Federal Court Holds Engineer May Be Liable to Contractor for Both Breach of Professional Duty and Negligent Misrepresentation

by Kent Holland | Jan 13, 2016 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC The United States District Court for the Northern District of California held that an engineer who prepares documents that contractors will rely on when preparing their bids owes a duty of care to the contractors, and thus can...

Prime Contractor Liable for Failing to Pay Sub Full Amount the Prime Received from Government for the Sub’s Work

by Kent Holland | Jan 13, 2016 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC A subcontractor performing masonry work for renovations of buildings at the Langley Air Force Base recovered in a breach of contract action against the Prime Contractor who, after receiving full payment for the subcontractor’s...

Statute of Repose Bars Homeowner Suit against Contractor for Work Performed More than 10 Years Before Suit

by Kent Holland | Jan 13, 2016 | Newsletter Article

Kent Holland, J.D. A homeowner’s negligence suit against a contractor for construction defects resulting in water damage to the home was held to be untimely because it was filed more beyond the 10 year period established by the state’s Statute of Repose. Every winter...

Architect not Liable to Home Purchaser for Economic Losses Caused by Failed Sewage Disposal System that Architect Certified to Local Government as Meeting Permit Requirements

by Kent Holland | Jan 13, 2016 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC Where a homeowner sued an architect for negligent misrepresentation and violation of the Consumer Protection Act (CPA) based on the fact that the architect prepared and submitted a certification to the local government as...

Engineer’s Lien Effective only from Date Filed, and did not Relate Back to Beginning of Construction

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, J.D. ConstructionRisk, LLC An engineer’s lien that was filed two years after commencement of the contractor’s construction of a project was not entitled to priority over a mortgage holder’s lien that was filed when construction first commenced. The...

Termination for Convenience Clause does not require Reason for Termination or Render Contract Illusory

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, J.D. Where a subcontractor sued the prime contractor for wrongfully issuing a termination for convenience, the trial court found in favor of the prime contractor, concluding that as a convenience termination a prime is not required to have a reason...