Engineer Owed Independent Duty to a Construction Contractor to Provide Design Specifications That Do Not Cause Delays and Disruptions
ConstructionRisk.com Report Vol. #15, Issue #2
See article in the following topic indices:
Economic Loss Doctrine,Liquidated damages,Privity of Contract,Third Party Claims
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Where a project owner assessed liquidated damages against its construction contractor for untimely completion, the contractor filed a claim against the project engineer asserting that the delay was due to defective plans and specifications, and also that the contractor had relied upon representations by the engineer that the contractor would not be held to the [...]
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Condominium Association Barred by Economic Loss Doctrine from Suing Consultant for Repair Costs, and Lacks Third Party Beneficiary Rights to Sue the Consultant for Breach of Warranty
ConstructionRisk.com Report Vol. #15, Issue #2
See article in the following topic indices:
Economic Loss Doctrine,Privity of Contract,Third Party Beneficiaries,Third Party Claims
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Where construction defects caused significant repair costs, a condominum association at Stratton Mountain (along with the project developer) sued and settled with the construction contractor for the defects for over $7 million but then incurred more than that in conducting the repairs. The condo association then filed suit against a professional consultant that had been [...]
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Economic Loss Doctrine Bars Suit against Design Firm Where there is No Privity of Contract Regardless of Whether Designer Might Have Deviated from Industry Standards
ConstructionRisk.com Report Vol. #14, Issue #10
See article in the following topic indices:
Economic Loss Doctrine,Limitation of Liability,LoL,Privity of Contract
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Suit was filed by an entity with an ownership interest in the project against two engineering firms that were subcontractors to one of the engineering firms that the general contractor (GC) contracted with to provide design services for a thermal energy system (an alternative air conditioning unit designed to make ice). Summary judgment was granted [...]
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Economic Loss Doctrine Precluded Negligence Claim against Design-Builder Because Design-Build Project Considered a “Product” not a “Professional Service”
Breach of Contract,Design-Build,Economic Loss Doctrine,Negligence,Product Liability,Professional Services
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In Wisconsin, where the economic loss doctrine does not bar malpractice suits against professional service providers such as architects and engineers, a court concluded that a contractor who designed and constructed a resort and conference center that included an indoor water park, hotel units and lobby, and a restaurant, provided a completed “product” to its [...]
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Negligence Claim Barred Where Issues Arise Under Contract Performance, and Breach of Contract is the Sole Proper Remedy
ConstructionRisk.com Report Vol. #14, Issue #9
See article in the following topic indices:
Breach of Contract,Economic Loss Doctrine
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A project owner/developer successfully recovered on most aspects of its complaint against a contractor for defective workmanship that caused window leaks and underground parking garage wall leaks, but its negligence claim was dismissed by summary judgment with the court finding the contractor owed no independent duty to the Owner outside of the duties assumed by [...]
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Project Owner Has No Cause of Action Against Subcontractor With Whom it Has No Contract: Economic Loss Doctrine Applies
ConstructionRisk.com Report Vol. #14, Issue #9
See article in the following topic indices:
Contract Privity,Economic Loss Doctrine,Third party beneficiary
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After a project owner terminated its prime contractor and paid an outstanding invoice owed to the subcontractor, it subsequently filed suit against the subcontractor alleging negligent construction and breach of contract. Summary judgment was granted, and affirmed on appeal for the subcontractor, on the basis that (1) the Owner had no privity of contract with [...]
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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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