Construction Law Insights

Morris v. DSA Roanoke, LLC, 2019 Va. Cir. LEXIS 204 (City of Roanoke Cir. Ct. May 31, 2019)

The Court granted Thomas Builders, Inc.’s (“Thomas Builders”) demurrer as to Count I of the Amended Complaint of Third-Party Plaintiff DSA Roanoke, LLC (“DSA”) because “a grant of demurrer is appropriate in an instance where an indemnification provision in a construction contract can only function to indemnify a party from damages caused by its own negligence.” Although the court held that the indemnification provision did not on its face violate Virginia Code § 11-4.1 (i.e. Virginia’s anti-indemnity statute) dismissal of the claim “accords with the public policy goals behind Virginia’s restriction against provisions that provide such indemnification.”

Myers Controlled Power, LLC v. Gold (Truland Grp., Inc.), 2019 U.S. Dist. LEXIS 88127, 2019 WL 2251704 (E.D. Va. May 24, 2019)

The Washington Metropolitan Area Transit Authority (“WMATA”) engaged Clark Construction Group, LLC (“Clark Construction”) to serve as the prime contractor on the Orange and Blue Lines project. Clark Construction subcontracted with Truland Walker Seal Transportation, Inc. (“TWST”), one of several affiliated companies performing electrical contracting work under the name “Truland.” The subcontract between Clark Construction and Truland included a “flow-down” provision requiring TWST to pay all subcontractors and suppliers. TWST decided to use Myers Controlled Power, LLC (“Myers”) as a second-tier subcontractor to provide electrical equipment and switches. Myers did not contract with TWST directly; rather, it signed a supplier subcontract with Nationwide Electrical Services, Inc. (“NES”), a disadvantaged business enterprise. Myers sent all but one of its invoices to NES, but took its directions exclusively from TWST.

Hyde Park Free Will Baptist Church v. Skye-Brynn Enters., 2019 Va. Cir. LEXIS 163 (City of Norfolk Cir. Ct. May 24, 2019)

On May 14, 2015, Hyde Park Free Will Baptist Church (“Hyde Park”) contracted with Skye-Brynn Enterprises, Inc. (“Skye-Brynn”) for Skye-Brynn to install a liquid roof membrane system on top of the existing church roof to repair the leaking roof. Around October 2015, Skye-Brynn informed Hyde Park that the roof was completed and Hyde Park paid Skye-Brynn the remainder of the contract price. However, some of the roof’s existing leaks were worse than before and some new leaks developed. Hyde Park notified Skye-Brynn of the leaks shortly after its completion of the roof work and provided Skye-Brynn with the opportunity to correct the roof leaks.

Balfour Beatty Infrastructure, Inc. v. Precision Constr. & Mgmt. Grp., LLC, 2019 U.S. Dist. LEXIS 86832, 2019 WL 2216470 (E.D. Va. May 22, 2019)

Balfour Beatty Infrastructure, Inc. v. Precision Constr. & Mgmt. Grp., LLC, 2019 U.S. Dist. LEXIS 87692, 2019 WL 2224966 (E.D. Va. May 6, 2019)

On July 14, 2016, Balfour Beatty Infrastructure, Inc. (“Balfour Beatty”) and Precision Construction and Management Group, LLC dba Precision Electrical & Instrumentation (“Precision”) entered into a firm lump sum subcontract (the “Subcontract”) in the amount of $1,266,171.00 for Precision to perform the electrical work for the Broad Run WRF Biosolids Project for Loudoun Water (the “Project”). The Subcontract provided that Precision was liable to Balfour Beatty for all damages and liability associated with Precision’s default, including attorney’s fees, enforcing the

Hensel Phelps Constr. Co. v. Perdomo Indus., LLC, 2019 U.S. Dist. LEXIS 82636, 2019 WL 2111530 (E.D. Va. March 14, 2019)

Hensel Phelps Constr. Co. v. Perdomo Indus., LLC, 2019 U.S. Dist. LEXIS 81623, 2019 WL 2112955 (E.D. Va. May 14, 2019)

On May 12, 2016, Hensel Phelps Construction Co. (“Hensel Phelps”) and Perdomo Industrial, LLC (“Perdomo”) entered into a subcontract for the Freedom Plaza Project (the “Subcontract”). As of December 19, 2016, Perdomo was in default under the Subcontract. If a party defaults, the Subcontract requires that such claims or disputes be arbitrated pursuant to the AAA’s Rules for Construction Industry (“AAA Rules”) and that the arbitrator’s decision is final, conclusive, and binding on the parties and enforceable in a court of competent jurisdiction. On February 27, 2017, Hensel Phelps filed a Demand for Arbitration against Perdomo and its surety, Allied World Insurance Company (“Allied”). On May 21-25 and June 4-7 of 2018, an evidentiary hearing was conducted before an arbitration panel, which Perdomo failed to appear at the hearings. On August 21, 2018, the arbitration panel issued an award in Hensel Phelps favor in the amount of

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