Limitation of Liability Clause Enforced – Even in Face of Allegations of Gross Negligence

by Kent Holland | Oct 28, 2013 | limitation of liability clause, Newsletter Article

Where a limitation of liability clause in a design professional contract would limit a homeowner’s claim against its designer to the total fee for services, the plaintiff sought to avoid the affects of the clause by asserting that the designer had acted with gross...

Limitation of Liability Clause Enforced – $70K Limit on $4.2 Million Claim

by Kent Holland | Oct 28, 2013 | limitation of liability clause, Newsletter Article

An architect’s contract containing a limitation of liability clause (LoL) was enforced to grant a partial summary judgment limiting the architect’s liability to $70,000 in the face of a $4.2 million claim for damages due to structural problems that required a nearly...

Economic Loss Doctrine Does Not Bar Contractor’s Negligence Claim against Architect Since There was no Contract (New Jersey law)

by Kent Holland | Oct 25, 2013 | Newsletter Article

A construction contractor under contract to a city housing authority was not barred by the economic loss doctrine from pursuing a negligence claim against the architect that designed the project under separate contract with the owner.  This is because under New Jersey...

Contractor’s CGL Insurance Carrier Must Pay Attorney’s Fees Awarded to Plaintiff against Insured Despite No Coverage for the Compensatory Damages that Were Awarded

by Kent Holland | Aug 14, 2013 | Newsletter Article

In a very strange (and I believe wrongly decided case), the Supreme Court of Idaho held that where a contractor was defended by its commercial general liability (CGL) carrier, and was found liable for breach of an implied warranty of workmanship in performing the work...

Statute of Limitations for Filing Equitable Indemnity Claim Accrues Only When Party Seeking Indemnity Has Been Served a Complaint Giving Rise to the Indemnity Claim

by Kent Holland | Aug 14, 2013 | Newsletter Article

A homeowner association sued a contractor, alleging numerous construction defects and code violations.  Two years later, the association filed an amended complaint adding a new allegation that the contractor installed defective plumbing and sewer systems. Based on the...

Payments by Prime Contractor to Subcontractor in Contravention to Assignment Agreement Requiring Payment to Bank, Entitles Bank to Recover on Every Misdirected Check Even Though Significantly Exceeding Actual Damages

by Kent Holland | Aug 14, 2013 | Newsletter Article

A bank was found entitled to recover the full value of all payments from a prime contractor that were misdirected to the subcontractor, where the prime contractor had acknowledged the subcontractor’s assignment agreement with the bank and had agreed to make payments...