The Louisiana Supreme Court ruled today in Daniel Bennett v. Demco Energy Services, et al., 2023-CC-01358 (La. 5/10/24), 2024 WL ***, a claim for defense and indemnity under a Master Services Agreement filed before a judicial finding of liability or loss is not premature. The Court explained “[w]e hold that a claim for indemnity
Construction Law
Louisiana Lien Waivers and Clear Lien Certificates – What Good are They to Owners?
Louisiana law (the Private Works Act – La. R.S. 9:4801, et seq.) does not require project owners to obtain lien waivers or to obtain a clear lien certificate from the clerk of court, but many construction contracts require lien waivers and a clear lien certificate before the contractor will be entitled to…
The Doctrine of Substantial Performance – Close Only Counts in Horseshoes, Hand Grenades, Atomic Warfare and Construction?
In humanity’s never ending quest for perfection, being close to perfect is still failure. If you grew up playing sports you undoubtedly heard a grizzled coach disgustedly say, “[c]lose only counts in horseshoes, hand grenades and atomic warfare.” However, under the Doctrine of Substantial Performance (and the related “Economic Waste” theory), construction projects may be…
Bill to Revise and Update the Louisiana Contractor’s Licensing Law moves through the Senate
On April 23, 2019, by a vote of 94-0, House Bill 273, which is an overall update and revision to Louisiana’s Contractor’s Licensing Law, passed out of the Louisiana House of Representatives. The reengrossed version of the bill, including amendments made in the House Committee on Commerce and those made on the House Floor is…
Court Strikes Down Forum Selection Clause in Construction Contract for Work in Louisiana
The United States District Court for the Western District of Louisiana recently relied on Louisiana Revised Statutes 9:2779 in holding unenforceable a mandatory forum selection clause in a construction contract.[1] Pittsburg Tank & Tower Maintenance Co., Inc. (“Pittsburg”) contracted with the Town of Jonesboro (the “Town”) to perform maintenance and repair work on an…
The Pros, Cons and Quirks of Arbitration
By the Kean Miller Construction Team
Conventional wisdom holds that arbitration is a more preferable mechanism for dispute resolution than full-blown litigation in the court system. Knowing nothing else about the particulars of a particular dispute, if arbitration is available as an alternative to state or federal litigation, we generally advise our clients to arbitrate.…
Arbitration Rulings are Final, Even When the Arbitrators Get It “Wrong on the Law”
Parties involved in the construction industry have long been familiar with mandatory arbitration as a dispute resolution procedure.
Originally arbitration was said to be more efficient and less expensive than litigation. Over time, experience has shown that arbitration is not necessarily more efficient or more timely.
Regardless of its potential benefits, one fact remains absolute…
Construction Contracts: Do You Know Who You Contracted With?
Recently, we have noticed an increase in the number of construction contracts that either identify (1) an incorrect entity or (2) a non-existent entity as a party to the contract. No big deal, right…..maybe not.
It should be easy enough for the persons signing the contract to confirm their respective names. It is not as…
President Obama Signs Executive Order Increasing the Federal Contractor Minimum Wage
On February 12, 2014, President Obama followed up on comments made during his State of the Union address and signed an Executive Order increasing the minimum wage for employees of federal contractors. The Order, which increases the minimum wage from $7.25 to $10.10 per hour, covers all employees who perform services or construction work under…
On the Horizon, Revisions to the Louisiana Private Works Act: “The More Things Change, the More they Stay the Same”
All persons associated with non-public construction projects in Louisiana are affected by, and should be familiar with, the Louisiana Private Works Act. La. R.S. 9:4801, et. seq. (“PWA”). The two fundamental policies behind the implementation of the PWA summarized are:
- To protect those who contribute to the improvement of immovable property by ensuring that the owner does not benefit from their labor without compensating them; and
- To incentivize the owner to take reasonable steps to ensure that contractors and suppliers are paid.
The PWA was first enacted in 1981 and was based upon the work and recommendations of the official advisory law revision commission and, the law reform agency and legal research agency of the State of Louisiana – The Louisiana Law Institute. Over the last thirty years, numerous amendments and revisions to the PWA have resulted in piece-meal changes to certain provisions that lead to confusion, ambiguity, and potential traps for the unwary.
Recognizing the undesirable effects of the many revisions, the 2012 Louisiana Legislature has once again turned to the Louisiana Law Institute for its recommendations to simplify and better organize the provisions of the PWA.Continue Reading On the Horizon, Revisions to the Louisiana Private Works Act: “The More Things Change, the More they Stay the Same”