Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

Articles Posted in Construction Law
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The First Circuit affirmed the judgment of the district court dismissing a subcontractor's suit against a construction contractor, holding that the district court did not err in relying on a forum selection clause in an agreement between the parties in dismissing the lawsuit.The contractor sought to dismiss the complaint pursuant to the forum selection clause. The subcontractor opposed the motion, arguing that the forum selection clause was not applicable. The district court found the forum selection clause both applicable and binding and so dismissed the lawsuit. The First Circuit affirmed, holding (1) the clause was both valid and enforceable; and (2) the district court did not err in failing to consider transfer of its own accord. View "Atlas Glass & Mirror, Inc. v. Tri-North Builders, Inc." on Justia Law

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The First Circuit resolved a portion of Appellant's appeal in this opinion addressing the district court's grant of summary judgment in favor of the Town of Brookline, Massachusetts, the Brookeline Board of Selectmen, the Town's counsel and Human Resources director, and select members of the board, holding that the summary judgment is affirmed in part, vacated in part and remanded for further proceedings.Plaintiff, black man, brought this suit alleging that during his employment as a firefighter, he had been discriminated against and retaliated against for reporting discriminatory conduct. The district court entered summary judgment in favor of Defendants. The First Circuit affirmed in part and vacated in part the summary judgment granted in favor of Defendants, holding that the district court erred in granting summary judgment as to Plaintiff's retaliation claims under 42 U.S.C. 1983 against the Town, the Board, and certain members of the Board, in their personal and official capacities. The Court then remanded the case for further proceedings. View "Alston v. Town of Brookline, Mass." on Justia Law

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The First Circuit affirmed in part and reversed in part the judgment of the district court granting summary judgment in favor of Defendants and dismissing Blackstone Headwaters Coalition, Inc.'s complaint alleging that Defendants had violated the Federal Clean Water Act (CWA), 33 U.S.C. 1251 et seq., holding that the district court erred by granting summary judgment on Count I of the complaint.Plaintiff, a non-profit environmental organization, sued two companies and two individuals involved in the development of a residential construction site in Massachusetts. In Count I of the complaint, Plaintiff alleged that three defendants had violated the Federal CWA by failing to obtain from the EPA a construction general permit. Count II alleged that all four defendants had violated the Federal CWA by failing to prevent sediment-laden stormwater discharges from flowing from that construction site into waters leading to the Blackstone River. The district court granted summary judgment for Defendants. The First Circuit reversed in part, holding that nothing supported Defendants' argument that a citizen suit under the Federal CWA cannot be brought against an entity that is alleged to be an operator of a construction site that is unlawfully discharging pollutants into federal waters long as another entity controlled by the same individuals has such permit coverage. View "BBlackstone Headwaters Coalition, Inc. v. Gallo Builders, Inc." on Justia Law

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Plaintiffs, property owners, entered into an oral contract with Defendant, a construction firm, for the assembly of a prefabricated house on a lot that they owned. The parties subsequently entered into a second oral agreement for the assembly of a smaller and cheaper home. Defendant failed to complete construction of Plaintiffs’ home as agreed. Citing diversity of citizenship, Plaintiffs filed suit in federal district court alleging breach of contract. Defendant counterclaimed for breach of contract. The jury found Defendant to have defaulted on its contractual obligations and awarded $150,000 in damages. Defendant appealed, challenging the sufficiency of the evidence. The First Circuit affirmed, holding that it could not be said that no rational jury could have found in favor of Plaintiffs. View "Magee v. BEA Constr. Corp." on Justia Law

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In 2008, Plaintiff purchased a home in Bar Harbor, Maine from Defendants for $2.9 million. After his purchase, Plaintiff spent in excess of $1.5 million in repairs to the property. Plaintiff brought suit against Defendant to recover damages for the repairs, alleging, among other claims, breach of contract, fraud, and negligent misrepresentation. A federal district court entered summary judgment in favor of Defendants, concluding (1) Maine’s implied warranty of habitability did not apply under the circumstances of this case, and Defendants had no duty of disclosure; and (2) Defendants were not entitled to attorney’s fees. The First Circuit affirmed, holding that the district court (1) properly granted summary judgment for Defendants on Plaintiff’s breach of contract, fraud, and negligent misrepresentation claims; and (2) properly entered judgment on the record for Plaintiff on Defendants’ counterclaim for attorney’s fees. View "Thompson v. Miles" on Justia Law

