Economic Loss Doctrine Applied to Dismiss Homeowner Suit against Geotechnical Firm that Issued Soils Report to Developer

by Kent Holland | Sep 25, 2020 | Newsletter Article

About a year after building a new home, the owners noticed cracks forming in the foundation and walls.  They learned that the soil under the house was unstable.   They then filed suit against the geotechnical services firm that ten years previously authored a...

Dispute under Design-Build Teaming Agreement and Subcontract may be Subject to Arbitration even if Statute of Limitations has Lapsed

by Kent Holland | Sep 25, 2020 | Newsletter Article

A design-builder brought an arbitration action against its engineering subconsultant after the expiration of the statute of limitations.  The engineer filed suit to stay the arbitration – arguing that the issues in dispute (concerning pre-bid quantify estimates) arose...

Waiver of Subrogation Clause In Owner’s AIA Contract Prevents a Contractor from being Sued in a Contribution Action by another Contractor as a Joint Tortfeasor

by Kent Holland | Aug 11, 2020 | Newsletter Article

An apartment building under construction caught fire and burned down, causing $22 million in damages. The fire was apparently caused by an open flame heater that was left burning at the end of a workday by the general contractor. A separate company that was under...

Economic Loss Doctrine Prohibits Claim by One Subcontractor against Another for Economic Losses Caused by Delay

by Kent Holland | Aug 11, 2020 | Newsletter Article

Where a subcontractor on a construction project sued another subcontractor on that project for $1 million in delay damages caused by negligence, it was held that the economic loss doctrine prohibited the suit. Although the subcontractors had no contractual privity,...

No Equitable Relief for Contractor that Failed to Comply with Specifications Requiring Wiring Conduit Even Though Government Inspectors Didn’t Object Until Late in the Job. No Estoppel against Government.

by Kent Holland | Aug 11, 2020 | Newsletter Article

Watts Constructors, LLC (Watts) was required to remove and replace electrical wiring because it failed to comply with contract specifications requiring wiring to be installed inside rigid conduit. Armed Services Board of Contract Appeals (ASBCA) found that Watt’s...

CGL Carrier Owes No Duty to Defend Design-Builder against Project Owner’s Counterclaim alleging Damages from Defective Work

by Kent Holland | Aug 11, 2020 | Newsletter Article

Design-Builder’s services were terminated by the project owner. It then sued the owner for breach of contract. The owner counter-claimed — alleging breach of contract, breach of “implied duties of workmanlike performance and fitness for a particular purpose,”...