Construction Law Insights

Mediko, P.C. v. Roanoke, 2018 Va. Cir. LEXIS 623 (Cir. Ct. Roanoke Cnty, Nov. 9, 2018)

Roanoke County (the “County”) serves as the fiscal agent for the Western Virginia Regional Jail Authority (“WVRJA”) and handles procurements for the WVRJA. On November 8, 2016, the County published a request for proposals (“RFP”) for healthcare services for inmates of the jail pursuant to the Virginia Public Procurement Act (“VPPA”). The RFP requested sealed, formal proposals from qualified firms and stated that the contract would not necessarily be awarded to the lowest bidder, but would be awarded to the proposer who could best meet the requirements based on the criteria enumerated in Virginia Code § 2.2-4301. Mediko, P.C. (“Mediko”) submitted a bid. After various meetings and conversations, Mediko thought the County and WVRJA had

InDyne, Inc. v. Beacon Occupational Health & Safety Servs., 2018 U.S. Dist. LEXIS 182031, 2018 WL 5270331 (E.D. Va. Oct. 23, 2018)

InDyne, Inc. (“InDyne”) submitted a proposal to the United States Air Force (“Air Force”) for a contract to provide services and support for the Solid State Phased Array Radar System and proposed Beacon Occupational Health & Safety Services, Inc. (“Beacon”) as a subcontractor to provide certain medical services. Before submitting the proposal to the Air Force, InDyne and Beacon entered into a teaming agreement (the “Teaming Agreement”). On March 5, 2018, InDyne was awarded the contract with the Air Force. On March 30, 2018, InDyne requested a best and final offer from Beacon for the scope of work to be included in the potential subcontract between InDyne and Beacon. On April 4, 2018, Beacon replied with a letter arguing that the Teaming

United States v. Lyon, 2018 U.S. App. LEXIS 29046 (4th Cir. Oct. 16, 2018)

A jury convicted brothers Dennis Joe Lyon and Daniel Frank Lyon, Jr. of counts related to a scheme in which they provided worthless surety bonds to obtain a construction contract from the United States Department of Veterans Affairs (“VA”). Dennis Lyon was convicted of conspiracy to defraud the United States, 14 counts of major fraud against the United States by obtaining money under false pretenses, and 3 counts of wire fraud. The court sentenced Dennis Lyon to 10 years imprisonment, followed by 3 years of supervised release, and ordered $4,030,577.42 in restitution. Daniel Lyon was convicted of 13 counts of major fraud against the United States by obtaining money under false pretenses. The court sentenced Daniel Lyon to 4 years imprisonment, followed by 3 years supervised release, and ordered $3,707,985.87 in restitution. The Lyons appealed, challenging the court’s admission of evidence regarding two prior surety fraud schemes and the sufficiency of the evidence to support their convictions.

Fluor Enters. v. Mitsubishi Hitachi power Sys. Ams., 2018 U.S. Dist LEXIS 176250, 2018 WL 4956513 (E.D. Va. Oct. 12, 2018)

Mitsubishi Hitachi Power Systems Americas, Inc. (“Mitsubishi”) and Virginia Electric and Power Company (“VEPCO”) entered into a Turbine Supply Agreement (“TSA”) for Mitsubishi to sell turbine generators to VEPCO for use in a power generating facility in Brunswick County (the “Brunswick Project”). VEPCO contracted with Fluor Enterprises, Inc. (“Fluor”) for Fluor to construct the Brunswick Project (the “Fluor Contract”). Under the Fluor Contract, Fluor was responsible to engineer, procure, and construct the Brunswick Project. Around the same time VEPCO entered into the Fluor Contract, it assigned the TSA to Fluor through a Partial Assignment, Agreement (the “Assignment Agreement”), but VEPCO retained the obligation to pay Mitsubishi per the terms of the

Akian, Inc. v. Spotsylvania Cty. Pub. Schs., 2018 Va. Cir. LEXIS 329 (cir. Ct. Spotsylvania Cnty. Sept. 21, 2018) 

Spotsylvania County Public Schools (“Spotsylvania County”) and Akian, Inc. entered into a construction contract for a contract price of $687,095.00 to make alterations and additions to Spotsylvania County’s Family Resource Center building (the “Project”). Several major delays and issues arose related to the Project and Spotsylvania County failed to pay Plaintiff $197,675.29 of the Contract price. Plaintiff sued Spotsylvania County for breach of contract, unjust enrichment, and quantum meruit. In response, Spotsylvania County filed a plea in bar on the unjust enrichment and quantum meruit claims, arguing that sovereign immunity bars such quasi-contract claims against a Virginia Public School Board.

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