Deficiencies are a common reason for litigation in construction proceedings. Dissatisfaction due to deficient work can make homeowners act in a zealous manner – namely, firing existing contractors, hiring subsequent contractors to finish or correct remaining work, and litigating against the initial contractor for the cost of correcting such deficiencies. However, the law recognizes that reasonable opportunities must be provided to correct such deficiencies before setoff or claim rights are allowed.
Many lawyers consider the non-disparagement clause to be necessary when drafting a form of Full and Final Release. The real question, however, is whether these clauses are deemed enforceable.
Settlements are always preferred to litigation, but it’s important to note the following procedural steps when finalizing a settlement in construction lien litigation.
The case of Electro-Works Ltd. v. Fogler, Rubinoff LLP expands the scope of liability for breach of trust to include monies received through settlement funds and applied as payment for lawyers’ fees.