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Legal Updates

Florida Mechanic's Lien Claimants Must Strictly Comply with Fla. Stat. § 713.21(4)

A decision last week exemplified a Florida court’s severe application of this statute to mechanic’s liens. While each state permits contractors or suppliers to assert mechanic’s liens against a project for unpaid work, each state has al…
Categories: Legal Updates

Fourth Circuit Upholds Pay-When-Paid Clauses in Virginia Construction Contracts

This February, the United States Court of Appeals for the Fourth Circuit confirmed that subcontractors in Virginia face an almost insurmountable task when attempting to avoid an unambiguous pay-when-paid clause. In Universal Concrete Products Corp.…
Categories: Legal Updates

Virginia Federal Court Rules that a Mechanic's Lien Cannot Include Furnishings

One of the dilemmas faced by Virginia construction law practitioners is determining what types of materials provided or labor performed on a project are properly the subject of a mechanic’s lien. While Virginia Code § 43-3 provides that a mechanic…
Categories: Legal Updates

Virginia Federal Court Rules that a Mechanic's Lien Cannot Include Furnishings

One of the dilemmas faced by Virginia construction law practitioners is determining what types of materials provided or labor performed on a project are properly the subject of a mechanic’s lien. While Virginia Code § 43-3 provides that a mechanic…
Categories: Legal Updates

Fifth Circuit Holds That Partial Mechanic's Lien Waivers Bar the Contractor from Claims for Extra Work and Delay Damages

The Fifth Circuit recently considered the question of whether interim mechanic’s lien waivers executed by a contractor released extra work claims and delay damages incurred prior to the waiver. In Addicks Servs., Inc. v. GGP-Bridgeland, LP, 2010 W…
Categories: Legal Updates

Montana Supreme Court Rules that Mechanic's Liens Take Priority Over Certain Deeds of Trust

The Montana Supreme Court recently released an opinion addressing the priority between a construction loan trust indenture and a mechanic’s lien (March 22, 2010). In Signal Perfection, LTD v. Rocky Mountain Bank-Buildings, 2009 WL 3628027 (Mont. N…
Categories: Legal Updates

Maryland's Highest Court Finds Implied Duty of Good Faith and Fair Dealing in Termination for Convenience Clauses

Last August, the Maryland Court of Appeals addressed whether a termination for convenience clause in a private construction contract must be exercised in good faith (March 16, 2010). Last August, Maryland’s highest court, the Court of Appeals, addr…
Categories: Legal Updates

Virginia Federal Court Limits Surety's Right to Defend Based on Contractor's Right to Set-off

Sureties writing bonds in Virginia should be aware of a new case involving payment bond claims on a federal project which substantially limits the surety’s right to defend the case in reliance upon the contractor’s right of set-off.  In…
Categories: Legal Updates

Wisconsin Court of Appeals Rules That Performance Bonds Cover Warranties Exceeding the Contract's Requirements

The Wisconsin Court of Appeals recently issued a decision of particular interest to sureties issuing performance bonds.  In Milwaukee Board of School Directors v. Bitec, Inc., 2009 WL 2871163 (Wis. App. Sep. 9, 2009), the court examined whether a s…
Categories: Legal Updates

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