News & Analysis as of

Breach of Contract Construction Industry Negligence

Robinson+Cole Construction Law Zone

Rhode Island Closes One Bridge and May Have Burned Others with Ensuing Lawsuit

The state of Rhode Island recently filed a lawsuit against 13 companies that provided design, construction, and inspection services over the past ten years (the extent allowed by the applicable statute of limitations) to the...more

Smith Debnam Narron Drake Saintsing & Myers,...

Effective Strategies for Handling Construction Defect Claims

In 2022, North Carolina was bustling with new construction projects, ranking as the sixth highest state for newly built homes. With so much building going on, construction defect claims are bound to pop up. These claims can...more

Carr Maloney P.C.

Statutes of Limitations vs. Statutes of Repose. What Are They, and How Do They Affect Contractors and Design Professionals in...

Carr Maloney P.C. on

Statutes of limitations and statutes of repose, when applicable, can provide time-based defenses that will bar a complaint filed against contractors and design professionals, whether the claim is based in contract or in...more

Bradley Arant Boult Cummings LLP

West Virginia Supreme Court Offers Guidance on Contractual and Implied Indemnity Claims

The West Virginia Supreme Court of Appeals recently reversed, in part, and affirmed, in part, a lower court decision regarding dismissal of contractual indemnity and implied indemnity claims. WW Consultants was the design...more

Bradley Arant Boult Cummings LLP

North Carolina Muddies the Water on the Economic Loss Doctrine

A pair of recent rulings involving the economic loss doctrine from North Carolina serve as a timely reminder to carefully consider the extent of contractual remedies in negotiation of construction agreements – lest a later...more

BCLP

Triple Point v PTT: UK Supreme Court also interprets a contractual cap on liability

BCLP on

The UK Supreme Court recently handed down a highly anticipated judgment on the interpretation of clauses which pertain to liquidated damages and limitations on a contractor’s liability for damages. Most notably, the Supreme...more

Downs Rachlin Martin PLLC

Vermont Supreme Court Recognizes Exception to the Economic Loss Rule

Sutton v. Vermont Regional Center, 2019 VT 71 (Oct. 14, 2019) - Despite its longstanding reputation as liberal and sympathetic to plaintiffs, the Vermont Supreme Court has for a very long time strictly enforced the...more

White and Williams LLP

Virginia Molds Tort Versus Contract Law in New Home Construction Case

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Often times, both contract and tort claims co-exist in a subrogation matter and the line between the two can be blurred. This is especially true in the context of damages resulting from new home construction defect claims....more

White & Case LLP

Turning off auto-correct? Employers' ability to recover costs of correcting contractors' defects

White & Case LLP on

In Thio Keng Thay v Sandy Island Pte Ltd [2019] SGHC 175 the High Court of Singapore confirmed that an employer may recover damages for rectifying defects even when it has done so in breach of a contractual defects...more

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...more

Ward and Smith, P.A.

The Economic Loss Rule and Why It Matters in Construction Litigation

Ward and Smith, P.A. on

In its broadest sense, the "economic loss rule" prohibits recovery in tort for purely economic loss incurred under contract law. The Merriam-Webster Dictionary online defines tort as "a wrongful act other than breach of...more

Faegre Drinker Biddle & Reath LLP

Interpreting Indemnity Provisions in Construction Contracts

Liability in the construction process is usually determined and allocated by contract. It is quite common for construction contracts to contain indemnity provisions requiring one party to defend and reimburse the other...more

Troutman Pepper

Divided New York Court Of Appeals Holds That A Third Party Cannot Sue For Breach Of Contract Absent Express Language Naming Them...

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Dormitory Auth. of the State of NY v. Samson Constr. Co., 2018 N.Y. Lexis 218 (February 15, 2018) - The Dormitory Authority of the State of New York (“DASNY”) undertook, as project manager, to construct a facility for the...more

Saul Ewing LLP

Ways to Make Sure the Indemnity Clause You Just Negotiated Is Not Your Enemy

Saul Ewing LLP on

When indemnity is mentioned, most owners, designers and contractors think of protection from third party claims asserted by parties with whom they have no contractual privity. However, depending on the language used,...more

Troutman Pepper

California Supreme Court Clarifies That “Right To Repair Act” Is Exclusive Remedy For Both Economic Loss And Property Damage...

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McMillin Albany LLC v. Superior Court, No. S229762, 2018 Cal. LEXIS 211 (Jan. 18, 2018) - Several homeowners (“Plaintiffs”) brought suit against developer/general contractor McMillin Albany LLC (“McMillin”) for alleged...more

Troutman Pepper

Federal Court Holds That, Under Louisiana Law, a Contractor Need Not Show a Total Work Stoppage to Recover Extended Home Office...

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Team Contrs., L.L.C. v. Waypoint NOLA, L.L.C., No. 16-1131, 2017 U.S. Dist. LEXIS 162172 (E.D. La. Oct. 2, 2017) - Waypoint NOLA (“Waypoint”) was the owner of a hotel construction project in New Orleans (the “Project”). ...more

Troutman Pepper

Montana Supreme Court Holds That A Waiver Of Consequential Damages And A Partial Limitation Of Liability In A Design Contract Are...

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Zirkelbach Constr., Inc. v. DOWL, LLC, 2017 Mont. Lexis 591 (Mont., Sept. 26, 2017) - In interpreting a state statute which makes contractual limitations on a party’s liability unenforceable in certain instances, the...more

WilmerHale

Separation Panes: Emerging Litigation Over Window Sealant

WilmerHale on

Relatively few people in the commercial construction industry are kept up at night by polyisobutylene (PIB) — the synthetic rubber sealant commonly used to provide a long term and durable moisture barrier for insulated glass...more

Troutman Pepper

Federal Court in Indiana Permits City to Sue Design Subconsultant Despite Lack Of Privity

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City of Whiting, Indiana v. Whitney, Bailey, Cox, & Magnani, LLC, 2015 U.S. Dist. LEXIS 150229 (N.D. Ind. Nov. 5, 2015) - The City of Whiting, Indiana (the “City”) contracted with American Structurepoint, Inc....more

Carlton Fields

Arise and Exclude: Artful Pleading Fails to Circumvent Contractual Liability Exclusion

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It’s not uncommon for plaintiffs to couch their pleadings in terms that attempt to avoid exclusions in defendants’ liability coverage. The plaintiffs in Bond Safeguard Ins. Co. v. National Union Fire Ins. Co. of Pittsburgh,...more

Troutman Pepper

Texas Supreme Court Holds Builder’s Limited Defensive Participation in Litigation Did Not Waive Right to Compel Developer to...

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G.T. Leach Builders, LLC v. Sapphire V.P., 2015 Tex. LEXIS 273 (Tex. Mar. 20, 2015) This action arose after 2008’s Hurricane Dolly caused extensive damage to a luxury condominium project that Sapphire V.P., L.P. (“Developer”)...more

Carlton Fields

Construction Case Law Update - September #2 2014

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FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

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