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With Rough Economy Comes Increase In Construction Litigation
As the credit markets tighten and the economy seemingly grinds to a halt, a corresponding uptick in construction litigation has resulted. For the first half of this decade ambitious builders and developers experienced something of a golden age. While large scale construction inevitably leads to disagreement and disputes, during this “boom” period those involved understood that delaying a project due to litigation worked to no one’s benefit. Now, however, as those involved with a project face an uncertain future, we find that construction disputes more and more often make it all the way court.
In the past, parties to a construction lawsuit could typically assume a settlement would be reached prior to trial, but the economic downturn has drastically altered the equation. When the prospect of settlement no longer represents a realistic or profitable option, litigation necessarily emerges. A recent article published in the Virginia Lawyers Weekly describes several construction lawsuit scenarios which in the past would likely have settled. Such situations include;
-Defective Construction
-Construction Delays
-Foreclosure
Certainly, there are other reasons for a construction lawsuit, especially breach of contract for nonpayment. However, that type of suit might find its way into court even under the best economic conditions.
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