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Bankruptcy Court Determines That The Right Of A Surety To Recover Retainage In A Construction Contract Due To Equitable Subrogation Is Superior To A Creditor's Security Interest Even If Perfected
The decision presents an important take away for secured lenders-- if a construction project is incomplete, securing their loan solely with a security interest in a contractor's accounts receivables is a risky decision.
United States
30 Jul 2019
Diversion Of Construction Trust Funds-Court Imposes Summary Judgment Against GC Based On Inadequate Recordkeeping Alone
Construction project trust funds, pursuant to Article 3-A of New York's Lien Law, are all monies received by a general contractor or subcontractor on a project.
United States
31 May 2019
Bid Mistakes & Bid Protests – Part I
This is the first of a two part article regarding bidding controversies. This first segment will address the issue of bid mistakes. Part II will address the broader topic of bid protests.
United States
15 Apr 2019
Subcontractor Claim Reinstated
In a previous MHH Alert we highlighted a rare event: a recent New York appellate decision in which the court reinstated a subcontractor's claim, notwithstanding its failure to satisfy a condition precedent to...
United States
6 Mar 2019
Damages For Delay-An Update
One of the most significant developments in construction law of late concerns an issue I have been actively involved in for some time.
United States
12 Feb 2019
Defective Design Specifications: Contractors Are Not Without Remedy
As we have often discussed on these pages, in New York, the general rule is that without a contractual relationship between contractor and designer ...
United States
27 Dec 2018
Doing Business With The NYC SCA: Absence Of Notice Of Direction Does Not Preclude Claim
The processing of change orders by many New York public agencies can be challenging. This is particularly so with the NYC School Construction Authority (SCA).
United States
5 Oct 2018
Construction Claim Notice Travesty -Hope On The Horizon?
The public agency had challenged the claimant's entitlement to additional payment for 56 specific change orders.
United States
20 Sep 2018
Is Being Named As An "Additional Insured" On An Insurance Endorsement Sufficient To Provide Coverage?
The New York Court of Appeals (New York's highest court) recently held that being named as an additional insured on a Certificate of Insurance might not, by itself, provide any coverage for additional insureds.
United States
22 Aug 2018
Taking On The NYC-SCA
As I have often maintained on these pages, public construction is a rough business.
United States
8 Jun 2018
Criminal Liability For Construction Trust Fund Diversion & Fraud
Most contractors (GCs and subs alike) are aware of the existence of New York Lien Law Article 3-A, and that it is designed to ensure that entities who provide labor and material ...
United States
31 Jan 2018
As discussed in the first of this two-article series, public agencies often inappropriately pressure contractors to meet M/WBE participation "goals" on projects as if such goals were strict quotas or mandates.
United States
14 Dec 2017
M/WBE Regulatory Compliance – Don't Get "Pushed Around"
For many reasons, not the least political, NYS contracting agency personnel are under increasing pressure to strictly enforce M/WBE regulations
United States
3 Nov 2017
Opening Doors On A Fair Housing Decision
The recent decision of the U.S. District Court for the Eastern District of New York in the much-publicized federal Fair Housing Act case "MHANY Management v. Incorporated village of Garden City", presents a classic example as to how a municipality can run afoul of the federal Fair Housing Act.
United States
16 Apr 2014
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