Construction Law

AGC of Michigan Sponsor's Construction Law Seminar

Posted on October 26, 2009
On October 30, 2009, AGC of Michigan is hosting a seminar to address a number of pressing legal issues facing contractors today including payment, dispute resolution mechanisms, hiring and firing of employees, and bankruptcy.This seminar will also launch the 3rd Edition of "A Contractor's Guide to Michigan Construction Law," which has been in the works now for almost a year...

E-Verify Regulations Upheld, New Verification Requirements to Begin September 8

Posted on September 01, 2009
A federal lawsuit filed last December, seeking to block implementation of federal regulations requiring verification of employee immigration status (reported here), has ended with a ruling in favor of the Department of Homeland Security.As reported by FederalTimes...

Court Appeals Rejects Narrow Constrution of "Common Work Area" for Crane Accident

Posted on August 31, 2009
The Michigan Court of Appeals recently reversed the grant of summary disposition to a Defendant finding that there were questions of fact as to whether the area where Plaintiff was injured could be construed as a common work area and whether the risk was posed to a significant number of workers...

Court Upholds City Ordinance Assessing Costs against Owners of Abandoned Homes

Posted on July 14, 2009
The Michigan Court of Appeals recently upheld a challenge to a Battle Creek ordinance imposing a fee against the owners of abandoned residential property. In Kenefick v City of Battle Creek, __ Mich App __ (2009) (approved for publication July 2, 2009), a city ordinance requiring owners of abandoned homes to pay a "monitoring fee" was challenged on grounds that it was both unconstitutionally vague and violated the Equal Protection Clause...

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Michigan Seller Disclosure Act -- No Claim for Innocent Misrepresentation, Supreme Court Affirms Ruling

Posted on June 19, 2009
On June 17, 2009, Michigan Supreme Court entered an order affirming a 2008 Michigan Court of Appeals decision, which had held that Michigan law did not recognize claims for innocent misrepresentation under the Michigan Seller Disclosure Act (MCL 565.951, et seq)...

Assignment of Contractual Rights without the Consent of the Engineer

Posted on May 03, 2009
By: Gary D. Quesada, Hon. Aff. AIA, J.D.Principal Attorney, Cavanaugh & Quesada, PLCWhen entering a contract, an Engineer cannot accurately assess its risks without being assured that the other party will in fact remain its contracting partner throughout the Project...

OMB Publishes Updated Guidance for Implementing ARRA

Posted on April 07, 2009
On April 3, 2009, the Office of Management and Budget (OMB) published (here) Implementing Guidance for the American Recovery and Reinvestment Act of 2009 ("Recovery Act").This is the second installment of detailed government-wide guidance for carrying out programs and activities enacted in the Recovery Act...

Largest Construction Projects in Michigan, 2009 List

Posted on March 19, 2009
Crain's Detroit Business is out with the annual list of the Largest Construction Projects in Michigan for 2009 (here). Most of the projects in the Top 20 began several years ago, and are scheduled to complete in 2009 or early 2010. As in past years, school and hospital projects dominate the Top 20...

New Ethics, Disclosure Rules for Federal Contractors

Posted on February 25, 2009
On December 12, 2008, new federal rules on mandatory disclosure and ethics and compliance went into effect. Among other things, the rule requires government contractors to disclose evidence of violations of certain criminal laws by their employees or subcontractors and to implement certain internal controls within their companies...

New Bill Would Allow Construction Liens on Public Property

Posted on January 30, 2009
On January 29, 2009, Sen. Dennis Olshove (D. Warren) introduced S.B. 140, which would allow construction liens to be recorded against government (public) property.Specifically, S.B. 140 would amend Section 107 of the Construction Lien Act (MCL 570.1107) by adding a new Subsection (7):(7) Real property owned or leased by a government entity or as to which a government entity contracts for an improvement is subject to a construction lien under this Act to the same extent as other real property...

Implementation of E-Verify Rule Delayed

Posted on January 14, 2009
Federal Computer Week reported on January 12, 2009 that -"Enforcement of a new rule that requires federal contractors to use the Homeland Security Department?s E-Verify system to check employees' work eligibility has been postponed until Feb. 20, the U...

