Construction contracts often include arbitration provisions that require any dispute arising out of a project be resolved through binding arbitration. But who decides whether such a dispute is subject to the arbitration provision? The answer to that question is not always clear, and a recent decision (or refusal to make a decision) by the U.S.
Contract Disputes
Hedging Against the Lumber Crisis
The recent increasing price of lumber may be the single biggest threat to affordable housing in the United States, not to mention the threat it poses to the U.S. economy. Covid-19, which spurred an upsurge in home renovation projects and a drop in financing rates for new home builds, has caused a contemporaneous increase in…
Hahn Loeser & Intyllus Advisors Provide Guidance for Construction Clients in Recent Webinar Series
Members of our Construction Law Team joined forces with Suhas Shah, a partner with Intyllus Advisors for a three-part webinar series for the construction industry on critical topics of interest related to COVID-19. If you missed any of our programs, you can watch the recordings and download the slides at the links below.
Part 1: …
Hahn Loeser Completes Three-Part Webinar Series with Foundation Software
We want to thank Foundation Software for inviting us to present a three-part webinar series for their clients. You can view each of these complimentary sessions and access the slides at the links below.
Part 1: Make the Most of the Coronavirus Paycheck Protection Program (“PPP”) Loans
Presented on Friday, April 24 at 1 p.m.
Hahn Loeser’s Webinar Series with Foundation Software Off to Strong Start
Last Friday, April 24, we had record turnout for the first program in our webinar series with Foundation Software and we look forward to another great program this afternoon! This complimentary series provides guidance on critical issues impacting the construction industry.
You can listen to the recording and download the slides from last week’s topic…
Hahn Loeser Obtains Unanimous Jury Verdict for TRAX Construction Co.
On Friday, January 24, 2020, a Lake County Common Pleas Court returned a unanimous jury verdict in favor of Hahn Loeser’s client — TRAX Construction Co. — against the Village of Reminderville, Ohio, its design professional OHM Advisors, Inc., and Village Engineer, Eugene Esser, awarding our client the full $1.1 million it sought for compensatory damages. The jury also found OHM Advisors and Mr. Esser had committed fraud, and in addition to liability for compensatory damages, awarded TRAX $375,000 in punitive damages and its attorney’s fees.
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Ohio Court of Appeals Applies Supreme Court’s New Riegel Decision; Rejects School District’s “Accrual” Argument to Resurrect Claims
The Seventh District Court of Appeals’ decision in Union Local School District v. Grae-Con Construction is another important victory for the Ohio construction industry in the ongoing debate over the proper application of Ohio’s construction statute of repose, R.C. 2305.131. The Seventh District Court of Appeals, applying the Supreme Court of Ohio’s July 2019 decision in New Riegel Local School District v. Buehrer Group Architecture & Engineering, Inc., et al., reaffirmed dismissal of stale breach-of-contract claims under Ohio’s construction statute of repose. The Seventh District rejected three separate arguments advanced by Union Local, which was attempting to overturn the trial court’s rejection of Union Local’s breach of contract claims against contractors and other project participants. The Union Local opinion is yet another example of Ohio courts interpreting and applying the construction statute of repose to prevent prosecution of stale claims many years after project completion.
Union Local’s first argument was that the construction statute of repose did not apply to breach of contract claims. The Union Local appeal had been stayed pending the outcome of New Riegel, so the Seventh District was able to swiftly dispose of Union Local’s argument based on the Supreme Court of Ohio’s July 2019 holding that Ohio’s construction statute of repose bars breach of contract claims as well as tort claims filed more than 10 years after project substantial completion. (Hahn Loeser previously summarized the impact of New Riegel here.)
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Ohio Court of Claims Decision Puts Public Works Bond Sureties Directly Behind the Eight Ball
Strict Application of Claims Waiver Provisions Bars Surety Payment Claims
In Berkley Ins. Co. v. Kent State Univ., Ohio Ct. of Cl. No. 2018-00579JD (Jan. 14, 2019), the Ohio Court of Claims expanded its prior rulings strictly enforcing contract dispute resolution provisions in the public construction contract arena. The Court ruled, despite the circumstances that actually existed between the contracting parties, that a contractor’s surety who takes over and completes a project after the contractor’s default and termination is likewise bound by the contract’s dispute provisions. The ruling reinforces the significant risk of waiver of claims by contractors and their sureties when claims are not promptly submitted in accordance with contract provisions governing disputes, even though all parties are aware of the dispute and claim.Continue Reading Ohio Court of Claims Decision Puts Public Works Bond Sureties Directly Behind the Eight Ball