Robertson & Associates Robertson & Associates 2026-06-09T05:24:33Z https://www.rlrobertson.com/feed/atom/ WordPress /wp-content/uploads/sites/1503957/2024/02/cropped-favicon_site-icon-32x32.png On Behalf of Robertson & Associates <![CDATA[Construction delay claims across North Carolina: who pays when your project runs late?]]> https://www.rlrobertson.com/?p=47983 2026-05-29T16:42:38Z 2026-05-29T16:42:38Z The contractual hammer: liquidated damages vs. actual damages When a project experiences unexcused delays, owners look to the contract to recoup losses, most frequently through liquidated damages clauses.
  • The predetermined fixed rate: A liquidated damages clause establishes a fixed daily rate (e.g., $1,000 per day) that the contractor must pay to the owner for every calendar day the project remains incomplete past the deadline.
  • The legal enforceability standard: Under the Knutton v. Cofield case, these clauses are enforceable only if actual damages were difficult to estimate at contract execution and the daily rate represents a reasonable forecast of just compensation.
If a court determines the daily rate is excessive or arbitrary under the Knutton standard, the clause will be struck down as an unenforceable penalty, forcing the owner to prove actual financial losses.

Mapping liability: Critical Path Method (CPM) analysis

To successfully assert or defend against a construction delay claim, you must prove exactly why the delay occurred using a technical Critical Path Method (CPM) analysis. This is the continuous sequence of dependent project tasks that dictates the absolute minimum timeframe required to complete the entire build. In this context, delays to non-critical path activities which possess "float" or scheduling flexibility do not impact the ultimate deadline.

Excused vs. unexcused delays and the weather factor

Construction delays generally fall into three strict legal categories, which dictate who absorbs the financial impact:
  • Excusable, non-compensable delays: These are unexpected events beyond the control of both parties, such as labor strikes or severe weather. Contractors typically receive a time extension but no additional money for overhead.
  • The "abnormal" weather standard: To claim an excusable weather delay, a contractor must prove that the weather encountered was abnormally adverse for that specific North Carolina geographic locality and time of year, based on multi-year historical data.
  • Excusable, compensable delays: Delays caused exclusively by the owner—such as failing to secure zoning permits or delaying drawing approvals. Here, the contractor is entitled to both a schedule extension and financial compensation to cover extended field conditions.
While "No Damages for Delay" clauses are common in private contracts to block contractor compensation, these clauses are heavily restricted in public infrastructure projects if the owner engages in direct operational interference.

How contractors can protect themselves from penalty clauses

Allowing a project to fall behind without establishing a comprehensive paper trail leaves your construction firm exposed to devastating financial withholding. Contractors must implement proactive administrative safeguards:
  • Enforce strict notice provisions: Most commercial contracts require formal written notice of a delay event within a narrow window (often 7 to 14 days). Failing to submit a timely notice can legally waive your right to claim an extension.
  • Meticulously document daily field conditions: Maintain precise daily logs and updated CPM schedule baselines to clearly link the delay event directly to an interruption of a critical path activity.
  • Negotiate mutual limitation clauses: Strive to include contract language that waives consequential damages or caps total liquidated damages at a specific percentage of the overall contract value.
Failing to strictly adhere to the contractual notice windows is the single most common reason North Carolina contractors forfeit their rights to legitimate summer weather extensions. Reviewing the statutory rules for North Carolina construction disputes is an essential step toward evaluating your current project exposure. Whether you are facing a massive liquidated damages assessment on a project or need to draft a request for equitable adjustment, taking an analytically rigorous, contract-focused approach is the only way to safeguard your profit margins and protect your operational capital.]]> On Behalf of Robertson & Associates <![CDATA[Top 5 Common Commercial Landlord-Tenant Disputes and How to Resolve Them]]> https://www.rlrobertson.com/?p=47969 2025-12-01T14:21:30Z 2025-11-27T02:11:26Z Commercial lease conflicts can disrupt operations and threaten long-term investment plans. You face distinct risks as a commercial landlord because unresolved disputes may lead to financial loss, property damage or extended vacancies.