Contractor Groups File Suit, Seek to Block New Immigration Checks

Posted on December 31, 2008
The Federal Times reported on December 30, 2008:"Five trade groups are suing the Homeland Security Department to block a new requirement that federal contractors check the immigration status of their employees using the department?s E-Verify system. "In documents filed in the U...

AGC Legal Brief Highlights Recent Builder's Trust Fund Decision, Other Michigan Decisions

Posted on December 11, 2008
The December, 2008 issue of the AGC Legal Brief highlights a number of recent court decisions and legislative changes affecting design professionals, contractors, subcontractors and residential builders in Michigan.The current issue of the AGC Legal Brief was written by attorneys from Dickinson Wright and its construction practice group, and includes the following articles:Joseph W...

Legally Blawged: Connecting Michigan's (Online) Legal Community

Posted on November 21, 2008
Earlier this year, I met two other Michigan attorneys who write legal blogs (blawgs). We began to meet for dinner and to share our experiences with blawgs as a way to develop and expand our practices. We call ourselves "Legally Blawged" and recently incorporated as a Michigan non-profit corporation (LegallyBlawged...

Statute of Limitations Bill Passed by House Judiciary Committee

Posted on November 14, 2008
On November 12, 2008, Senate Bill 865, which would revise the statute of limitations for bringing an action against an architect, professional engineer, land surveyor or construction contractor, was unanimously approved by the House Judiciary Committee...

Cavanaugh & Quesada, PLC -- Announcing New Firm

Posted on November 04, 2008
Peter Cavanaugh and Gary Quesada are pleased to announce the formation of Cavanaugh & Quesada, PLC. The new firm is located in the Historic Washington Square Building in Royal Oak (MI), and will focus on serving the unique legal needs of the design and construction communities...

New Bill Would Create "Commercial Real Estate Broker's Lien Act"

Posted on October 04, 2008
On May 14, 2008, Sen. Randy Richardville (R. Monroe) introduced S.B. 1313, which would create the "Commercial Real Estate Broker's Lien Act". The bill was reported out of committee on October 2, 2008.The bill would do all of the following:Specify circumstances under which a commercial real estate broker's lien would attach to commercial real estate...

Detroit City Council Approves Upper Rouge CSO Tunnel, DWSD Contract PC-764

Posted on September 25, 2008
The Detroit Free Press reports -- "The Detroit City Council approved today on a 6-0 vote a $314 million portion of a $1 billion tunnel system to store sewage and storm runoff during heavy rain with the city up against a Sept. 28 deadline to act or face the loss of low-interest loans that could have cost ratepayers an extra $100 million in interest on construction bonds and put the city in violation of its water pollution permit...

SBA Suspends Applications for Small Disadvantage Business (SDB) Program

Posted on September 24, 2008
The Small Business Administration (SBA) announced yesterday that it is suspending the receipt of applications for the Government-wide small disadvantaged business (SDB) program effective September 22, 2008. The announcement was made through the Federal Register...

AGC Legal Brief Highlights False Claims Act

Posted on September 22, 2008
The September 2008 issue of the AGC Legal Brief highlights the use of the False Claims Act (FCA) against contractors and subcontractors. The article, written by Attorney Patrick Facca, presents an overview of the FCA and outlines some of the risks associated with the statute...

Panel to Consider Arbitration Post-Hall Street Associates

Posted on September 16, 2008
On October 6, 2008, the ABA's Section on Public Contracts is sponsoring a Panel Discussion concerning the Supreme Court's ruling in Hall Street Associates v Mattel, ___ U.S. ___ (2008) and its impact on arbitration in federal procurement cases. We first reported on the Hall Street decision here...

New Article Outlines Laws and Programs Designed to Assist Service-Disabled Veteran-Owned Small Business in the Federal Marketplace

Posted on September 09, 2008
Korsak, "The Service-Disabled Veteran-Owned Small Business in the Federal Marketplace," The Army Lawyer, July 2008, pp. 45-58.Written by Lieutenant Commander Theron R. Korsak, this article is meant to introduce agency heads, contracting officers, Judge Advocates, and veterans to the laws and programs designed to assist service-disabled veteran-owned small businesses (SDVOSB) in federal contracting...

