THE ECONOMIC LOSS RULE IN NEW YORK CONSTRUCTION CONTRACTS:
WHAT IT IS AND HOW IT MAY BENEFIT CONTRACTORS AND ARCHITECTS
The “economic loss rule” is a rule that New York courts use to prevent a plaintiff from recovering against a defendant for a tort (usually negligence), when the essence of the plaintiff’s claim is for failure to live up to the terms of a contract.
Everyone knows that time is money, and in particular this is true with New York construction contracts. It is also well known that delays are often part of the construction reality, along with change orders and extras. Delays impact owners, contractors and subcontractors.
Continue reading “New York Construction Delays, All Things Being Equal, They’re Not”
Many contractors and subcontractors go about their work feeling protected from claims for damages because their agreements contain certain exclusions. Some of these agreements will even have language stating ‘Not responsible for [X, Y, and Z]’. But the ruling handed down February 14, 2012, by the Supreme Court, Nassau County serves as a reminder that contractual indemnity provisions are more of a privilege than a right, and are not subject to enforcement automatically.
Continue reading “NY Supreme Court Strikes Contractor Liability Limitation Provision”
Architects in New York can be found liable for damages in various situations, depending on who claims damage, and the basis of the claim itself. For example, where an owner has a direct contract with the architect, the owner could bring forth a simple claim based on the contract or a claim based on a tort action. Such a tort action, based on negligence, is a claim for malpractice.
Continue reading “The Top 5 Avenues of Architect Liability in New York”
One topic that came up in my practice recently was a contractor’s potential exposure to liability for punitive damages under New York law. As the name suggests, punitive damages are awarded above and beyond their contract or property damages, ‘where the wrong done was aggravated by circumstances of violence, oppression, malice, fraud, … on the part of the defendant, and are intended to address the plaintiff’s mental anguish or other aggravation, to punish the defendant for its behavior.’ Black’s Law Dictionary 390 (6th Ed. 1991).
Continue reading “Punitive Damages Claims in New York Construction Contract Disputes”
To minimize potential legal problems when planning construction, whether the project is a large commercial project, a new residence, or even a renovation to an existing structure, care must be taken to have essential terms included in the contract.
Continue reading “Construction Contract Drafting Considerations”
When a private improvement lien is filed in New York, the entire body of the New York Lien Law is imported which establishes the rules for filing, enforcing (or foreclosing the lien) and for challenging or discharging the lien. There may often be defenses to the lien for the property owner as outlined below. For those seeking to file a valid lien, the below serves as a reminder of common issues to avoid.
Continue reading “Homeowner Challenges to New York Mechanic’s Liens”
Despite much construction litigation, New York courts who govern Long Island construction law are agreed that an unlicensed home improvement contractor cannot recover against consumers. That has not, however, stopped unlicensed contractors from arguing exceptions to that rule. A recent court victory by John Caravella, Esq. confirms that courts remain unwilling to accept excuses from unlicensed contractors.
In Orefice v. Guma Development, homeowners sued an unlicensed contractor for defective construction. Notably, the local municipal code requires that any person doing business as a contractor be licensed by the municipality. A corporation does not require its own license if a licensed contractor is employed by the firm as a supervisor.
Given the large number and variety of documents required to administer a construction project today (plans, specifications, contracts, etc.), the likelihood of discrepancies arising between these different sources is almost unavoidable.
Do you know how these documents rate in terms of their authority? Continue reading “Construction Contract Document Conflict”
The Supreme Court, New York County, recently clarified the impact of contractual language specifying litigation as the forum for resolution in the subcontract, and impact of New York’s Prompt Payment, providing for arbitration of disputes where it applies.
Continue reading “Subcontractor’s Arbitration Action Stayed by Supreme Court”
The Law Offices of John Caravella, P.C. offers a free initial consultation with a Long Island construction attorney to discuss your legal concerns with no obligation. To schedule an appointment, call our office today or fill out the form below.
