Christopher G. Hill | Construction Law Musings Remember BAE Sys. Ordnance Sys. V. Fluor Fed. Sols? I examined that case on two occasions previously here at Construction Law Musings. Previously the discussions were about the mix (or lack thereof) between fraud and contract and about how careful contract drafting is key. In the most recent opinion in this ongoing litigation from March… Continue reading Motions to Dismiss, Limitations of Liability, and More
Tag: Limitation of Liability
Limitations of Liability in Construction Contracts: Ironclad Protection or Legal Illusion?
Bart Reed | Stoel Rives Limitation of liability (LOL) clauses are a standard fixture in contracts involving architects, engineers, and other design professionals—particularly because these parties often have limited assets and depend on such provisions to manage risk. However, Washington legal authority suggests these clauses may not offer the ironclad protection many expect. While LOL… Continue reading Limitations of Liability in Construction Contracts: Ironclad Protection or Legal Illusion?
Limitation Of Liability And Insurance Policy Limits: A Risky Business Strategy
Jordan Karp | Outside General Counsel For most companies, business insurance policies act as a crucial safety net—an assurance that if the unexpected happens, your company won’t face financial devastation. However, when negotiating contracts, there’s a potential trap that some businesses unwittingly walk into: tying a limitation of liability in the contract directly to the… Continue reading Limitation Of Liability And Insurance Policy Limits: A Risky Business Strategy
Limitation of Liability in Extra Work Order Trumped by Subcontract
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
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