Economic Loss Doctrine Does not Limit Actions where Tangible Property has been Damaged

by Kent Holland | Mar 14, 2023 | Current Issue:, Newsletter Article

Homeowner whose house was damaged by a landslide filed negligence lawsuit against a geotechnical engineer who performed a Geotech investigation for the homebuilder/contractor. The contractor was out of business and couldn’t be sued.  Trial court dismissed the lawsuit...

Subcontractor unreasonably relied on email from Prime that stated only a little rock should be expected – contrary to the Geotech Report that showed the actual hard rock

by Kent Holland | Mar 14, 2023 | Current Issue:, Newsletter Article

Foundation subcontractor sought extra payment for alleged differing site conditions related to rock found in the excavation area.  The geotechnical report provided by the contractor showed several boring holes with this type of hard rock.  But an email from the...

Notice of Proposed Termination and An Opportunity to Cure is Implied in Every Contract

by Kent Holland | Mar 14, 2023 | Current Issue:, Newsletter Article

Gail S. Kelley, P.E., J.D. Termination of a contract for default can have significant consequences for a Contractor.   In addition to the loss of work and loss of potential profit on the project, the Contractor may be liable for the Owner’s costs to complete the...

Court Applies Statute of Repose to Dismiss Counts of Complaint for Negligence, Breach of Contract and Indemnification – because Negligence was at Issue in each Count

by Kent Holland | Feb 14, 2023 | Newsletter Article

The University filed a complaint against a HVAC contractor based on faulty workmanship.  Deciding that the complaint was barred by the state statute of repose, the trial court granted summary judgment to the contractor. This was affirmed on appeal – with the court...

Subcontractor Breached Contract by Refusing to Perform Extra Work as Directed by Contractor unless it First Received Change Order

by Kent Holland | Feb 14, 2023 | Newsletter Article

A concrete sub-subcontractor breached its contract by refusing for perform extra work as directed by its contractor unless the contractor agreed upon the compensation amount to be paid and executed a change order.  The court held that the language of the subcontract...

Handwritten Change to the Lien Release was Effective at Preserving Contractor’s Right to Later Make a Claim for More Funds

by Kent Holland | Jan 9, 2023 | Newsletter Article

A lien waiver form titled “Waiver of Lien to Date” was revised by the subcontractor in handwriting by striking out the words “to date” and writing in their place “Partial.”  The contractor then paid the subcontractor $33,448 per the release but refused to pay an...