CHANGE IN LAW DOCTRINE

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CHANGE IN LAW DOCTRINE
American Bar Association Forum on the
Construction Industry and the TIPS Fidelity and
Surety Law Committee
2006 Midwinter Meeting
Expecting the Unexpected

• John W. Hinchey
• King Spalding LLP
• Atlanta, Georgia

With thanks and appreciation to Erin M. Queen
for her hard work and assistance in the
development of this presentation.
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CHANGE IN LAW DOCTRINE
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CHANGE IN LAW DOCTRINE

• RELATED DOCTRINES
• A. Excuse
• 1. Impossibility
• 2. Impractibility
• 3. Frustration of Purpose
• B. Force Majeure

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CHANGE IN LAW DOCTRINE

• FORSEEABILITY

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CHANGE IN LAW DOCTRINE

• CAUSATION

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CHANGE IN LAW DOCTRINE

• TYPICAL CONTRACT PROVISIONS
• AIA
• Other causes, beyond the contractors control
• AGC
• Changes in laws or regulations affecting
  performance of work . . . enacted after date of
  . . Agreement
• FIDIC
• Force majeure event or circumstance beyond
  a partys control, not reasonably avoidable

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CHANGE IN LAW DOCTRINE

• BEST CONTRACT PROVISION
• Define specific events or circumstances
• Expressly Define Change in Law
• Deal with Forseeability
• Deal with Causation
• Provide specific relief if any
• Provide for notice and process

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CHANGE IN LAW DOCTRINE

• TRANSFER OF RISK
• Surety Bonds
• Performance Guaranties
• Force Majeure Insurance

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CHANGE IN LAW DOCTRINE

• SUMMARY AND CONCLUSIONS