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Jan 20, 2023 · In addition, Proximus will make additional efforts to further strengthen internal inspection at its own 300 construction sites, where the company installs fiber through subcontractors.
- I. Introduction
- II. Examples of Multi-Party Construction Disputes in The Wake of Chapman.
- III. Potential Defenses and Preemptive Measures.
- IV. Conclusion
As the Texas Supreme Court pointed out in LAN v. Eby, construction cases are particularly well suited for the application of the economic loss rule because construction projects operate by agreement and the parties are in a position to protect themselves through negotiation. The economic loss rule is based on a policy judgment that intends to respe...
A. Damages to “other work” are sufficient as damages to “other property.”
The most common way plaintiff’s attorneys are manipulating their pleadings is by attempting to create a cause of action in negligence by claiming injury to “other work” is injury to “other property.” For example, during construction, a window contractor walks on, and damages, a new roof. The damage to the roof is considered damage to “other property” and the plaintiff will attempt to place full liability on the window contractor using those damages. Chapman set the stage for these pleadings b...
B. General contractor’s control over a project creates a “duty” to parties outside of privity of contract.
Subcontractors are not the only ones facing unexpected liability for damages through the avoidance of the economic loss rule. In Zbranek Custom Homes, the Chapman ruling was employed to assist in creating a legal duty owed by a general contractor to the lessees of a home. In Zbranek, Zbranek built a home which was later destroyed in a fire. Zbranek built the home pursuant to a contract with the home’s owner, Bella Cima Developments, L.P. Zbranek, as the home’s general contractor, engaged vari...
A. Insurance Policies
A common theme among the cases which avoid the economic loss rule is the inadequacy of an alternative remedy. Specifically, many cases involve situations where all other parties have been dismissed – through non-suit or summary judgment – or the general contractor carries an insurance policy which is insufficient to cover the damages sought. Although it has been expressly stated that this is not a permissive basis for avoidance of the application of the economic loss rule, the lack of alterna...
B. Independent Injury and One Satisfaction
If all else fails and a party finds itself facing liability for a multi-party project, it should be inherent that the plaintiff is limited to recovery for the “independent injury” alleged. Stated differently, if the plaintiff claims it suffered damage to “other property” as to avoid the application of the economic loss rule, it should be limited to recovery of only the damages to that “other property.” Accordingly, in the example of the window contractor damaging the roof, the homeowner shoul...
This recent Texas two-step to avoid the application of the economic loss rule is altering the common pattern of litigation in construction disputes. Contractors can no longer rely upon the benefit of their bargains within the contractual chain. Moreover, it is nearly impossible to protect against liability without contractual privity. This article ...
Jan 19, 2023 · Inspectors checking illegal employment and other violations of labour regulations at Proximus subcontractors rolling out glass fibre networks discovered numerous infringements in the course of large-scale checks.
Jan 20, 2023 · For this reason, new contracts already stipulate that when working with subcontractors, this cooperation can consist of a maximum of two layers. Proximus is examining whether older contracts can also be adapted along these lines", Proximus and minister De Sutter state.
Apr 29, 2014 · After experiencing each scenario, we found that it works better for us to use subcontractors or tradesmen for those specialty jobs. We like to find subcontractors that we can build a relationship with over the long term—that is very critical. We tend to use subcontractors that we’ve built a successful relationship with again and again.
Jul 1, 2021 · In a recent case, the Texas Supreme Court addressed the scope of the general contractor’s duty of care to its subcontractors’ employees on the project site.
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How can Proximus respond to subcontracting issues?
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Why is a Proximus inspection so important?
Section 2252.902 of the Texas Government Code, the public works anti-indemnity statute, included a similar employee exception. However, Subsection (c) of §2252.902 (now repealed by passage of Chapter 151) flew under the radar of many practitioners and appeared to be frequently overlooked.
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