It’s that time of year again when we Americans stop and give thanks for all that has been provided to us by gathering with friends and family to gorge ourselves on food. The traditional Thanksgiving meal, at least where I am from, always includes certain core dishes: turkey, dressing, sweet potato casserole, and cranberry sauce. These staples
Breach of Contract
Substantial Performance v. Material Breach
All breaches are not created equal. A minor, technical breach may be deemed “immaterial.” Other breaches – so-called “material” breaches — deprive the non-breaching party of something important or essential to the purpose of the contract. Whether a breach is material or immaterial is normally a question for the finder of fact. The answer determines what remedy…
Alabama Supreme Court’s Recent Ruling on Indemnity Clauses Could Impact Construction Contracts: Key Drafting Considerations
Hark! A recent Alabama Supreme Court indemnity decision, Mobile Infirmary Association v. Quest Diagnostics Clinical Laboratories, may require you to retrieve your drafting pen. Although not a case involving a construction dispute, Mobile Infirmary does address a key component of risk shifting in construction contracts — the indemnity clause. Put simply, contractual indemnity is…
Court Separates Facts from Fiction – Lack of Supporting Project Documents Dooms Contractor
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…
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…