In Commercial Painting Co. v. Weitz Co. LLC, No. W2019-02089-SC-R11-CV, 2023 Tenn. LEXIS 39 (Weitz), the Supreme Court of Tennessee (Supreme Court) considered whether the economic loss doctrine barred the plaintiff’s claims for fraud, negligent misrepresentation and punitive damages arising out of a contract with the defendant for construction services. The court held that the economic loss doctrine only applies to product liability cases and does not apply to claims arising from contracts for services. This case establishes that, in Tennessee, the economic loss doctrine does not bar tort claims in disputes arising from service contracts.
In Weitz, defendant, Weitz Co. LLC (Weitz), was the general contractor for a construction project and hired plaintiff Commercial Painting Co. (Commercial) as a drywall subcontractor. Weitz refused to pay Commercial for several of its payment applications, claiming that the applications were submitted untimely and contained improper change order requests. Commercial filed a lawsuit against Weitz seeking over $1.9 million in damages, alleging breach of contract, unjust enrichment, enforcement of a mechanic’s lien, and interest and attorney’s fees under the Prompt Pay Act of 1991. Weitz filed a counterclaim for $500,000 for costs allegedly incurred due to Commercial’s delay and defective workmanship. In response, Commercial amended its complaint to add claims for fraud, intentional and negligent misrepresentation, rescission of the contract and $10 million in punitive damages. Commercial alleged that Weitz received an extension of the construction schedule but fraudulently withheld this information from Commercial and continued to impose unrealistic deadlines.Continue Reading
In Patton v Pearson, No. M2022-00708-COA-RC-CV, 2023 Tenn. App. LEXIS 231, the Court of Appeals of Tennessee (Court of Appeals) considered whether the lower court erred in dismissing an insurance carrier’s lawsuit against its insured’s tenant for damages sustained in a fire. While the lawsuit was filed in the name of the landlord (i.e., the insured), discovery revealed that the lawsuit was actually a subrogation lawsuit, brought by the landlord’s insurance carrier. The lower court granted the tenant’s motion for summary judgment based on the Sutton Doctrine, holding that the tenant was an implied co-insured under the landlord’s policy. The Court of Appeals affirmed, finding that although the lease agreement did not reference insurance, the Sutton Doctrine applied, which barred the landlord’s carrier from subrogating against the tenant.
Recent Posts
Categories
- Construction Defects
- Statute of Limitations-Repose
- Contracts
- Texas
- Litigation
- Products Liability
- CPSC Recalls
- Subrogation
- Negligence
- Evidence
- Experts – Daubert
- New York
- Massachusetts
- New Jersey
- Certificate of Merit
- Indemnification
- Experts - Reliability
- California
- Causation
- Jurisdiction
- Maryland
- Condemnation
- Anti-Subrogation Rule
- CPSC Warning
- Minnesota
- Landlord-Tenant
- Sutton Doctrine
- Waiver of Subrogation
- Uncategorized
- Pennsylvania
- Rhode Island
- Florida
- Economic Loss Rule
- Cargo - Transportation
- Malpractice
- Spoliation
- Tennessee
- Indiana
- Michigan
- Comparative-Contributory Negligence
- Contribution-Apportionment
- AIA Contracts
- Product Liability
- Assignment
- Missouri
- Parties
- Public Policy
- Arbitration
- Civil Procedure
- Res Judicata
- Damages
- Damages – Personal Property
- West Virginia
- Wyoming
- Oklahoma
- Builder's Risk
- Contractual Subrogation
- Equitable Subrogation
- Georgia
- Illinois
- Insurable Interest
- Limitation of Liability
- Mississippi
- Made Whole
- Delaware
- Settlement
- Subrogation – Equitable
- Construction
- Premises Liability
- Joint or Several Liability
- Montana
- Duty
- Privity
- New Mexico
- Right to Repair Act
- Landlord
- Tenant
- Building Code
- Arizona
Tags
- Construction Defects
- Texas
- Construction Contracts
- Statute of Limitations
- Statute of Limitations – Discovery Rule
- Products Liability
- Subrogation
- Product Liability
- Negligence
- Statute of Repose
- Massachusetts
- Evidence
- New York
- Circumstantial Evidence
- Experts - Reliability
- Experts – Daubert
- New Jersey
- Indemnification
- Certificate of Merit
- Contracts
- Malfunction Theory
- Waiver of Subrogation
- CPSC Recalls; Products Liability
- Landlord-Tenant
- Experts
- Maryland
- California
- Causation
- Jurisdiction
- Jurisdiction - Personal
- Louisiana
- Amazon-eBay
- Contracts - Enforcement
- Georgia
- Civil Procedure
- Illinois
- Pennsylvania
- Condemnation
- Inverse Condemnation
- Minnesota
- Statute of Limitations - Accrual
- Sutton Doctrine
- Experts – Qualifications
- Arizona
- Florida
- Economic Loss Doctrine
- Public Policy
- Rhode Island
- West Virginia
- Negligent Undertaking
- Limitation of Liability
- Statute of Limitations - Contractual
- Anti-Subrogation Rule
- Indiana
- Expert Qualifications
- Tennessee
- Amazon
- Delaware
- Connecticut
- Evidence - Hearsay
- Design Defect
- Improvement
- Loss of Use
- Vehicles
- Negligence – Duty
- Apportionment
- Privity
- Statute of Limitations - Tolling
- workers' compensation subrogation
- Malpractice
- Warranty - Implied
- Spoliation
- Made Whole
- Settlement
- Malfunction Theory; Design Defect
- Independent Duty
- Ohio
- Michigan
- Comparative Fault
- Water Damage
- Contracts - Formation
- Condominiums
- Non-Party at Fault
- Unconscionable
- Missouri
- Parties
- Arbitration
- Failure to Warn
- Manufacturing Defect
- Pleading
- Removal
- Entire Controversy Doctrine
- Motion to Intervene
- Res Judicata
- Wisconsin
- Subrogation; High-Net-Worth; Damages; Art; Cargo-Transportation; Anti-Subrogation Rule
- Products Liability – Risk-Utility
- Architects-Engineers
- Lithium-ion battery
- Internet Sales
- Anti-Subrogation Rule; Wyoming; Landlord-Tenant; Sutton Doctrine
- Oklahoma
- Sanctions
- Spoliation – Fire Scene
- Builder’s Risk
- Contractual Subrogation
- Equitable Subrogation
- Exculpatory Clause
- Gross Negligence
- Insurable Interest
- Mississippi
- Daubert
- Standing
- Third Party
- Accepted Work
- Montana
- Independent Contractor
- Res Ipsa
- New Mexico
- Right to Repair Act
- AIA Contract
- Betterment
- Damages
- Damages-Code Upgrades
- Statute of Limitations - Repose
- Washington
- Implied Warranty of Habitability
- Warranty - Construction
- Idaho
- Joint-Tortfeasors
- Forum-Venue
- Warranty – Express
- AIA Contracts
- Anti-Indemnity Statutes
- Products Liability - Foreseeability
- Cargo-Transportation
- MCS-90
- Contribution
- Substantial Completion
Authors
Archives
- July 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022