Justia Construction Law Opinion Summaries

A general contractor (Carlisle) for a construction project contracted with Plaintiff to perform carpentry work for the project. A bond was issued for the project. Carlisle was the principal on the bond, and International Fidelity Insurance Company (IFIC) was the surety. Plaintiff later filed suit against Carlisle and IFIC seeking to recover payment for the work it performed. The arbitrator issued two amended awards. Plaintiff moved the superior court to confirm the second amended awarded concerning Carlisle's liability and to modify it as to IFIC. The trial justice remanded the matter back to the arbitrator for a determination as to IFIC's liability. The arbitrator on remand found that both Carlisle and IFIC were liable to Plaintiff for $43,543. The trial justice confirmed the post-remand arbitration award. The Supreme Court affirmed but on different grounds, holding (1) the second amended award should have been vacated under R.I. Stat. 37-16-18(2), and the trial justice was authorized, under section 37-16-19, to remand the case to the same arbitrator for a hearing; and (2) because the remand in this case accomplished the same result that could have been accomplished under section 37-16-18 and 37-16-19, the judgment was affirmed. View "Drago Custom Interiors, LLC v. Carlisle Bldg. Sys., Inc." on Justia Law

Kadrmas, Lee & Jackson, Inc., ("KLJ") appealed a district court judgment awarding the City of Valley City ("City") costs and expenses the City incurred defending itself in the underlying lawsuit and pursuing its indemnity claim against KLJ. The City entered into a contract with KLJ to provide engineering services for a paving and sewer project. The City hired a general contractor for the project. The contract between the City and the contractor required the contractor to furnish all labor, materials, and equipment for the project. The contractor was required to provide a payment bond under the terms of its contract with the City, and St. Paul Fire & Marine Insurance Company ("St. Paul") was the surety under the bond. Specialized Contracting, Inc. ("SCI"), entered into a subcontract with the contractor to complete some of the work on the project. In 2007, SCI sued St. Paul for breach of its duties under the payment bond, seeking compensation for additional work SCI alleged it completed on the project for which the contractor refused to pay. St. Paul served a third-party complaint against the City for breach of contract and indemnity, alleging the concrete repair work was outside the scope of the City's contract with the contractor, the City was liable to the contractor for any additional compensation SCI was claiming against the payment bond if SCI established KLJ's decision to replace the concrete was beyond the scope of the contract, and the City was required to indemnify St. Paul for any judgments against it in favor of SCI arising from decisions made by KLJ. Upon review of the matter, the Supreme Court concluded KLJ did not have a duty to defend the City. The Court reversed the district court's judgment awarding the City costs and expenses, and remanded the case for a determination of whether KLJ was entitled to recover its costs and expenses as a prevailing party. View "Specialized Contracting, Inc. v. St. Paul Fire & Marine Ins." on Justia Law

While installing a natural-gas pipeline in Madison, Wisconsin, KS Energy was cited by the Occupational Safety and Health Administration for violating trench safety regulations that require companies to protect workers from dangerous cave-ins. After inspecting KS Energy’s trench, OSHA issued a citation alleging a repeat violation of 29 C.F.R. 1926.652(a)(1) for failing to provide an adequate protective system. An ALJ upheld the citations, finding that the soil in the trench was “Type B,” so the slope was too steep based on and KS improperly used the technique of “benching” to configure its trench. The OSHA Review Commission made the determination final. The Seventh Circuit denied review. The parties agree that if the soil in the excavation was properly classified as Type B, the trench was impermissibly steep. Substantial evidence supports the determination that the soil was classified as Type B. View "KS Energy Serv., LLC v. Solis" on Justia Law

Appellant filed a complaint in district court after making an unsuccessful construction bid to the Town of Thayne City Council, claiming (1) a civil rights violation pursuant to 42 U.S.C. 1983, (2) that the Town failed to provide an independent observation of the bid evaluation and selection process, and (3) a breach of the covenant of good faith and fair dealing. The district court granted the Town's motion for summary judgment on the 42 U.S.C. 1983 claim and dismissed the remaining claims for failure to state a claim. The Supreme Court summarily affirmed given the deficient brief filed by Appellant and Appellant's failure to comply with the Wyoming Rules of Appellate Procedure. View "Call v. Town of Thayne" on Justia Law

The owners of two properties leased them to developer-tenants for the purpose of building an apartment building on each. As construction was beginning, the landlords breached the leases by refusing to provide estoppel certificates and contesting the tenants' building permits. The landlords' breach prevented the tenants from obtaining financing, which ended the development project. The tenants sued for lost profits. Before trial, the circuit court ruled against the landlords on several motions, holding in part (1) the landlords could not introduce evidence of the 2008 crash in the real estate market to show that the tenants would not have made profits, and (2) the tenants could introduce evidence of the landlords' reasons for breaching, including communications with their former counsel. The jury awarded the tenants over $36 million in damages, holding the landlords jointly and severally liable. The court of special appeals held the landlords could not be held jointly and severally liable but otherwise affirmed. The Court of Appeals affirmed, holding (1) the trial court did nor err in excluding all evidence of post-breach market data in measuring damages; and (2) the landlord waived the attorney-client privilege as to communications relevant to the subject matter of the claim of bad faith. View "CR-RSC Tower I, LLC v. RSC Tower I, LLC" on Justia Law

