnibus claim concerning all architectural defects in the Baruch College building; the court agreed with the district court that the Steel Girt Tolerance Issue and the Ice Control Issue arose from two unrelated wrongful acts; and, therefore, the court affirmed the district court's declaration that the two issues were unrelated. However, the court concluded that the district court abused its discretion by awarding prejudgment interest from the date of the settlement agreement itself. Accordingly, the court vacated the award and remanded for further proceedings. View "Dormitory Authority v. Continental Casualty Co." on Justia Law

Various Community Groups and the Detroit International Bridge Company sued the Federal Highway Administration (FHWA), challenging the Record of Decision (ROD) issued in 2009, selecting the Delray neighborhood of Detroit as the preferred location alternative for a new international bridge crossing between the U.S. and Canada. The Bridge Company owns and operates the existing Ambassador Bridge, about two miles from the proposed new crossing. The Bridge Company also owns property in the Delray neighborhood. The complaint alleged that selecting the Delray neighborhood as the preferred alternative violated the National Environmental Policy Act (NEPA); Section 4(f) of the Department of Transportation Act; Section 106 of the National Historic Preservation Act (NHPA); and “applicable legal authorities” on environmental justice, essentially because the decision was arbitrary and capricious.” The district court held that the Bridge Company had prudential standing to challenge the ROD and affirmed the ROD. The Sixth Circuit affirmed, noting extensive study of the project. View "Latin Ams. for Social & Econ. Dev. v. Adm'r of Fed. Highway Admin." on Justia Law

Candelaria, CCIC, and Otay (collectively, defendants) appealed the district court's judgment in favor of Ramona, the supplier of rental equipment, in Ramona's action under the Miller Act, 40 U.S.C. 3131-3134. The court held that Ramona's notice of demand was timely as to rental equipment furnished more than ninety days before the notice. The court joined its sister circuits and held that if all the goods in a series of deliveries by a supplier on an open book account are used on the same government project, the ninety-day notice is timely as to all the deliveries if it is given within ninety days from the last delivery. Concluding that there was no risk of double liability to Candelaria, the court affirmed the district court's award in damages, holding that all amounts due for all the rental equipment furnished to Otay for construction of the project were properly in the ninety-day notice. The court affirmed the district court's ruling not to award damages for invoices submitted on or after June 10, 2008, where Ramona had commercially reasonable justifications for choosing not to mitigate its damages prior to that date. Defendant's claim that Ramona waived its right to collect service charges was waived. Accordingly, the court affirmed the judgment of the district court. View "Ramona Equip. Rental v. Carolina Casualty Ins. Co." on Justia Law