The Bunker Hill Covered Bridge is a well-known historical landmark in Claremont, North Carolina, originally built in 1895. The bridge was damaged due to excessive rain, flooding, and erosion in the area, which prompted the Historical Association of Catawba County (the “Historical Association”) to hire NHM Constructors, LLC (“NHM”) to repair the bridge. A dispute arose between the parties, NHM filed a lien on the property, and subsequently filed a lawsuit, seeking payments from the Historical Association. The Historical Association alleges NHM is not owed additional payments because the costs exceeded the budget provided in NHM’s bid. The case will largely turn on the type of contract the parties executed…
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IMPLIED WARRANTIES IN NORTH CAROLINA CONSTRUCTION
PART 2 This article follows Lindley Law’s blog post on implied warranties in construction contracts. While the previous article focused on warranties protecting the purchaser, this article will focus on warranties protecting the general contractor and subcontractors. The Implied Warranties Protecting General Contractors and Subcontractors The Implied Warranty of Suitability of Plans and Specifications. In nearly all construction projects, someone other than the general contractor creates the plans and specifications for a construction project. This warranty assures the general contractor that the plans and specifications were created in accordance with a reasonable standard of care and are essentially free of design errors. The Smiths hire Not…
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IMPLIED WARRANTIES IN NORTH CAROLINA CONSTRUCTION
PART 1 The construction industry is largely governed by contracts. Mr. and Mrs. Smith contract with Reputable Construction, LLC to build a single-family home. The rights and responsibilities of both parties are generally determined by the contents of the contract, as enforced by North Carolina law. The contract could include express warranties – specific stipulations providing an assurance of some particular item or service in relation to the contract. An express warranty could also be provided orally, in conversations between the Smiths and Reputable Construction. North Carolina also recognizes implied warranties in construction contracts – warranties neither explicitly included in the written contract nor orally discussed. Implied warranties…
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A PRIMER ON CONSTRUCTION LIENS
What is a Construction Lien? The construction industry is largely governed by contracts. A property owner contracts with a general contractor to make improvements to the real property; the general contractor contracts with subcontractors to perform the various tasks required to make such improvements (e.g., grading, bricklaying, etc.); the general contractor and/or the subcontractors contract with suppliers to haul materials and equipment to and from the job site. A mechanics’ lien (or construction lien) provides any party involved in the improvement of the real property with a means of collecting payment. This means of collection exists in addition to other remedies, such as breach of contract. As a…
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Deceptive Conduct Likely Needed to Transform a Breach of Contract Claim to Unfair and Deceptive Trade Practice
While unfair and deceptive trade practice claims are sometimes alleged concurrently with breach of contract claims, a breach of contract alone does not constitute an unfair or deceptive trade practice. To prevail on both a breach of contract claim and an unfair and deceptive trade practice claim, North Carolina and federal courts require the breach to be accompanied by “substantial aggravating circumstances.” However, courts have provided little to no guidance on what amounts to substantial aggravating circumstances. A recent decision by the U.S. District Court for the Eastern District of North Carolina provides some insight.[1] Judge Flanagan indicated that, to be successful on both an…
