{"id":901635,"date":"2023-09-21T14:00:18","date_gmt":"2023-09-21T20:00:18","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901635"},"modified":"2023-09-21T14:00:21","modified_gmt":"2023-09-21T20:00:21","slug":"construction-contract-drafting-key-ingredient","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-drafting-key-ingredient\/","title":{"rendered":"Construction Litigation\u00a0Roundup: \u201cYou Left Out a Key Ingredient!\u201d"},"content":{"rendered":"\n

Daniel Lund III | Phelps Dunbar<\/a><\/p>\n\n\n\n

\u201cBaking is as much of a science as it is an art. It\u2019s important to take the time to understand what you\u2019re doing and why. Skipping steps can make or break your cupcakes, and there are a lot of things that can go wrong when baking from scratch.\u201d <\/p>\n\n\n\n

And so it is with construction contract drafting<\/a>.\u00a0<\/p>\n\n\n\n

Defendants on a Miller Act claim filed by a second-tier subcontractor in federal court in Pensacola, Florida, sought to have the case transferred to Virginia, based upon a forum selection clause in the first-tier subcontract. <\/p>\n\n\n\n

Indeed, the first-tier, principal subcontract not only contained the Virginia forum selection, but also included a \u201cflow-down\u201d provision whereby contractual terms in the principal subcontract were required to be imposed by the principal subcontractor on its sub-subcontractors. In this case, however, the Virginia forum selection clause never made it into the sub-subcontract of the Miller Act claimant.<\/p>\n\n\n\n

Undeterred, the defendants urged the court to transfer the case, anyway. Although no one debated that the sub-subcontract did \u201cnot specifically incorporate by reference any of the provisions\u201d of the principal subcontract, the defendants urged that the terms of the upstream agreement applied because the sub-subcontract made abundant references to the principal subcontract. The court was not swayed, noting that it was not ignoring the fact that the principal subcontractor \u201cbreached the subcontract[] by not including the forum selection clause in its sub-subcontract\u2026.\u201d<\/p>\n\n\n\n

Alternative arguments that the forum selection clause should be deemed to be incorporated in the sub-subcontract because the \u201crights and obligations [of the subsubcontractor] flow from\u201d the principal subcontract and the sub-subcontractor \u201chad a sufficiently close relationship with the [principal subcontract] as to be bound by its terms\u201d were also rejected by the court. Although the court noted that applicable Florida law in some circumstances might allow for the result promoted by the defendants, the court found that none of the sub-subcontractor\u2019s claims \u201carise directly out of the performance or non-performance of the [principal subcontract] containing the forum selection clause,\u201d but instead rose purely out of the plaintiff\u2019s assertions of \u201cequitable\u2026 obligations to pay [the sub-subcontractor for the work it performed on the project.\u201d<\/p>\n\n\n\n

The court denied the motion to transfer venue.<\/p>\n\n\n\n

United States for use and benefit of Eco Universe Contracting, LLC v. Calvary Constr. Grp., Inc., 2023 U.S. Dist. LEXIS 101087 (N.D. Fla. May 18, 2023)\u00a0<\/em><\/a><\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Lund III | Phelps Dunbar \u201cBaking is as much of a science as it is an art. It\u2019s important to take the time to understand what you\u2019re doing and why. Skipping steps can make or break your cupcakes, and there are a lot of things that can go wrong when baking from scratch.\u201d  And… Continue reading Construction Litigation\u00a0Roundup: \u201cYou Left Out a Key Ingredient!\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224],"class_list":["post-901635","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Litigation\u00a0Roundup: \u201cYou Left Out a Key Ingredient!\u201d - 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