Michigan Seller Disclosure Act (SDA): Innocent Misrepresentation Not a Claim under SDA Rules Michigan Court of Appeals

Posted on August 26, 2008
Holding that innocent misrepresentation is not a viable theory of liability under the Seller Disclosure Act (SDA) (MCL 565.951, et seq), the Michigan Court of Appeals recently reversed a judgment awarding Plaintiffs $86,813 in damages and costs and remanded the case for entry of a judgment in favor of the Defendant-Sellers...

VA Proposes New Rules to Increase Opportunities for Service-Disabled Veteran-Owned Small Business (SDVOSB)

Posted on August 21, 2008
Veterans Administration (VA), Federal Acquisition Regulations: Supporting Veteran-Owned and Service- Disabled Veteran-Owned Small Businesses, Proposed Rules, 73 Fed. Reg. 49141, August 20, 2008.This proposed rule would implement portions of the Veterans Benefits, Health Care, and Information Technology Act of 2006 and Executive Order 13360, Providing Opportunities for Service-Disabled Veteran Businesses to Increase Their Federal Contracting and Subcontracting...

Avoiding Home Foreclosure in Michigan

Posted on August 14, 2008
Gary Nitzkin, who blogs at Michigan Collection Law Blog, recently posted an important article outlining a number of ways that homeowners can avoid losing their homes to foreclosure.Gary's suggestions include (a) asking your lender about a Home Retention Program, (b) talking directly with the lender's Loss Mitigation Department, (c) considering a Forbearance Agreement, a Loan Modification, deed in lieu of foreclosure or (d) negotiating a pre-foreclosure short sale...

AGC of Michigan Sponsors ConsensusDOCS Seminar

Posted on August 13, 2008
On Thursday, September 25, 2008, at 8:30 a.m., the AGC of Michigan will present ConsensusDOCS: A New United Voice for Construction Contracts at its office in Lansing. The session will run 8:30 a.m. - 11:30 a.m. and includes a continental breakfast and seminar materials...

New Article Discusses Interplay Between Section 523(a)(4) of Bankruptcy Code and Michigan Builder's Trust Fund Act

Posted on July 13, 2008
As discussed in an earlier post, the Michigan Builder's Trust Fund Act (MCL 570.151, et seq) may impose personal liability upon corporate officers, or members of a limited liability company, who misappropriate construction proceeds in violation of the statute...

Materials Deduction Bill Signed by Governor Granholm, Public Act 177 of 2008

Posted on July 11, 2008
On July 9, 2008, Governor Granholm signed into law S.B. 1217 [Public Act 177 of 2008]. As discussed in an earlier post, this new law provides that construction companies can deduct materials purchased for specific construction projects from calculation of their gross receipts taxes...

Defendant Lacks Standing to Challenge Plaintiff's Corporate Status, Michigan Supreme Court rules in Miller v Allstate

Posted on July 03, 2008
On July 2, 2008, the Michigan Supreme Court issued its ruling in the Miller v Allstate case, which was discussed in an earlier post.The Supreme Court upheld the Court of Appeals' decision denying Allstate's attempt to avoid payment, but vacated the rationale...

AGC of Michigan Sponsors ConsensusDOCS Seminars

Posted on June 11, 2008
AGC of Michigan is sponsoring two upcoming seminars designed to acquaint contractors with the new ConsensusDOCS contract forms, which we discussed in an earlier post last September.June 18, 2008 Ramada Inn, Marquette, MIJune 20, 2008 EMU Livonia, Livonia, MIFor more information, follow this link.

Sixth Circuit Affirms "Disappointed Bidder" Rule, Upholds Dismissal of Bid Protest

Posted on May 25, 2008
On May 22, 2008, the 6th Circuit Court of Appeals upheld the grant of summary disposition in favor of the City of Detroit, and against the low bidder on a DWSD project, and affirmed the "disappointed bidder" rule in Michigan."We reviewed the law surrounding standing and disappointed bidders in Club Italia Soccer & Sports Org...

