{"id":904487,"date":"2025-06-24T16:11:52","date_gmt":"2025-06-24T22:11:52","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904487"},"modified":"2025-06-24T16:11:55","modified_gmt":"2025-06-24T22:11:55","slug":"construction-defect-indemnity-lessons-from-ruling","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-defect-indemnity-lessons-from-ruling\/","title":{"rendered":"Indemnity Lessons From Mass. Construction Defect Ruling"},"content":{"rendered":"\n

Christopher Sweeney | Conn Kavanaugh<\/a><\/p>\n\n\n\n

In Trustees of Boston University v. Clough Harbour & Associates LLP, the Massachusetts\u00a0Supreme Judicial Court considered anew whether a construction defect claim<\/a> tendered\u00a0under the terms of a bespoke contractual indemnity provision is subject to\u00a0Massachusetts\u2019 six-year statute of repose.[1]<\/p>\n\n\n\n

On April 16, the court held that under the parties\u2019 specifically negotiated indemnity provision, the answer was \u201cno.\u201d But questions remain, and practitioners and industry participants alike would be well-advised to take a hard look at their standard operating procedures going forward.<\/p>\n\n\n\n

Background<\/strong><\/h4>\n\n\n\n

The Massachusetts statute of repose generally bars tort claims involving improvements to real estate that are asserted for the first time more than six years after the improvement\u2019s opening to use.[2] So, for example, if a worker suffers a job site injury because of an architect\u2019s design defect, the worker\u2019s claim against the architect is barred if it is not asserted within six years of the owner taking beneficial use of the project.<\/p>\n\n\n\n

Unlike statutes of limitations, this is true even if the claimant reasonably does not discover the negligence until after six years. In contrast, the statute of repose does not apply to claims that are considered contractual in nature.<\/p>\n\n\n\n

But what about hybrid claims like those arising from negligence but asserted under the terms of a contractual indemnity provision? That is, extending the example above, what if the injured worker sues the architect, and the architect, in turn, demands contractual indemnification from a subconsultant?<\/p>\n\n\n\n

Is that contractual indemnity claim covered by the statute of repose such that it is subject to the six-year bar? Enter the Supreme Judicial Court.<\/p>\n\n\n\n

BU Case<\/strong><\/h4>\n\n\n\n

In 2012, Boston University hired CHA, an architecture firm, to design an athletic field suitable for hosting collegiate sporting events. CHA did so, and the field opened for use about a year later.<\/p>\n\n\n\n

It soon became obvious, however, that a defect in CHA\u2019s design caused the field to sag, rendering it unsafe for its intended purpose. BU corrected the defect on its own, and then tendered the bill to CHA for payment under the parties\u2019 broad, specifically negotiated contractual indemnification provision.[3]<\/p>\n\n\n\n

CHA declined to pay the bill, and as a result, in 2020 \u2014 i.e., more than six years after the field opened \u2014 BU sued CHA to recover its costs. BU asserted three claims: professional negligence, breach of contract and breach of the parties\u2019 contractual indemnity provision.<\/p>\n\n\n\n

Ultimately, the trial court granted CHA summary judgment on all three claims. BU did not challenge the court\u2019s decision on the former two claims, but it did appeal the dismissal of its contractual indemnity claim.<\/p>\n\n\n\n

The Appeal<\/strong><\/h4>\n\n\n\n

After accepting the case for direct appellate review, the Supreme Judicial Court reversed the trial court\u2019s ruling in favor of CHA. At base, it concluded that because the gist of BU\u2019s claim was contractual, not tort-based, the statute of repose did not apply.[4] In support of this conclusion, it advanced two primary rationales.<\/p>\n\n\n\n

First, the elements of BU\u2019s indemnity claim \u2014 i.e., the occurrence of a triggering negligent event, notice of the event and failure to pay \u2014 are different than the elements of a negligence claim arising out of the same facts.<\/p>\n\n\n\n

And second, BU\u2019s right to reimbursement was created by a specifically negotiated indemnity provision in the parties\u2019 contract, and absent that provision, CHA had no obligation to cover BU\u2019s losses.<\/p>\n\n\n\n

Perhaps importantly, the court also noted in a footnote that CHA\u2019s indemnity obligation required it to pay BU\u2019s legal fees \u2014 relief that otherwise would not have been available in a pure tort action. Thus, based on these distinguishing features, the Supreme Judicial Court concluded that the gist of BU\u2019s contractual indemnity claim was contractual, and the claim therefore was not subject to the statute of repose.<\/p>\n\n\n\n

Although well-reasoned, the Supreme Judicial Court\u2019s opinion does appear to leave at least one open question: Namely, does a contractual indemnity claim always fall outside the statute of repose \u2014
because, by definition, its elements differ from a negligence claim \u2014 or is something more required?<\/p>\n\n\n\n

That is, for the gist of a contractual indemnity claim to be truly contractual, must it impose liability or permit relief beyond what is otherwise provided at law? The Supreme Judicial Court doesn\u2019t say directly, but its long-standing \u201cgist of the action\u201d jurisprudence, coupled with its footnote about BU\u2019s right to recover legal fees, suggests that contractual indemnity claims still must be carefully parsed before they are declared to be outside the statute of repose.<\/p>\n\n\n\n

