Application of Economic Loss Doctrine Limited to Contracting Parties Under Arizona Law

by Kent Holland | Nov 14, 2013 | Newsletter Article

The Arizona Supreme Court held that the “economic loss doctrine” did not prevent a homeowner from pursuing economic damages for negligence against the home’s builder because there had never been a contract between the parties. Generally speaking, the economic loss...

A/E Statutory Duty to Safeguard Public Safety and Welfare Does not Establish a Duty of Care Owed to Specific Condominium Purchasers

by Kent Holland | Oct 29, 2013 | Newsletter Article

Suit by Condominium Owners Association (COA) against consulting firm that prepared a property condition assessment (PCA) was dismissed by court on summary judgment motion for failure to show that consultant owed a duty of care to the condominium owners who purchased...

AIA Contract Clause Setting Time Limit to Bring Suit after Substantial Completion Upheld

by Kent Holland | Oct 29, 2013 | Newsletter Article, time limits

Where a hotel developer agreed by contract with its builder to limit the time for filing suits to four years following substantial completion, a California court of appeal held that this did not conflict with public policy.  Parties are permitted the freedom of...

Subcontractor Permitted to File Suit against Project Owner Corporation and Corporate Officer in Individual Capacity

by Kent Holland | Oct 29, 2013 | Newsletter Article

Subcontractor suit was permitted against a project owner as well as an officer of the project owner in his individual capacity for negligent misrepresentation on the basis that the project owner had represented the General Contractor to be acting on behalf of the...

CM Did not Breach Fiduciary Duty and was Entitled to Recover for Delay Period Caused by Client

by Kent Holland | Oct 29, 2013 | Newsletter Article

On a home building project in excess of $5 million, the homeowner contracted with a construction manager to oversee the project for a $375,000 fixed fee for a specified scope of services that included preparing a budget, soliciting bids for major contracts,...

Limitation of Liability Clause Enforced – Even in Face of Allegations of Gross Negligence

by Kent Holland | Oct 28, 2013 | limitation of liability clause, Newsletter Article

Where a limitation of liability clause in a design professional contract would limit a homeowner’s claim against its designer to the total fee for services, the plaintiff sought to avoid the affects of the clause by asserting that the designer had acted with gross...