New Law Passed to Boost Set Asides for Disabled Veteran Contractors

Posted on May 23, 2008
On May 21, 2008, Michigan's Governor Granholm signed S.B. 751 into law as PA 133 of 2008. The new law takes effect immediately. As noted in an earlier post, the new law amends the Management and Budget Act to increase the goal for contract set asides for disabled veterans from 3% to 5%.

Material Deductions Bill Voted Out of House Tax Policy Committee

Posted on May 17, 2008
AGC of Michigan reports in its May 14, 2008 Midweek Briefing that H.B. 6031, the House version of S.B. 1217, was voted out of committee following testimony by AGC Member, Patrick Cebelak, Controller for Granger Construction.As noted in an earlier post, S...

Circuit Court Retains Jurisdiction Over $15,000 Contract Claim, Even When Lien Claim is Dismissed

Posted on May 10, 2008
Section 118(1) of the Michigan Construction Lien Act requires that an action to foreclose a construction lien be brought in the circuit court for the county where the real property is located. For smaller liens, this provision overcomes the requirement that claims in circuit court exceed $25,000...

How to Verify that a Payment or Performance Bond Complies with Michigan's Public Bond Statute

Posted on May 01, 2008
Michigan's public works bond statute (MCL 129.201, et seq) requires that a principal contractor furnish a payment and performance bond executed by a surety authorized to do business in Michigan. Many contracts also require that the general contractor furnish payment and performance bonds, which are executed by a surety listed on Treasury Circular 570...

DWSD Receives $316 Million Low Bid for Upper Rouge CSO Tunnel (South) Project

Posted on April 24, 2008
Earlier today, the City of Detroit Water and Sewerage Department (DWSD) received and open bids for the Upper Rouge CSO (South) Tunnel, Contract PC-764. Two bids were submitted. A low bid of $316,170,200 was received from Kenny Construction/Obayashi, JV...

Bill to Amend Michigan Business Tax Approved by Senate

Posted on April 23, 2008
On April 22, 2008, the Senate approved S.B. 1217 on a roll call vote of 250-38. The bill now goes to the House Committee on Tax Policy.As noted in an earlier post, S.B. 1217 is designed to correct problems with the Michigan Business Tax as it affects construction contractors.

Supreme Court Limits Grounds for Reviewing Arbitration Awards Under FAA

Posted on April 23, 2008
On March 25, 2008, in a 6-3 opinion, the U.S. Supreme Court ruled that Sections 10 and 11 of the Federal Arbitration Act provide the exclusive grounds for vacating or modifying an arbitration award. Contractual arbitration agreements providing for judicial review broader than the grounds in the FAA are not unenforceable under the FAA, the Court held...

Elevated Lake Level Damages -- Time for Bringing Claim is 3 Years, Michigan Court of Appeals Rules

Posted on April 23, 2008
A lawsuit brought by plaintiffs claiming that defendants flooded their property and caused trees to die by wrongfully raising the level of a lake, and seeking money damages under theories of negligence, negligence per se, nuisance, trespass, and civil conspiracy, should have dismissed under a three-year statute of limitations ruled the Michigan Court of Appeals in a recent published decision...

22 Billion Gallons!

Posted on April 21, 2008
The Atlanta Journal-Constitution reported on Sunday, April 20, 2008 that a mistake in calibrating a gauge that measures lake water resulted in the release of 22 billion gallons from Atlanta's principle source of drinking water in 2006."More than a year before Georgia's historic drought demanded the Atlanta area's attention, the U...

