Posted on May 23, 2006 by John Parnass

Reversing Jury Verdict, Court Holds Warranty Clause to be Unambiguous

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This warranty clause in this new case read as follows:

WARRANTY. The Contractor shall guarantee all work against faulty materials and workmanship for a period of one year from the date of final payment and the performance bond shall remain in full force and effect for the period.

The clause was at issue in a suit between a roadway contractor and an owner over alleged defects in asphalt work. The jury awarded the owner $250,000 in damages. But the high court reversed, concluding the trial court made a mistake in allowing the jury to interpret the meaning of the warranty clause. Thanks to Construction Owners Lawblog for digging out this new case.

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