Broad Arbitration Clause Flowed Down to Subcontractor Requiring it to Arbitrate Claim against Prime Even though not in Dispute with Owner

by Kent Holland | Oct 25, 2022 | Newsletter Article

Parties to a construction subcontract disagreed over whether their dispute fit within the scope of the arbitration provision in the subcontract.  Trial court denied a motion to compel arbitration.  Appellate court reversed, holding that the arbitration provision in...

Economic Loss Doctrine Enforced in Arizona to Bar Negligence Action by Project Owner against Engineering Subcontractor

by Kent Holland | Oct 25, 2022 | Newsletter Article

Project Owner sued the engineering subcontractor of its general construction contractor alleging damages from negligently surveying property and putting stakes in wrong location.  The engineer admitted it erred in the survey and this caused damages. Summary judgment...

Economic Loss Doctrine Applied in Utah to Bar Tort Claim against Real Estate Seller. And Prevailing Party Attorneys Fees Awarded

by Kent Holland | Oct 25, 2022 | Newsletter Article

An individual, Mr. Charlwood, purchased a house, remodeled it, and then sold it to Mr. Thorp, the Purchaser.  Ten years later The Purchaser noticed issues with the property, including a deck that was apparently structurally failing.  Purchaser sued Seller for...

$3 Million Punitive Damage Award for Misrepresentation Reversed Due to Economic Loss Doctrine and also Waiver of Consequential Damages Clause in Contract (Prevailing Party Attorneys Fees also Awarded)

by Kent Holland | Oct 25, 2022 | Newsletter Article

A jury found Weitz Company liable to a subcontractor for $1,729,122 in compensatory damages for breach of contract.  It also awarded punitive damages of  $3,900,000 for intentional misrepresentation and $1,103,549 for attorneys fees.  On appeal, the court affirmed the...

Arbitration Demand may be filed after Statute of Limitations Period for Filing Litigation (Maryland Law)

by Kent Holland | Aug 16, 2022 | Newsletter Article

Where arbitration demand was filed later than a lawsuit could have been filed, the defendant asked the court to dismiss the arbitration as untimely filed.  Court held that the Maryland statute of limitations applied only to actions filed in courts and that because the...

Design Professionals in Arizona no Longer Owe Duty to Third Parties for Economic Loss

by Kent Holland | Aug 16, 2022 | Newsletter Article

In an important decision, the Supreme Court of Arizona held that design professionals that lack privity of contract with project owners owe no duty to reimburse those owners for purely economic losses.  This is a reversal of the 1984 decision in Donnelly Construction...