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
Construction law is largely a matter of contract law. Yes, there are federal and state statutes that deal with construction issues and, yes, construction cases sometimes involve tort claims, but more often than not, construction disputes revolve around the parties’ contract. What constitutes the parties’ contract is frequently undisputed. As one developer learned last week, that is
Construction contracts for private projects will soon be subject to a new retainage law in Mississippi. On April 19, 2024, Gov. Tate Reeves approved SB 2762 into law, and after July 1, 2024, most construction contracts on projects in Mississippi will comply with a set of retainage laws similar to those that have governed public
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
Construction contracts often include clauses that purport to limit the liability of one or both parties. This includes clauses that completely prohibit any claims for certain types of damages such as lost profits and other consequential damages, extended overhead or other “delay” damages, and exemplary/punitive damages. Contracting parties may also include clauses that purport to cap liability
Retainage can be tricky in Alabama, particularly on public projects. In this post, we address retainage on public projects for public owners in the state (e.g., a governmental board, commission, agency, body, authority, instrumentality, or department).
A public owner in Alabama may withhold up to 5% retainage from the prime contractor for up to 50%
A fundamental premise of contract law is that promises must be kept. If legally enforceable promises or “contracts” are not kept, courts may step in to enforce them by ordering performance, awarding damages, or granting some other form of relief. Over time, courts have developed exceptions to the general rule that promises must be kept.
A Texas court has rejected a pipeline contractor’s $25 million claim for additional costs based on broad release language include in an executed change order (see Wood Group, USA v. Targa NGL Pipeline Company, LLC, No. 01-21-00542, 2023 WL 5280249 (Tex. Ct. App. Aug. 17, 2023)). The change order at issue increased the contract
Every first year law student in the U.S. takes a course on the Law of Contracts. It’s a rite of passage where lawyers-to-be learn all about things like consideration and legally-enforceable promises. And as lawyers, we also learn that there are generally-accepted rules on how to interpret contracts. Some of those rules even have fancy Latin
A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini Insurance, 2023 WL 4675387 (W.D. La. July 20, 2023)). Planet Construction was the general contractor hired to construct the