Charter Foods Inc. v. Derek Engineering of Ohio, Inc.
2009 U.S. App. LEXIS 115477 (E.D. KY. Dec. 11, 2009)

The District Court for the Eastern District of Kentucky held that a general contractor, who had performed excavation work on a site in accordance with the plans and specifications, could not be held liable for breach of contract as a matter of law, but could potentially be held liable to the owner for negligence if the contractor breached the duty of care it owed the owner.

U.S. ex rel Pioneer Construction v. Pride Enterprises
2009 U.S. Dist. LEXIS 110935 (M.D. Pa., November 27, 2009)

The court denied the contractor’s claim for summary judgment, which was based on the theory that the subcontractor’s claims were barred by the releases it submitted with partial payment requests, holding that the contractor’s submission of the subcontractor’s claims to the government as part of an equitable adjustment request supported an inference that the parties by course of performance did not regard the releases as barring the claims. Further, the court held that notwithstanding Pennsylvania law to the contrary, federal law allows recovery of delay costs under a Miller Act payment bond.

McKinney & Moore, Inc. v. City of Longview, Texas
2009 Tex. App. LEXIS 9299 (Tex. App., Dec. 8, 2009)

The Court of Appeals of Texas for the Fourteenth District held that a general contractor’s acceptance of final payment barred its claims for compensation for extras. The Court relied on the express release language in the parties’ contract to support its ruling.

The City of Longview, Texas (the “Owner”) retained McKinney & Moore, Inc. (“MMI”) to serve as a general contractor for the construction of the Lake O’ the Pines Raw Water Intake Structure (the “Project”). The parties’ contract contained various provisions related to subsurface conditions and the Owner supplied reports regarding such conditions. Among other things, the contract also provided that the Owner was responsible for design accuracy and sufficiency of the contract documents. The contract further addressed circumstances under which MMI would be entitled to reimbursement for damages and the effect of MMI’s acceptance of final payment.

Excavation Technologies, Inc. v. Columbia Gas Co. of PA
2009 Pa. LEXIS 2794 (Pa., December 29, 2009)

The Pennsylvania Supreme Court held that a utility company’s failure to properly mark the location of its lines under the Pennsylvania One-Call Act did not render it liable to an excavation contractor who struck the lines and suffered purely economic losses. It rejected the argument that the utility should be liable under § 552(3) of the Restatement (Second) of Torts because of its public duty to mark the lines.

Federal Insurance Co. v. Philotimo, Inc.
2009 U.S. Dist. Lexis 108105 (W.D.P.A. Nov. 19, 2009)

Homeowner hired defendant to inspect and clean its fireplace and chimney after observing chunks of mortar falling into the fireplace. Homeowner showed defendant’s technicians the fallen mortar. The technicians cleaned and visually inspected the chimney and reported to homeowner that it “looked good.” Thereafter, an extensive fire swept through the house causing over $400,000 in damage.
Following the fire, homeowner’s insurer commissioned an inspection which revealed numerous signs of damage and disrepair to the chimney that suggested defendant’s technicians should have instructed homeowner not to use fireplace and chimney until repairs were made.

Life Receivables Trust v. Syndicate 102 at Lloyd’s of London
2008 U.S. App. LEXIS 24977 (Nov. 25, 2008)

The Second Circuit held that section 7 of the Federal Arbitration Act (“FAA”) does not permit an arbitrator to compel pre-hearing document discovery from non-parties to the arbitration. However, the court noted that a non party could be subpoenaed to produce documents at a preliminary hearing on non-merits issues before one or more arbitrators.

Kiski Area Sch. Dist. v. Mid-State Surety Corp.
2008 Pa. LEXIS 2260 (Dec. 17, 1988)

Kiski Area School District (“the District”) entered into an agreement with contractor, Lanmark, for the construction and renovation of an elementary school. Mid-State Surety Corporation (“Midstate”) provided a performance bond for the project naming Lanmark as principal and the District as obligee.

The District became dissatisfied with the quality and timeliness of Lanmark’s work, declared it in default, withheld final payment and demanded that Mid-State assume responsibility for the remaining work. The District did not remit the remaining contract balance to Mid-State. Lanmark filed suit against the District seeking payment of the contract balance (the “Lanmark Matter”). The District counterclaimed and joined Mid-State. The District also filed a separate action against Lanmark and Mid-State (“the District Matter”), which was stayed pending resolution of the Lanmark Matter.

Hunt Construction Group, Inc. v. Brennan Beer Gorman / Architects, P.C.
2008 U.S. Dist. LEXIS 93754 (D. Vt. 2008)

In declining to apply an exception to the economic loss rule, the Court dismissed a contractor’s negligence claims against the project architect (and other design professionals).

In 2005, Spruce Peak Realty, LLC (“Owner”), retained Plaintiff, Hunt Construction Group (“Contractor”), to construct a resort hotel in Stowe, Vermont. Owner and Contractor executed a contract setting forth their respective rights and responsibilities on the Project. Owner then contracted with an architect, mechanical, electrical and plumbing engineers, a structural engineer, and an interior designer (collectively, the “Design Professional Defendants”). Contractor was to build the Project according to the plans and specifications the Design Professional Defendants provided under contracts with Owner.

Atlantic City Associates LLC v. Carter & Burgess Consultants, Inc.
2008 U.S. Dist. LEXIS 93684 (D.N.J. Nov. 13, 2008)

The United States District Court for the District of New Jersey was asked to resolve the effect of liability limiting provisions on an architect’s indemnity obligations to an owner under a professional services agreement. Determining that the consequential damages provision and the indemnification provision contained in the agreement could be harmonized, the Court held that the architect would only be liable for indemnification of direct, and not consequential, damages. The Court held, however, that a damages cap contained in the architect’s proposal, which was made a part of the contract by incorporation, could not be harmonized with the indemnity clause, so that under the contract, the indemnity provision took precedence over the damages cap.

Steadfast Insurance Co v. Brodie Contractors, Inc.
2008 U.S. Dist. LEXIS 88448 (October 31, 2008 W.D. Va.)
Steadfast Insurance Co., as subrogee of Skanska USA Building Co., the general contractor, alleged claims for breach of contract and breach of warranty against Brodie Contractors, Inc., a masonry subcontractor, concerning replacement of brick veneer on the Danville Regional Medical Center. Brodie moved for summary judgment alleging that the lawsuit was barred by Virginia’s statute of limitations.