Building Knowledge

The newsletter of the ISBA’s Section on Construction Law

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2017 Articles

2015 AAA Construction Industry Arbitration Rules: Fair, efficient & economical arbitrations? By Randall S. Rapp & John N. Rapp June 2017 While the 2015 Rules may not cause significant changes in all arbitrations, they ultimately provide arbitrators adept at managing their arbitrations with the power to provide fairer, more efficient, and more economical arbitration experiences. But the new Rules also add complexity and open the door to court-like discovery and procedures.
231 W. Scott - What is an attorney supposed to do? By Paul Peterson December 2017 The nightmare that is 231 W. Scott points out several areas that an owner and the owner's attorney should focus on when entering into a construction project.
Choice of law, choice of forum, and public policy By Howard M. Turner March 2017 This article considers the validity, applicability, and effect of The Illinois Building and Construction Act, including when it is preempted by the Federal Arbitration Act.
Developer insolvency not required for direct implied warranty of habitability claims against residential builders By Raymond M. Krauze April 2017 The ruling in 1120 Club Condominium Association opens the door to future claims against residential builders/general contractors who are not involved in the sale of residential units nor in contractual privity with the homeowners and eliminates a defense that residential builders/general contractors have often relied upon in defeating implied warranty of habitability claims.
Editor’s note By Samuel H. Levine December 2017 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine October 2017 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine August 2017 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine June 2017 An introduction to this issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine April 2017 An introduction to the issue from Co-Editor Samuel Levine.
Editor’s note By Samuel H. Levine March 2017 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Eric L. Singer January 2017 An introduction to the issue from Editor Eric Singer.
False claims and whistleblowers By Margery Newman December 2017 Recently, a cottage industry has arisen in the construction industry revolving around allegations that certain Disadvantaged Business Enterprises are fronts or are not performing commercially useful functions.
The financially distressed subcontractor on a government contract: What a prime contractor should do to protect the project and itself By Jay Bender October 2017 As federal regulations generally place the burden of compliance on prime contractors, a financially distressed subcontractor is a concern not only for the sub, but also for the prime contractor.
Insurance policy did not prevent association recovery from subcontractors for defective work By Justin L. Weisberg October 2017 On February 17, the First District Appellate Court issued an opinion regarding the Implied Warranty of Habitability in the case of Sienna Court Condominium Association v. Champion Aluminum Court et al.
Keeping homeowners apprised of their rights under The Illinois Mechanics Lien Act By Adam B. Whiteman August 2017 Despite the protections provided in the Illinois Mechanics Lien Act, the Section 5 Contractors Sworn Statement is rarely used in a residential construction setting. The reason for this is that people (and attorneys) simply do not even know about it.
Living with the New AAA Construction Industry Arbitration Rules By Raymond A. Fylstra June 2017 While widely and justifiably hailed for modernizing arbitration procedures, the new Rules still leave large gaps and create difficult dilemmas for parties who have already agreed to arbitrate.
Oh! Those limitations By Samuel H. Levine January 2017 Four recent Illinois cases address claims limitations.
“Pay if paid” clauses upheld by First District By Jim Dash January 2017 In the first published Illinois decision on the topic in 30+ years, the court in Beal Bank Nevada v. Northshore Center THC, LLC,held on September 30, 2016 that “pay if paid” clauses remain enforceable in contract if the payment condition is an unambiguous condition precedent to payment.
Preparing and filing mechanics lien claims: Complications and “Catch-22” By Howard M. Turner October 2017 770 ILCS 60/7 provides that instead of recording a claim for lien, a lien claimant can file suit. Instead of recording a lien, should you file suit? What factors are involved?
Removable trade fixtures, large and small, are generally not lienable: Illinois court holds no mechanics lien rights in 500-foot-tall Wind Energy System By Steven D. Mroczkowski August 2017 In general, removable trade fixtures are considered personal property not subject to claims under the Illinois Mechanics Lien Act. As made clear by the recent case of AUI Construction Group, LLC v. Vaessen, this is true regardless of the size of the trade fixture.
Seventh Circuit finds duty to defend is triggered under Illinois law where subcontractor’s defective work causes damage to other parts of project By Clifford J. Shapiro December 2017 It remains to be seen whether or to what extent the courts in Illinois will follow the Westfield Insurance Company v. National Decorating Service, Inc. decision with respect to coverage under subcontractor policies in similar circumstances.
Some industry help for no CGL coverage for defective construction claims By Geoff Bryce April 2017 The standing rule in Illinois is that there is no comprehensive general liability insurance coverage for any construction defect claim where the claim is that only the building itself was damaged.
The sworn contractor’s and subcontractor’s statements By Paul Peterson March 2017 Balancing the desire to obtain good statutory documentation and the need to get the parties paid so the job gets done is not well understood and is not an easy job.
Why construction law? By Stanley N. Wasser March 2017 Trying to decide which area of law to practice? Here's why you should consider construction law.
A winter’s tale—Snow liability and construction law By Nathan B. Hinch April 2017 The decision in Murphy-Hylton v. Lieberman Management Services, Inc. is important in clarifying what had been a split issue among Illinois appellate courts – to what extent does the Snow and Ice Removal Act (the “Act”) provide immunity when the claim arises from a snow or ice-related issue, but NOT from the alleged negligent removal of naturally accumulating snow or ice.