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
Recent reports and contractor experiences suggest that the U.S. Agency for International Development (USAID) has, in some instances, failed to timely pay contractors for work that has already been performed and accepted. While payment delays are not unprecedented in federal contracting, prolonged or systemic nonpayment raises serious legal and practical concerns — particularly for contractors
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
In Tri-State Insur. Co. of Minn. a/s/o Campus Chalet, Inc. v. East Tennessee Sprinkler Company, Inc., the Court of Appeals of Tennessee recently addressed whether the state’s four-year statute of repose could shield a contractor from liability in 2020 where the initial construction project was completed in 1992. The court found that the trial
The Alabama Supreme Court found that an indemnification provision was enforceable that required a subcontractor to indemnify a general contractor on a proportional-fault basis against liability for death or personal injury.
JohnsonKreis Construction Company, Inc. subcontracted with Howard Painting, Inc. to perform work on a hotel project in Birmingham, Alabama. The subcontract included an indemnification
Winning a federal contract can be a significant opportunity, but what happens if the government doesn’t pay you on time — or at all? While the federal government is typically a reliable payer, delays or disputes can arise, especially in today’s political climate. If you’re facing non-payment under your contract, here’s what you need to
Not according to a decision from a federal court in Ohio. The case involves a landscaping project at a hillside home in Cincinnati. The property overlooks the Ohio River, but like many projects that become cases, it ended up in the ditch. Dissatisfied with the progress of the work, the owner told her neighbors that