Economic Loss Rule Does not Apply to Fraud Claims

by Kent Holland | Sep 26, 2017 | economic loss doctrine, Newsletter Article

The economic loss rule was applied by a trial court to bar a homeowner in a contractual relationship with a contractor from suing for fraud instead of only for breach of contract. This was reversed on appeal, with the appellate court holding that while claims for...

Limitation of Liability Clause Enforced to Limit Recovery to only $550,000 of a $9.5 Million Jury Verdict

by Kent Holland | Sep 26, 2017 | limitation of liability clause, Newsletter Article

Where a housing developer won a jury verdict for more than $9.5 million against a geotechnical engineer, the court applied the limitation of liability (LoL) clause in the geotech’s contract to cap the liability at $550,000. The developer attempted to avoid the LoL by...

Architect/Design-Builder Responsible for Construction Subcontractor’s Site Safety

by Kent Holland | Sep 26, 2017 | Newsletter Article

On a design-build project where an architect held the prime contract under DBIA forms 530 and 535, it was liable for overall site safety – including that which it had by subcontract expressly delegated to its construction subcontractor.   Because the language of the...

Pollution Exclusion Can’t be Applied to Carbon Monoxide Poisoning Caused from Covered Occurrence Under Different Provision of Policy

by Kent Holland | Sep 26, 2017 | Newsletter Article

Carbon monoxide was released into a newly constructed home due to incorrect installation of a water heater vent. The commercial general liability (CGL) carrier for the contractor declined to defend and indemnify the contractor against a suit for the homeowner’s...

Economic Loss Doctrine Does Not Bar Negligent Misrepresentation Claim against Design Professional

by Kent Holland | Aug 29, 2017 | economic loss doctrine, Newsletter Article

By: Kent Holland A professional negligent misrepresentation claim was filed against a professional environmental/geotechnical firm by the project developer that was its client. The suit sought to recover economic losses the developer incurred when it discovered that a...

Lead-Based Paint Is a “Pollutant” within CGL Pollution Exclusion

by Kent Holland | Aug 28, 2017 | Newsletter Article

By: Kent Holland Where lead-based paint was ingested by a tenant’s child, the tenant sued her landlord for injuries allegedly sustained by the child. The landlord tendered the claim to its commercial general liability (CGL) insurer who, instead of defending the...