Recent decision out of the Tennessee Court of Appeals offers cautionary tale for Tennessee homebuilders. In Garrett v. Hidden Valley Homes, LLC, No. M2022-015310-COA-R3-CV, 2023 LEXIS 426 (Tenn. Ct. App. Aug. 22, 2023), the Tennessee Court of Appeals upheld the Trial Court’s ruling that complying with Codes may not be enough to avoid liability for defective construction, offering a cautionary … Read More
Supreme Court Finds Economic Loss Doctrine Inapplicable to Contractors
Tennessee Supreme Court holds economic loss doctrine does not bar jury’s $3.9M punitive damages award in contractor-subcontractor dispute. In Commercial Painting Co. v. Weitz Co. LLC, 676 S.W.3d 527 (Tenn. Sept. 27, 2023), the Tennessee Supreme Court considered whether the economic loss doctrine applied to claims other than products liability. The economic loss doctrine traditionally precludes recovery in tort for … Read More
Economic Loss Rule Applied to Commercial Construction Contracts
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: “[W]hen… … Read More