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May 2011 Construction Law Newsletter

May 2011, vol. 1, no. 1

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In This Issue…

Related Court Cases

Construction Contracts
Trapani Construction Company, Inc. v. The Elliot Group, Inc.

Court properly entered judgment for $257,765 in favor of general contractor and against real estate developer. Contracts implied in fact arise from promissory expression that may be inferred from facts that show parties' intent to be bound. Thus, existence of contract implied in fact is a question for trier of fact to decide, and court's finding that contract existed is not against manifest weight of evidence. Plaintiff was paid in excess of $18 million by Defendant for its work on other construction projects performed under unsigned draft contracts, as was the case here. Defendant did not reject Plaintiff's work or instruct Plaintiff to cease work at any time.  Given ample evidence showing Defendant did not disclose its agency relationship to Plaintiff, court reasonably concluded Defendant is personally liable on contract implied in fact. (LAMPKIN and BURKE, concurring.)

Implied Warranty of Habitability
933 Van Buren Condominium Assoc. v. West Van Buren, LLC

As Defendant roofing company was contracted to perform work on roof, HOA's claim for breach of warranty and breach of implied warranty of habitability arising out of faulty work on roof falls within scope of indemnification agreement that counterdefendant developer entered into with roofing company. Under plain language of indemnity provision between developer and other roofing contractor had duty to defend and indemnify developer as to negligence and breach of implied warranty of habitability claims filed by HOA. Claim based on implied warranty of habitability is a contract claim and roofing company is obligated to defend and indemnify developer under its contract.(ELLIS and McBRIDE, concurring.)

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