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
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
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
FREE TRAINING AT SAFETYFEST TN 2019
Want to learn more about safety? Attend SafetyFest Tennessee 2019 a free health and safety training held April 29 – May 3, 2019 in Oak Ridge and Knoxville, Tennessee. SafetyFest is a combined effort of federal, state, and local agencies, businesses, and non-profit organizations to promote safety and health at work, home, and in the community. The primary goal of SafetyFest is … Read More
Construction Defects and the Importance of Preserving the “Scene”
In construction defect claims, failure to preserve the “scene” can be fatal to either a valid claim or a strong defense. Indeed, when a defect or failure is discovered, it is important to do two things, as soon as possible: (1) secure the “scene” and related items and documents; and (2) notify any individuals or entities that may be involved … 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
Robots in the Construction Industry: Robots and automation arrive on construction sites
While most of modern commerce and our daily lives have seen a dramatic increase in the use of automation and/or robots, construction sites have been one area where robots were slow to arrive. However, that does not appear to be the case any longer. A recent article published by the Associated Press highlighted the trend toward robotics and automation at … Read More
“Pay that man his money,” or don’t. Contingent Payment in Tennessee for Subcontractors
The payment term is the most important provision of any subcontract. Subcontractors are not typically advanced money at the start of their work, requiring them to front the cost of construction based on the contractor’s contractual obligation to pay. But, a subcontractor must insure the contractor’s payment obligation is not illusory. Pay-if-paid and pay-when-paid provisions are frequently misunderstood. A pay-if-paid … Read More
Tennessee Court of Appeals: Specific mention of “fees” required to enforce attorney’s fee provision
It has long been understood in Tennessee that in order to recover attorney’s fees in an action for breach of contract that the contract to be enforced must specifically provide for the recovery of motorcycle accident attorney’s fees in the event of an action to enforce the contract (absent some applicable statute providing for attorney’s fees in certain instances). However, … Read More