Retaining Wall Foundation Materials Deemed Irrelevant, Collapse Inevitable

Judgment upheld on appeal where subsequently discovered materials used to backfill retaining wall would not have altered Trial Court’s grant for summary judgment In Lyon Roofing, Inc. v. Griffith, 2023 Tenn. App. LEXIS 232, *7 (Tenn. Ct. App. June 5, 2023), the City of Carmel, Tennessee was granted summary judgment based on an engineering expert’s undisputed opinion that the retaining … Read More

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

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

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

Construction worker pouring concrete

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

Construction cranes in a skyline

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