A California appeals court decided last month to block a payment-bond claim because a subcontractor’s stop-payment notice preceded a recorded notice of completion. A lawyer writes that the finding is “misdirected” and could have unintended consequences on those who file for stop notices.
Read more in the JD Supra Business Advisor.
A case recently before the Illinois Appellate Court case demonstrates that developers and other project owners, as well as agents and general contractors, need to have lien waivers from their subcontractors before making payments, according to two lawyers. The waivers should specify the value of the work performed in order to prevent overpayment.
Read more from the Association of Corporate Counsel.
The Washington Metropolitan Area Transit Authority will pay about $5 million to resolve a lawsuit claiming that the agency failed to seek competitive bids on a $14 million contract. The lawsuit was filed by a former employee who said he was fired for opposing the contract. The agency agreed to pay the former employee $390,000 as part of the settlement.
Read more in the Washington Post.
Whether coverage exists under a commercial general liability policy hinges on courts’ definition of an “occurrence.” Some state courts have found that occurrences include not only accidents but also damage resulting from defective work.
Read more in the Legal Intelligence.