Best of 2007 - Part 1
This post summarizes the major developments from January though June 2007 as documented on this website. Part 2 will cover July through December.
January. The Supreme Court overruled the venerable "completion and acceptance" doctrine in January. For contractors, this means that mere completion of the work is not a shield from third party tort claims for personal injury or damage.
February. This Oregon case provided much needed guidance on the issue of whether -- and to what extent -- the prevailing wage rules apply to a public/private project where only a portion of the work is funded by public money.
March. The Supreme Court took the next logical step in expanding the scope of the economic loss doctrine in the Alejandre case, holding that the doctrine applies to cut off claims for purely economic loss even in situations where the contract between the parties does not provide a remedy for economic losses. A March bonus: our "Mayhem in the Market" summary of which party bears the risk of volatile market fluctuations of material costs.
April. In a case arising from the new Tacoma Narrow Bridge project, Division 2 clearly (and correctly) laid out the rules applicable to disputes over the scope of arbitration clauses in construction contracts. Pointedly, the Court held that it is up the Courts -- not arbitrators -- to decide this threshold issue.
May. This entry discussed the recent trend on federal cases charging contractors with violations of the False Claims Act for submitting unwarranted requests for extra compensation.
June. This opinion provided useful guidance on when if ever a Builders Risk policy will cover losses caused by faulty workmanship. A June bonus: our presentation on emerging legal issues in Design/Build.