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Breach of Contract

Supreme Court Reverses Ruling on Quantum Meruit Claims Against Municipality

A prior post covered an appellate decision addressing whether a Georgia municipality may be held liable under quantum meruit for ultra vires acts of its agents.  That opinion generated a great deal of uncertainty because, contrary to prior cases, it seemed to open the door to municipal liability for unauthorized contracts.  Earlier this year, the Supreme Court of Georgia resolved that uncertainty by reversing the appellate opinion in favor of the municipality. Read More »Supreme Court Reverses Ruling on Quantum Meruit Claims Against Municipality

Contractual Limitations Period Must Have Clearly Identifiable Starting Point

Many construction-related contracts contain a contractual period of limitations — a contract term that establishes a period of time during which a party must file a claim against the other party (“limitations provision”).  Such a contractual provision precludes an aggrieved party from filing a lawsuit after the period expires.   They are generally enforceable in Georgia.

In Carrier Corp. v. Rollins, Inc., the Court of Appeals of Georgia interpreted a limitations provision contained in a $2 million contract for installation of an HVAC system at the owner’s headquarters.  The owner filed suit alleging that the HVAC system installed by the contractor never functioned properly. Read More »Contractual Limitations Period Must Have Clearly Identifiable Starting Point

The Creative-But-High Standard of “Alternative” Claims in Construction Disputes

Sometimes construction claimants and their attorneys need to think outside the box in their efforts to recover payment for work.  There are many situations in which claimants adequately prove they are entitled to recover, but for one reason or another they are not made whole.  For instance, the counterparty may become insolvent or dissolved, or a mere breach-of-contract action is inadequate to recover for all losses.  In these situations, claimants must find alternative claims for recovery and other pockets from which to recover. Read More »The Creative-But-High Standard of “Alternative” Claims in Construction Disputes

Local Government’s Multi-Year Contract Held Valid in Supreme Court Opinion

In a previous AHC Construction Law Update, we discussed a Court of Appeals opinion that held a school district’s construction contract was not void because it did not violate constitutional or statutory prohibitions against multi-year contracts.  The Supreme Court of Georgia recently vacated the part of that opinion that has created confusion among public owners’ counsel. Read More »Local Government’s Multi-Year Contract Held Valid in Supreme Court Opinion

Recovery of County’s Ultra Vires Payments

At some point, a county’s board or administrators may be faced with complaints from the community about payments made to a private entity. Members of the community (or competitors of the payee) may raise a number of complaints, including:

• payments were made to a friend of a commissioner,
• payments were made without a valid contract,
• the contract was not properly recorded,
• the contract was not effectively approved, or
• the county failed to comply with public works bidding laws.Read More »Recovery of County’s Ultra Vires Payments