Going Forward<\/strong><\/h4>\n\n\n\n

At first glance, the BU case appears troubling for design and construction professionals. After all, a broad indemnity provision may effectively eliminate any temporal limitation on one\u2019s liability for negligent work.<\/p>\n\n\n\n

But that\u2019s not the end of the story. Parties, of course, generally are free to negotiate any contractual terms they wish.<\/p>\n\n\n\n

Indeed, the Supreme Judicial Court recognized that BU and CHA had specifically negotiated the terms of their indemnity provision, as opposed to relying on boilerplate terms, and it therefore had little trouble enforcing the provision according to the parties\u2019 written intent.<\/p>\n\n\n\n

Thus, design and construction professionals that are wary of extended liability can and should negotiate indemnity provisions more limited than the one at issue in the BU case. They would also be well advised to consider the following practical issues, in no particular order of importance.<\/p>\n\n\n\n

Flow-Down Provisions<\/strong><\/h4>\n\n\n\n

Higher-tier contractors should make sure that their subcontractors assume the same indemnity obligations to them as they have assumed to the project\u2019s owner and the owner\u2019s other representatives. Otherwise, the higher-tier contractor may be liable to the owner for a subcontractor\u2019s negligence without downstream indemnity rights of its own.<\/p>\n\n\n\n

Insurance Considerations<\/strong><\/h4>\n\n\n\n

Many common construction insurance programs are effective only through the expiration of the statute of repose. Some exclude coverage for voluntarily assumed risks.<\/p>\n\n\n\n

Accordingly, design and construction professionals should consult early and often with their insurance brokers to ensure that all assumed risks are covered.<\/p>\n\n\n\n

Decoupling Defense and Indemnity Obligations<\/strong><\/h4>\n\n\n\n

From the owner\u2019s standpoint, the broader the indemnity provision, the better. So, one may be tempted to draft indemnity language requiring the owner\u2019s representatives to defend and indemnify the owner against certain losses.<\/p>\n\n\n\n

This language makes good sense in the third-party context \u2014 i.e., where the owner has been sued by a third party, often in personal injury cases. But it would be anomalous in first-party claims involving the owner\u2019s own losses.<\/p>\n\n\n\n

Therefore, for purposes of clarity, if the goal is to preserve both first- and third-party indemnity rights, it probably makes sense to decouple defense and indemnity obligations.<\/p>\n\n\n\n

The Bottom Line<\/strong><\/h4>\n\n\n\n

Although the Supreme Judicial Court\u2019s BU decision surely could have deleterious consequences for the unwary, smart professionals can reform their standard contracts and take other practical steps to avoid unbargained-for risks. Doing so just might make the difference between business as usual and expensive litigation.<\/p>\n\n\n\n

\n\n\n\n

[1] Trustees of Boston Univ. v. Clough Harbour & Associates LLP, 255 N.E.3d 596, 495 Mass. 682 (Mass. 2025).<\/p>\n\n\n\n

[2] The statute reads, in relevant part, as follows:<\/p>\n\n\n\n

Action[s] of tort for damages arising out of any deficiency or neglect in the design, planning, construction or general administration of an improvement to real property \u2026 shall be commenced only within three years next after the cause accrues; provided that in no event shall such actions be commenced more than six years after the earlier of the dates of: (1) the opening of the improvement to use; or (2) substantial completion of the improvement and the taking of possession for occupancy by the owner. G.L. c. 260, \u00a7 2B.<\/p>\n\n\n\n

[3] The parties\u2019 indemnity provision provided that: \u201cTo the fullest extent permitted by law, [CHA] shall indemnify \u2026 [BU] \u2026 from and against any and all \u2026 expenses, including, but not limited to, reasonable attorneys\u2019 fees, to the extent caused \u2026 by the negligence of [CHA].\u201d<\/p>\n\n\n\n

[4] See Anthony\u2019s Pier Four Inc. v. Crandall Dry Dock Eng\u2019rs Inc., 396 Mass. 818, 823 (1986) (in determining applicability of statute of repose, courts must look to \u201cgist of the action\u201d \u2014 i.e., the thrust of the plaintiff\u2019s factual allegations \u2014 not mere labels and conclusions attached to allegations).<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Christopher Sweeney | Conn Kavanaugh In Trustees of Boston University v. Clough Harbour & Associates LLP, the Massachusetts\u00a0Supreme Judicial Court considered anew whether a construction defect claim tendered\u00a0under the terms of a bespoke contractual indemnity provision is subject to\u00a0Massachusetts\u2019 six-year statute of repose.[1] On April 16, the court held that under the parties\u2019 specifically negotiated… Continue reading Indemnity Lessons From Mass. Construction Defect Ruling<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[11015,4,10707],"tags":[9895,228,8646,268],"class_list":["post-904487","post","type-post","status-publish","format-standard","hentry","category-construction-claims","category-construction-defects","category-statute-of-repose","tag-advise-consult","tag-construction-defect-claims","tag-indemnity-provisions","tag-statute-of-repose","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nIndemnity Lessons From Mass. 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