Construction Law Insights

Theuer v. Norfolk Air Heating & Cooling, Inc., 2020 Va. Cir. LEXIS 190 (City of Norfolk Cir. Ct. Oct. 7, 2020)

In count four of her complaint, plaintiff Elise Theuer alleged that defendant Norfolk Air Heating & Cooling, Inc. (“Norfolk Air”) violated the Virginia Home Solicitation Sales Act (the “Act”) regarding a contract for the installation of an HVAC system for Theuer’s historic residential property in Norfolk, Virginia. According to the complaint, the first contact between the parties occurred following Theuer’s call to Norfolk Air for an appointment to discuss a ductless or “mini-splits” system for her home. During the appointment, Norfolk Air provided a typed quote dated September 25, 2017, and Theuer signed the quote on November 21, 2017. The quote did not include any notice of a right of cancellation. After Norfolk Air installed the system, it failed to operate properly, and, after multiple

SourceOne, Inc. (DE) v. ESI, Inc. of Tenn., 2020 U.S. Dist. LEXIS 133045 (E.D. Va. Jul. 27, 2020)

DuPont contracted with Veolia Energy Operating Services LLC (“Veolia”) to upgrade the utilities infrastructure at a DuPont plant in Richmond, Virginia. Veolia, in turn, contracted with SourceOne, Inc. (DE) (“SourceOne”) to handle the design, procurement, installation, and commissioning for upgrading the cogeneration plant’s burners from coal-fired to natural gas-fired. SourceOne had contracted with ESI, Inc. of Tennessee (“ESI”) to provide engineering services for the burner upgrades. The SourceOne-ESI agreement included a warranty for ESI’s work and an indemnification provision in favor of SourceOne. ESI recommended Coen Company, Inc. and John Zink to supply the new burners for the project (“suppliers”). Significant problems developed with the burners, resulting in damage to downstream superheater equipment and a decrease of the equipment life.

Cove v. Wallen, 2020 Va. Cir. LEXIS 31 (Fairfax Cnty. Cir. Ct. Mar. 11, 2020)

Plaintiffs Edward and Pamela Cover, along with Defendants Millard Wallen, III and Dianna Wallen and Jeff and Cathy Black formed LLCs for the purpose of purchasing and developing the Stonecroft Business Park (“Stonecroft Project”) in Chantilly, Virginia. Their combined business entity, Stonecroft Business Park, LLC borrowed $13,700,000 from La Jolla Bank to finance the Stonecroft Project. The loan was personally guaranteed by the Coves, Wallens, and Blacks, individually. In September 2010, the venture defaulted on the loan, and the successor bank to La Jolla filed suit in the Eastern District of Virginia seeking over $13.8 million. After the Blacks declared bankruptcy, the Coves and Wallens settled the lawsuit with the bank in late 2011. In return for releasing the Coves

Mid-Atlantic Arena, LLC v. City of Va. Beach, 2020 Va. Unpub. LEXIS 16 2020 WL 2780000 (Va. May 28, 2020)

The City of Virginia Beach (“City”) and United States Management, LLC (“USM”) entered into a development agreement (“DA”) for USM to construct an entertainment and sports arena in Virginia Beach. USM assigned its rights under the DA to Mid-Atlantic, LLC (“MAA”). As developer, MAA had to construct the arena in accordance with a master plan and obtain financing for the endeavor. The City offered to lease some of its most valuable real estate for the arena, provide $78 million in infrastructure improvements to support the arena, and significant tax incentives. The City retained the right to approve MAA’s construction loan commitment and documents evidencing and securing the construction loan (the “Construction Loan Documents”). The City’s review and

Advanced Training Grp. Worldwide, Inc. v. ProActive Techs. Inc., 2020 U.S. Dist. LEXIS 68221 (E.D. Va. Apr. 17, 2020)

ProActive Technologies, Inc. (“ProActive”) provides services in the military simulation and training system marketplace. Advanced Training Group Worldwide, Inc. (“ATG”) provides advanced tactical training services for the military, but had never bid on or performed a federal government contract. On November 21, 2011, ProActive contacted ATG about exploring mutual business opportunities. On June 8, 2012, ProActive send ATG a draft Memorandum of Understanding (“Draft MOU”) regarding the formation of a joint venture between ATG and ProActive called Raptor Training Services, LLC (“RTS” or “JV”) to bid and perform the Special Operations Forces RAPTOR III IDIQ contract with the United States Army (the “RAPTOR Contract”). The Draft MOU set

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