Contract law is about holding people to their promises. Bankruptcy law does just the opposite. Authorized by the Constitution and created by Congress, the U.S. bankruptcy system consists of an entire body of federal statutory law found in Title 11 of the U.S. Code (known as the Bankruptcy Code). The general aim is to give people and
The usual measure of damages for breach of a construction contract is the cost to repair the defects or finish the incomplete work. But what if the cost to repair or compete is grossly disproportionate to the value that the additional work would create? In that case, some courts will instead measure damages based on diminution
The Spearin doctrine is alive and well in Maryland. Pursuant to that doctrine, owners who provide plans and specifications to a contractor impliedly warrant that information and may be responsible if that information is defective. Last week, a Maryland appeals court applied the century-old Spearin doctrine to affirm a trial court victory for Balfour Beatty
The 11th Circuit Court of Appeals has affirmed an $80 million ruling in favor of Skanska USA and Granite Construction against their joint-venture partner Lane Construction. The case involves a $2.3 billion highway improvement project in Florida known as the “I-4 Ultimate Project,” a public-private partnership (or “P3”) project for the Florida Department of Transportation. The court
We all have legal duties. Some arise from contracts that we choose to enter. Others are spelled out in statutes or regulations. Still others are imposed by the common law. One of the most basic common law duties is the duty to exercise reasonable care to avoid injury to others. What constitutes reasonable care varies
We previously reported on the dispute between AECOM and Exxon over work performed at Exxon’s refinery in Montana. AECOM claimed it was owed roughly $100 million for extra work performed during a plant turnaround in 2019 that lasted 17 weeks instead of seven weeks as planned. Exxon disputed that it owed additional money and counterclaimed
In basketball there is a shot clock. Once a team has the ball, it must shoot within 30 seconds. We’re obviously talking about college basketball since its March, but the NBA has a similar 24-second shot clock. Failure to shoot within the required time automatically gives the ball back to the other team. The law’s
Most legally enforceable contracts are formed the old-fashioned way: offer and acceptance. Courts will sometimes enforce promises without traditional offer and acceptance where one party has justifiably relied on the other party’s promise. This alternative route to contract formation is called promissory estoppel. While the law varies from state-to-state, prevailing on promissory estoppel theory normally requires
The Eighth Circuit Court of Appeals has affirmed a jury verdict finding that a developer and its founder defrauded a contractor by misrepresenting the availability of construction funding. See Selective Ins. Co. of Am. v. Heritage Const. Cos. et al, Case No. 24-2333, 2026 WL 263591 (D. Minn. Feb. 2, 2026). The case involves construction of a
A contract is an exchange of promises that the law will enforce. Contract law provides that promises are enforceable, under what circumstances, and the available remedies. Although application may vary by jurisdiction, there are some principles of contract law that have been widely adopted. One of those is the principle of “first material breach.” Generally, under this principle