Join the attorneys at Bamberger on February 22, 2011 from 11:30 am to 1 pm for a complimentary seminar covering risk issues facing the construction industry today. CEU credit (one hour) is available to engineers, contractors and subcontractors (pending approval).
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Construction Law Blog
Bamberger Seminar – Minimizing Risk in the Construction Industry
Friday, January 14th, 2011Complying with the Clean Water Act
Tuesday, January 4th, 2011EPA is serious about its Clean Water Act initiatives, including enforcing storm water violations at construction sites. For example, Beazer Homes USA, Inc. recently settled with EPA for alleged Clean Water Act violations at 362 construction sites in 21 states, including Indiana. Beazer agreed to pay $925,000 in penalties and to develop and implement an extensive storm water compliance and management program valued at $9,487,384. (more…)
Construction Contract Deadlines – Better Take Them Seriously
Thursday, December 23rd, 2010Of the contract law cases that make it through the courts, construction situations constitute a major part of our reported opinions. This is understandable because large construction projects are, by their very nature, very complicated undertakings and generally involve very complicated contractual documents and interpretation issues. (more…)
To Arbitrate or to Sue?
Thursday, December 16th, 2010There is the rub.
In a recently reported decision in the construction context, the appellate court was faced with what may turn out to be some poor contract management on the part of the parties involved. (more…)
Court Clarifies Priorities Between Mechanic’s Lienholders and Construction Lenders on Subdivision Improvements
Tuesday, November 9th, 2010Under our current mechanic’s lien statute, a construction lender who records its mortgage prior to the recording of a mechanic’s lien takes priority over the mechanic’s lien. There are three exceptions to this rule. The first exception is in the case of the construction of houses. The second is in the construction of improvements auxiliary to houses. The third is constructing property which is property controlled by a utility.
In a recent case, subdivision improvements were constructed. However, there were two important factors that impacted the analysis. First, no houses whatsoever had been built in the subdivision. Therefore, the court found that the exceptions for houses and improvements auxiliary to houses could not apply. Second, the utilities that had been constructed had not yet been accepted by the relevant public utilities. Since ownership of utilities does not transfer until the time of acceptance, the third exception did not apply.
Thus, in this case, the mechanic’s lienholders were junior to the debt of the construction lender. Given the depressed real estate values, it is doubtful that the mechanic’s lienholders received any payment because of a lack of equity to support their lien position.
Author: Terry G. Farmer (bio)
Phone: 812.452.3543
Email: tfarmer@bamberger.com
Indiana Supreme Court Rules that CGL Policy May Provide Coverage to the General Contractor for the Faulty Workmanship of its Subcontractor
Tuesday, October 26th, 2010On September 30, 2010, the Indiana Supreme Court issued an important decision for contractors in the case of Sheehan Construction Company, Inc. v. Continental Casualty Company. The main issue decided by the Indiana Supreme Court was whether a standard commercial general liability (“CGL”) policy covers a general contractor for the faulty workmanship of its subcontractor that causes damage to the work itself. (more…)
Court of Appeals Rules That Contractor Cannot Reach Letter of Credit Proceeds
Tuesday, October 5th, 2010In our local area, subdivision regulations require the posting of a letter of credit or other security in favor of the Area Plan Commission to ensure that the developer constructs infrastructure improvements as designed. In a case in which the Bamberger firm represented the lender, the Court of Appeals struck down the attempt of a party standing in the shoes of an unpaid contractor to reach the letter of credit proceeds. The Court found that since the contractor was not a named beneficiary in the letter of credit, it had no rights to obtain these funds. The Court further found that the named beneficiary of the letter of credit, the Area Plan Commission, was the only party entitled to draw on the letters. (more…)
$25,000,000.00 Mistake: “Merely Following the Plans” Saves the Day
Thursday, September 23rd, 2010With $25,000,000.00 hanging in the balance, the Indiana Court of Appeals found in favor of the subcontractor Sargent Electric Company (“Sargent”) and against the general contractor, Raytheon Engineers and Constructors, Inc. (“Raytheon”). Raytheon entered into a contract with Indiana Harbor Coke Company to engineer and construct a coke battery plant. The plant was to be built on property owned by Inland Steel Company. (more…)
Bamberger Seminar – Business Solutions for the Construction Industry
Wednesday, September 15th, 2010Join the attorneys at Bamberger for a complimentary seminar designed to address some of the challenges facing the construction industry and the tools with which you can resolve those issues. The seminar will be held on Thursday, October 14, 2010 from 11:30 am to 1:00 pm. CEU (Continuing Education Units) credit is available for all contractors who attend. (more…)
DISAPPEARING NOTARIES
Monday, August 2nd, 2010A recent article in the Indianapolis Business Journal noted a shocking decline in the number of notaries in Indiana in the last few years. In years past, a notary public stamp on a document seemed to be ever present and often was the distinguishing characteristic of a document with high importance. However, in 2007, the Indiana Secretary of State’s office noted almost 23,000 expirations, but only approximately 17,000 renewals or applications for new notaries. This marked a 22% decline for 2007. In 2009 the decline accelerated to 30%. This year the decline to-date is 41%. The chief legal counsel for the Indiana Secretary of State indicates that he believes the decline reflects that the type of authentication notaries do is falling out of fashion. Many companies now accept photo I.D. or confirm over the telephone or Internet. He indicated that notary publics were more popular in the days when companies and people relied heavily on postal mail. However with the increase in multiple forms of personal communication being available, the mail is not the exclusive source to authenticate the identity of someone’s signature on a document. If you have questions about notaries in Indiana, contact a Bamberger attorney.
Author: Laura A. Scott (bio)
Phone: 812.452.3557
email: lscott@bamberger.com