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
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
Developer Ordered to Cede Control to Homeowners’ Association
Appeals Court Sides with Homeowners in Pool Construction Lawsuit A recent decision sheds light on the ability of a subsequent purchaser of a subdivision (who we refer to as the “Developer” for simplicity’s sake) to usurp control of a development. Along with family members, the Developer sought to retain full control over architectural decisions of homeowners within the community without … Read More
Construction Statute of Repose Applied in Suit Against Contractor for Injuries on Public Sidewalk
Construction Industry Statute of Repose Applies to Improvements Dedicated as Public Property In Garamella v. City of Lebanon, et al., 2022 Tenn. App. LEXIS 24 (Tenn. Ct. App. Jan. 24, 2022), the court rejected a plaintiff’s argument that the 4-year construction industry statute of repose did not apply in favor of the defendant contractor where the improvement had been dedicated … Read More
Out of State, Not Out of Mind
Alabama Contractor Sued in Tennessee for Construction Defect on Alabama Project In a cautionary tale that some out-of-state contractors may find somewhat surprising, the Tennessee Court of Appeals recently ruled that a homeowner could sue an Alabama contractor in Davidson County regarding construction of a lake house in Muscle Shoals, Alabama. Baskin v. Pierce & Allred Constr., Inc., 2022 Tenn. … Read More
Waiver of Written Change Orders and Unjust Enrichment
Tennessee Court of Appeals Finds in Favor of Subcontractor in Claim Against Owner The Tennessee Court of Appeals recently affirmed a trial court’s decision in favor of a subcontractor where the general contractor went under and the subcontractor asserted a lien claim and a claim for unjust enrichment against the owner. The owner argued that the subcontractor did not comply … Read More
Tennessee Reconstructs Construction Statutes
Yesterday, Tennessee passed the Construction Industry Payment Protection Act (CIPPA) (SB2681/HB2706), which brings broad amendments to Tennessee’s lien laws, the Truth in Construction Act, the Prompt Pay Act, and Construction Defect statutes. Despite a shortened session that focused primarily on the budget and COVID-19 related bills, the legislature took time to pass amendments sought by a unified coalition across the … Read More
THE TIMES THEY ARE A CHANGIN’ – CONTINGENT PAYMENT AND LIENS IN TENNESSEE
Come senators, congressmen please heed the call Don’t stand in the doorway don’t block up the hall For he that gets hurt will be he who has stalled There’s a battle outside and it is ragin’. It’ll soon shake your windows and rattle your walls For the times they are a-changin’. -Bob Dylan- A battle is raging in Tennessee as Senator … Read More
LT Knoxville Construction Law Seminar 2018
This year our seminar is titled Construction: On And Off The Field, and will be held in Knoxville on August 17th at the Fox Den Country Club. This seminar is aimed at offering practical advice for all parties involved in the construction business from a legal viewpoint. All that concerns the legal aspects of the business is filed in this title … Read More
Getting Paid on Tennessee Public Projects: the “Little Miller Act”
Like many states, Tennessee law requires that a contractor performing work on a state or local project having a contract price of $100,000 or more to post a bond to secure the contractor’s payment for all the labor and materials used by the contractor, or any immediate or remote subcontractor under the contractor. T.C.A. §12-4-201. The purpose of the bond … Read More
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