Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Breach of Contract,Damages,Delay Claims,Delays,Design-Build,Federal Government Contracts,Liquidated damages
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Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite evidence that the actual damages incurred by the contractor as a result of alleged [...]
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Oral Contract for Remodeling Home May be Enforced
ConstructionRisk.com Report Vol. #13, Issue #4
See article in the following topic indices:
Breach of Contract,Oral contract
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Where contractor entered into an oral contract with a real estate attorney to perform major renovations to the attorney’s new home which had previously been a small apartment building, the owner/attorney coxed the contractor (a friend who had performed work for him in the past) into performing work without pay while the project progressed, and [...]
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A three-year statute of limitations for negligence claims was applied by a court to dismiss a claim against an architect in which the claimant presented its claim as one for breach of contract based upon alleged breach express warranty. The plaintiff asserted that a six-year period for breach of contract claims should be applied instead [...]
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Quantum Meruit Recovery by Contractor Against Cher
Breach of Contract,Contract - Not Signed,contract voidable,Quantum Meruit
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Contractor began construction on a $4.2 million home for Cher (movie star and singer/entertainer) based on a oral agreement that Cher would execute a written contract that had allegedly been negotiated between the parties. Although Cher is alleged to have promised to sign the contract, she never signed it. The contractor performed work under the [...]
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Contractor sued a construction manager (CM) for breach of contract and negligence, claiming that the CM had negligently supplied information, and that it relied on those misrepresentations and incurred damages as a result. Contractor also claimed that the CM was negligent in its coordination and supervision of the contractors. The trial court dismissed the case [...]
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Contractor Not Liable for Emotional Distress
Breach of Contract,Construction Defects,Damages,Emotional Distress,Homeowner Suits
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As a result of poor construction, a jury awarded judgment against a contractor in favor homeowners for recovery of the full cost of necessary repair to the home plus damages for emotional distress caused by the contractor’s negligent performance. $50,000 was awarded to each spouse for emotional distress. This was a highly unusual result since [...]
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Contractor sues engineer for misrepresenting site conditions
Breach of Contract,Contractor Claims against Design Professionals,Differing Site Conditions,Economic Loss Doctrine,Individual Liability of A/E,Misrepresentation,Negligent Misrepresentation,Statute of Limitations
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Where a general contractor prepared its bid in reliance upon information provided by the project owner’s engineer, and the site conditions differed from what was represented, the contractor sued the engineer for misrepresenting the conditions. Both the contractor and the engineer had separate contracts with the owner and there was no contractual relationship between the [...]
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Oral Construction Contract Enforceable
ConstructionRisk.com Report Vol. #13, Issue #2
See article in the following topic indices:
Attorneys Fees,Breach of Contract,contract void,contract voidable,Oral contract,void,voidable
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Although oral contracts for construction or renovation of residential home improvement projects may be voidable pursuant a California statute, they are not automatically void, and in fact a homeowner must demonstrate that the contractor is not entitled to have the contract enforced under one of the exceptions to the draconian impact of the statute. Where [...]
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Contractor Suit against Project Owner’s Lender for Failing to Pay for Work Performed on Project is Dismissed
ConstructionRisk.com Report Vol. #12, Issue #12
See article in the following topic indices:
Breach of Contract,Lender,Misrepresentation,Payment Issues
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Where a contractor brought a claim against a project owner’s bank that was funding the project, based on allegations that the bank made promises to the contractor that funds were available and would be paid to the contractor to complete the project, summary judgment was granted in favor of the bank, with the finding no [...]
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Statute of Limitations for Negligence Actions Bars Suit against Engineer that was based on Breach of Contract Allegations
ConstructionRisk.com Report Vol. #12, Issue #2
See article in the following topic indices:
Breach of Contract,Negligence,Statute of Limitations
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Kroger Company brought suit against an engineering for breach of contract based on allegations that the engineering service were “ineffective, performed negligently, and their implementation caused additional damages to the Kroger Store.” Summary judgment was granted for the engineer finding that the action was barred by the three year statute of limitations applicable to tort [...]
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