The words breach and default are often used interchangeably to indicate that somebody hasn’t done what they were legally required to do.  According to Black’s Law Dictionary, the words do appear somewhat interchangeable.  Black’s defines breach as “a violation or infraction of a law, obligation, or agreement, especially of an official duty or a legal

Following up on our first blog post about employee stock ownership plans (ESOPs) for construction companies, this post addresses surety bond requirements as well as the way in which ESOPs can incentivize employees and increase cash flow. 

Satisfying Surety Bond Requirements

Construction companies are typically required to obtain surety bonds to guarantee a project owner

The Alabama Legislature recently made several changes to requirements for public works projects that go into effect September 1, 2023. Here’s a summary of the notable changes:

Section 39-1-1

Section 39-1-1 mandates that a contractor performing public works furnish a performance bond equal to 100% of the contract price and a payment bond equal to

In Texas, many master service agreements (MSAs) related to the oil and gas industry typically contain provisions related to mandatory minimum insurance coverage and indemnity obligations. The Texas Supreme Court recently held the terms of an MSA may not be read into an insurance policy unless there is a “clear-manifestation” in the insurance policy the

In Ali Heidari v. Golden Bear Insurance, a California appeals court recently affirmed a lower court’s decision to deny relief under a CGL policy, where the policy excluded from coverage work performed by subcontractors under the contractor’s warranty exclusion. Specifically, the appellate court upheld the trial court’s determination that the insurer did not have a duty

Miller Act Suit Stayed until CDA Remedies ExhaustedA federal district court in Washington recently rejected a subcontractor’s motion for reconsideration of a previously granted motion to stay in a Miller Act lawsuit (the Miller Act governs prime contractor bond requirements on federal projects and sets forth remedies against the bond for subcontractors, vendors, and suppliers on such projects). In United States of

Coverage for Defective Work? Michigan Joins MajorityMichigan has joined the majority of jurisdictions in holding that a general liability policy may provide coverage for claims for property damage allegedly caused by the defective work of a subcontractor. In a unanimous decision reversing the Michigan Court of Appeals, the Michigan Supreme Court held that a subcontractor’s unintentional defective work was an “accident”

An Insurer’s Duty to Defend does not Extend to a Construction Claim that Falls Clearly Within a Policy ExclusionLike most states, Florida follows the rule that an insurer’s duty to defend is separate from and broader than its duty to indemnify for a potentially covered occurrence. Last week, in South Winds Construction Corp. v. Preferred Contractors Insurance Company Risk Retention Group, LLC, a Florida appellate court addressed the extent of that duty

Recent Court Order Excluding Expert Testimony Offers Useful Reminders and Lessons for Construction LitigantsConstruction claims often feature supporting testimony from design and/or scheduling experts, and exclusion of that testimony either by disqualification of the expert or a finding that the testimony is otherwise inadmissible can prove fatal to your claim or defense. States may vary in their requirements for admissibility of expert evidence, but most states follow some

Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime ContractIn a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions.

The general contractor said that its fire sprinkler subcontractor was responsible for the burst sprinkler pipe and the resulting property damage based on the “Assumption of Liability” provision in the subcontract, which stated that