Economic Loss Doctrine Precluded Negligence Claim against Design-Builder Because Design-Build Project Considered a “Product” not a “Professional Service”

by Kent Holland | Oct 4, 2012 | Newsletter Article

In Wisconsin, where the economic loss doctrine does not bar malpractice suits against professional service providers such as architects and engineers, a court concluded that a contractor who designed and constructed a resort and conference center that included an...

Negligence Claim Barred Where Issues Arise Under Contract Performance, and Breach of Contract is the Sole Proper Remedy

by Kent Holland | Oct 4, 2012 | Newsletter Article

A project owner/developer successfully recovered on most aspects of its complaint against a contractor for defective workmanship that caused window leaks and underground parking garage wall leaks, but its negligence claim was dismissed by summary judgment with the...

Statute of Repose Period Began to Run Only When Contractors Substantially Completed the last of their Overall Project Work Rather than the Date When Defective Materials Were Installed and Accepted for Beneficial Use

by Kent Holland | Oct 4, 2012 | Newsletter Article

When the State of New Jersey brought suit against a number of contractors involved in constructing a state prison, alleging that the centralized underground system that distributed hot water throughout multiple buildings of the prison was defective, the contractors...

Project Owner Has No Cause of Action Against Subcontractor With Whom it Has No Contract: Economic Loss Doctrine Applies

by Kent Holland | Oct 4, 2012 | Newsletter Article

After a project owner terminated its prime contractor and paid an outstanding invoice owed to the subcontractor, it subsequently filed suit against the subcontractor alleging negligent construction and breach of contract.  Summary judgment was granted, and affirmed on...

CM Not Responsible for Jobsite safety or Liable to Contractor’s Employee for Injuries

by Kent Holland | Oct 4, 2012 | Newsletter Article

A construction manager (CM) is not liable for injuries suffered by a contractor’s employee where the CM’s contract with the project owner did not establish CM contractual responsibility for jobsite safety and where (1) the contractor’s contract with the Owner stated...

After Procuring Insurance for Its Developer/General Contractor Client, a Broker Owes No Duty to an Insured Subcontractor under an OCIP to Advise that the Carrier Has Become Insolvent

by Kent Holland | Jul 26, 2012 | Newsletter Article

A project developer engaged an insurance broker to obtain insurance for a new construction project, and the broker placed an Owner Controlled Insurance Program (OCIP) with $25 million of liability coverage for 10 years after completion of the project that later became...