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Economic Loss Doctrine did not bar a Contractor’s Negligent Misrepresentation Claim against Architect Seeking Indemnity against Subcontractor Delay Claim

by Kent Holland | Dec 13, 2017 | economic loss doctrine, Newsletter Article

Where a subcontractor sued the prime contractor based in part on delay claims, the prime filed a third-party complaint against the project owner and the architect seeking indemnity. The court held that the architect owed the contractor a duty of care and that the...

Economic Loss Rule Does not Apply to Fraud Claims

by Kent Holland | Sep 26, 2017 | economic loss doctrine, Newsletter Article

The economic loss rule was applied by a trial court to bar a homeowner in a contractual relationship with a contractor from suing for fraud instead of only for breach of contract. This was reversed on appeal, with the appellate court holding that while claims for...

Owner Allowed to Sue Design Subconsultant Despite Lack of Contractual Privity

by Kent Holland | Apr 25, 2016 | Newsletter Article

Gail S. Kelley, J.D., P.E. ConstructionRisk, LLC In an effort to revitalize a waterfront area along Lake Michigan, the City of Whiting, Indiana hired an engineering firm to design a lakefront park and marina. The Engineer, in turn, hired a Subconsultant to serve as...

Condo Owners Cannot Sue Original Builder for Implied Warranty: Economic Loss Rule Applied

by Kent Holland | Feb 23, 2015 | Newsletter Article

By: Gail S. Kelley, P.E., Esq., ConstructionRisk Counsel, PLLC Where a condominium homeowners’ association brought claims for breach of implied warranty and negligence against the general contractor that built the condominiums, but not the developer who engaged the...

Economic Loss Doctrine Applied in Texas to Limit Tort Claims by Contractors against the Owner’s Design Professionals: Excellent Explanation of the Doctrine

by Kent Holland | Nov 18, 2014 | Newsletter Article

By:  Scott W. Cowan, Daniel D. McMillan, Andrew D. Ness, J. Laurens Wilkes and Christopher H. Domingo – Jones Day law firm In a June 20 decision, the Texas Supreme Court applied the economic loss rule to preclude a direct claim for negligent misrepresentation by...
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