Michigan Construction Law, Contractor's Guide Available from AGC of Michigan

Posted on April 19, 2008
In 2005, the AGC Legal Advisory Committee published an updated "Contractor's Guide to Michigan Construction Law," which is now available on the AGC of Michigan's website in the Legal Resources section.The Guide was written by members of the AGC Legal Advisory Committee, and is is divided into 17 Chapters --The Contract for Construction: Standard Forms and Common Risk Transferring Provisions Bids, Bidders, and Bid Protests (by Thomas Keranen and Peter Cavanaugh)Defective Plans/SpecificationsContract Changes/Differing Site Conditions (by Peter Cavanaugh)Delay in Contract PerformanceRemedies for Payment DisputesDispute Resolution MechanismsOverview of State and Federal Prevailing Wage LawMichigan Occupational Safety and Health Act (MIOSHA)Hiring and Terminating Employees in MichiganEnvironmental Law: A Brief Overview for the Construction ContractorBankruptcy in a Construction SettingDealing With the Media and Press in Corporate Crisis SituationsBonding and InsuranceSubcontractors, Rights and RemediesMichigan Construction Defect and Mold LitigationInformation Technology and Construction Law

Bill to Amend Michigan Business Tax for Construction Firms Inches Forward

Posted on April 19, 2008
On April 17, 2008, a bill to fix the Michigan Business Tax for construction contractors moved closer to passing the Michigan Senate. S. B. 1217 was placed on order of third reading with substitute S-1. S.B. 1217 would amend Section 113(6)(e) of the Michigan Business Tax (MBT) Act (MCL 208...

Mediation of Construction Disputes, AAA Updates Mediation Services

Posted on April 18, 2008
The American Arbitration Association recently updated its Mediation Services and now devotes a separate website to its mediation offerings. The new website is appropriately named www.aaamediation.comAmong the changes are the following --New Pricing StructureAAA has eliminated the up-front filing feeThe "mediation" rate designated on the Mediator's resume is a combined rate for the AAA and the MediatorRevised Mediator ResumesThe AAA now provides the following new information about the Mediators on its Panel:Years of Practice as a MediatorTotal Number of Cases MediatedSettlement RatesStatement of PhilosophyMulti-Party ExperienceAll Mediator Resumes are Posted On-LineChoice of AdministrationParties have the choice of filing their Mediation Cases locally (through the AAA Offices in Southfield), or at one of the Case Management Centers...

Contract Documents Seminar, Tom Keranen and Fred Butters to Speak on April 29, 2008

Posted on April 16, 2008
On April 29, 2008, Attorneys Thomas M. Keranen, PE, and Frederick F. Butters, FAIA, will speak about the ConsensusDOCs contract documents and the AIA 2007 Contract Documents at a seminar sponsored by AIA of Michigan.Mr. Butters will address the substantial changes made to the AIA documents, and compare the 2007 and 1997 versions...

PDF for Legal Professionals

Posted on April 12, 2008
Adobe Acrobat (PDF) has become the de facto standard in the legal profession for filing documents electronically with federal courts using the PACER system, and increasingly state courts.Adobe sponsors an excellent blog -- Acrobat for Legal Professionals -- that is geared for lawyers who use PDF documents in their practice, whether it be for filing documents or using PDF to manage large document collections...

Department of Treasury Introduces New Lincoln

Posted on March 14, 2008
Off topic a bit, but the U.S. Department of Treasury is rolling out a new $5 bill today. The Treasury Department has a pretty cool, interactive website that shows off the new Lincoln, along with the other bills that have undergone face lifts and security enhancements in the past several years.

AIA, NSPE and ACEC conduct Annual Design Professional Liability Insurance Survey

Posted on February 17, 2008
OverviewProfessional liability insurance is increaingly critical to the successful design professional. Today?s Architect and Engineer has more choices in coverages and insurance options then ever before. Better still, those choices come at competitive prices...

Statute of Limitations Bill Passes the Senate

Posted on February 17, 2008
On Thursday February 14, 2008, Senate Bill 865 came up for vote in the Michigan Senate. When it became apparent that a last minute effort to tie the bill to Senate Bill 445 (which would reverse recent Michigan Supreme Court decisions concerning the threshold standard for bringing suit under the Michigan no-fault insurance act) would fail, the backers of that effort withdrew and SB 865 proceeded to a vote...

