Tennessee Court of Appeals affirms award of approximately $200,000 in compensatory damages and attorneys’ fees to engineering firm in contract interpretation dispute. In Gresham, Smith & Partners v. Middleburg Real Estate Partners, LLC, 2023 Tenn. App. LEXIS 395 (Tenn. Ct. App. Sep. 25, 2023), a defendant developer (the “Developer”) appealed the trial court’s ruling that they breached their contract with … Read More
Destruction of Cottage Ordered, Judge Tells Property Owner They “Can’t Build a Thing”
Judgment ordering destruction of nearly complete structure due to restrictive covenant violation upheld on appeal. In Burkett v. Stevens, 684 S.W.3d 399, 401 (Tenn. Ct. App. 2023), the Tennessee Court of Appeals upheld a harsh ruling which ordered Defendant to abandon and destroy her nearly complete “cottage” in light of a restrictive covenant. The restriction had been imposed onto an … Read More
Retaining Wall Foundation Materials Deemed Irrelevant, Collapse Inevitable
Judgment upheld on appeal where subsequently discovered materials used to backfill retaining wall would not have altered Trial Court’s grant for summary judgment In Lyon Roofing, Inc. v. Griffith, 2023 Tenn. App. LEXIS 232, *7 (Tenn. Ct. App. June 5, 2023), the City of Carmel, Tennessee was granted summary judgment based on an engineering expert’s undisputed opinion that the retaining … Read More
Owners Not Entitled to Statute of Repose Defense
Appellate Reversal of Summary Judgment Highlights Purpose of Construction Statute of Repose In Clayton v. Dixon, 2023 Tenn. App. LEXIS 115 (Tenn. Ct. App. March 23, 2023), a property owner sued adjacent property owners for property damage caused by the installation of an allegedly deficient pipe culvert. Mark Clayton, the owner of residential property, sued his neighbors, Joseph and Faye … Read More
Court Rules for Subcontractor in Corporate Veil Piercing, Fraudulent Conveyance Appeal
Trial Court Erred in Awarding Directed Verdict for Undercapitalized Contractor Defendant The recently decided Ruben Estrada v. DJ Exteriors, LLC et al. (2023 Tenn. App. LEXIS 91) involves a contractual dispute between a contractor and subcontractor. DJ Exteriors, LLC, a limited liability company specializing in masonry, siding, and roofing, was owned by three members – Dustin Jones, James Reedy, and … Read More
Economic Loss Rule Applied to Commercial Construction Contracts
The economic loss rule bars tort claims arising under construction contracts negotiated between sophisticated commercial entities. For years, the economic loss rule (or economic loss doctrine) has applied to limit a claimant to its contractual remedies and bar tort claims for purely economic loss. In fact, the Tennessee Supreme Court recently held in Milan Supply Chain Sols. v. Navistar that: … Read More