When two companies form a joint venture (JV) for the purpose of performing a construction contract, they share a basic goal—successful completion of the project on a profitable basis. When the JV makes money, both parties prosper. However, a recent case before the U.S. Court of Appeals for the Federal Circuit shows the disastrous results when the JV relationship becomes adversarial.
One JV party accused the other of unilaterally grabbing control of the JV, including its bank account. The aggrieved JV party refused to sign payment invoices, the government refused to issue payments and when the other JV party attempted to appeal the nonpayment, it had no recourse.
The second case in this issue addresses the use of a non-architect’s expert testimony to establish an architect’s professional standard of care. Illinois law does not require testimony from a licensed architect; however, the expert testimony in question did not attempt to establish standard of care, focusing instead on communication and procedure.
The third case involves a contractor’s response to a government “show cause” notice threatening default termination. The government had been concerned the contractor could not complete the work in a timely fashion. The contractor sought to reassure the government by submitting a performance schedule with a completion date after the contract deadline. This did not have the intended result.
