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Court Crier: Construction Defects/Structural Failures

In John Spearly Construction, Inc. v. Penns Valley Area School District, the Commonwealth Court of Pennsylvania addressed whether a school district actively interfered with a contractor’s completion of work and improperly withheld contract payment for incomplete work. The court held that the school district’s unanticipated hiring of third-party contractors, who disturbed the work site and limited the contractor’s access to the work site, constituted active interference, and determined the contractor was entitled to delay damages and counsel fees. (July 24, 2015)

In Greater New York Mutual Insurance Co. v. ERE LLP, the New York Supreme Court, Appellate Division, 1st Department, addressed whether the action against tenant was barred by a waiver of subrogation clause included in a lease between tenant and the building owner. The court held that summary judgment was inappropriate because references to extrinsic facts were necessary to determine the intent of the parties with regard to the subrogation provisions at issue. (February 3, 2015)

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