Michigan Legislature Enacts "Owner Built Residence Transfer Act"

Posted on February 13, 2008
On Februray 13, 2008, the Michigan Legislature enacted SB 0577. The "Owner Built Residence Transfer Act" (PA 6 of 2008) is designed to protect homeowners who buy homes from unlicensed builders. The Act takes effect in 180 days.RationaleMichigan law contains various provisions requiring a residential builder to be licensed, but this requirement does not aply to someone who is building their own home...

MDOT Implements New Claims Procedures

Posted on February 08, 2008
The Michigan Infrastructure & Transportation Association (MITA) reports in their current newsletter that the Michigan Department of Transportation (MDOT) has updated its claims procedures."On January 30th, after almost two years of collaboration and work by the Department and MITA, MDOT leadership signed into policy their new procedure for review of contractor claims...

Supreme Court Rules Against Michigan Company on Tucker Act Challenge

Posted on January 15, 2008
On January 8, 2008, the U.S. Supreme Court ruled 7-2 that the U.S. Court of Appeals for the Federal Circuit must always consider whether cases making claims against the federal government were filed on time, even if the federal government has waived that issue...

Plaintiff Must Prevail on Lien Foreclosure Claim to Recover Attorney Fees, Michigan Supreme Court Rules

Posted on December 23, 2007
On December 20, 2007, the Michigan Supreme Court entered an order reversing the Court of Appeals in a case involving the award of attorney fees to a lien claimant who had lost its lien claim, but prevailed on its breach of contract action. The Court of Appeals had found the plaintiff to be a prevailing party, and entitled to recover its attorney fees, despite losing its lien claim...

MISS DIG Act Clarified by Michigan Court of Appeals

Posted on November 29, 2007
The Michigan Court of Appeals recently clarified several aspects of the Protection of Underground Facilities Act (MCL 460.701) (the MISS DIG Act).In SBC v J T Crawford, Inc, ___ Mich App ___ (Mich Ct App, Nov 27, 2007), a case of first impression, the Court held --that pile driving is a construction activity subject to the MISS DIG Act,that the excavation contractor, but not the pile driving subcontractor, was required to contact MISS DIG, butthe pile driving subcontractor could not rely upon the excavating contractor's locate request to MISS DIG, which had expired by the time the work actually began...

Peter Cavanaugh to Speak at Michigan Construction Industry Professional Development Day on January 24, 2008

Posted on November 21, 2007
Attorney Peter Cavanaugh will speak about "Legal Issues in Managing the Construction Project" at the 5th Annual Michigan Construction Industry Professional Development Day program.Professional Development Day is being held this year on January 24, 2008 at the Ann Arbor Marriott in Ypsilanti, and is sponsored by AGC of Michigan...

U. S. Supreme Court Considers Tucker Act Challenge by Michigan Company

Posted on November 07, 2007
The Associated Press reports -- "The Bush administration, in a case involving a Michigan company, urged the Supreme Court on Tuesday [November 6, 2007] to maintain years of previous court rulings that have upheld a six-year statute of limitations in certain disputes filed against the government...

Morris Pumps Decision Stands, Michigan Supreme Court Denies General Contractor's Application for Review

Posted on November 01, 2007
The Michigan Supreme Court decided yesterday (October 31, 2007) to DENY the general contractor's Application for Leave to Appeal the Michigan Court of Appeals decision in Morris Pumps v Centerline Piping, et al., which had ruled in favor of Morris Pumps and two other suppliers...

U.S. Supreme Court to Review 6th Circuit Case, will decide if False Claims Act covers Subcontractors

Posted on October 31, 2007
The following story was reported by FederalTimes.Com. Thanks to Jerry Walz at PubKLaw for the lead on this story. By Elise Castelli October 30, 2007The [United States] Supreme Court has agreed to hear a case that will decide whether the government can collect penalties from subcontractors who commit fraud under a government contract...

State of Michigan Updates Construction Lien Guide

Posted on October 15, 2007
The State of Michigan Department of Labor and Economic Growth (DLEG) recently updated its "Consumer's Guide to the Michigan Construction Lien Act and The Homeowner Construction Lien Recovery Fund" (Rev'd July, 2007) to reflect recent amendments to the Michigan Construction Lien Act...