This case involved the appeal of Petitioner of her sentence of life without mercy imposed in the circuit court by order, as recommended by the jury which found Petitioner guilty of first degree murder. Petitioner assigned four errors committed by the trial court, including the admission of the decedent's statements, failure to give a Harden instruction, failure to give a good character instruction, and the failure to suppress one of Petitioner's statements to the police. The Supreme Court reversed the judgment of the circuit court and remanded the case for a new trial, holding (1) the court did not err in admitting the statements of the decedent; (2) the court's decision to admit the statement was not an abuse of discretion; but (3) under the limited circumstances of this case, the court erred in failing to give a proper good character instruction. View "State v. Surbaugh" on Justia Law

The Corps contracted with Atlantic for the construction of a child development center and Atlantic entered into a Subcontract Agreement with J-Crew for labor and materials. The Subcontract Agreement included a forum-selection clause, which provided that disputes shall be litigated in Virginia courts. Ignoring the forum-selection clause, J-Crew filed suit against Atlantic in Texas. Applying 28 U.S.C. 1404(a), the district court denied Atlantic's motion to transfer, finding that Atlantic had not met its burden of showing why the interest of justice or the convenience of the parties and their witnesses weighed in favor of transferring the case to Virginia. Atlantic subsequently petitioned the court for a writ of mandamus to dismiss or transfer the case. Because the court found that the district court did not clearly abuse its discretion by considering enforcement of the forum-selection clause under section 1404(a), instead of under Rule 12(b)(3) and section 1406; and by conducting its analysis under section 1404(a), the court denied the petition. View "In re: Atlantic Marine Const Co. Inc." on Justia Law

Home Loan Investment Bank appealed from a judgment entered in the superior court following a bench trial that confirmed the validity of the mechanic's liens to Jim's Plumbing and Heating, Inc. and Westbrook Tools, Inc. against Bedford Falls Associates for work performed at a commercial property. The Bank argued that the court erred as a matter of law and fact by concluding that the liens had priority over two mortgages granted to Bedford Falls for the acquisition and renovation of the property because it did not consent to the work performed by Jim's Plumbing or Westbrook Tools. The Supreme Court affirmed, holding that the evidence supported a finding that the Bank had sufficiently specific knowledge of Jim's Plumbing and Westbrook Tools's labor and materials to infer that the Bank consented to the labor and materials secured by the liens. View "Jim's Plumbing & Heating, Inc. v. Home Loan Inv. Bank" on Justia Law

The plaintiff, the state, commenced this action against the named defendant, Lambardo Brothers Mason Contractors, and twenty-seven other defendants, to recover damages for the allegedly defective design and construction of the library at the University of Connecticut School of Law. Defendants raised time-based defenses to the state's claims by way of motions to strike or motions for summary judgment, with nearly all of them relying on applicable statutes of limitation and repose. The trial court concluded that the rule of nullum tempus, which exempts the state from the operation of statutes of limitation and statutes of repose, was never adopted as the common law of the state, and consequently, the state's claims against the defendants were barred by applicable statutes of limitation and repose. Accordingly, the trial court rendered judgment for the defendants. The Supreme Court reversed and remanded for further proceedings on the merits of the state's claims, holding that the doctrine of nullum tempus was well established in the state's common law, and the doctrine exempted the state from the operation of the relevant statutes of limitation and repose. View "State v. Lombardo Bros. Mason Contractors, Inc." on Justia Law

John Doe pled guilty to two drug trafficking charges in a plea bargain. Prior to the plea deal, he filed a motion to dismiss the indictment for breach of an immunity agreement and outrageous governmental conduct. The district court denied the motion. In the plea agreement, Doe did not negotiate a conditional plea in which he retained the right to appeal the court’s ruling, so he could not appeal unless he could establish a basis for the Tenth Circuit to ignore the appeal waiver. He attempted to do so in this appeal by contending: (1) the government cannot force the waiver of an immunity agreement on due process grounds; and (2) even if he could waive immunity, outrageous government conduct was an implied exception to any appeal waiver. Upon review, the Tenth Circuit found that Doe lacked a basis to bring the appeal and the facts of the case did not implicate the outrageous governmental conduct exception. Accordingly, the Court affirmed Doe's conviction, dismissed his appeal, and granted his motion to seal the briefs. View "United States v. Doe" on Justia Law