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...

Individual Member of LLC is Subject to Personal Liability for His Negligent Acts

by Kent Holland | Jul 26, 2012 | Newsletter Article

A member of a limited liability company can be held personally liable for his negligent acts that were committed in furtherance of the company’s construction business.   The LLC entered into a contract to build a small condominium project.  The sole owners of the LLC...

Architect Entitled to Recover Damages under Theories of Unjust Enrichment and Quantum Meruit

by Kent Holland | Jul 20, 2012 | Newsletter Article

Damages were awarded by a court to an architect despite the fact that the architect performed design services for a condominium project being developed by his friend, a lawyer, without having a signed contract, and despite the fact that some of the services were...