An important case for contractors and subcontractors has surfaced at the Michigan Supreme Court. Skanska USA Building, Inc. v. M.A.P. Mechanical Contractors, Inc. raises the question: is property damage coverage under a standard commercial general liability policy when the damage results from a...
Legal Resources & News
Breaking Legal News, Guides & Counsel
Indemnity Obligations: the “In-Law” That Won’t Move Out
Contractors and subcontractors should be aware of their lingering liability under contractual indemnity provisions that might currently be overlooked. These obligations and the potential for liability can outlast other types of contract claims because they might not accrue until long after the project is done.
Consequential Damages Reign Supreme, But Cannot be Included in a Construction Lien
In the recent case of TSP Services v National-Standard, LLC (Court of Appeals, Sept. 2019), the Michigan appellate court affirmed an arbitrator’s award of consequential damages to a contractor for lost profits, but rejected the arbitrator’s ruling that such damages could be included in a...
Revisions to Indiana’s Anti-Indemnity Statute Impacts Architects, Engineers, and Design Builders
Indemnity provisions are common in most construction contracts as they shift certain risks from one party to another. Anti-indemnity statutes are now also common, and most have a common theme: the person giving the indemnity (Indemnitor) cannot be held responsible for the other party’s...
Up in Smoke: Michigan’s Marijuana Law and its Applicability to the Construction Industry
Regardless of your personal views on Marijuana use, it is here to stay. For the construction industry, it is important to understand the implications. To summarize the 2019 Michigan Regulation and Taxation of Marihuana Act, it is now legal in the State of Michigan (as opposed to under Federal...
Captive Insurance Update: Limitation on Premium Revenue Increases
On January 1, 2019, the limitation on premium revenue under IRC 831(b) increased from $2.2 million to approximately $2.3 million. This occurred by operation of 26 U.S.C. 831(E), which provides that the $2.2 million limit shall be increased annually by a cost-of-living adjustment rounded up to the next lowest multiple of $50,000.
Commercial Real Estate Purchase Agreement Do’s and Don’ts
Whether you are purchasing commercial property as an investment or to address the needs of your business, there are at least 5 “do’s” and 5 “don’ts” you are going to want to consider when negotiating the Purchase Agreement. The Purchase Agreement in many cases can follow a letter of intent, but letters of intent are most times non-binding. Careful attention must be paid to the terms and conditions of the Purchase Agreement as the details can greatly impact your risks and liability in the transaction.
Do #1: Make sure the property is properly described.
While this sounds obvious, many times errors are made by using tax property descriptions or old legal descriptions that don’t actually reflect the property being sold. This can lead to boundary disputes, zoning problems or worse when you go to sell the property.
Do #2: Allow for enough time for due diligence.
In today’s world of national and international investors and 1031 exchanges the timelines for “clean” deals can be extremely short. Twenty-one days may not be a sufficient amount of time to review the title work, obtain a Phase I environmental assessment, physically inspect the site, review any applicable tenant lease and understand the local zoning ordinances.
AIA-2017—The Oxford Comma Reigns!
Every 10 years, the American Institute of Architects (AIA) releases updated editions of its flagship design and construction agreements, the most recent of which AIA published in 2017. The 2017 revisions were unexceptional. For the most part, commonly negotiated provisions such as indemnity and...
Changes to the Marketable Record Title Act Could Impact Closings
By Benjamin H. Hammond and Jill Kaufman Miller, Esq. Every real estate contract must, unless agreed to otherwise, convey what is known as “marketable title”. The courts have defined marketable title as title that is free from encumbrances and assures the purchaser of quiet and peaceful enjoyment...
Captive Insurance Programs Improve a Contractor’s Bottom Line
By Mark Rysberg, Esq. and Daniel Hatch, Esq. Attorneys Mark A. Rysberg and Daniel J. Hatch of Hilger Hammond recently authored a comprehensive article in CFMA Building Profits magazine regarding captive insurance programs and how they can improve a contractor’s bottom line. The article focuses on...