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
Loss of productivity damages are commonly estimated using a “measured mile” analysis, which compares unimpacted construction work to work which has been disrupted to determine the cost impact of the disruption. Such analyses often require expert testimony that must satisfy the reliability requirements of Rule 702 and Daubert. Generally speaking, to be reliable the analysis must
Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or incorporates legal rights and duties spelled out elsewhere. Here is an example of an incorporation clause: “The Subcontractor shall be
The Texas Supreme Court recently provided new guidance in interpreting force majeure language in an oil and gas drilling dispute. In Point Energy Partners Permian, LLC v. MRC Permian Company, the court held that the oil and gas lessee’s scheduling error linked to a well collapse 60 miles from the lease site at issue
Last week we saw the Menard court reject the use of an indemnity clause to shift fees in a dispute between contracting parties. This week, a very recent decision from Nevada highlights another creative way to shift fees where there is no statute or contract provision on point: offers of judgment (see Helix Electric of
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
The “American Rule” on attorneys’ fees is that each party pays its own lawyers, even if you win. As with almost any rule, there are exceptions. Sometimes there is a statute that requires the losing party to pay the prevailing party’s fees. For example, many states have enacted Prompt Pay laws that include a fee-shifting provision
Many contracts contain provisions requiring that changes to a contract be in writing and signed by a particular authorized person. Under such provisions, work done without proper written authorization will not be reimbursed. So, what happens when, in the rush to get the job done, work is done without prior written authorization?
Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute: are you telling me that when work and materials timely supplied on a private commercial project are approved, the contractor