John Mark Goodman | Build Smart A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini Insurance, 2023 WL 4675387 (W.D. La. July 20, 2023)). Planet Construction was the general contractor… Continue reading Limitation of Liability in Extra Work Order Trumped by Subcontract
Tag: Limitation of Liability
Exceptions to the Enforceability of Limitation of Liability Clauses
Patrick Tighe | Snell & Wilmer A common feature of some contracts, including construction and design contracts, is a limitation of liability clause that limits or “caps” the amount of potential damages a party faces in the event of a breach. Although Arizona courts will generally enforce limitation of liability clauses, there are at least… Continue reading Exceptions to the Enforceability of Limitation of Liability Clauses
Insurance Policies: Where Is the Proper Balance Between Limitation of Liability and Adherence to Public Policy
Cheryl Shoun | Nexsen Pruet | June 11, 2019 It is well established that policies of insurance are contracts, subject to basic contract law. While parties are generally permitted to contract as they wish, such privilege is not absolute in the context of insurance; required coverage may not be omitted. Rather, statutory obligations relating to… Continue reading Insurance Policies: Where Is the Proper Balance Between Limitation of Liability and Adherence to Public Policy
Montana Supreme Court Holds that a Waiver of Consequential Damages and a Partial Limitation of Liability in a Design Contract are not Contrary to Montana Law
Emily D. Anderson | Constructlaw | November 30, 2017 Zirkelbach Constr., Inc. v. DOWL, LLC, 2017 Mont. Lexis 591 (Mont., Sept. 26, 2017) In interpreting a state statute which makes contractual limitations on a party’s liability unenforceable in certain instances, the Supreme Court of Montana recently upheld the validity of a contract provision in a… Continue reading Montana Supreme Court Holds that a Waiver of Consequential Damages and a Partial Limitation of Liability in a Design Contract are not Contrary to Montana Law
Preventing Limitation of Liability End-Runs
Ralph A. Finizio, Robert A. Gallagher and Jane Fox Lehman | Pepper Hamilton LLP | July 26, 2016 Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and limits of liability. Fraud-based claims may also… Continue reading Preventing Limitation of Liability End-Runs