Non-payment of rent

Late rent can strain cash flow and may trigger North Carolina’s summary ejectment process if the tenant does not cure the default. According to North Carolina General Statutes § 42-3, a tenant has 10 days to pay past-due rent after a written demand before the lease may be forfeited. Clear rent procedures help you act quickly:
  • Written demand: Send a formal demand for all unpaid rent.
  • 10-day cure period: Track the statutory cure window.
  • Summary ejectment: File if payment is not made after proper notice.
This matters because a rent dispute may evolve into a possession problem that affects your ability to re-lease the space.

Repair and maintenance obligations

Disputes often happen when tenants do not keep the space in good condition. Problems left until the end of the lease can become expensive to fix. Your lease should spell out what the tenant must take care of:
  • Repair duties: Explain what maintenance the tenant must handle.
  • Move-out condition: Describe how the space should look when the tenant leaves.
  • Claim for costs: Send a written claim if you need to recover repair expenses.
These issues can grow quickly so spotting them early helps you avoid bigger property damage.

Unauthorized alterations or use

Unapproved modifications or changes in use may violate zoning rules or disrupt other tenants. Documentation helps you respond effectively:
  • Written consent: Require approval for any alterations.
  • Notice of breach: Cite the specific lease violation in writing.
  • Restoration: Request reversal or pursue remedies if needed.
Unauthorized uses may expose you to regulatory and operational risks.

Security deposit disagreements

Tenants may challenge deductions when the property condition is not well documented. Accurate records support your position:
  • Move-in documentation: Use photos and written reports.
  • Itemized deductions: Document damages beyond normal wear.
  • Compliance: Follow state timelines for accounting.
Clear records may reduce conflict at lease end.

Breach of other lease terms

Issues may involve insurance lapses, exclusive-use conflicts or improper notices. A structured process supports enforcement:
  • Lease review: Identify the clause at issue.
  • Proper notice: Follow contract procedures.
  • Summary ejectment: Consider action if the breach continues.

What you can do next

Commercial lease disputes can carry significant financial and operational consequences. An attorney familiar with landlord-tenant law may help you interpret complex lease language, assess risks and determine your next steps with clarity.]]> On Behalf of Robertson & Associates <![CDATA[Cease and desist actions can help you avoid costly litigation]]> https://www.rlrobertson.com/?p=47864 2025-06-13T09:47:16Z 2024-12-26T20:04:48Z As a responsible business owner, you would rather avoid spending your valuable time, money and resources on litigation. However, sometimes it’s necessary to protect your business from illegal or unethical activities by others.  Fortunately, there are often steps you can take short of taking someone to court. If they are handled professionally and strategically, these steps can often get the intended result on their own. Here we’ll take a brief look at cease and desist actions.

Cease and desist letters

If you need to stop an individual or another business from doing something that’s illegal, a cease and desist letter notifies them that you’re aware of their activity, that they need to stop immediately or by a specified date and that you will take more serious action if they fail to do that.  Maybe a competitor is comparing themselves to you by name in their advertising – falsely claiming to have lower prices or offer a more extensive product line. Perhaps someone is violating the terms of your contract with them. Another business might be using your intellectual property (like a logo or slogan) without permission. A cease and desist letter isn’t legally binding, but it can begin a paper trail that you’ll need if you take further action. The stronger and more professional the letter is, the greater the chances are that it will get the intended results. That’s why it’s best if it’s written and signed by a legal professional.

Cease and desist orders

If the letter doesn’t get the offender to stop what they’re doing, the next step is typically a cease and desist order. This is a legal document that orders a party to stop their activity by placing an injunction on it.  The order must be approved by a court or government agency – whichever is appropriate. That means you need to present your case to the appropriate entity and provide evidence of the steps you’ve already taken (like the letter).  If the other party ignores the order or disputes the allegation that it’s doing anything wrong, you could still end up in court. However, by having addressed the matter quickly and with legal guidance throughout, you’ve improved your chances of coming out on top.]]> On Behalf of Robertson & Associates <![CDATA[Understanding how mechanic’s liens impact real estate transactions]]> https://www.rlrobertson.com/?p=47839 2024-10-14T15:32:07Z 2024-10-14T14:13:58Z Mechanic's liens place a cloud on the property Mechanic's liens can significantly impact real estate transactions. Once a contractor or business files a lien, it becomes “a cloud” on the property's title, making it difficult for the owner to sell, refinance or transfer ownership of the property. Potential buyers and lenders typically require a clear title, free of encumbrances like a cloud, before proceeding with a transaction. In short, the owner must resolve a mechanic's lien before any property sale or refinancing can occur. Resolutions often involve paying off the lien, negotiating a settlement or disputing the lien in court.

