News & Insights

SOUTH CAROLINA COURT OF APPEALS HOLDS “PAY WHEN PAID” CLAUSE IN CONSTRUCTION CONTRACT UNENFORCEABLE

In J&H Grading & Paving, Inc. v Clayton Construction Company, Inc., 441 S.C. 272 (2023), the South Carolina Court of Appeals held that statutory language expressly prohibits parties from conditioning payment to the subcontractor upon the owner’s payment to the general contractor and makes any agreement to the contrary unenforceable. Clayton Construction Company, Inc. (“Clayton”),…
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FEDERAL TRADE COMMISSION ADOPTS RULE BANNING NONCOMPETE AGREEMENTS

On April 23, 2024, the Federal Trade Commission (“FTC”) voted to adopt a new rule banning noncompete agreements.  The rule prohibits employers from enforcing agreements to prevent employees from working for competitors or starting a competing business once their employment has ended. FTC’s new rule applies to any agreement containing a noncompete clause, defined as…
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WHEN CONTRACT ALSO MEANS TORT, UNDER ARKANSAS’ STATUTE OF REPOSE

Statutes of repose serve to cut off a right of action by establishing a date by which the action no longer exists. The action is cut off regardless of whether the action has accrued by that date or not. Arkansas’ Statute of Repose includes the following provision: “(a) No action in contract, whether oral or…
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SIXTH CIRCUIT AFFIRMS SUMMARY JUDGMENT ON CONTRACTUAL INDEMNITY CLAIM UNDER THE TENNESSEE STATUTE OF REPOSE

Highlighting the importance of the statute of repose in relation to construction and design indemnity claims, the United States Court of Appeals for the Sixth Circuit recently affirmed summary judgment based on the Tennessee statute of repose in favor of a third-party defendant subcontractor.  Hinman v. ValleyCrest Landscaping Development, Inc., 89 F.4th 572 (6th Cir….
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FINRA FINES FIRM FOR SOCIAL MEDIA INFLUENCER VIOLATIONS

FINRA recently announced M1 Finance LLC has been fined $850,000.00 for violations relating to social media posts made by influencers on the firm’s behalf.  Beginning January 2020 to April 2023, FINRA found M1 Finance compensated social media influencers for content promoting the firm. M1 Finance also requested the influencers include a hyperlink to the firm’s…
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EPA FINALIZES NEW PFAS REGULATIONS

On April 10, 2024 the Environmental Protection Agency (“EPA”) finalized drinking water regulations for per- and polyfluoroalkyl substances (“PFAS”). The EPA expects that the regulations will prevent PFAS exposure in drinking water for approximately 100 million people, prevent thousands of deaths, and reduce tens of thousands of serious PFAS-attributable diseases. The finalized EPA regulations establish…
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ELEVENTH CIRCUIT UPHOLDS INJUNCTION STOPPING FLORIDA’S ANTI-WOKE LAW

In 2022, Florida enacted the Individual Freedom Act, which Governor Ron DeSantis called the “Stop WOKE Act” (“the Act”). Specifically, the Act prohibited Florida employers from requiring employees to attend any training or activity that “espouses, promotes, advances, inculcates, or compels” an individual to believe certain prohibited “concepts” relating to race, color, sex, or national…
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PENNSYLVANIA APPELLATE COURT AFFIRMS SUMMARY JUDGMENT AGAINST HOMEOWNER FINDING THAT STATUTE OF REPOSE BARRED CLAIMS FOR NEGLIGENCE AND UNLAWFUL ACTS AGAINST CONTRACTOR

In Johnson v. Toll Bros., Inc., two homeowners sued a construction contractor alleging that it had negligently constructed their house in such a manner that allowed significant water intrusion resulting in continuous damage for a period of at least five years up until the time they filed suit. 2023 PA Super 169, 302 A.3d 1231…
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