Archive for November 2011

Court Takes A Peek Behind Corporate Veil

“Piercing the corporate veil” is a legal concept by which a court would look through a corporate entity to find the owners liable for the obligations of the business. In October of this year, the Court of Special Appeals of Maryland considered piercing the corporate veil of a company that was being sued for payment…

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The Rights Of An Unlicensed Home Improvement Contractor

Designed to protect homeowners from unlicensed contractors, the Maryland Home Improvement Law renders a contract between an owner and unlicensed contractor unenforceable. Essentially, if you are a contractor that performs home improvement work for a home owner, but you do not have a license, there will be no obligation by the home owner to make…

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A Common Contract Clause Might Not Be So Useful After All

Most clauses that typically appear in contracts serve useful and important purposes. But a recent federal court decision sheds some doubt about the effectiveness of one type of clause that many contracts contain. The clause that the court considered was one that provided that, if one party breaches the contract the non-breaching party will be…

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Maryland Prevailing Wage Laws Can Make a General Contractor Liable for Subcontractor’s Failure to Pay Employees

The Prevailing Wage laws are found in the State Finance and Procurement Article of the Maryland Annotated Code at 17-201 et. seq. Section 17-222(b)(2) states that the “contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees” for payment of less than the prevailing wage. Further, 17-222(b)(1) also states…

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