Warranty Clause in Subcontract Is Not Exclusive Remedy; GC Allowed to Sue on Breach of Contract Theory
In contract law, a warranty is a different breed of cat. To prevail, one generally need only prove the the work was defective. The focus is upon the end result itself, not whether the installer or subcontractor breached the details of a contract provison or specification. Breach of contract claims, by contrast, depend upon proof the subcontractor actually failed to comply with an applicable standard in the documents. In the other words, the problem or defect in itself is not enough; one must prove a breach leading to the defect to prevail.
Depending on state law and the wording of the contract, the warranty remedy may be deemed an exclusive remedy - and thereby trump the contract claim - or not. Division 1 recently said no, holding that a subcontractor's one-year warranty to correct defective work was not the "exclusive remedy" for a GC. Download file