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In 1999, Redondo Construction Corporation pled guilty to aiding and abetting the making of false statements during its work on a federal highway project. The Puerto Rico Highway and Transportation Authority (“PRHTA”) and the Puerto Rico Public Guildings Authority (“PBA”) subsequently revoked the bids it had awarded Redondo before the plea and suspended Redondo from bidding on new contracts. Redondo challenged both decisions, which resulted in settlement agreements with both agencies allowing Redondo to resume bidding for contracts. After Puerto Rico passed Law 458, which prohibited Puerto Rico agencies from awarding contracts corporations convicted of offenses involving public funds, the PBA cancelled several of Redondo’s bids and the contract it had executed with Redondo, and the PRHTA withdrew from its settlement with Redondo. Redondo sued PRHTA, PBA, and several officials at both agencies, alleging that Defendants were in breach of the settlement agreements, that this caused Redondo’s bankruptcy, and that Defendants were liable in damages. The district court granted the PRHTA’s and the individual defendants’ motions for summary judgment and sua sponte dismissed Redondo’s claims against the PBA. The First Circuit Court of Appeals (1) affirmed the entry of summary judgment as to the PRHTA and the individual defendants, as Redondo had no record of evidence of damages against these defendants; but (2) vacated the dismissal of the claim against the PBA, as the court did not meet the necessary conditions for entering judgment sua sponte. View "Redondo Constr. Corp. v. Izquierdo" on Justia Law

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This case arose from a Hampton Inn & Suites renovation and construction in Rhode Island. Stonestreet Construction, as the construction manager and general contractor, entered into a construction contract with Weybosset Hotel. Because of cost overruns and other delays, Allstate Interiors & Exteriors, one of the subcontractors on the project, filed a complaint against Stonestreet. Stonestreet counterclaimed against Allstate and brought a third-party complaint against Weybosset, bringing several state law causes of action arising from the construction project. After a trial on Stonestreet's third-party complaint against Weybosset, the district court ruled in favor of Stonestreet on its breach of contract claim and awarded damages in the amount of $571,595. The First Circuit Court of Appeals affirmed, holding that the district court did not err in (1) exercising supplemental jurisdiction following Allstate and Stonestreet's partial settlement; (2) interpreting the construction contract for the purpose of calculating damages; and (3) denying Weybosset's discovery motion regarding supplemental expert reports. View "Stonestreet Constr., LLC v. Weybosset Hotel, LLC" on Justia Law

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ROK Builders LLC (ROK) constructed a hotel for Moultonborough and had a mechanic's lien on the property. 2010-1 SFG Venture LLC (SFG) was the assignee of the construction lender and had a mortgage on the hotel. After Moultonborough filed for bankruptcy, SFG initiated an adversary proceeding against ROK in bankruptcy court, seeking a declaration that its mortgage was senior to ROK's lien to the extent the construction lender had disbursed loan funds to ROK. ROK, in turn, asserted that its lien was senior to SFG's mortgage. The New Hampshire bankruptcy court and district court entered judgment in favor of SFG. The First Circuit Court of Appeals affirmed, holding that the bankruptcy court did not err in concluding that N.H. Rev. Stat. Ann. 447:12-a established the seniority of SFG's mortgage over ROK's mechanic's lien to the extent of the amount of money the construction lender disbursed to ROK. View "ROK Builders, LLC v. 2010-1 SFG Venture, LLC" on Justia Law

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Matrix Construction Co. was a South Carolina corporation with its principal place of business in South Carolina. Matrix was the general contractor on a project to renovate schools in South Carolina. Matrix hired Contract Supply as a subcontractor. Contract Supply had a relationship with BlueTarp Financial, a company providing commercial credit to the construction industry that had its principal place of business in Maine. After Matrix accepted Contract Supply's bid, Matrix signed BlueTarp's account agreement, which stated that disputes would be governed by the laws of Maine. Matrix later learned that Contract Supply was not paying its suppliers and stopped paying Contract Supply. BlueTarp filed this action for breach of contract and unjust enrichment in the federal district court for the District of Maine invoking diversity jurisdiction. The district court dismissed the case for lack of personal jurisdiction over Matrix. BlueTarp appealed, arguing that the forum selection clause in the account agreement authorized jurisdiction in the Maine district court and, in any event, Matrix had sufficient connections with Maine to satisfy the personal jurisdiction requirements. The First Circuit Court of Appeals reversed, holding that, having found the relatedness, purposeful availment, and reasonableness factors satisfied, the district court had personal jurisdiction over Matrix. View "Bluetarp Fin., Inc. v. Matrix Constr. Co." on Justia Law

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In this appeal from the denial of a preliminary inunction, plaintiff labor unions claimed that sections 6.007-.010 of Law 222, Puerto Rico's campaign finance law, placed an unconstitutional burden on the union's First Amendment right to engage in political speech. Both the district court and the government declined to address the merits of Plaintiffs' claims. The First Circuit Court of Appeals issued an appellate injunction enjoining enforcement of the challenged provisions of Law 222 pending the final disposition of this appeal. In this opinion the First Circuit outlined the reasons it ordered entry of the appellate injunction, holding, among other things, that it was incumbent upon the district court to engage with the merits of Plaintiffs' claims. The Court also ordered the district court to enter a preliminary injunction enjoining the enforcement of certain sections of the law. View "Puertorriqueno v. Fortuno" on Justia Law