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 When the prospect of settlement no longer represents a realistic or profitable option, litigation necessarily emerges.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.
Post a Comment to "With Rough Economy Comes Increase In Construction Litigation"
To reply to this message, enter your reply in the box labeled "Message", enter your username and password, and hit "Post Message."
Butler Williams & Skilling
100 Shockoe Slip
Fourth Floor
Richmond, VA 23219
Phone: (804) 648-4848
Fax: (804) 648-6814