Don’t Breach Your Contract, but If You Do, Don’t Breach First
December 22, 2025 —
Christopher G. Hill - Construction Law MusingsWell, it’s been a while since my last post here at
Musings due to travel, work, Thanksgiving, etc. so I thought I’d let a recent case remind us all that while breaching a construction contract is bad, doing it first is even worse. This is the so called “doctrine of first breach” that basically states that if both parties are in breach (or even just one), then the first to breach is the one that will bear the costs of breach. The doctrine also states that the one first to breach first can’t enforce any of its rights going forward.
The plaintiff in
SEG Props. LLC v. NTC Mazzuca Constr.,Inc., the Virginia Court of Appeals considered a first breach scenario that was pretty extreme. The basic facts are as follows:
SEG hired Mazzuca to build a private shooting range and hired a property manager (Jones, Lang, LaSalle, Inc. (“JLL”)) as its project representative. Per the contract, if Mazzuca provided a payment application on or before the 25th of the month, payment was due by the 25th of the following month. In no event was payment to be made more than 30 days from receipt of the payment application by the owner’s representative. Even where there was a dispute, the undisputed amounts were to be paid. Mazzuca and JLL used a so called “pencil” method for payment applications that involved JLL reviewing the payment applications for errors and then a final payment application with the corrections being sent to the Architect. Needless to say there were change orders and disputes, but after the smoke cleared, it was obvious that from the first payment application, SEG had failed to make timely payment (for the whole saga, please read the case as it is too long for this post). Later, SEG terminated Mazzuca for cause upon one day’s notice that SEG would be supplementing Mazzuca’s workforce.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Can Foreclosure Sale Be Overturned Because Sale Price Is Grossly Inadequate?
January 26, 2026 —
David Adelstein - Florida Construction Legal UpdatesForeclosure actions are equity actions. See Verzura Construction, Inc. v. Hotel La Petitite Muse, LLC, 50 Fla.L.Weekly D2500a (Fla. 3d DCA 2025). Can a sale price at a foreclosure auction sale be set aside because the foreclosed party believes the sale price is grossly inadequate? A recent case discusses this question and, as you will see, the argument that the sale price is grossly inadequate is not enough to overturn a sale.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Real Estate & Construction News Roundup (3/18/25) – Data Center Frenzy, China’s Expanding REIT Market and Tariff-Affected Construction Costs
March 31, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, relistings reached highest total in a decade, Florida State Legislature passes bill to increase the state’s housing supply, data center construction adapts to changes and more!
- The data center construction frenzy and a new, potentially larger highway bill were top of mind for builders during the latest round of contractor earnings calls and financial reports. (Joe Bousquin, Construction Dive)
- Tariffs and associated policy uncertainty have increased construction costs and delayed leasing and investment choices. (J.P. Morgan)
- Relistings hit the highest January figure since Redfin began tracking this metric a decade ago. (Diana Olick, CNBC).
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
IEEPA Tariff Refunds: CBP Launches CAPE Process
April 27, 2026 —
David J. Creagan, Guido Antolini, Bruce W. MacLennan & Gary P. Biehn - White and Williams LLPOn April 20, 2026, U.S. Customs and Border Protection (CBP) launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment (ACE) portal to administer refunds of duties imposed under the International Emergency Economic Powers Act (IEEPA) through a streamlined electronic filing process.
Background
In February 2026, the U.S. Supreme Court held that certain tariffs imposed under IEEPA were unlawful. Subsequent proceedings before the U.S. Court of International Trade required CBP to develop a scalable refund process applicable not only to litigants but also to non-plaintiffs. According to CBP and court filings, approximately 330,000 importers paid or deposited an estimated $166 billion in IEEPA duties across more than 53 million entries. In response, CBP developed CAPE as an electronic, consolidated refund mechanism within ACE.
Reprinted courtesy of
David J. Creagan, White and Williams LLP,
Guido Antolini, White and Williams LLP,
Bruce W. MacLennan, White and Williams LLP and
Gary P. Biehn, White and Williams LLP
Mr. Creagan may be contacted at creagand@whiteandwilliams.com
Mr. Antolini may be contacted at antolinig@whiteandwilliams.com
Mr. MacLennan may be contacted at maclennanb@whiteandwilliams.com
Mr. Biehn may be contacted at biehng@whiteandwilliams.com
Read the full story...
UPDATED: No Easy Fix for Potomac River Sewage Spill, Now Estimated at $20M
April 08, 2026 —
Jim Parsons & Debra K. Rubin - Engineering News-RecordOne month after a collapsed pipeline north of Washington, D.C., spilled about 240 million gallons of raw sewage into the Potomac River and possibly between 300 and 400 million—which could be the largest wastewater spill in U.S. history—efforts are progressing to clear the damaged section and begin repairs despite weather and other impacts.
Reprinted courtesy of
Jim Parsons, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
Read the full story...
Risks of Using an AI Chatbot for Legal Advice: Lessons from United States v. Heppner
April 08, 2026 —
Payne & Fears LLPImagine that you are an executive (who is not a lawyer) and are concerned about what your company plans to do is legal. You could call your lawyer who might bill you for the call. Or, you can ask your AI chatbot, such as Claude or ChatGPT, about the legal risk. The chatbot will likely compliment you on the incisive question, provide you with highly confident answer (that may or may not be right) and will not bill you on an hourly basis.
That is essentially what financial services executive Bradley Heppner did. It did not end well. A federal court recently ruled that Heppner’s chats with the AI tool Claude were not protected by attorney-client privilege or the work-product doctrine. That means that the other side (in this case, the federal government) could get access to his chatbot prompts, uploads and responses, and learn a great deal about, for example, whether Heppner knew what he was doing was illegal.
Read the full story...Reprinted courtesy of
Payne & Fears LLP
In the Eye of the Beholder: Court of Appeal Finds Duty of Care Owed by Owner and Contractors for Death of Minors Caused by Independent Truck Driver
May 05, 2026 —
Garret D. Murai - California Construction Law BlogI was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had
the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady.
Cases can sometimes be like that: You see what you want to see. The next case is also like that.
In
Lorenzo v. Calex Engineering, Inc., 110 Cal.App.5th 49 (2025), the 2nd District Court of Appeals reversed a motion for summary judgment granted in favor of an owner and its contractors in a case involving the death of two minors struck by a dump truck enroute to a non-permitted off-site staging area.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Forget Fifth Graders - Are You Smarter Than a CEO?
December 02, 2025 —
Daniel Lund III - JD SupraThe Supreme Court of South Dakota says that (in certain circumstances) you need to be.
That court wrangled with the evidentiary requirements for professional negligence and breach of contract claims arising from the construction of a clinical research facility in Brookings, South Dakota. The general contractor on the project alleged defects in the design and installation of the HVAC system and suspended ceiling, resulting in contamination and operational failures. The general contractor sued the architect, engineers, and contractors, asserting breach of contract and implied warranties.
Read the full story...Reprinted courtesy of
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