A federal judge in Michigan last week rejected a contractor’s efforts to avoid a jury trial this fall in its dispute with the owner of the Ludington Pumped Storage Hydro plant. The case involves a project to overhaul the 50-year-old plant, which uses electricity during periods of low demand (i.e. at night) to pump
Many construction contracts include a provision that prohibits the parties from recovering “consequential” damages in the event of a breach. Sometimes parties will negotiate and agree to a waiver of consequential damages that identifies and describes what damages are considered consequential damages. For example, the parties may agree that prohibited consequential damages include such damages as
A federal judge in Oklahoma last week ruled against an electrical subcontractor who quit work before finishing because it was allegedly unsafe to continue. The court found that the subcontractor was simply losing money, and that the safety excuse was a “post-hoc fabrication” to justify “jumping ship.”
The case involves construction of a renewable natural gas
Construction law in the United States consists of two main bodies of legal rules. The first, federal law, applies to contracts involving the U.S. government and its agencies. The second, state law, applies to pretty much everything else. While each state is different, all states generally have two types of laws: (1) common law and
The Oklahoma Supreme Court has rejected a contractor’s performance bond claim due to the lack of adequate notice to the subcontractor’s surety (see Flintco LLC v. Total Installation Management Specialists, Inc., No. 120,100 (Okla. May 28, 2025)). The case involves the construction of three student housing buildings on the campus of Oklahoma State in Stillwater. During
For construction lawyers, the Battle of the Forms presents a familiar fact pattern. A material supplier/seller provides a potential buyer with a price quote along with its standard terms. The buyer, usually a contractor or subcontractor, responds with a form purchase order that includes its own standard terms, which differ from the seller’s terms. The
Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute
The general contractor on the 60-turbine wind farm project in Good Hope, Illinois, is entitled to collect a whopping $1 on its cost-to-complete claim against its terminated subcontractor. We previously reported on the court’s entry of summary judgment in favor of the general contractor
“Manifest disregard of the law” is no longer a valid basis to challenge arbitration awards, at least not in the federal courts of Texas, Mississippi and Louisiana. Rather, according to the Fifth Circuit’s decision in U.S. Trinity Energy Services v. Southeast Directional Drilling, 2025 WL 1218096 (Apr. 28, 2025, No. 24-10833), the grounds for
A California appeals court has upheld a $5 million award in favor of Whiting-Turner Contracting Company and against the owner of a 12-story, Virgin-brand hotel in San Francisco. Whiting-Turner agreed to construct the hotel for a guaranteed maximum price of $36 million pursuant to a modified AIA standard form agreement and general conditions. The contract called
A New York appeals court has affirmed a $1.6 billion award for the developer of a Bahamas mega project against various subsidiaries of China State Construction Engineering Corporation, the world’s largest construction company by revenue (see BML Properties, Ltd. v. China Construction America, Inc. et al., No. 6567550/17, 2025 WL 1033736 (N.Y. App. Div.