A recent decision from the U.S. District Court for the Southern District of Florida demonstrates how facts supported by documents generated during the project can be vital to prime contractor/subcontractor disputes. In Berkley Ins. Co. v. Suffolk Constr. Co., No. 19-23059-CV, 2024 WL 3631226 (S.D. Fla. July 22, 2024), following a two-week bench trial
Breach of Contract
Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act
The court in AECOM v. Flatiron was back at it last week with rulings on the parties’ post-trial motions. As you may recall, the case was tried to a jury earlier this year. The jury returned a verdict for AECOM in the amount of $5 million. Flatiron’s modified total cost counterclaim in the amount of…
United States Ordered to Pay Breach of Contract Damages to Nuclear Operator in Spent Fuel Dispute
The Federal Court of Claims recently ruled in favor of the operator of the Vermont Yankee nuclear power plant in its long-running dispute with the United States over the disposal of spent nuclear fuel (NorthStar Vermont Yankee, LLC v. United States, No. 18-1209C, 2024 WL 3563239 (Fed. Cl. July 29, 2024)). Pursuant to a statutory…
Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender
In an unpublished opinion, a California appeals court has upheld a subcontractor’s mechanics lien claim despite the subcontractor’s failure to strictly follow the procedural requirements set forth in the mechanics lien statute (see Ram Concrete v. Montecito, 2024 WL 1879352 (Cal. Ct. Appeal)). In Ram Concrete, the trial court entered judgment for the…
Court Confirms Jury Verdict for AECOM in I-70 Construction Dispute with FlatIron
We previously blogged about the hotly contested dispute between AECOM and FlatIron involving the I-70 construction project outside of Denver. After an 18-day trial, the jury returned a verdict last month for plaintiff AECOM on its breach of contract claim. Interestingly, the size of the jury’s verdict, roughly $5 million, was consistent with FlatIron’s attempted…
Second Circuit: No-Damages-For-Delay Clause Bars Claim
The Second Circuit Court of Appeals recently applied a no-damages-for-delay provision to affirm the dismissal of a demolition contractor’s breach of contract claims. The project involved reconstructing and raising the Bayonne Bridge between Staten Island and New Jersey. The Port Authority awarded the general contract on the $1.29 billion project to the joint venture Skanska…
Breach vs. Default — What’s the difference?
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…
Subcontractors’ COVID-19-Related Claims Survive Motion to Dismiss
In the Armed Services Board of Contract Appeals (ASBCA) appeal of McCarthy HITT – Next NGA West JV, ASBCA No. 63571, 2023 WL 9179193 (Dec. 20, 2023), a contractor brought suit for a collection of COVID-19-related claims on behalf of three of its subcontractors. The government moved to dismiss, arguing the subcontractors’ appeal failed…
Court Holds That Contractor Has Duty to Disclose Information Related to the Viability of Pass-Through Claims When Negotiating Pass-Through Settlement Agreement
A Utah federal court recently held that when negotiating a pass-through settlement agreement, a contractor has a duty to disclose information to its subcontractor regarding the viability of the claims to be passed through. See Ludvik v. Vanderlande, 2023 WL 8789379 (D. Utah, Dec. 19, 2023). If it breaches that duty, the contractor may…
Court Affirms Dismissal of Subcontractor’s Wrongful Termination Counterclaim and Clarifies Scope of Upcoming Trial on Damages
Back in April we examined the court’s decision in Boldt v. Black & Veatch, which dismissed a subcontractor’s counterclaim for wrongful termination on a 60-turbine wind farm project. As you may recall, the subcontractor hired to erect the turbines alleged that it was wrongfully terminated for delays that were not its fault but were…