Justia Civil Procedure Opinion Summaries

Articles Posted in Construction Law
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Plaintiff, a construction company, filed a five-count complaint in superior court against Defendants, alleging breach of contract, quantum meruit, unjust enrichment, and violation of the Prompt Payment Act. In the fifth count of the complaint, Plaintiff sought enforcement of a mechanic’s lien it recorded against Defendants’ property. Plaintiff then moved for summary judgment on its claims for breach of contract, violation of the Prompt Payment Act, and enforcement of the mechanic’s lien. The superior court granted summary judgment for Plaintiff on those three counts but made no mention of Plaintiff’s quantum meruit or unjust enrichment claims. Defendants appealed. The Supreme Court dismissed the appeal as interlocutory, as there was no final judgment on any of Plaintiff’s causes of action where two of Plaintiff’s claims were still pending.View "Warren Constr. Group, LLC v. Reis" on Justia Law

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After losing millions of dollars because of delays and coordination failures in building a hospital, W.J. O’Neil Company sued its construction manager in state court. In subsequent arbitration, the architect and a design subcontractor (defendants) were added to the arbitration on indemnity claims. In the arbitration, O’Neil did not formally assert claims against those defendants, but O’Neil’s claims against its construction manager arose from the defendants’ defective and inadequate design of the hospital. O’Neil won the arbitration against its construction manager, but the construction manager did not establish its indemnity claims, so the defendants were not held liable. No party sought judicial confirmation or review of the arbitration award. O’Neil then sued the defendants in federal court. The district court dismissed, finding the claims barred by Michigan’s doctrine of res judicata. The Sixth Circuit reversed. An arbitration award cannot bar a claim that the arbitrator lacked authority to decide, and an arbitrator lacks authority to decide a claim that the parties did not agree to arbitrate. O’Neil did not agree to arbitrate the claims at issue. View "W.J. O'Neil Co. v. Shepley, Bulfinch, Richardson & Abbott, Inc." on Justia Law

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Petitioners found allegedly defective plumbing parts in their residences. Petitioners provided Nev. Rev. Stat. Ch. 40 prelitigation notice to the general contractor/developer, Centex Homes, informing it of the alleged defect. Centex forwarded the notice to various subcontractors and suppliers, including Uponor, Inc. Uponor declined to make repairs. Petitioners filed a complaint against Centex, and Centex filed a third-party complaint against numerous subcontractors, including RCR Plumbing & Mechanical, Inc. RCR filed a fourth-party complaint against Uponor. The district court stayed the proceedings and directed RCR to provide Uponor notice of the construction defectsafter Uponor moved to dismiss the fourth-party complaint against it based on lack of notice. Once RCR provided notice, Uponor made repairs. Petitioners sought an extraordinary writ arguing that neither they nor RCR were required to give Uponor Chapter 40 notice and an opportunity to repair prior to RCR’s filing of its fourth-party complaint. The Supreme Court issued a writ of mandamus, holding that claimant homeowners or subcontractors are not required to give notice to other subcontractors, suppliers, or design professionals prior to commencing or adding an action against them.View "Barrett v. Eighth Judicial Dist. Court " on Justia Law

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The Gagnards built a house in Los Altos, California, then sold the home to Goldman in January, 2004. Since then, Goldman has sued the Gagnards and those involved with the construction and sale of the house in various tribunals. In 2011, Goldman registered a foreign arbitral award in Illinois. She then sought citations to discover and collect assets. The district court issued denied reconsideration motions and granted a turnover order. After filing an appeal, the Gagnards paid $1.3 million to Goldman in satisfaction of the judgment. Goldman accepted the payment, and refunded money she had collected in excess of the judgment balance. The district discharged all pending citations and allowed the Gagnards to file a counterclaim against Goldman, claiming unjust enrichment, but subsequently dismissed the counter-complaint. The Seventh Circuit affirmed, based on the failure, by the Gagnards to act in a timely manner. View "Goldman v. Gagnard" on Justia Law

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Petitioners were two German limited liability corporations who were sued by a homeowners association for alleged construction defects in plumbing parts. Petitioners moved to dismiss the complaints, arguing that the district court lacked personal jurisdiction over them because they had no direct connection to Nevada, did not manufacture or distribute the allegedly faulty plumbing parts, and had no responsibility or control over their American subsidiaries such that the subsidiaries’ contacts with Nevada could be imputed to Petitioners. The district court asserted jurisdiction over Petitioners, determining that the companies’ American subsidiaries acted as Petitioners’ agents and concluding that the subsidiaries’ contacts with Nevada could be imputed to Petitioners. Petitioners filed a petition for writ of prohibition challenging the validity of the district court’s exercise of jurisdiction over them. The district court granted the petition, holding that no agency relationship was shown in this case, and accordingly, the district court exceeded its jurisdiction in imputing the subsidiaries’ contacts to Petitioners. View "Viega GmbH v. Eighth Judicial Dist. Court" on Justia Law

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In 1990, construction was completed on a condominium development. In 2003, the Oaktree Condominium Association (“Oaktree”) discovered that there was a defect in the construction. In 2007, Oaktree filed an action against the builder of the condominiums. The jury returned a verdict in favor of Oaktree. The trial court, however, ruled that Oaktree’s claims were time-barred under a ten-year statute of repose enacted by the General Assembly in 2007. The court of appeals affirmed, reasoning that although the statute of repose was not in effect at the time that Oaktree’s action accrued, the action was nonetheless time-barred because Oaktree did not file its action within two years of accrual. The Supreme Court reversed and reinstated the jury verdict in favor of Oaktree, holding (1) Ohio’s construction statute of repose is unconstitutional as applied to Oaktree because the retroactive application of the statute would bar Okatree’s accrued action; (2) a cause of action that has accrued but on which no suit has been filed by the effective date of repose is governed by the relevant statute of limitations; and (3) the complaint was filed within four years of its accrual and was therefore timely under the relevant statute of limitations. View "Oaktree Condo. Ass'n, Inc. v. Hallmark Bldg. Co." on Justia Law