Peter Cavanaugh to Speak on November 14, 2007 to MCA Detroit regarding "Prompt Pay" Legislation

Posted on September 30, 2007
Attorney Peter Cavanaugh will speak to the Mechanical Contractors Association (MCA) of Detroit on November 14, 2007 on the subject of Prompt Pay in Michigan: An Overview of Proposed Changes to Michigan Law.Mr. Cavanaugh will discuss the changes to Michigan law that have been endorsed by AGC of Michigan that would affect payment practices in the construction industry...

ConsensusDOCS Released, Renewed Effort at a Fair Contract Document

Posted on September 30, 2007
On September 28, 2007, 20 leading construction associations, including AGC united to publish a consensus set of contract documents called ConsensusDOCS. Why another set of form documents?There are currently a variety of construction associations that produce standard form construction contracts, including AGC, COAA, EJCDC...

U.S. Bureau of Engraving, Interactive Currency Site

Posted on September 24, 2007
A lawyer who doesn't have a few hobbies would be a boring one indeed. . .As a kid, I was fascinated by coins, and had a pretty extensive "penny collection" before moving on to baseball cards. I haven't kept it up, but the last several years have seen a significant change in U...

Law Library of Congress, Michigan Legal Links

Posted on September 19, 2007
The Law Library of Congress recently updated its website. The LOC includes the world's largest collection of law books and legal resources. Among its online resources is an excellent Guide to Michigan Legal Resources. For practitioners, the State Bar of Michigan and the Institute for Continuing Legal Education (ICLE) have collaborated to produce Michigan Law Online, which is a free online primary law research service for all Michigan Bar members in good standing...

New Bill Would Boost Set Aside for Disabled Veteran Contractors

Posted on September 11, 2007
On September 6, 2007, Sen. John Pappageorge (R. Troy) introduced S.B. 751, which would amend the Management and Budget Act to increase the goal for contract set asides for disabled veterans.Under the current Act, it is the goal of the Department of Management and Budget (DMB) to award each year at least 3% of its total expenditures for construction, goods, and services to qualified disabled veterans...

New Bill Would Bar (Most) Construction Liens Against Residential Property - Why?

Posted on August 25, 2007
On July 27, 2007, a new bill was introduced by Rep. John Stakoe (R. Highland Twp), which would modify the Michigan Construction Lien Act to bar most claims of lien against Residential Structures by subcontractors, suppliers, and laborers, but not contractors...

When Does Professional Services Corporation Act Apply? ? Michigan Court of Appeals Casts Doubt On Traditional Thinking

Posted on August 08, 2007
By: Frederick F. Butters, FAIA, JD, Shareholder,Keranen & Associates, P.C.On May 31, 2007, the Michigan Court of Appeals issued its final opinion in Miller v Allstate Ins Co, 2007 Mich App LEXIS 1441. In sum, the Court ruled that where a professional services business can be incorporated under the Michigan Professional Services Corporation Act, it must be incorporated under that act...

MDOT Resolves Low Bid Tie With Coin Toss

Posted on July 31, 2007
The Michigan Infrastructure & Transportation Association (MITA) reported this story in its July 27th Weekly Review Newsletter: For what is believed to be only the second time in its history, [the Michigan Department of Transportation] MDOT experienced a low bid tie on a project bid in the July 6th letting...

Construction Lien Act Modified, S.B. 487 Enacted

Posted on June 30, 2007
On June 28, 2007, Michigan's Governor approved S.B. 487, which amends Sections 110 and 115 of the Michigan Construction Lien Act. The new statute, PA 28 of 2007, is effective July 10, 2007BackgroundCurrently, parties involved in a construction project must provide various notices, statements, and claims of liens...

Residential Builders Exempt from Michigan Consumer Protection Act, Michigan Supreme Court Rules

Posted on June 09, 2007
A residential home builder is exempt from the Michigan Consumer Protection Act under MCL 445.904(1)(a) because the general transaction of residential home building, including contracting to perform such a transaction, is "specifically authorized" by the Michigan Occupational Code, MCL 339...

