Articles Posted in Government Contracts

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In 1997, Virginia Polytechnic Institute & State University awarded General Contractor a prime contract for construction work. General Contractor hired Subcontractors to complete portions of the project. Sureties acted as sureties to Subcontractors. After construction was substantially completed, Virginia Tech made final payment to General Contractor in 1999, which made final payment to Subcontractors. All work was concluded in 2000. In 2012, Virginia Tech asserted a claim against General Contractor seeking compensation for the cost of remedying defective workmanship. In 2014, General Contractor settled the claim with Virginia Tech and, the same year, filed this action alleging breach of contract and common law indemnity claims against Subcontractors and breach of contract claims against Sureties. In 2015, the court dismissed the case in its entirety, concluding, as relevant to this appeal, that the statute of limitations barred the breach of contract claims. The Supreme Court affirmed, holding that the statute of limitations had run by the filing of the suit in 2014, and because any breach of Subcontractors occurred at the time of their respective performances, the statute of limitations had similarly run against Sureties. View "Hensel Phelps Construction Co. v. Thompson Masonry Contractor, Inc." on Justia Law

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Dunn, McCormack & MacPherson (Dunn), a Virginia law firm, served as legal counsel to the Fairfax County Redevelopment and Housing Authority for thirty years. Dunn worked for the Authority on an at-will contract for legal representation, which was terminated in September, 2005. Dunn filed a complaint against the County Board of Supervisors, alleging that the Chairman of the Board tortiously interfered with Dunn's contract with the Authority. The circuit court sustained the Board's demurrer, holding that Dunn's complaint failed to state sufficient facts to support a cause of action for intentional interference with a contract. Dunn amended its complaint, but ultimately failed to convince the court to rule in its favor. On appeal, the Supreme Court found the record clearly demonstrated that the circuit court sustained the County's demurrer for failing to "adequately state a prima facie cause of action" and affirmed the lower court's decision.