Construction Law

As the construction industry moved through its recession, a number of issues eventually percolated their way through the appellate courts. Not surprisingly, once projects began going under, many of these cases focused on novel theories seeking to impose liability against "deep pockets." The most significant event during the survey period was the development of a unique approach to impose liability against the government for the insolvency of sureties presented on public works projects, and the abrupt reversal of the adoption of this theory by the Georgia Supreme Court. Also during the survey period, there were a number of attempts to impose liability against lenders on construction projects for the failure to ensure that payments were made to contractors in such a way as to avoid the imposition of liens, and on commitments to keep construction loans flowing.