Peter Cavanaugh to Speak June 12, 2007 at MACPA Litigation and Business Valuation Conference

Posted on June 02, 2007
Peter J. Cavanaugh will be a Speaker at the MACPA's June 12, 2007 "Litigation and Business Valuation Conference" at the VisTaTech Center at Schoolcraft College in Livonia, Michigan. Mr. Cavanaugh and Jim Schmid, CPA, CFE, ABV (Grant Thornton, LLP) will speak about "Unraveling the Research Potential of the Web...

Gary Quesada to Speak at MSPE / ACECM 2007 Annual Conference

Posted on May 29, 2007
Gary D. Quesada, Hon. Aff. AIA, J.D., will be speaking as a Member of the PCIA Risk Management Panel Discussion at the MSPE/ACECM 2007 Annual Conference on June 9, 2007 at Boyne Mountain Grand Lodge. The focus of this Conference is "Re-Engineering Michigan's Economy...

Implied Obligations in Michigan Construction Contracts

Posted on May 21, 2007
The May, 2007 Michigan Bar Journal includes an article by William F. Frey entitled "Obligations Implied in Michigan Construction Contracts." Mr. Frey provides a brief overview of Michigan law in the following areas: Owner's Implied Warranty of Plans and Specifications (Spearin Doctrine)Owner's Duty to Share all Material InformationOwner's Duty to Provide Access / Duty to Coordinate / Duty Not to InterfereContractor's Implied Warranty of Fitness for a Particular Purpose of "Habitability"Contractor's Implied Warranty of WorkmanshipWm...

New Bill Would Create Michigan False Claims Act (H.B. 4773)

Posted on May 18, 2007
On May 16, 2007, a new bill was introduced in the Michigan House (H.B. 4773), which would create the Michigan False Claims Act. On first read, it appears that the drafters of H.B. 4773 borrowed heavily from the Federal False Claims Act (31 USC 3729, et seq)...

New Bill Would Modify Recently Amended Construction Lien Act (S.B. 487)

Posted on May 09, 2007
On May 9, 2007, Senators Garcia and Basham introduced a new bill in the Michigan Senate (S.B. 487), which would limit to residential construction the changes made to Sections 110 (lien waivers) and 115 (sworn statements) of the Construction Lien Act by the passage of PA 572 of 2006...

Construction Liens: E. R. Zeiler -- Supreme Court Declines Review

Posted on March 31, 2007
On March 26, 2007, the Michigan Supreme Court DENIED the surety's Application for Leave to Appeal, which leaves standing the Court of Appeals decision reported here on May 28, 2006.Updated case citation:E. R. Zeiler Excavating, Inc. v Valenti Trobec & Chandler, Inc...

Builder's Trust Fund: Update Regarding Personal Liability

Posted on February 05, 2007
The February 2007 Newsletter of the Debtor/Creditor Rights Committee of the Business Law Section of the State Bar of Michigan contains an interesting article concerning personal liability under the Michigan Builder's Trust Fund Act. Thomas R. Morris reports on a preliminary ruling in a case pending before Judge Shefferly in the U...

Construction Liens: E. R. Zeiler Update

Posted on June 10, 2006
Since the first post on the E. Z. Zeiler decision, the surety (NAS Surety Group) has filed an Application for Leave to Appeal with the Michigan Supreme Court. The application was filed on May 30, 2006 (Docket No. 131297).This case has also been assigned the following citation:E...

Construction Liens: Statute of Limitations

Posted on May 28, 2006
Under the Michigan Construction Lien Act, does the time period for bringing an action to enforce a claim of lien differ when the lien has been bonded off?Until recently, the answer was thought to be No.Under Section 117(1) of the CLA, an action to enforce a claim of lien must be brought within one year from the date it was recorded...

Builder's Trust Fund Act: H.B. 5196

Posted on May 06, 2006
On September 21, 2005, a new bill was introduced in the Michigan Legislature, which would expand the scope of the Michigan Builder?s Trust Fund Act (MBTFA) to include public projects. H.B. 5196 would modify Section 1 of the Act (MCL 570.151), which has been construed by Michigan courts for almost 25 years to apply only to private construction projects, not public ones...