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Construction Contracts Negligence

Gray Reed

Broad Form Indemnities in Construction Contracts (UPDATED)

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Broad form indemnities are common in Texas construction contracts, even though indemnifying someone for their own negligence is a tough pill to swallow.  ...more

Saul Ewing LLP

Subcontractors Were Not Third-Party Beneficiaries of Waiver of Subrogation Language in a General Contract, Requiring Reversal of...

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A recent Maryland appellate decision arising from an insurance company’s exercise of subrogation rights against negligent subcontractors in connection with tornado damage to a warehouse illustrates the pitfalls of waiver of...more

Kennedys

Negligent damage to an insured’s work now considered “property damage” caused by an “occurrence” under Illinois law

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In a landmark decision, the Illinois Supreme Court has set forth a new legal framework to follow when analyzing coverage for construction defect claims under CGL policies. In Acuity v. M/I Homes of Chicago, LLC, 2023 IL...more

Dinsmore & Shohl LLP

Ohio Appeals Court Ruling Upholds Strict Limits on Timing for Bringing Negligence Claims Against Design Professionals

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A recent decision by the Ohio First District Court of Appeals holds the discovery rule does not apply to construction defect claims against design professionals. Generally, the discovery rule means that the applicable statute...more

White and Williams LLP

Drawing the Line: In Tennessee, the Economic Loss Doctrine Does Not Apply to Contracts for Services

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In Commercial Painting Co. v. Weitz Co. LLC, No. W2019-02089-SC-R11-CV, 2023 Tenn. LEXIS 39 (Weitz), the Supreme Court of Tennessee (Supreme Court) considered whether the economic loss doctrine barred the plaintiff’s claims...more

Bradley Arant Boult Cummings LLP

West Virginia Supreme Court Offers Guidance on Contractual and Implied Indemnity Claims

The West Virginia Supreme Court of Appeals recently reversed, in part, and affirmed, in part, a lower court decision regarding dismissal of contractual indemnity and implied indemnity claims. WW Consultants was the design...more

Fox Rothschild LLP

No License, No Contract, No Claim

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Can an unlicensed general contractor enforce a construction contract in North Carolina? “No,” and as Judge Conrad explains, “[t]his is an unyielding rule.” JCG & Associates, LLC vs. Disaster America USA, LLC, 2021 NCBC...more

Bradley Arant Boult Cummings LLP

North Carolina Muddies the Water on the Economic Loss Doctrine

A pair of recent rulings involving the economic loss doctrine from North Carolina serve as a timely reminder to carefully consider the extent of contractual remedies in negotiation of construction agreements – lest a later...more

Maynard Nexsen

Understanding Indemnification Clauses

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Introduction - Construction projects are risky. Contracts allocate risks between the parties. Indemnification clauses shift risk from one party to another. Many parties pay little attention to their contracts’...more

Ervin Cohen & Jessup LLP

Construction Defect Damages May Exceed Cost To Repair

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Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...more

Pillsbury Winthrop Shaw Pittman LLP

Uniwest And Virginia’s Anti-Indemnification Statute: The Trap For The Unwary Should Be Closed

Uniwest And Virginia’s Anti-Indemnification Statute: The Trap For The Unwary Should Be Closed Source: Virginia Lawyer By James P. Bobotek 04.30.21 When preparing commercial contracts, parties strive for certainty to prevent...more

Smith Anderson

Coming to Construction Claims - The Collateral Source Rule

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In another significant opinion from the North Carolina appellate courts, the Court of Appeals recently expanded the application of the collateral source rule to negligence claims arising out of construction disputes in a case...more

Smith Anderson

Contractors vs. Designers - Claims Alive in North Carolina

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North Carolina Courts have held for decades that general contractors can assert negligence claims directly against design professionals in the absence of a contractual relationship between the contractor and the design...more

White and Williams LLP

Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses

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In Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In...more

White and Williams LLP

Virginia Molds Tort Versus Contract Law in New Home Construction Case

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Often times, both contract and tort claims co-exist in a subrogation matter and the line between the two can be blurred. This is especially true in the context of damages resulting from new home construction defect claims....more

Sheppard Mullin Richter & Hampton LLP

Last, but NOT Least: Why You Should Take a Closer Look at Your Next Indemnification Clause

Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. It is not uncommon for parties to...more

Pierce Atwood LLP

The Intersection of Workers’ Compensation Immunity and Contractual Indemnity

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The workers’ compensation statute in many states provides that the workers’ compensation benefits received by an injured employee is the employee’s exclusive remedy. The benefits are paid based on a no-fault basis and the...more

Troutman Pepper

North Carolina Federal District Court Dismisses Tort Claims Based on Same Duty and Breach Alleged in Plaintiff’s Contract Claims

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Precision Hydraulic Cylinders, Inc. v. Manufacturing. Technology, Inc., No. 7:18-CV-203-FL, 2019 BL 344743, 2019 U.S. Dist. LEXIS 156670 (E.D.N.C. Sept. 13, 2019) - Precision Hydraulic Cylinders, Inc. (“Precision”) issued...more

White & Case LLP

Turning off auto-correct? Employers' ability to recover costs of correcting contractors' defects

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In Thio Keng Thay v Sandy Island Pte Ltd [2019] SGHC 175 the High Court of Singapore confirmed that an employer may recover damages for rectifying defects even when it has done so in breach of a contractual defects...more

Ward and Smith, P.A.

NC Anti-Indemnity Statute Update, New Changes Now in Effect

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On July 8, 2019, Governor Roy Cooper signed into law HB 871, significantly altering North Carolina's anti-indemnity statute, N.C. Gen. Stat § 22B-1 ("Anti-Indemnity Statute"), particularly as it relates to indemnity...more

Smith Anderson

Significant Changes to the North Carolina Anti-Indemnity Statute

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North Carolina recently amended its “anti-indemnity” statute, which generally applies to construction-related contracts and agreements with design professionals. At a high level, the new law places additional restrictions on...more

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...more

Troutman Pepper

Federal Court in Louisiana Upholds Suspensive Condition Not Subject Solely to Owner’s Whim

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Team Contractors, LLC v. Waypoint Nola, LLC, No. 16-1131, 2019 BL 96133 (E.D. La. Mar. 20, 2019) - The Eastern District of Louisiana recently denied the motion of a prime contractor (the “Contractor”) for summary judgment...more

Faegre Drinker Biddle & Reath LLP

Interpreting the Scope of Colorado's Anti-Indemnity Statute

A common feature of construction contracts is the indemnity or “hold harmless” provision, which transfers the risk of loss due to a third-party claim from one party to another. Several states have enacted laws that limit the...more

Ward and Smith, P.A.

The Economic Loss Rule and Why It Matters in Construction Litigation

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In its broadest sense, the "economic loss rule" prohibits recovery in tort for purely economic loss incurred under contract law. The Merriam-Webster Dictionary online defines tort as "a wrongful act other than breach of...more

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