In an earlier blog post, we discussed a Fifth Circuit Court of Appeals opinion, Noatex Corp. v. King Constr. of Houston, LLC, 732 F.3d 479 (5th Cir. 2013), which found Mississippi’s Stop Notice Statute unconstitutional. The ruling was particularly harsh because Mississippi did not allow subs and suppliers the right to record a lien. After the ruling, the only apparent recourse for subs and suppliers that had not been paid for work completed was to sue those with whom they had a contract for breach of contract. We questioned how the Fifth Circuit’s ruling would affect Mississippi’s lien laws. Now… Read more
Tag: drowles
Sovereign Immunity from a Surety’s Subrogation Claims? Not in Georgia
Authored by Darren Rowles and Scott Cahalan When a surety receives notice that its principal has defaulted, the surety is faced with a decision. Depending on the terms of the bond, the surety can either complete the work at its own expense, obtain bids from completion contractors and then arrange for them to contract directly with the owner or other obligee, allow the obligee to arrange for completion of the work with the costs to be paid by the surety, settle with the obligee, or it can choose to defend against the default and assert the principal’s claims, if any, against… Read more
Mississippi’s Stop Payment Notice Statute Found Unconstitutional
Authored By: Darren Rowles and Scott Cahalan In several states, including Mississippi, California, Arizona, New Mexico, and Washington, subcontractors and suppliers are used to filing a “stop notice” or “stop payment notice” when they are not paid for work performed at a project. See also North Carolina (lien on funds). However, the recent holding in Noatex Corp. v. King Constr. of Houston, LLC, 2013 U.S. App. LEXIS 20656, 14-15 (5th Cir. Oct. 10, 2013), calls into question the constitutionality of stop notice statutes and the remedies they provide to lower-tier contractors and suppliers. A stop notice is a notice to… Read more
Can You Arbitrate Where You Want To?
Authored by: Darren Rowles A forum selection clause is a contractual provision designating a certain state or court as the jurisdiction in which the parties will resolve disputes arising out of their contract. These clauses are very common in the construction industry. Just as common are agreements to arbitrate disputes arising out of the contract, which may also select where the dispute will be heard. If, for example, a Georgia company enters into contracts to perform work outside of the state, it might still want its contract to include a provision indicating that all disputes relating to the contract are… Read more
Legislation re-establishes Georgia Contractor’s Right to Its General Conditions Costs
Authored by: Darren Rowles A controversial Georgia Court of Appeals decision limiting the scope of Georgia mechanics’ liens to the value of materials and labor was recently overturned by an amendment to the lien law that will take effect on July 1, 2013. To read the full text of the amendment adding O.C.G.A. § 44-14-361(c) & (d) to Georgia’s lien code, click here (last visited 4/29/2019). On July 11, 2012, in 182 Tenth, LLC v. Manhattan Construction Co., 316 Ga. App. 776 (2012), the Georgia Court of Appeals held that “general conditions costs” were not lienable. The decision came as a shock… Read more
New Atlanta Falcons Stadium Approved by GWCC
On June 18, 2013, plans for the new stadium for the NFL’s Falcons were approved by the Georgia World Congress Center Authority Board of Governors. The architectural renderings are worth a look – http://bizjournals.com/atlanta/news/2013/06/18/official-new-falcons-stadium.html (last visited 6/26/2013). The lead architect for the job, 360 Architecture, will work with three local firms – Goode Van Slyke Architecture, Stanley Beaman & Sears, and tvdesign. The stadium design calls for a transparent shell that serves to connect the stadium with the surrounding community. The retractable roof has been compared to an aperture on a camera lens that opens and closes to control the… Read more
Standard AIA Contract language may waive “Discovery Rule”
Authored by: Scott Cahalan and Darren Rowles In a recent decision styled Brisbane Lodging, L.P. v. Webcor Builders, Inc., the California Court of Appeals found that a contract clause providing that all causes of action relating to the contract work would accrue from the date of substantial completion of the project abrogated the delayed discovery rule, which would otherwise delay accrual of a cause of action for latent construction defects until the defects were, or could have been, discovered. In July 1999, Brisbane and Webcor entered into a contract for the design and construction of a Radisson hotel. The construction contract… Read more