Surety Liability Is Coextensive with Its Bond Principal
April 14, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller act payment bond case, U.S. f/u/b/o Whitetail General Constructors v. Northcon, Inc., 2026 WL 46671 (D.Mont. 2026), contains a short noteworthy discussion as to a surety’s liability being coextensive with that of its bond principal. If you are bonded, or you are pursuing a bond, you need to appreciate this, which is why this is a noteworthy discussion:
A “surety’s liability on a Miller Act bond must be at least coextensive with the obligations imposed by the Act if the bond is to have its intended effect.” “Therefore, ‘the liability of a surety and its principal on a Miller Act payment bond is coextensive with the contractual liability of the principal only to the extent that it is consistent with the rights and obligations created under the Miller Act.’” In other words, “[w]here a subcontract’s terms are consistent with the Miller Act’s provisions, the surety’s liability on the Miller Act bond is coextensive with the contractual liability of its princip[al].”
“The liability of a surety under the Miller Act is controlled by federal law, rather than state contract law[.]” The court may, however, “look to state law when interpreting contractual provisions” in a Miller Act case.
“[T]he measure of recovery under the Miller Act is generally determined by the terms of the subcontract [or underlying contract].”
Northcon, supra, at *4-5 (internal citations omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Settlement Agreements and Contracts Require a Meeting of the Minds
July 20, 2026 —
David Adelstein - Florida Construction Legal UpdatesA settlement agreement does not need to be executed for it to be enforceable as long as there was a MEETING OF THE MINDS. The same rings true for any contract regardless of whether the contract is signed – THERE NEEDS TO BE A MEETING OF THE MINDS.
In a recent case dealing with the settlement agreement on a construction lien, the essential settlement terms (money and mutual release) were memorialized in an e-mail exchange between the parties (owner and subcontractor). The settlement required the owner to pay the principal amount plus some attorney’s fees and then a mutual general release would be prepared. In response to the confirmatory email, the owner sent a check, which the subcontractor deposited, but the owner refused to sign the release signed and sent by the subcontractor. The owner further claimed it doesn’t need to pay the attorney’s fees because the lien amount was paid in full. The subcontractor sued arguing the owner breached the terms of the settlement. The appellate court agreed.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Oracle's $16B Michigan Data Center Secures Financing as Power Contracts Face Appeals
June 08, 2026 —
Bryan Gottlieb - Engineering News-RecordA $16 billion hyperscale data center under construction outside Ann Arbor, Mich., has secured financing backed by Blackstone and other institutional investors, even as the project's power supply agreements now face a legal challenge before the Michigan Court of Appeals.
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Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
The Grenfell & Champlain Towers: Risk Management Considerations in the Wake of Catastrophic Loss — A UK/US Comparison
June 02, 2026 —
Eric M. Clarkson - Saxe Doernberger & Vita, P.C.1. Introduction
As part of the multinational collaborative relationship between Saxe Doernberger & Vita, P.C. and Fenchurch Law, we continually find ourselves in conversations about the sometimes subtle but sometimes drastic differences between risk management and coverage considerations from one country to the next. These differences are often highlighted by the fallout from large catastrophic losses that are widely publicized and illuminate sometimes widespread risks and perils that many others may be facing in the coming years.
The response of governments and their subdivisions to the needs of victims and/or commercial parties, and insurance markets’ evaluation of and reactions to catastrophic losses vary widely from country to country and jurisdiction. In this article, we discuss these responses and reactions in the cases of the Grenfell Tower Fire in London, England, and the Champlain Tower collapse in Surfside, Florida, within the United States. These two widely publicized losses involved different risk management and insurance considerations based on where they occurred. They also saw substantially different government responses and raised varied questions about what the next steps are for their respective commercial and insurance markets.
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Eric M. Clarkson, Saxe Doernberger & Vita, P.C.Mr. Clarkson may be contacted at
EClarkson@sdvlaw.com
New Year’s Resolution: Engineering the “Tee-Up Day” for Complex Construction Mediations
February 17, 2026 —
Joël Bertet - The Dispute ResolverThe construction industry is defined by its commitment to "Critical Path" scheduling. From the moment a project breaks ground, every stakeholder—from the MEP sub to the owner’s rep—is focused on sequencing. We know that you cannot hang drywall before the rough-in is inspected, and you cannot pour a slab-on-grade until the vapor barrier is verified.
Yet, when these projects devolve into litigation, the legal community often abandons the logic of sequencing. We rush headlong into "The Mediation Day"—a high-stakes, expensive, one-day marathon where we expect dozens of parties, hundreds of insurance layers, and thousands of pages of expert reports to magically align into a settlement by 6:00 PM.
As we open our calendars for the new year, it is time for a professional resolution. We must stop treating mediation as a single-day event and start treating it as a managed, sequenced process. The centerpiece of this resolution is the “Tee-Up Day.”
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Joël Bertet, ResolveBertetMr. Bertet may be contacted at
joel@resolvebertet.com
Lewis Brisbois Welcomes Clients and Community Leaders to New Garden City Office Opening
July 27, 2026 —
Lewis BrisboisOn July 15, Lewis Brisbois hosted a ribbon-cutting event for its new Garden City office, which opened in April to serve the Long Island community and beyond.
The event was attended by more than 100 people, including Lewis Brisbois attorneys and staff as well as clients, local business and government leaders, Nassau County Supreme Court judges, and members of the press. Nassau County Executive Bruce Blakeman delivered remarks and cut the ribbon for the office.
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Lewis Brisbois
Are “Financial Hardship” Damages Recoverable?
June 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages.
As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Did You Get the Message? (And does it count?) The Legal Consequences of Text Messages, Group Chats, and Informal Digital Communication on Construction Projects
March 17, 2026 —
Kellie Ros & Curtis Martin - ConsensusDocsIntroduction: The New Reality of Construction Communication
Construction projects have always depended on a constant stream of communication. Today’s project managers, superintendents, and foremen have broadened the method of communication to include convenient forms of digital communication. Superintendents text photos of field conditions, owners send quick approvals through WhatsApp, architects clarify design intent in a Teams chat, and subcontractors coordinate sequencing through group texts. These channels are fast, convenient, and deeply embedded in modern project culture. Yet the legal framework governing construction contracts has not evolved at the same pace. Many contracts still assume – or require – that notice, directives, and approvals occur through formal written channels—letters, emails to designated recipients, or structured project‑management platforms. This disconnect creates significant legal risk, particularly for contractors who rely on informal messages as authorization for extra work or schedule changes. Courts are increasingly asked to interpret text messages, chat threads, and screenshots as evidence of notice, direction, or waiver. The outcomes vary, but the trend is unmistakable: informal digital communication is now part of the project record, and it can bind parties in ways they did not expect.
Reprinted courtesy of
Kellie Ros, Peckar & Abramson, P.C. and
Curtis Martin, Peckar & Abramson, P.C.
Ms. Ros may be contacted at kros@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
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