THE ECONOMIC LOSS RULE IN NEW YORK CONSTRUCTION CONTRACTS:
WHAT IT IS AND HOW IT MAY BENEFIT CONTRACTORS AND ARCHITECTS
The “economic loss rule” is a rule that New York courts use to prevent a plaintiff from recovering against a defendant for a tort (usually negligence), when the essence of the plaintiff’s claim is for failure to live up to the terms of a contract.
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CAN I BE SUED FOR VIOLATING THE BUILDING CODE?
CLAIMS AGAINST CONTRACTORS AND ARCHITECTS FOR CODE VIOLATIONS
In my construction law practice, I’m often confronted with instances of building code violations and questions of whether building code violations should subject a contractor or architect to liability.
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General Business Law Section 756 (and the sections that follow it), commonly known as the Prompt Payment Act, establish requirements for how soon a construction contractor or subcontractor must be paid and allow expedited arbitration in the event that prompt payment is not made for qualifying projects.
Continue reading “Violation of the New York Prompt Payment Act Does Not Bar Defenses”
Architects in New York can be found liable for damages in various situations, depending on who claims damage, and the basis of the claim itself. For example, where an owner has a direct contract with the architect, the owner could bring forth a simple claim based on the contract or a claim based on a tort action. Such a tort action, based on negligence, is a claim for malpractice.
Continue reading “The Top 5 Avenues of Architect Liability in New York”
For contractors and subcontractors in New York, Mechanic’s Lien Waivers are a part of life, but the potential risks to the contractor in waiving more than intended or understanding of the terms are not always as common. Owners (and often their lender) require that the project be kept lien free through progression of the work to final completion.
Continue reading “Top 5 Mechanic’s Lien Waiver Pitfalls for Contractors and Subs”
Under New York construction law, much emphasis is placed on the “improvement” of real property (real estate). Indeed reference to improvements are often found in New York construction contracts, and establishing an improvement is required for a contractor to establish a valid lien on a privately owned project. But what specifically are the ins and outs?
Continue reading “So What Is an Improvement, Anyhow?”
Are contractors responsible for the impacts of their work on neighboring residents? Oftentimes, they are. This is especially true in densely populated urban areas where literally hundreds of people could be affected by a project only fifty feet away. Some of the principles in these cases are outlined below.
Continue reading “What About the Neighbors? How Contractor Liability Can Extend to Neighbors”
Recently, a contractor asked me how to create a good contract. After further discussion, I understood that this contractor was not licensed, but wanted advice on obtaining a good contract. Well, what is a good contract after all?
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A Lien (or ‘Mechanic’s Lien’) is a potentially powerful tool for contractors, architects, engineers, or suppliers of materials to secure payment for work performed ‘improving’ a property. To properly ‘perfect’ a lien claim, however, strict compliance with the nuances of the New York lien law is required, and often times there are details in the process commonly overlooked.
Continue reading “Pitfalls in Extending a Mechanic’s Lien on Residential Properties”
Contractors are not only responsible for performing their contracted work, but are also charged with keeping the owner and the subcontractors working together to bring the project to completion successfully. Given this, they are regularly the subject of legal disputes. For this reason, many could benefit from an understanding of the following top 5 contractor defenses available in New York.
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