Liability of Design-Builders for Design, Construction, and Acquisition Claims (2015) / Chapter Skim
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Pages 81-86
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From page 81... ...
81 to the owner were "actual" damages, as they resulted directly from the failure of the subcontractor to perform its contractual obligations. The court rejected this argument, finding that it was not reasonable for the design–builder to "re-characterize" delay damages, which were clearly considered "consequential damages" rather than "actual damages" in all of the project's contracts.
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From page 82... ...
82 responded to industry pressure and enacted antiindemnification statutes. These statutes vary among the states, ranging from flatly prohibiting intermediate and broad form indemnification to permitting them, but only if there is a monetary limitation on the indemnification obligation.
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83 charges, damages, claims, suits, losses or liabilities (including attorneys' fees) of every kind whatsoever to the extent caused by the negligence of [ABB]
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From page 84... ...
84 Because the discovery of an injury or a deficiency could occur at any time, a designer or contractor could theoretically face liability exposure forever. To avoid this result, the construction industry lobbied legislatures for statutes that would create an absolute end date to their liability.
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From page 85... ...
85 entities would be able to trigger the statute of repose from the date their work was completed. Because the design–builder and the design and trade subcontractors involved in constructing the hot water system each had continuing project duties, the court found that the 10-year statute of repose was not a proper defense.
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From page 86... ...
86 rule, particularly when balanced against "the broader, longstanding established public policy in California which respects and promotes the freedom of private parties to contract."400 C Certificates of Merit Professionals, such as architects, engineers, and doctors, have increasingly faced liability exposure for alleged negligence or malpractice in performing their duties.
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