Architect not Liable to Home Purchaser for Economic Losses Caused by Failed Sewage Disposal System that Architect Certified to Local Government as Meeting Permit Requirements

by Kent Holland | Jan 13, 2016 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC Where a homeowner sued an architect for negligent misrepresentation and violation of the Consumer Protection Act (CPA) based on the fact that the architect prepared and submitted a certification to the local government as...

Engineer’s Lien Effective only from Date Filed, and did not Relate Back to Beginning of Construction

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, J.D. ConstructionRisk, LLC An engineer’s lien that was filed two years after commencement of the contractor’s construction of a project was not entitled to priority over a mortgage holder’s lien that was filed when construction first commenced. The...

Termination for Convenience Clause does not require Reason for Termination or Render Contract Illusory

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, J.D. Where a subcontractor sued the prime contractor for wrongfully issuing a termination for convenience, the trial court found in favor of the prime contractor, concluding that as a convenience termination a prime is not required to have a reason...

Only Jury (and not the trial judge) Can Use the Parties’ Course of Dealings to Determine the Meaning of an Ambiguous Contract

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, J.D. A trial court erred when it considered the course of dealings of the parties to determine the meaning of a design professional contract, and then issued a jury instruction advising the jury that the contract was not ambiguous. As a result, a $2...

Contractor’s Code Violation Does Not Create Negligence Cause of Action by Subsequent Homeowner

by Kent Holland | Dec 23, 2015 | Newsletter Article

J. Kent Holland, Esq. A subsequent (non-original) homeowner may not bring a negligence suit against a homebuilder for economic losses arising from latent construction defects when there has been no physical injury to persons or property. The builder’s violation of a...

Where Flow-Down Clause Limits Incorporation Of The Design-Build Prime Contract, Allocation of Liability In The Subcontract Will Govern

by Kent Holland | Dec 7, 2015 | Newsletter Article

Gail S. Kelley, P.E., J.D. ConstructionRisk, LLC In February 2002, the Inn of the Mountain Gods Resort and Casino in New Mexico (Owner) contracted with Centex/Worthgroup, LLC (Centex) for a design-build expansion and renovation project. Centex then subcontracted with...