The novel coronavirus (COVID-19) has thrown a wrench into the country’s longest stretch of economic growth, threatening the performance and profitability of construction projects in states with restrictive governmental regulations.
Prompt payment statutes come in a variety of “flavors,” depending on the type of project (public or private), the location of the project (i.e., which state) and the nature of the project (state or federal).
May Contractor A sue Contractor B for breach of the developer’s contract — that is, the contract between Contractor B and the developer? In Arco In ge nieros, S.A. de C.V. v. CDM Int’l Inc., 368 F. Supp. 3d 256 (D. Mass. 2019), a Massachusetts federal district court said no.
Every now and then a case with national implications pops up right here in my own backyard (New Jersey). No, we are not talking about a case affecting immigration policy, gun control or the midterm elections. Instead, we are talking about the less glitzy subject of arbitration agreements.
The waiver of consequential damages clause in a contract, be it for construction or professional services, is a risk-shifting provision that has value to both parties to the contract and it should be negotiated.