Indemnification Clause that Included Voidable Provision was Enforced to Extent Legally Permissible Instead of Throwing out Entire Clause

by Kent Holland | Dec 13, 2017 | indemnification clause, Newsletter Article

An indemnification clause in a contract between a school board and a general contractor contained an indemnification clause requiring the contractor to defend and indemnify the owner against all claims and damages even if caused by the owner. This violated the state’s...

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...

Indemnity Obligation Includes First Party Attorneys Fees Based on Language of the Clause

by Kent Holland | Nov 15, 2017 | indemnification clause, Newsletter Article

An indemnity clause in an easement agreement required the indemnitor (contractor) to pay the Indemnitees (adjoining property owner) first party attorneys fees that were incurred in suing the contractor for property damages. This was a “Crane Swing, Tie Back and Swing...

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...

Limitation of Liability Clause Enforced to Limit Recovery to only $550,000 of a $9.5 Million Jury Verdict

by Kent Holland | Sep 26, 2017 | limitation of liability clause, Newsletter Article

Where a housing developer won a jury verdict for more than $9.5 million against a geotechnical engineer, the court applied the limitation of liability (LoL) clause in the geotech’s contract to cap the liability at $550,000. The developer attempted to avoid the LoL by...

Economic Loss Doctrine Does Not Bar Negligent Misrepresentation Claim against Design Professional

by Kent Holland | Aug 29, 2017 | economic loss doctrine, Newsletter Article

By: Kent Holland A professional negligent misrepresentation claim was filed against a professional environmental/geotechnical firm by the project developer that was its client. The suit sought to recover economic losses the developer incurred when it discovered that a...