Resolving payment disputes through mechanic’s liens

If a contractor, subcontractor or supplier is not paid for their work or materials, filing a mechanic's lien is an effective way to initiate payment or resolution. The process typically involves:
  • Notice: Providing a preliminary notice to the property owner and other relevant parties, informing them of the intent to file a lien if payment is not received.
  • Filing the lien: Submitting the lien to the appropriate county recorder or clerk’s office where the property is within the statutory deadline, which is 120 days in North Carolina.
  • Enforcing the lien: If payment is still not received, the lienholder may file a lawsuit to enforce the lien, potentially leading to foreclosure on the property to satisfy the debt.

Foreclosing on property if the owner doesn’t pay

Once the contractor or business files the mechanic's lien, the next step may involve foreclosing on the property. Foreclosure is a legal process where the lienholder seeks to force the sale of the property to recover the owed amount. The steps typically include:
  • Filing a lawsuit: The lienholder files a lawsuit to foreclose the lien.
  • Court proceedings: The court reviews the case, and if the lien is valid, it may order the sale of the property.
  • Sale of property: The property is sold, often at a public auction, and the proceeds go toward paying off the lien and any other outstanding debts.

You’ve foreclosed on the property: Now what?

If you are the property owner and your property has been foreclosed due to a mechanic’s lien, it is essential to understand your options moving forward:
  • Redeeming the property: There is a ten-day redemption period during which you can reclaim your property by paying the total amount owed, including any additional costs and fees.
  • Consulting an attorney: Seek legal advice to understand your rights and any possible recourse. An attorney can help negotiate settlements with the lien holder or explore other legal options.
  • Financial planning: Assess your financial situation and develop a plan to manage your debts and avoid future liens. It can involve budgeting, securing loans or seeking financial counseling.

Guidance makes good financial sense

Most real estate transactions involve hundreds of thousands or millions of dollars in assets. With this much money involved, it is especially smart for property owners and contractors to consult a real estate law attorney to discuss legal and financial options and find solutions. Guidance for understanding the process and determining the best options can help you navigate these challenges effectively.]]> On Behalf of Robertson & Associates <![CDATA[A guide to construction liens in North Carolina]]> https://www.rlrobertson.com/?p=47464 2024-03-13T18:53:21Z 2023-11-02T19:58:29Z Understanding construction Liens (mechanics liens) A lien, as you may know it, is a right to keep possession of property belonging to another person until they pay all their debt. In construction, a mechanic lien is not a right to keep possession but rather a legal claim against the property that a contractor has improved or built. It is essentially like an insurance policy for contractors, ensuring they get paid for their work.

How construction liens work

Once a contractor completes their work on a property and the client fails to pay, the contractor can file a lien against the property through their state's county clerk. The clerk will record it, and it will become a public record, informing any potential buyers or lenders that there is a legal claim against the property. The next step would be for the contractor to notify the property owner of the lien through certified mail. If this notice goes unanswered within a specified timeframe, typically 15 days, as dictated by construction law in North Carolina, the contractor can initiate a lawsuit to enforce the terms in the lien.

Preventing construction liens

As much as construction liens offer protection for contractors, it is in their best interest to prevent them from happening in the first place. One can prevent them by having a well-drafted contract clearly outlining payment terms and deadlines. Or by regularly communicating with the client and addressing any payment issues as soon as they arise. In the dynamic world of construction, understanding and effectively handling construction liens is paramount. Even if they serve as a safety net for contractors, it is crucial to take all precautions to prevent them from happening. Sometimes, it can be time-consuming and costly to resolve these disputes, which can significantly affect your business as a contractor.]]> On Behalf of Robertson & Associates <![CDATA[Getting your LLC operating agreement right]]> https://www.rlrobertson.com/?p=47462 2024-03-13T18:53:28Z 2023-08-03T17:20:41Z Outlining ownership and membership structure The operating agreement should clearly outline the ownership structure of the LLC, including the names and percentage ownership of each member. It should also specify the process for admitting new members or transferring ownership interests.

