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Legal Updates

Virginia Enforces a Subcontract's One-Way Arbitration Clause

In our practice we see many subcontracts that include a one-way arbitration clause – a provision which permits one party, usually the general contractor, to decide whether a dispute will be arbitrated or litigated in court.  The subcontractor must…
Categories: Legal Updates

Subcontractor’s Insurer Does Not Need to Indemnify its Insured for Subsequent Actions

Essex Insurance Co. v. Y&J Construction, Inc., No. 1:15-CV-1597, 2016 WL 8254921, at *1 (E.D. Va. Dec. 30, 2016) The disputes in this case arose from an insurance coverage dispute from property damage caused by a fire that occurred during a const…
Categories: Legal Updates

Court Enforces Settlement Agreement on Construction Project Dispute

Construction Development Services, Inc. v. Modern Environments, Inc., No. 160240, 2016 WL 7319548, at *1 (Va. Dec. 15, 2016) In this case, subcontractor Modern Environments, Inc. (“Modern”) was hired to design and install furnishings by general…
Categories: Legal Updates

Contractors May Need to Comply with Virginia Consumer Protection Act

Interbuild, Inc. v. Sayres, 94 Va. Cir. 261 2016 Va. Cir. LEXIS 168, *13 (Va. Cir. Ct. Sept. 8, 2016). Interbuild, Inc., t/a Fuog/Interbuild (“Fuog”) and the Sayres executed a contract in which Fuog was to build a barnlike recreational facility o…
Categories: Legal Updates

Payment Bond Surety Cannot Use Payment Milestone to Avoid Liability on Miller Act Claim

United States ex rel. VT Milcom, Inc. v. PAT USA, Inc., Civil Action No. 5:16-cv-00007, 2017 U.S. Dist. LEXIS 109572, at *20 (W.D. Va. July 14, 2017). The disputes in this case stem from a United States Army Corps of Engineers (“USACE”) award to…
Categories: Legal Updates

Court Resolves Conflicting Provisions in Term Sheets – Specific Trumps General

W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP, No. 6:17-CV-00018, 2017 U.S. Dist. LEXIS 74021, at *10-11 (W.D. Va. May 16, 2017). The disputes in this case arose from a construction project involving improvements to Interstate 81 in Rockbridg…
Categories: Legal Updates

Maryland Appeals Court Limits Application of Construction Trust Statute to Contracts Subject to Little Miller Act and Mechanics' Lliens

The Maryland Construction Trust Statute provides a powerful tool to prevent a dishonest contractor from merely closing up shop to avoid liability for its malfeasance. However, as a creature of statute, it is not without its limitations. In the recent…
Categories: Legal Updates

Maryland Enforces Pay-if-Paid Clause Against Subcontractor on a Virginia Project

In the recent decision of Young Electrical Contractors, Inc. v. Dustin Construction, Inc., the Maryland Court of Special Appeals, applying Virginia law, affirmed a circuit court ruling that a pay-if-paid clause can vitiate a subcontractor’s claims…
Categories: Legal Updates

Recent Decision Highlights the Benefits that Qualified Mechanic's Lien Counsel Can Provide to Lien Claimants

Earlier this month, the Virginia Supreme Court issued a mechanic’s lien decision that underscores the benefits of having a qualified mechanic’s lien attorney prepare and file a lien.  While the Court ultimately found in favor of the mechanic’s…
Categories: Legal Updates

Virginia Supreme Court Rules Prime Contractor's Lawsuit is too Late to Obtain Indemnity from Subcontractors and Their Sureties

In the recent decision of Hensel Phelps Construction Company v. Thompson Masonry Contractor, Inc., Record No. 151780 (November 3, 2016), the Virginia Supreme Court affirmed a circuit court’s dismissal of a prime contractor’s lawsuit against its…
Categories: Legal Updates

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