News & Analysis as of

Negligence Property Damage Construction Contracts

Clark Hill PLC

Colorado Supreme Court rules there is no exception to the economic loss rule for willful and wanton conduct

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On April 21, the Colorado Supreme Court held that there is no exception to the economic loss rule (“ELR”) for willful and wanton conduct. In Mid-Century Ins. Co., v HIVE Constr., Inc., the court drew an important distinction...more

Kennedys

Negligent damage to an insured’s work now considered “property damage” caused by an “occurrence” under Illinois law

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In a landmark decision, the Illinois Supreme Court has set forth a new legal framework to follow when analyzing coverage for construction defect claims under CGL policies. In Acuity v. M/I Homes of Chicago, LLC, 2023 IL...more

Ervin Cohen & Jessup LLP

Construction Defect Damages May Exceed Cost To Repair

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Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...more

White and Williams LLP

Virginia Molds Tort Versus Contract Law in New Home Construction Case

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Often times, both contract and tort claims co-exist in a subrogation matter and the line between the two can be blurred. This is especially true in the context of damages resulting from new home construction defect claims....more

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...more

Ward and Smith, P.A.

The Economic Loss Rule and Why It Matters in Construction Litigation

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In its broadest sense, the "economic loss rule" prohibits recovery in tort for purely economic loss incurred under contract law. The Merriam-Webster Dictionary online defines tort as "a wrongful act other than breach of...more

White and Williams LLP

Wisconsin Court of Appeals Holds Economic Loss Doctrine Applies to Damage to Other Property If It Was a Foreseeable Result of...

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In Kmart Corp. v. Herzog Roofing, Inc., 2018 Wisc. App. Lexis 842, the Court of Appeals of Wisconsin considered whether the economic loss doctrine barred the plaintiff’s negligence claims against the defendant roofer for...more

Troutman Pepper Locke

California Supreme Court Clarifies That “Right To Repair Act” Is Exclusive Remedy For Both Economic Loss And Property Damage...

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McMillin Albany LLC v. Superior Court, No. S229762, 2018 Cal. LEXIS 211 (Jan. 18, 2018) - Several homeowners (“Plaintiffs”) brought suit against developer/general contractor McMillin Albany LLC (“McMillin”) for alleged...more

Troutman Pepper Locke

Ninth Circuit Holds That Despite ‘Known Damage’ Exclusion Insurer Had Duty Under Oregon Law to Indemnify and Defend Contractor...

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Alkemade v. Quanta Indem. Co., 2017 U.S. App. LEXIS 6896 (9th Cir. Apr. 20, 2017) - In 1994, Adrianus and Rachelle Alkemade (the “Alkemades”) bought a house from Meltebeke Built Paradise Homes (“Meltebeke”). The home was...more

Troutman Pepper Locke

Western District of Virginia Confronts Several Legal Issues That Frequently Impact Multi-Party Construction Disputes – Economic...

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Allstate Insurance Company v. Structures Design/Build, LLC, 2016 U.S. Dist. LEXIS 34349 (WD VA March 17, 2016) - This construction dispute case arises from a failed pipe connector that caused water damage to a facility...more

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