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Aarow Equipment v. Travelers- An Update

Previously here at Musings, I discussed the application of pay if paid clauses and the Miller Act . The case that prompted the discussion was the Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co. case in which the Eastern District of Virginia Federal Court determined that...

Read Your Construction Contract Arbitration Clauses Carefully

In May of last year, we discussed an opinion in U.S. ex rel. Thyssenkrupp Safway Inc. v. Tessa Structures LLC . If you recall, this case involves a three way payment dispute between a supplier, Thyssenkrupp, a subcontractor, Tessa Structures, and a general contractor, Vista Contracting. As discussed...

“Green” Expectations. . . or Just Expectations (“green” is not a specification; it’s a paint color)

I was having a discussion regarding "green" building with my friend and recent guest poster here at Musings , Nick Pacella (@ nmpacella ) this past week and (as often happens when I chat with the great folks in the construction world) it got me to thinking. Is "Green" its own separate...

Sheppard Mullin Richter & Hampton LLP: New Mechanics Lien Act in California

By Edward Lozowicki and Scott Vignos In 2010, the California Legislature enacted Senate Bill ("SB") 189 to reorganize and simplify the laws governing works of improvement. The bill completely re-writes the statutes which provide for mechanics liens, stop notices and certain construction...

Don’t Let Receivership Kill Your Miller Act Claim

In this economy, even the companies that provide bonding for construction companies may have financial difficulties, and even go into receivership. Recently, the U. S. District Court in Norfolk, VA decided an interesting case relating to an interestingly named project. In U.S. v. Western Ins. Co. , the...

No Setoff Between Bonded and Non-Bonded Projects

As any reader of Construction Law Musings knows, payment bond claims are a big part of my law practice . You have also likely read through the federal cases relating to the Miller Act that you can find here. On trend in these federal cases in the Virginia district courts is that determining set off rights...

Construction Law Musings: Always Show Up For Court, Or Else. . .

I have often discussed construction payment bond claims from the perspective of the subcontractor or supplier making the claim. However, a recent case (that I only have the Virginia Lawyers Weekly link for) discusses the potential dire consequences of such a claim for a payment bond principal and any...