Washington Construction Law Blog : Washington Construction Lawyer & Attorney : Davis Wright Tremaine Law Firm : Serving Seattle, Spokane, Tacoma, Bellevue, Everett & Yakima

On August 8, 2010, in Mattingly v. Palmer Ridge Homes LLC, Division II of the Washington Court of Appeals reversed summary judgment in favor of builder Palmer Ridge Homes.  A copy of the decision may be found here:  Download file  The decision is significant for what it says about the enforceability of limitations contained in third-party warranties and by demonstrating the difference between "completion" and "substantial completion" -- and what consequences might follow.

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Describing UCC Article 2-207 as a "defiant lurking demon" condemning its interpreters to "depths of despair," Division 2 nonetheless wrestled with the demon long enough to conclude that the terms listed in a stream of invoices from a merchant seller to a merchant buyer -- a venue provision, disclaimers of liability, etc -- were not enforceable.  Must read for your next battle of the forms case.

Copy of opinion also available here Download file

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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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