By Bruce Jervis
It is frequently stated that every contract contains an implied warranty of good faith and fair dealing. This sounds quite civilized and reasonable, but what exactly is the scope of this warranty? It is an implied warranty, so we never see it in writing. At what point does prickly insistence on one’s contractual rights cross the line to become unfair dealing?
The U.S. Court of Appeals for the Federal Circuit has enunciated an answer. In the context of a federal construction contract, at least, the government breaches the implied warranty of good faith and fair dealing when the government’s conduct has the effect of reappropriating a benefit conferred under the contract. The government need not specifically intend to reappropriate that benefit, but its action or inaction has that effect. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Federal Circuit Considers Government Breach of Good Faith
- Termination at ‘Sole Discretion’ Enforced
- RICO Act Suit Allowed Over Small Business Certification
By Steve Rizer
Undergoing consideration in state legislatures across America right now are at least 20 bills that in some way would promote the design-build method of construction project delivery. Among the more important proposals of that bunch, which ones have the best chance of being passed into law this year? In which states will approval of such legislation have the most difficult road? And, where will measures of this sort be introduced next? In an interview with ConstructionPro Week (CPW), Richard Thomas, the Design-Build Institute of America’s (DBIA) director of state and local legislative affairs, answered these questions and several others. Click here to read some of the predictions he made.
By Scott Turner
One of the circuits of the U.S. Court of Appeals has ruled that the commercial general liability (CGL) insurer of a named insured subcontractor had no duty to defend an additional insured general contractor in a project owner’s post-completion breach-of-contract suit for construction defects arising from the subcontractor’s work on a condominium project. ... Read more.