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From monthly archives: July 2022

We are pleased to present below all posts archived in 'July 2022'. If you still can't find what you are looking for, try using the search box.

Businesses Beware: Certain Financing Products Contain Sham Clauses Leading To Default

  By: Rachel J. Eisenhaure, Esq.  |  Kenney & Sams, P.C. Businesses looking to access capital have several options in today’s environment, from traditional bank loans to alternative financing arrangements.  In a traditional receivables sale (or factoring agreement), a business sells an existing debt at a discount and transfers the risk of collection to the buyer: the business gets immediate cash, and the buyer potentially profits on collection. One riff on the traditional discounted sale of receivables is the merchant cash advance: an arrangement where instead of buying an existing debt, a merchant cash advance company buys a percentage of future receipts. But not all merchant cash advances are what they seem. On June 6, 2022, the Southern District of New York granted summary judgment to a plaintiff on a civil RICO claim against the principal of a merchant cash advance company, finding that the agreement was not in fact a purchase of future receivables, but a high interest ...

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Construction Law Update: Massachusetts Appeals Court Enforces The Massachusetts Prompt Pay Act, G.L. c. 149, § 29E

  By Anthony B. Fioravanti, Esq.   As we reported last month, the Massachusetts Appeals Court recently affirmed a trial court’s decision that construed the requirements of the Massachusetts Prompt Pay Act, G.L. c. 149, § 29E.  That decision was the first appellate court opinion interpreting the Act and its requirements for rejections of pay applications.    Then, on June 24, 2022, the Appeals Court issued a somewhat rare clarification of its decision.  In its updated decision, the Appeals Court clarified that it was not deciding whether an owner who fails to comply with the Prompt Pay Act may assert counterclaims against the general contractor for alleged defective workmanship.  As a result, it remains an open question whether an owner that fails to comply with the Prompt Pay Act in response to pay applications waives any factual or contractual defenses to payment for the work reflected in those pay applications.    Background &n ...

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Court Says Landlord Cannot Evict Restaurant Tenant Despite Numerous Defaults

  By:  James L. Rudolph, Esq. & George Georgountzos, Esq.   After a summary process trial before him (without a jury), a Superior Court judge recently held that a commercial landlord could not evict a tenant despite proving the tenant had repeatedly breached provisions in the lease because the breaches were not material. While the facts in making this decision were unique and specific to this case, the decision is an important reminder that in a commercial eviction, Courts have equitable power to sustain a lease despite a party’s clear breach of contractual terms, when the breaches are not material.   The facts in Varano v. PDJM Land Trust are the following. Varano is a commercial tenant who operates Nico Restaurante in Boston’s North End. PDJM Land Trust, LLC (“PDJM”), the landlord, operates Lucia Restaurant next door. Varano has a long-term lease that came into effect in 2008 when the leased property was owned by a previous landlord. In 20 ...

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Member News: Connolly Completes Stone Ridge Multi-Tenant Commercial Building for Richardson Green

  Connolly Completes Stone Ridge Multi-Tenant Commercial Building for Richardson Green BEVERLY, Mass. – July 13, 2022 – Connolly Brothers, Inc., a construction management firm serving private commercial, industrial, and institutional clients, today announces it has completed the construction of a 56,000-square-foot multi-tenant commercial building, Stone Ridge, in Middleton, Mass. for Richardson Green Inc., a family-run real estate business with commercial office buildings located throughout Massachusetts’ North Shore. Stone Ridge features the capacity to serve businesses in need of retail, light industrial, warehouse/distribution, R&D, flex, and/or office space. Coordinating closely with the town of Middleton, Connolly Brothers provide pre-construction, design, engineering, and construction management services on the project, with the design team emphasizing flexibility by pairing manufacturing needs such as high-bay warehouse space with modern office facilities. As Stone ...

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Chairman's Message July 2022: Gould Launches Daytime Electrical Pilot

  It’s sometimes hard to keep up with the pace of change in the construction industry, but we have no choice if we are to continue to succeed.  The changes aren’t just about technology; to successfully confront ongoing labor shortages, we must change the way we train.  To address these new demands, the Gould Construction Institute (GCI) will launch a pilot program this Fall with a hands-on shop component that will offer a daytime option for apprentice training in the electrical trade, in addition to the traditional evening program.   We are launching this pilot based on the success of similar daytime programs in a number of other ABC chapters, including the Keystone Chapter in Pennsylvania, which has generously shared insights and best practices with us.   An increasing number of apprentices now prefer daytime training over driving to class after a long and strenuous day of work.  At the same time, difficulty recruiting part-time teachers has reac ...

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