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Contractors Economic Loss Doctrine

Troutman Pepper

Fraud as an Exception to the Economic Loss Doctrine: Changing Trends in Colorado and Tennessee

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The Economic Loss Doctrine and its various analogues (e.g., the Independent Duty Rule and the Gist of the Action Doctrine) vary in form and application, but each is a judge-made rule serving one principle: If a party seeks...more

Cohen Seglias Pallas Greenhall & Furman PC

KY Contractors Can Now Assert Claims for Negligent Misrepresentation Against an Architect Despite Absence of a Contract

Design professionals doing business in Kentucky beware: the Kentucky Court of Appeals recently held that a contractor may pursue a negligent misrepresentation claim against an architect for delays to a project resulting from...more

Troutman Pepper

Kentucky Appellate Court Holds That a Contractor May Pursue Claim of Negligent Misrepresentation Against Architect Despite Lack of...

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D.W. Wilburn, Inc. v. K. Norman Berry Assocs., No. 2015-CA-001254-MR, 2016 Ky. App. Lexis 206 (Ky. Ct. App. Dec. 22, 2016) - This case arose out of a construction project in which the Oldham County Board of Education...more

Troutman Pepper

Preventing Limitation of Liability End-Runs

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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

Cohen Seglias Pallas Greenhall & Furman PC

Can A Contractor Sue A Design Professional Without A Contract? Not In Maryland

In some states, courts allow contractors to sue design professionals for negligence even in the absence of a contract. In others, like Maryland, courts apply a rule known as the Economic Loss Rule (ELR) to bar such claims....more

Bradley Arant Boult Cummings LLP

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

Troutman Pepper

Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By...

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Wyman v. Ayer Properties, LLC, 469 Mass. 64, 2014 Mass. LEXIS 524 (July 10, 2014) - The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of...more

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Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

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The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

Porter Hedges LLP

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

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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

Eversheds Sutherland (US) LLP

Legal Alert: Supreme Court of Texas Finds Contractors Cannot Recover Delay Damages for Negligent Misrepresentation Against an...

On June 20, Texas joined a number of states that apply the economic loss rule to damages claims arising from negligent misrepresentation between contractors and the owner’s architect. In LAN/STV v. Martin K. Eby Construction...more

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