Privity of Contract

News & Analysis as of

Condominium Warranties Do Not Apply to Some Florida Projects Built as Rental Housing

Florida’s Condominium Statutes provide unit owners with express statutory warranties from a Project Developer and Contractors that perform construction services. See F.S. 718.203. Such warranties have been the source of much...more

Privity and Its Strategic Implications in PTAB Trials

The creation of the Patent Trial and Appeal Board (“PTAB”) within the U.S. Patent and Trademark Office (“PTO”) as a forum for hearing challenges to the validity of issued patents has attracted significant interest from...more

Developers Beware: Consumer Protection Procedures Act Strikes Again in D.C.

A recent court decision emphasizes the need for real estate developers to proceed with caution when making representations to potential home buyers in the District of Columbia, as well as in other jurisdictions with similar...more

The State and Impact of Florida’s Economic Loss Rule

In March of this year, the Florida Supreme Court departed from established precedent and limited the application of the economic loss rule to product liability cases. The court explained that this was necessary given the...more

Auditors’ Liability to Third Parties: An Overview

Historically, the doctrine of privity of contract prevented third parties from claiming against auditors for negligently prepared audited reports. The landscape changed with the recognition of the tort of negligent...more

Options to Repurchase Property – A Cautionary Tale on Drafting

A recent Ohio Court of Appeals decision highlights the importance of careful drafting in real estate documents and the need for due diligence in property transactions. Sellers of land sometimes intend to reserve a right to...more

Under Construction - September 2013: Utah’s Economic Loss Rule

In Utah, a plaintiff must generally in be in privity with the “original contractor, architect, engineer or real estate developer” to bring an “action for defective design or construction.” Utah Code Ann. §78 B-4-513(4). This...more

New York Appellate Court Dismisses Syncora’s $320M RMBS Suit Against J.P. Morgan

On August 13, the First Department of the Appellate Division of the Supreme Court of New York reversed a trial court decision denying Syncora Guarantee Inc.’s motion for summary judgment in an action against J.P. Morgan...more

Court Finds Two State Agencies Are In Privity Despite Being Created By Separate Statutes

The doctrine of collateral estoppel may seem to be a more fitting subject to a blog devoted to civil procedure than corporate law. However, the doctrine can have important ramifications in the corporate setting as I noted...more

Annual Review of Significant Cases Affecting Design Professionals

This annual update is to provide a review of the most significant decisions impacting design professionals. The cases will consider the following important issues: the effect contractual language has on a professional...more

Rogers Towers: First Thoughts on Recent Changes to Florida’s Economic Loss Rule

The Supreme Court of Florida recently blurred the lines between contract and tort law in a case involving breach of contract and negligence claims between an insured and its insurance broker. The Court used this vehicle to...more

Is Jacob To Laban As Weiner Is To The Original Talk Radio Network?

Jacob was in love with Rachel, but he had a problem. What could he offer Rachel’s father Laban for her hand? Not having much, he offered to work for seven years. Laban seemed to find this acceptable, but when the seven years...more

The Lesser of Two Evils? Court Holds that Statutory Measure of Recovery Under a Mechanic’s Liens Is the Lesser of Reasonable Value...

In Appel v. Superior Court (No. B244590, 3/11/13), California’s Second District Court of Appeal held that the proper measure of a mechanic’s lien claim is the lesser of the reasonable value of the services and materials...more

Federal Court Sides With Second DCA In Privity Split

In Moss v. Kroner, 197 Cal. App. 4th 860 (2011), the Second District Court of Appeal found that rescission was available to a plaintiff under Corporations Code Section 25504 even though the plaintiff was not in privity with...more

Mortgage Banking Update - March 21, 2013

In This Issue: - Uniform State Test Implementation Nearing - Mortgage Servicer's Alleged Failure To Be Licensed Subjects Company to Claims under State and Federal Debt Collection Statutes - Sixth Circuit...more

Weekly Law Resume - January 31, 2013: Construction Defects Premised on Negligent Design Theory

Beacon Residential Community Association v. Skidmore, Owings & Merrill, LLP Court of Appeal, First District (December 13, 2012) The First Appellate District reversed a judgment in favor of design professionals and...more

Under Construction - December 2012

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

Arizona Court of Appeals Issues Decision Related to the Application of the Statute of Repose and Economic Loss Doctrine for...

On December 4, 2012, the Arizona Court of Appeals issued a decision in Sullivan v. Pulte Home Corporation that will have significant implications in the construction industry. The case revolved around a home built by Pulte in...more

Indemnification Agreements Under CERCLA Do Not Affect Liability to Entities That Are Not Parties to the Agreement

Section 107(e) of CERCLA provides that - "No indemnification, hold harmless, or similar agreement or conveyance shall be effective to transfer from the owner or operator of any vessel or facility or from any person who...more

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