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Legal Updates

Maryland and DC Courts Hold That Dispute Resolution Clause in Prime Contract Does Not Required Stay of Subcontractor's Payment Bond Suit

In two recent cases in the U.S. District Courts for the Districts of Maryland and the District of Columbia, the federal courts both held that dispute resolution clauses contained in the contracts between the owners and general contractors do not requ…
Categories: Legal Updates

Maryland Subcontractor's Delay Damages Waived Through Lien Releases

In United States v. Hartford Accident & Indem. Co.,a federal court in Maryland recently held that partial lien releases, executed without exceptions, barred a mechanical subcontractor’s claim for delay damages.  Even though the subcontractor…
Categories: Legal Updates

Maryland Caselaw Provides a Cautionary Tale When Seeking to Recover for Design Defects

Earlier this month, the Court of Special Appeals of Maryland provided construction contractors with a cautionary tale when seeking to recover for design defects.  In Fort Myer Construction Corporation v. Maryland-National Capital Park and Planning…
Categories: Legal Updates

Maryland Court of Special Appeals Holds that Contractor's "Substantial Compliance" with Licensing Statute Suffices

Although the general rule in many jurisdictions, including Maryland, California, Florida, Virginia, and Arizona, is that an unlicensed contractor cannot sue to enforce a construction contract, our firm has previously written about certain exceptions…
Categories: Legal Updates

American Arbitration Association Revises Its Rules and Procedures for the Construction Industry

Effective July 1, 2015, the American Arbitration Association (AAA) revised its Arbitration Rules and Mediation Procedures for the Construction Industry to directly address the preferences of users for a more streamlined, cost-effective, and tightly m…
Categories: Legal Updates

Virginia Enacts Legislation Prohibiting Advanced Mechanic's Lien and Payment Bond Waivers for Subcontractors and Suppliers

Provisions in Virginia construction contracts which require subcontractors, lower-tier subcontractors, and material suppliers to waive their lien rights, right to assert payment bond claims, or the right to assert claims for additional costs in advan…
Categories: Legal Updates

Virginia Amends VPPA to Permit Contractors to Claim Extra Work in Excess of Statutory Cap

To the benefit of public works contractors throughout the Commonwealth of Virginia, Governor McAuliffe recently approved HB 1628, amending Section 2.2-4309 of the Virginia Public Procurement Act (“VPPA”) effective July 1, 2015. The amendment is…
Categories: Legal Updates

Fourth Circuit Holds That Contractor's Guaranty to Pay Subcontractor Does Not Create Third-Party Beneficiary Relationship With Supplier

We have previously written about the difficulty faced by subcontractors and suppliers when asserting third-party beneficiary claims against owners or general contractors (click here). A recent decision by the U.S. Court of Appeals for the Fourth Cir…
Categories: Legal Updates

Virginia Supreme Court Rules that Parties With a Pecuniary Interest Are Necessary to a Suit to Enforce a Mechanic's Lien

Late last month, the Virginia Supreme Court cleared up any ambiguity regarding who must be named in a lawsuit to enforce a mechanic’s lien.  In Sychronized Construction Services, Inc. v. Prav Lodging, LLC, 2014 WL 5490663 (Va. Sup. Ct. Oct. 31, 2…
Categories: Legal Updates

Anti-Indemnification Statute Held Inapplicable to Construction Equipment Rental Agreements

This August, the U.S. District Court for the Western District of Virginia considered whether Virginia’s anti-indemnification statute, which voids certain indemnification provisions in construction contracts, applies to rental equipment contracts. I…
Categories: Legal Updates

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