Roles and responsibilities

Defining the roles and responsibilities of each member is essential to avoid potential conflicts and misunderstandings. The operating agreement should outline the management structure, decision-making processes and each member's duties, whether they are active in day-to-day operations or act as passive investors.

Profit and loss distribution

Specifying how profits and losses will be distributed among members is important for transparency. This section should include details on how profits will be allocated, any preferential distributions and how losses will be allocated in the event of financial difficulties.

Capital contributions

The operating agreement should outline the initial capital contributions each member makes to fund the LLC's operations. Furthermore, it should detail the process for making additional contributions if they become necessary.

Decision-making and voting

Decisions within the LLC may require a unanimous vote, a majority vote or a vote proportional to each member's ownership percentage. The operating agreement should specify which decisions require what level of approval and how votes will be conducted.

Dissolution and exit strategies

Preparing for the possibility of the LLC's dissolution or the departure of a member is as important as the clauses that govern the company's first steps. The operating agreement should outline the process for dissolving the LLC and how any remaining assets will be distributed. It should also include provisions for a member's voluntary withdrawal or the procedures for handling a member's death or incapacitation.

Non-compete and confidentiality clauses

Including non-compete and confidentiality clauses can protect the LLC's interests under business law. These clauses safeguard the organization by preventing members from engaging in activities that directly compete with the company or disclosing sensitive information to third parties.

Governing law and dispute resolution

Finally, the operating agreement should specify which state's laws will govern the LLC and the methods for resolving disputes between members, such as mediation or arbitration. No arrangement comes without conflict and providing resolution methods will only make operation seamless for stakeholders and customers alike.]]> On Behalf of Robertson & Associates <![CDATA[What type of commercial leases exist?]]> https://www.rlrobertson.com/?p=47424 2024-03-13T18:53:34Z 2023-05-02T00:06:00Z Gross leases In gross leases, the landlord pays for all expenses related to the property, and the tenant only pays their monthly rent. Expenses paid by the landlord typically include property tax, maintenance costs and insurance. Some landlords use a modified gross lease, in which the tenant pays their base rent plus utilities and a portion of the building's operating expenses. The landlord pays the remainder of the operating costs. Landlords renting space in office buildings, industrial complexes and some retail spaces use gross or modified gross leases.

Net leases

Net leases typically have lower rent payments than gross leases, but tenants must also pay some operating expenses. Net leases come in the following variants, with each including more operating expenses:
  • Single-net: The tenant pays their base rent and property taxes for their specific space.
  • Double-net: The tenant pays rent, property taxes and their share of building insurance.
  • Triple-net: The tenant pays rent, property taxes, insurance, utilities and their share of the building's remaining operating expenses.
  • Absolute triple-net: The tenant pays for all building-related expenses, including maintenance and roof or structural repairs.
Commercial real estate investors commonly use net leases because they prefer to let the tenants pay for maintenance and other operating costs and are willing to accept lower rent in exchange for the potential issues that can arise with property management.

Percentage lease

Landlords of retail spaces typically use percentage leases. The tenant pays their base rent and a percentage of their monthly sales revenue. Depending on the lease details, the landlord takes responsibility for some or all of the building's operating costs, including property taxes, maintenance and insurance. Percentage leases work well for seasonal businesses such as retail because they minimize the fixed rent payment and allow the percentage to vary with sales. In lean times such as slow-selling seasons or an economic downturn, the tenant's payment remains a fixed percentage of their sales, aiding cash flow. Commercial leases serve both landlords and tenants and negotiating the best lease for both parties can result in a long and prosperous business relationship.]]> On Behalf of Robertson & Associates <![CDATA[How to resolve business partner disputes in North Carolina]]> https://www.rlrobertson.com/?p=47422 2025-06-13T09:51:17Z 2023-01-30T20:35:58Z Business mediation Mediation involves bringing in a neutral third party, the mediator, who can help each partner express their feelings, listen and empathize without judgement, and facilitate discussion around the issues at hand. The mediator’s role is to help the partners find common ground and reach an agreement that is satisfactory to both parties. Mediation can be a great way to resolve business partner disputes in an effective and neutral manner.

