Banks Gain Leverage in Pennsylvania Lien Law Amendments

Banks Gain Leverage in Pennsylvania Lien Law Amendments

Effective September 7, 2014 Pennsylvania’s Mechanics Lien Law is amended with provisions that effectively weaken and subordinate the security of the lien when compared to open ended mortgages used for construction financing. Because mechanic’s liens provide a security interest for contractors and suppliers who improve property, these liens protect their legitimate interests by ensuring payment

Expansion of Architect Liability to Remote Purchasers

Expansion of Architect Liability to Remote Purchasers

A case from the highest authority on the left coast has many architects and engineers scrambling to find coverage for potentially calamitous professional liability claims never before anticipated. The California Supreme Court recently found that a principal architect owes a duty of care to subsequent condominium purchasers in Beacon Residential Community Association v. Skidmore, Owings

Pennsylvania Limits Homeowner Claims against Builders

Pennsylvania Limits Homeowner Claims against Builders

Apparently looking to stem recent proliferation of homeowner lawsuits against builders for construction defects, the Supreme Court of Pennsylvania issued a decision yesterday limiting the ability of subsequent home purchasers to pursue legal action against the original builder. On August 18, 2014, in Conway v. Cutler, No. 80 MAP 2013 (Pa. Aug. 18, 2014), the Pennsylvania Supreme

Remedial Work Does Not Toll Mechanics Lien Statute

Remedial Work Does Not Toll Mechanics Lien Statute

Mechanic’s lien rights are a powerful legal remedy for contractors looking to secure and pursue payment. Statutes prescribing mechanic’s lien rights detail the format of the lien and time period for creating the lien. Timing is everything. The Pennsylvania Mechanics Lien Law of 1964 specifically states that in order to preserve lien rights, a contractor,

Bilt-Rite not Extended to Code Inspector

Bilt-Rite not Extended to Code Inspector

The Commonwealth Court of Pennsylvania declined to extend the narrow exception to the Economic Loss Doctrine contained in the Restatement (Second) of Torts and adopted in Bilt-Rite Contractors, Inc.  v. The Architectural Studio, 866 A.2d 270 (2005).  On October 19, 2012 the Court issued an unpublished opinion captioned Baker v. Reese Bros. & Knierem, Constr.,