Much as the economics of a construction project must make sense, the same is true when you are considering litigation. The costs associated with litigation must be considered in light of the potential recovery. A recent decision from the Nebraska Court of Appeals drove this point home. The case, Scheichinger v Swain Construction, involved the sale of a skid loader and a claim that Swain Construction misrepresented the number of [...]
Over the past few years, I’ve posted blogs about the Seattle Viaduct project and the problems Bertha, the tunnel-boring machine, ran into on the project. Not surprisingly, the parties sued each other. And, Big Bertha’s problems continued into the courtroom. As some of you may recall, Big Bertha was launched with much fanfare, then ran into a pipe and stopped working. The project was finally completed in February, 2019, three [...]
When you are involved in construction litigation, you have battles on several fronts, including those against subcontractors, owners, insurers and the court. Shoring up your defenses on each of these fronts is imperative, or you may lose the battle or, worse yet, the war. An opinion out of the Eleventh Circuit Court of Appeals (overseeing federal courts in Alabama, Florida and Georgia) Carithers v. Mid-Continent Casualty Company, illustrates the various [...]
Back in 2014, I posted a blog about the problems contractors were having digging the tunnel for Route 99 in Seattle. Bertha, the boring machine, hit a pipe and some rocks and got stuck, causing two years of delay. Well, that problematic situation, now a $624 million lawsuit, has wound its way through the courts and the Seattle Tunnel Partners (“STP”) is blaming the slow down on the pipe they [...]
Another court has found that poor record keeping will prevent recovery on a claim. The court in Weatherproofing Tech., Inc. v. Alacran Contracting, LLC found that a contractor’s documents were a mess and that no reasonable jury could base a verdict on the contractor’s records. The underlying project involved the construction of an army training facility. The total project cost approximated $13 million. Alacran, the general contractor, subcontracted about $3 [...]
When you are involved in construction litigation, you have battles on several fronts, including those against subcontractors, owners, insurers and the court. Shoring up your defenses on each of these fronts is imperative, or you may lose the battle or, worse yet, the war. A recent opinion out of the Eleventh Circuit Court of Appeals (overseeing federal courts in Alabama, Florida and Georgia) Carithers v. Mid-Continent Casualty Company, illustrates the [...]
Clients often times present problems with a project and explain the need to be compensated for the problems experienced. But, having a consistent theory for recovery and evidence that supports that theory is always paramount to recovery. I was reminded of this perhaps obvious corollary when reviewing an Armed Services Board of Contract Appeals decision. The appeal involved a $35 million request for additional compensation based on differing site conditions, [...]
Most construction contracts contain a “no damage for delay” clause that generally prevents a contractor from demanding compensation for a late starting or otherwise delayed project. But, if the owner or is representative actively interferes with the project, a contractor may still recover damages for delays. The recent case of C & C Plumbing and Heating v. Williams County, out of North Dakota found the owner liable for delays even [...]
My friend and construction attorney, Chris Hill, raises a great point in his blog, Construction Law Musings, this week. He addresses the two questions you should always ask when pursuing construction litigation. The first, "Can you win the case and get a judgment?" The second, and as important, "Can you collect on that judgment?" I invite you to check out Chris's post Think Twice About Heading to Court with a Construction [...]
Litigation is expensive and takes time away from running your business. It is my firm belief that any decision to embark on a lawsuit should be thoroughly vetted and the economic benefits should outweigh the principle on which the fight is based. The juice must be worth the squeeze. Every once in while I read about some litigation that makes me scratch my head and wonder if it’s really worth [...]
The Veterans Administration hospital in Denver, Colorado, is way over budget. And, I mean, way, way over budget. Kiewit/Turner, the joint venture building the new hospital, has finally said enough is enough and they want approval to suspend the work and require the VA to provide a design that can be built within budget. The project started in the 1990's as a $200 million shared space project. In 2010, Congress [...]