Open communication and compromise

It is important to ensure that each business partner has an open line of communication with the other. One of the best ways to do this is to hold regular meetings with the other partner and discuss any issues that arise. However, it is also important to make sure that both partners listen and respect each other’s opinions in order for a successful resolution to be reached. When resolving business partner disputes, it is important to remember that Communication is key for understanding one another’s views and opinions, and compromise is key for finding a solution that is satisfactory to both parties. Compromise does not necessarily mean that either party will get exactly what they want, but instead involves each partner making some concessions in order to arrive at an acceptable outcome.

Buy out and dissolution

As a last resort, it may be necessary to dissolve the partnership. This can be done through a buyout of one partner by another or through a dissolution agreement per business law guidelines. It is possible to prevent business partner disputes from occurring in the first place by implementing a clear partnership agreement that outlines expectations and responsibilities. However if you ever find yourself in the midst of one, following these tips can help you resolve the dispute quickly and amicably.]]> On Behalf of Robertson & Associates <![CDATA[Proactive ways to navigate blended-family estate planning]]> https://www.rlrobertson.com/?p=47261 2024-03-13T18:53:46Z 2022-11-03T23:25:00Z Blended families in North Carolina and other states are more common in middle age, and you will need to consider ex-spouses and children from previous marriages in your will. This situation can be tricky, but a few proactive steps can do much to manage the situation and honor your financial wishes.

Review your beneficiaries

A divorce decree may dictate that your ex-spouse remains a beneficiary of some assets, such as a retirement account, so you won't be able to change this. Review your other assets like life insurance, additional retirement plans and annuities. Make necessary removals and additions to reflect your new, blended family. If you cannot change beneficiaries, consider buying extra life insurance and other retirement assets and include your new spouse as a beneficiary.

Update your company’s valuation

If you own a small business, have a business valuation performed or update an existing valuation regularly. Changes in the market and economic shifts can raise or lower your company's value, which you might need to reflect when planning your estate.

Change powers of attorney

Review any medical or financial powers of attorney that name your ex-spouse or ex-relatives, such as former in-laws. Failing to revoke a power of attorney for these parties leaves them in the position of making important decisions about your health or finances on your behalf if you should become incapacitated. Updated estate planning that reflects your blended family ensures your estate appropriately honors your wishes for each of your heirs. Reviewing beneficiary designations ensures the ex-spouse does not get assets that should go to your new family. Documenting the current value of your business and updating your powers of attorney can go a long way to help you feel secure that your financial affairs are in order.]]> On Behalf of Robertson & Associates <![CDATA[Beneficiary designation mistakes you’ll want to avoid]]> https://www.rlrobertson.com/?p=47259 2024-03-13T18:53:52Z 2022-08-03T19:43:05Z Make sure to actually name a beneficiary Perhaps the biggest mistake that people make is not designating a beneficiary at all. In some cases, your spouse will automatically inherit property such as the funds inside of a 401(k). In such a scenario, it may not matter if you don't get around to filling out a beneficiary designation form. However, failing to do so for other assets may mean that they revert back to your estate. The same may be true if your primary beneficiary is a minor, dies or becomes incapacitated and you fail to name a secondary beneficiary.

Don't forget to review your choices regularly

Your brother, best friend or adult child may have been the best choice to receive your retirement, brokerage or other accounts when you originally filled out a designation form. However, if you become estranged from your sibling or your friend dies, you'll want or need to choose a new beneficiary. You might also want to take action if an intended beneficiary becomes incapacitated or is otherwise unable to manage property on his or her own. Failing to take action in a timely manner may result in assets being transferred to people who you don't know well or who may not make the best use of a given item. Ideally, you'll schedule annual estate plan reviews to catch these or other issues while there is still time to rectify them. Reviewing beneficiary designations regularly may save your estate time and money. Furthermore, if these documents are structured properly, you may reduce the odds of a family conflict or legal challenge. This is because assets will go directly to their intended recipients with few questions asked.]]>