News & Analysis as of

Construction Contracts Economic Loss Doctrine

Preventing Limitation of Liability End-Runs

by Pepper Hamilton LLP on

Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and...more

The Demise of the Economic Loss Rule in Construction Defect Litigation

The Massachusetts Supreme Court recently held in Wyman v. Ayer Properties, LLC, that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s...more

Texas Supreme Court Unanimously Blocks Contractors' Economic Loss Tort Claims Against Designers

by Porter Hedges LLP on

Texas contractors have long tried to directly sue their owners’ professional design firms -- rarely with success -- when faulty plans cause economic losses such as increased costs from delays and disruptions. A few cases in...more

Economic Loss Rule of the Third Kind - Nothing New or Alien Concepts?

by Porter Hedges LLP on

Can a contractor sue the project’s designer for losses allegedly caused by errors in construction documents? This question was presented in the Eby v. LAN/STV case, which is now before the Texas Supreme Court....more

Under Construction - September 2013: Application of the Economic Loss Rule in Arizona Since Flagstaff Affordable Housing Ltd. v....

by Snell & Wilmer on

In a recent ruling, the Arizona Supreme Court clarified that the economic loss rule does not apply to non-contracting parties. See Sullivan v. Pulte Home Corporation, 667 Ariz. Adv. Rep. 36 (Ariz. 2013). This ruling both...more

Nevada Supreme Court Extends Design Professional Economic Loss Rule Defense to Negligent Misrepresentation Claims on Commercial...

by Snell & Wilmer on

In 2009, the Nevada Supreme Court (“NSC”) applied the economic loss rule to bar claims of professional negligence by design professionals in commercial construction projects, ruling that “[i]n the context of engineers and...more

Design & Construction Practice: 2012 Year in Review

by Burns & Levinson LLP on

It was another memorable year for the construction industry in Massachusetts. As the economic recovery continued to take hold, commercial construction market activity continued to stabilize and public projects remained a...more

Under Construction - December 2012

by Snell & Wilmer on

In This Issue: Letter from the Editor; Colorado Construction Law Developments in 2012; Arizona Court of Appeals Issues Decision Related to the Application of the Statute of Repose and Economic Loss Doctrine for...more

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