Construction Group co-chair Mitchell Taraschi and associate Zac Brower authored an article for Law360 explaining the impact of a New Jersey Appellate Division case that changes the face of construction law.
The subject of Mitchell’s and Zac’s article, the opinion in Bil-Jim Construction Co. v. Wyncrest Commons LP, addresses when a construction contract creates an installment contract—a determination that affects the statute of limitations that applies to disputes related to the construction contract.
“Although the contract between the parties in Bil-Jim required monthly billing and progress payments,” Mitchell and Zac wrote, “the Appellate Division held that these monthly payment applications and payments are not divisible, and therefore do not create a separate statute of limitation for each individual payment application.”
The decision should serve as a reminder to lawyers drafting and reviewing construction agreements, Mitchell and Zac explain. “Drafters must ensure payment provisions are written carefully into contracts so that the agreement is not perceived as or transformed into an installment contract."
Read the full article here (subscription is required).