Last Friday, the Texas Supreme Court ruled for the first time that a plaintiff could recover attorney’s fees in a breach of express warranty action against a contractor.
Medical Center Dallas Ltd sued Carlisle Corp for breaching its written warranty of roofing materials against premature deterioration. The jury awarded Medical Center $110,500 damages for the defective roof and more than $121,000 for attorney’s fees. The court of appeals affirmed the judgment for warranty breach, but reversed on attorneys fees because the hospital’s warranty claim was distinct from a breach-of-contract claim that would allow attorneys fees to be awarded.
On appeal to the Texas Supreme Court, the Supremes held that attorney’s fees may be recovered in a breach of warranty action because an express warranty sounds in contract, not tort. An express warranty is a distinct claim from contract, but it is nonetheless a part of the basis of a bargain and is contractual in nature. Recognizing that breach of an express warranty is founded on contract comports with a party’s expectations under the economic-loss rule. Medical Center Dallas Ltd. v. Carlisle Corp (Tex 2008).
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We will cover this and other recent construction law cases at our full-day, fully accredited, 13th Annual Ultimate Claims Handling Seminar on October 10, 2008 at CityPlace Conference Center in Dallas, Texas.
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