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
Destruction of Cottage Ordered, Judge Tells Property Owner They “Can’t Build a Thing”
Judgment ordering destruction of nearly complete structure due to restrictive covenant violation upheld on appeal. In Burkett v. Stevens, 684 S.W.3d 399, 401 (Tenn. Ct. App. 2023), the Tennessee Court of Appeals upheld a harsh ruling which ordered Defendant to abandon and destroy her nearly complete “cottage” in light of a restrictive covenant. The restriction had been imposed onto an … Read More
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
Court Rules for Subcontractor in Corporate Veil Piercing, Fraudulent Conveyance Appeal
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
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
Covid-19 & Construction in Tennessee: Are We Open for Business? Apparently, but . .
Employers across the entire spectrum of the economy are grappling with impacts to operations and ongoing business functions brought on by the Covid-19 pandemic. With remote workforces, the construction industry faces some unique challenges, especially in the face of pressure to part with and donate PPE that workers use every day. On March 30, Governor Lee issued Executive Order 22, … 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