LAN/STV v. Martin K. Eby Construction Co., Inc.
Supreme Court of Texas
435 S.W.3d 234 (Tex. 2014)
Relevant factsFree
DART hired architecture firm LAN/STV (defendant) to design a rail line and separately hired Eby (plaintiff) to build it according to those plans, with no contract between Eby and LAN/STV; Eby discovered roughly 80 percent of LAN/STV's drawings were incorrect, causing major delays and costs, and after settling its breach-of-contract claim against DART for $4.7 million, Eby sued LAN/STV directly for negligence and negligent misrepresentation, winning a $5 million jury verdict that the court of appeals affirmed.
IssueFree
Whether the economic-loss rule precludes a general contractor from recovering construction-delay damages from an architect in the absence of a contractual agreement.