In Washington D.C., a private Owner sued its Designer alleging professional negligence arising from the construction of $10 million tennis and education facility. Among other issues, the court held the Owner’s professional negligence claim was late as it was filed more than three years after accrual (D.C. Code § 12-301(3)).
The contract required:
- a request for mediation before filing a lawsuit and
- that any lawsuit must be filed within three years.
The Owner unsuccessfully argued that only its request for mediation was necessary within three years. Yet, a related provision of the contract stated that a mediation request could be made at the same time as the filing of a lawsuit. If a mediation request tolled the statute, this related provision would be meaningless.
Contract interpretation strives to find the meaning of all parts together. So, when you think you’ve found the right answer in your contract, keep reading all parts together to be certain. (Read Related Post.)
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Without a request for a contracting officer’s final decision, claimants may seek treats, but get tricked instead.
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As if you needed confirmation that the Federal Miller Act is a powerful tool for unpaid subcontractors, this is it. Even when a Prime ordered and accepted the Sub’s work, but didn’t have to pay under the Subcontract, the Subcontractor still. . . .
Trust, but Verify
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Pirates and Arbitration
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Bases Covered?
Contractors, will your current insurance policy cover “your work” as a joint venture partner? The typical answer is NO.
Two Paths at the Same Time to the Same Place
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Rules, Which Rules?
Good Idea: Include a choice of law clause in your contract to promote consistency and predictability (while reducing potential costs and risk).
Government Liability for Third-Party Delays
Generally, the Government is not responsible for delays caused by third parties, even other contractors at its own project site, unless the Government affirmatively indicates the site will be ready and available.
