Economic Loss Doctrine Applied in Guam to Bar Design-Build Contractor’s Negligence Claim against its Design Professional Subcontractor for Purely Economic Losses
ConstructionRisk.com Report Vol. #14, Issue #4
See article in the following topic indices:
Contractor Claims against Design Professionals,Design-Build,Economic Loss Doctrine
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Design-Build contractor (Maeda Pacific Corp) engaged a design firm to prepare a cost estimate that it used in preparing a bid to the U.S. Naval Facilities Engineering Command (“Navy”) for a water supply system at the Andersen Air Force Base in Guam. After being awarded the design-build contract, the contractor engaged the design firm to [...]
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Contractor Permitted to Sue Architect for Implied Warranty of Specifications
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Contractor Claims against Design Professionals,Economic Loss Doctrine,Implied Warranty of Specifications,Specifications (Defective),Standard of Care
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A Builder/Contractor that was building a house for a client/homeowner, used architectural plans that were drafted by an architect under contract with the homeowner, was permitted to sue the architect (with whom it had no independent contract) for breach of implied warranty of the plans and specifications to design the house, aligned in a manner [...]
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Owner Permitted to Sue a Subcontractor in Idaho, and Economic Loss Doctrine Did Not Bar Claim
ConstructionRisk.com Report Vol. #13, Issue #9
See article in the following topic indices:
Economic Loss Doctrine,Negligence
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A restaurant owner that contracted with a general contractor to remodel a restaurant was permitted by the Supreme Court of Idaho to file a negligence-based law suit directly against an electrical subcontractor that it alleged was responsible for defective installation of a neon sign that caused a fire and resulting property damage causing financial loss. [...]
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Economic Loss Doctrine in Pennsylvania Bars Owner’s Negligence Claim against Designers and Construction Subcontractors
Economic Loss Doctrine
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Where retaining walls for the foundation of a food distribution center began to evidence stress and potential failure, the building owner filed a suit against various design firms, contractors and subcontractors that had been involved in the design, inspection, testing and construction of the retaining walls – based on allegations of negligence. The U.S. District, [...]
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Economic Loss Doctrine Bars Contractor’s Insurance Carrier from Bringing Subrogation action against Design Professional for Negligence
ConstructionRisk.com Report Vol. #13, Issue #7
See article in the following topic indices:
Contractor Claims against Design Professionals,Economic Loss Doctrine,Negligence,Negligent Misrepresentation,Third party beneficiary
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Where Contractor’s insurance carrier brought a subrogation action against the project’s design professional for negligent performance, including failure to prepare contract drawings and specifications in a manner “fully coordinated for bidding by the various contractors” as required in the design professional’s scope of service, it was held that the insurer had no third-party beneficiary rights [...]
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Shifting Sands beneath the Economic Loss Doctrine in Washington
ConstructionRisk.com Report Vol. #13, Issue #6
See article in the following topic indices:
Economic Loss Doctrine
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For more than a decade, design professionals in Washington have been able to rely upon the economic loss doctrine as a bulwark against many third party claims and certain types of negligence claims from their clients. However, two recent Washington State Supreme Court decisions have created great uncertainty about the future of the economic loss [...]
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Contractors May Bring Action for Economic Losses Against Design Professionals in Pennsylvania
Contractor Claims against Design Professionals,Economic Loss Doctrine,Misrepresentation
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By: Andrew B. Cohn, Esq. A very recent Pennsylvania Supreme Court opinion (January 2005) has significantly changed Pennsylvania law, allowing a general contractor to directly sue an architect in negligence for additional construction costs caused by defective plans, drawings, and specifications. Based on this decision, contractors working on Pennsylvania projects may now bring direct actions [...]
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Architect Cannot Sue Construction Manager for Negligence
Construction Management,Economic Loss Doctrine,Indemnification,Negligence,Third party beneficiary,Third Party Claims
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Where the project architect sued the construction manager (CM), asserting that that the CM negligently performance its services and thereby impacted the architect’s services, costs, fees, and profits, the court held that the contract between the CM and owner did not create a duty of the CM to the architect, and that the architect no [...]
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Architect May be Liable to Unpaid Supplier
Certificate of Payment,Economic Loss Doctrine,Lien Waivers,Payment Bonds
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Where the project architect knew there was no payment bond and that subcontractor was not being paid, yet continued to certify payments to the general contractor and reduced the amount of retainage, it could be liable for breach of duty to use reasonable care to ensure payment was being made to subcontractors. The architect’s responsibilities [...]
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A/E Potentially Liable to Contractor for Defective Design Documents
Contractor Claims against Design Professionals,Defective Specifications,Economic Loss Doctrine,Specifications (Defective),Third
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A general contractor sued a project architect, alleging that the architect prepared erroneous design documents knowing that the project owner would supply them to the successful bidder who would be injured if they were inadequate. An appellate court held the allegations were sufficient to establish a special relationship between the parties, thus permitting the suit [...]
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