Construction Law Insights

Am. Cigar Factory, LLC v. City of Norfolk, 2020 Va. Cir. LEXIS 116 (City of Norfolk Cir. Ct. Aug. 14, 2020)

American Cigar Factory, LLC (“ACF”) purchased property located in the City of Norfolk (the “Property”) in September 2014 and developed plans to rehabilitate the American Cigar Factory building (the “Historic Structure”). Because the Historic Structure had fallen into disrepair, ACF reduced the four-story structure to three and a half walls – with no roof – and shored the south-facing wall with steel beams and concrete barriers. On June 29, 2015, ACF received a letter from the City of Norfolk (“City”) code enforcement official stating that the Historic Structure was unsafe and uninhabitable, ACF had 35 days to repair the building, and, if ACF failed to comply, the Historic Structure would be demolished. On October 9, 2016, an upper portion of the west-facing brick wall collapsed during a hurricane. Three days later, the City notified ACF that intended to demolish all structures on the Property. On October 14, 2016, the Court granted a temporary injunction. The

Advanced Training Grp. Worldwide, Inc. v. ProActive Techs. Inc., 2020 U.S. Dist. LEXIS 141855 (E.D. Va. Aug. 7, 2020)

ProActive Technologies, Inc. (“ProActive”) filed two motions in limine: (1) preclude ATG from introducing any evidence relating to any claimed damages; (2) preclude expert testimony from ATG’s rebuttal expert John M. Falk (“Falk”). Advanced Training Group Worldwide, Inc. (“ATG”) filed three motions in limine: (1) preclude any reliance by ProActive on the Business Judgment Rule or the Advice-of-Counsel defense; (2) preclude expert testimony from ProActive’s expert James A. Hughes, Jr. (“Hughes”) to the extent that it offers impermissible legal opinions; (3) preclude certain testimony from Adam Newbold (“Newbold”).

Pro-Telligent, LLC v. Amex Int'l, Inc., 2020 U.S. Dist. LEXIS 64191 (E.D. Va. Feb. 28, 2020)

The United States Agency of International Development (“USAID”) awarded Amex International, Inc. (“Amex”) a contract, portions of which Amex subcontracted to Pro-Telligent. Pro-Telligent completed its work and invoiced Amex, who, in turn, invoiced USAID for Pro-Telligent’s work. By invoicing USAID, Amex certified that prior payments had been made to Pro-Telligent from previous payments received by Amex from USAID and that timely payments would be made from the proceeds covered by Amex’s then current payment applications. Amex received progress payments from USAID. Despite Pro-Telligent’s multiple demands for payment, Amex did not pay Pro-Telligent. Amex owed Pro-Telligent $279,660.27.

Marroquin v. Dan Ryan Builders Mid-Atlantic, LLC, 2020 U.S. Dist. LEXIS 42300, 2020 WL 1171963 (W.D. Va. Mar. 11, 2020)

On September 23, 2017, Oscar and Olga Marroquin (the “Marroquins”) and Dan Ryan Builders Mid-Atlantic, LLC (“Dan Ryan”) entered into a contract (the “Contract”) for Dan Ryan to sell a residential home. The Marroquins signed a Limited Warranty Agreement issued by Quality Builders Warranty Corporation (“QBW”), which was attached to the Agreement of Sale. On October 31, 2017, the Marroquins took possession of the property, but alleged that it was not free from structural defects, would not pass without objection in the trade, was not constructed in a workmanlike manner, and was not fit for habitation. Between February 23, 2018 and May 3, 2018, the Frederick County Inspection Department issued a series of Correction Orders to Dan Ryan concerning the issues with the construction of the Marroquins’ home. In April 2018, the Marroquins emailed Dan Ryan a list of issues related to the home. On July 10, 2018, a building code official sent a

Comfort Sys. of Va. v. P. J. Potter Enters., 2020 Va. Cir. LEXIS 19 (City of Chesapeake Cir. Ct. Feb. 11, 2020)

Comfort Systems of Virginia, Inc., et al (“Petitioners”) engaged in an arbitration with P. J. Potter Enterprises, Inc., et al (“Respondents”). The Petitioners are located in Chesapeake and the Respondents are located in Suffolk. Prior to the final arbitration award (“Order”), a settlement agreement containing the agreement to arbitrate, a signed term sheet setting forth the particulars of the arbitration, and meetings with the arbitrator occurred in Virginia Beach. The final telephone conference resulting in the arbitrator’s issuance of the Order was held while one attorney was in South Carolina and the arbitrator was not in Virginia Beach.

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