Once in a while, a disappointed bidder seeking to contract with a state or local government agency — or in this case the actual contractor who received the award but then wanted to enjoin the local government from terminating the contract — goes to federal court in search of a TRO. The normal theory is… Continue Reading
Monthly Archives: April 2006
Division 3 Examines Joint Check Payment Issue
Posted in ConstructionThis Division 3 case is a nice summary of the “joint check rule” and how it operates in the context where the general contractor who writes the joint check then attempts to sue a subcontractor on an cause of action assigned to it by a lower-tier subcontractor. Confusing? Yes. But if you read the details,… Continue Reading
Meanwhile, Back at the Hanford Clean Up Operation…
Posted in Construction…the costs of Bechtel’s nuclear waste vitrification operation — which has escalated in cost from $4.3 billion to $11 billion — has become a political football of sorts in our Nation’s Capitol.
SJ Denied in Idaho DSC Claim
Posted in ConstructionLike a lot of differing site conditions (DSC) cases, this new case only makes sense if you spend the time to read the whole decision and absorb the details concerning what the contract “indicated” the builder would encounter. When all is said and done, Universal Construction, Inc. dodged the summary judgment bullet in a claim… Continue Reading
“Daubert on the Web”
Posted in ConstructionHere’s an interesting resource for keeping up with recent decisions affecting the admissibility of expert testimony — Daubert on the Web — including testimony offered by engineers and architects. These folks also offer a daily blog of recent Rule 702 decisions and developments, which looks quite helpful as well.
Liability of Surety Bond Determined at Time of Default, Not Time of Entry of Judgment
Posted in ConstructionWhat happens if the size of a surety bond is increased at some point in time, but the increase occurs after the breach which is insured by the bond? Does the increased bond apply to the preexisting breach or not? Apparently not, according to a new Division 2 case. The contractor originally maintained a $6,000… Continue Reading
Supreme Court Approves “Stigma” Damages in Defect Case
Posted in ConstructionAt the end of its recent decision involving discovery sanctions against the maker of an EIFS product, the Supreme Court announced a significant damages ruling: in a defect case, where the damage to property is “permanent” in nature, the plaintiff will be entitled to both the cost of repair and dimunition in property value. Said… Continue Reading
Alaska Court Rejects Claims for Recovery of Bid & Proposal Costs
Posted in ConstructionIn Washington, a disappointed bidder has a recognized right to sue to enjoin the execution of a public works contract in a situation where such execution would violate the principles of competitive procurement. By contrast, the bidder has no statutory right to collect damages such as bid & proposal (B&P) preparation expenses or lost profits…. Continue Reading
Supreme Court Interprets Prelitigation Notice Rules in RCW 64.50
Posted in ConstructionThe first in this term’s Supreme Court roster of cases pertinent to the construction industry is out: the Lakemont Ridge case. By a 9-0 vote, the Supreme Court held that a homeowner need not file its 45 day pre-suit notice to cure in a situation where the “construction professional” has failed to file its own… Continue Reading
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