Politics, Judges, May and November
If you are like most folks this time of year, you have already seen more television ads, heard more on the radio, and had more robo-calls than you can stomach – and the primary election has only just come and…
Termination for Convenience Clauses
As part of the continuing series of articles identifying important construction contract clauses, perhaps the most impactful clause in a contract can be the standard termination for convenience clause. Imagine this scenario: your firm expended time and material in bidding…
PRE-NOTICE: NEW REQUIREMENTS FOR THE NORTH CAROLINA (LITTLE) MILLER ACT
During the economic downturn in 2008-10, contractors on North Carolina public projects suffered significant losses due to the double payment risks in the then existing Little Miller Act. Taking their concerns to the legislature and working closely with other groups…
The Art (and Implications) of the “Short-Pay”
Consider the following scenario: Seller claims $100.00 is due for goods provided. Buyer claims that only $75.00 is owed. Buyer then mails a check to Seller for $80.00, marked “paid in full”. What are the consequences if the Seller deposits…
Public-Private Partnerships Come to North Carolina
“The health of a democratic society may be measured by the quality of functions performed by private citizens” – Alexis de Tocqueville, Democracy in America, 1835. In August of 2013, Governor McCrory signed into law House Bill 857 (codified as…
IDENTIFYING PARTIES IN UCC FINANCING STATEMENTS
Effective July 1, 2013, identification of an individual who is party to a UCC-1 Financing Statement changed. Gone are the days of listing the debtor as “Joe Smith.” Now, you must use the name as it is indicated on the…
Unknown Exposure: Liquidated Damages in Construction Contracts
An oft disputed, and occasionally misunderstood, provision in construction contracts is that of Liquidated Damages (commonly referred to as “LDs”). Generally speaking, Liquidated Damages refer to a sum of money which a party to a contract agrees to pay to…
Unlicensed Contracting is a Costly Mistake!
Oftentimes when there are claims involving quality of construction, non-payment of subcontractors or suppliers, or payments due to a general contractor for money due from an owner, issues of licensure suddenly appear. Whether or not a general contractor and certain…
UNRAVELING THE MYSTERIES OF THE POST-JUDGMENT COLLECTION PROCESS IN NORTH CAROLINA
“North Carolina is a debtor-friendly state.” A prominent North Carolina lawyer shared that sentiment with his newly-minted lawyer-daughter over and over again. She initially failed to appreciate the import of those words. After 20+ years of practice, the truth of…
NORTH CAROLINA UPDATES CONSTRUCTION LIEN STATUTES: H707—LIEN AGENT NOTICE REVISIONS
The North Carolina Land Title Association (NCLTA) played a large role in the 2012 updates to North Carolina’s construction lien statutes, and the NCLTA was again active in shaping 2017 revisions. The 2012 updates benefited title insurance companies by creating…
Oakwood Neighborhood Court Ruling: A Lesson for Developers
A Wake County Superior Court Judge issued a ruling this week in a highly publicized land development / zoning case. The ruling ended another chapter in this highly controversial case, and further appeals are very possible. The case centers around whether a…
The Basics of Pass-Thru Entities
Some businesses must pay income taxes. Some need not. Some businesses must file annual federal tax returns. Some need not. During tax season, these issues obviously take on added importance. We have recently fielded dozens of related questions and formed…
Performing a “Commercially Useful Function”: Material Supplier Fined Nearly $5,000,000 under False Claims Act
Since 1983, federal statutory provisions have required that 10% of funds authorized for highway and transit financial assistance programs be expended with DBEs. According to the United States Department of Transportation, the DBE (Disadvantaged Business Enterprise) program is designed to…
Non-Compete Agreements Need to Be Carefully Drafted!
Non-Compete clauses have been an important tool in business practice for many years, used primarily in employer/employee relations and also as part of business purchases, both within the context of limiting future competition and adding value to the business. When…
Nondischargeable Debts in Bankruptcy
Bankruptcy is designed to give debtors a “fresh start.” Accordingly, a bankruptcy discharge releases a debtor from liability for certain debts which the bankrupt party previously owed. A debt discharged in bankruptcy is no longer owed. Bankruptcy is often cruel…