Owners Not Entitled to Statute of Repose Defense

Appellate Reversal of Summary Judgment Highlights Purpose of Construction Statute of Repose In Clayton v. Dixon, 2023 Tenn. App. LEXIS 115 (Tenn. Ct. App. March 23, 2023), a property owner sued adjacent property owners for property damage caused by the installation of an allegedly deficient pipe culvert. Mark Clayton, the owner of residential property, sued his neighbors, Joseph and Faye … Read More

Court Rules for Subcontractor in Corporate Veil Piercing, Fraudulent Conveyance Appeal

insolvent

Trial Court Erred in Awarding Directed Verdict for Undercapitalized Contractor Defendant The recently decided Ruben Estrada v. DJ Exteriors, LLC et al. (2023 Tenn. App. LEXIS 91) involves a contractual dispute between a contractor and subcontractor. DJ Exteriors, LLC, a limited liability company specializing in masonry, siding, and roofing, was owned by three members – Dustin Jones, James Reedy, and … Read More

Economic Loss Rule Applied to Commercial Construction Contracts

Drywall mudding room under construction

The economic loss rule bars tort claims arising under construction contracts negotiated between sophisticated commercial entities. For years, the economic loss rule (or economic loss doctrine) has applied to limit a claimant to its contractual remedies and bar tort claims for purely economic loss. In fact, the Tennessee Supreme Court recently held in Milan Supply Chain Sols. v. Navistar that: … Read More