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Contractor May be Sued for Lost Profits arising out of Breach of Contract

by Kent Holland | Feb 9, 2011 | Newsletter Article

When an oral surgeon hired a contractor to construct his office and was unable to use part of the finished office due problems with the floors, he sued the contractor for damages, including loss of profits.  The court held that the possibility that there would be lost...

Punitive Damage Award Against Insurance Company Reversed by Supreme Court as Excessive

by Kent Holland | Feb 9, 2011 | Newsletter Article

When State Farm Insurance refused a proposed settlement for the amount of its policy limit for a law suit arising out of an automobile accident, the matter went to trial and a jury returned a verdict against State Farm’s insured in the amount of three times the policy...

Mold-Related Construction Defect Claims: Who is Liable for Alleged Damage Caused by Exterior Insulation Finishing Systems (“EIFS”)

by Kent Holland | Feb 9, 2011 | Newsletter Article

By: Gordon & Rees, LLP EIFS or synthetic stucco is at the forefront of construction defect allegations regarding water intrusion, property damage and mold growth. EIFS generally consists of a layer of exterior grade gypsum glued to a foam board. The foam board is...

No Damage for Delay" Clause Not Enforceable

by Kent Holland | Feb 8, 2011 | Newsletter Article

Where an electrical contractor was delayed in completing its work, the project owner, school district, asserted that the contractor’s claim for delay damages was barred by a “no damages for delay” clause in the contract. The trail court concluded that the...

Architect Wins Entitlement to Damages, but Recovers Nothing, Because it Failed to Keep Adequate Cost Records

by Kent Holland | Feb 8, 2011 | Newsletter Article

An architect performed both design and construction administration services under its contract with a school district. When the construction contractor completed the project eight months late, the architect alleged that it was entitled to recover compensation for the...
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