Design Professionals in Arizona no Longer Owe Duty to Third Parties for Economic Loss

by Kent Holland | Aug 16, 2022 | Newsletter Article

In an important decision, the Supreme Court of Arizona held that design professionals that lack privity of contract with project owners owe no duty to reimburse those owners for purely economic losses.  This is a reversal of the 1984 decision in Donnelly Construction...

Contractor based its Bid on a Design-Build Project on an Erroneous Low Quote from Equipment Supplier whom it then Sued for Detrimental Reliance, Negligence and negligent misrepresentation

by Kent Holland | Aug 16, 2022 | Newsletter Article

Almost a $1 million judgment was granted for the Design-Builder against its subcontractor and also against its design professional.   On appeal, the court sustained the judgment, holding that the design-builder acted in detrimental reliance on the low bid, and that...

Arbitration Award Confirmed by Court

by Kent Holland | Jul 22, 2022 | Newsletter Article

Arbitrator awarded attorneys fees to one party in an action.  This decision was appealed and the appellate court affirmed, holding that the arbitrator at least arguably construed the parties’ agreement in awarding attorneys fees and expert costs to one of the parties....

Prime Breached Good Faith Duty to Tender Subcontract Claim to Owner

by Kent Holland | Jul 22, 2022 | Newsletter Article

Subcontractor was granted summary judgment on its suit against Prime to recover damages for Prime’s failure to prosecute a pass-through claim for delay damages against the City of New York.  Court stated that the claim against the Prime was not barred by the...

Washington State DOT v. Seattle Tunnel Partners: Appellate Court Affirms Denial of DSC Claim Involving Tunnel Boring Machine

by Kent Holland | Jul 22, 2022 | Newsletter Article

Article by David Hatem In a June 14, 2022 Unpublished Opinion, the Court of Appeals of the State of Washington in Washington State Department of Transportation v. Seattle Tunnel Partners, No. 54425-3-11, 2022 WL 2132780, (Wash. Ct. App. 2022), (“WSDOT-STP”) affirmed a...

Uninsurable Duty Under Compliance with Law Clause

by Kent Holland | Jul 22, 2022 | Newsletter Article

Professional services contracts typically include a clause stating that the consultant shall provide all services consistent with all laws, regulations, ordinance and codes.  Although this may seem like an appropriate requirement, it could create an uninsurable...