The Michigan Supreme Court overturned precedent and joined the jurisdictions that allow damages arising from construction defects to be the basis of a claim against a subcontractor’s comprehensive general liability (“CGL”) policy written on a 1986 ISO form. This decision opens the door to CGL claims for construction defects that had been shut in Michigan since Hawkeye-Security Ins Co v Vector Constr Co, 185 Mich App 369; 460 NW2d 329 (1990). Continue reading Michigan Supreme Court Opens Door to CGL Claims for Construction Defects
Charles Lewis and Jeffrey Hamera have authored a chapter on USA Construction Law in the recently published book, International Comparative Legal Guide to: Construction & Engineering Law 2016.
Construction & Engineering Law covers common issues in construction and engineering laws and regulations – including making construction projects, supervising construction contracts, common issues on construction contracts and dispute resolution – in 29 jurisdictions.
The USA chapter includes the following sections: 1. Making Construction Projects; 2. Supervising Construction Contracts; 3. Common Issues on Construction Contracts; 4. Dispute Resolution.
To read the full text of the chapter online, please visit the ICLG website.
Can the statute of limitations for a claim expire even before a project owner knows that it has a claim? This is a very real possibility if one is not careful in drafting contracts. Courts generally recognize that sophisticated business entities should be permitted to forfeit rights in contracts, so long as the terms do not violate public policy. Parties to a contract can limit the time period for bringing a claim or define when the limitations period begins.
Generally, lien waivers that contain fraudulent information are not enforceable. However, not all intentionally misleading statements are fraudulent. The crux of the issue is whether a lien waiver simply states that the subcontractor has been paid a specific amount or whether the subcontractor claims that the work completed is worth the amount stated in the waiver.
The Illinois Appellate Court addressed this issue briefly in Casablanca Lofts, LLC v. Blauvise (2014 Ill. App. Unpub. Lexis 1377 (1st Dist. June 26, 2014)). In arbitration, prior to litigation, the developer/owner of a condominium project, Casablanca Loft, discovered that the electrical subcontractor had submitted three lien waivers totaling $135,000 and had been paid $135,000. Id. at ¶6. Continue reading Liens with Intentionally Incorrect Information May Still Be Enforceable