litigation Archive

Surety Gets Burned by Not Making Article 8 Demand

The Court of Claims has ruled that the State of Ohio “Article 8” dispute resolution process applies to the surety in a takeover situation following a contractor default (Berkley Insurance Company v. Kent State University, Case No. 2018-00579JD). The trial court found that the surety had not timely initiated the “Article 8” claim process, and […]

Unilateral Arbitration Agreements Pose Risks

It is increasingly common to encounter dispute resolution provisions that allow one party the right to unilaterally select arbitration or litigation after the dispute develops. These “unilateral arbitration” clauses are criticized by some as being unfair because they allow one party – usually the upstream party – to shop for a favorable venue once the […]

One-Sided Arbitration Clause: Contractor’s Right to Unilaterally Choose Arbitration Upheld

Subcontractors are often asked to sign a subcontract giving the general contractor the right to, in its sole discretion, choose arbitration or litigation to resolve subcontract disputes. Many view these clauses as unfair, and whether such clauses are even enforceable is not settled, which means that state and federal courts across the country have come […]

Ohio’s Statute of Repose Does Not Apply to Breach of Contract Claims

The Third District Court of Appeals (Seneca County) recently ruled that Ohio’s statute of repose (R.C. 2305.131) does not apply to breach of contract claims. See New Riegel Local School District, Board of Education and State of Ohio v. The Buehrer Group Architecture & Engineering, Inc., 3rd Dist. Seneca Nos. 13-17-03, 13-17-06, 2017-Ohio-8521. The case […]

Surety and Broker Face Liability for Principal’s Alleged Violations Under the False Claims Act

A United States District Court ruled that there are instances where a surety and its broker could face liability for its principal’s violation of the Federal Government’s False Claim Act. In United States ex rel. Scollick v. Narula, 2017 WL 3268857 (July 31, 2017), an individual whistleblower brought an action under the False Claims Act […]