The usual measure of damages for breach of a construction contract is the cost to repair the defects or finish the incomplete work. But what if the cost to repair or compete is grossly disproportionate to the value that the additional work would create? In that case, some courts will instead measure damages based on diminution
The Spearin doctrine is alive and well in Maryland. Pursuant to that doctrine, owners who provide plans and specifications to a contractor impliedly warrant that information and may be responsible if that information is defective. Last week, a Maryland appeals court applied the century-old Spearin doctrine to affirm a trial court victory for Balfour Beatty
We previously reported on the dispute between AECOM and Exxon over work performed at Exxon’s refinery in Montana. AECOM claimed it was owed roughly $100 million for extra work performed during a plant turnaround in 2019 that lasted 17 weeks instead of seven weeks as planned. Exxon disputed that it owed additional money and counterclaimed
Most legally enforceable contracts are formed the old-fashioned way: offer and acceptance. Courts will sometimes enforce promises without traditional offer and acceptance where one party has justifiably relied on the other party’s promise. This alternative route to contract formation is called promissory estoppel. While the law varies from state-to-state, prevailing on promissory estoppel theory normally requires
When injuries occur on public roadways, plaintiffs often look beyond the immediate parties and sue the engineers and contractors who designed or built the roadway. Many states have statutes that attempt to shield those parties from liability. Whether immunity attaches in a given case is often a matter of statutory interpretation. For example, in Texas