United States District Court in New Jersey Considers Effect of Waiver of Consequential Damages and Damages Cap on Indemnification Provisions Contained in Architect’s Contract

Atlantic City Associates LLC v. Carter & Burgess Consultants, Inc.
2008 U.S. Dist. LEXIS 93684 (D.N.J. Nov. 13, 2008)

The United States District Court for the District of New Jersey was asked to resolve the effect of liability limiting provisions on an architect’s indemnity obligations to an owner under a professional services agreement. Determining that the consequential damages provision and the indemnification provision contained in the agreement could be harmonized, the Court held that the architect would only be liable for indemnification of direct, and not consequential, damages. The Court held, however, that a damages cap contained in the architect’s proposal, which was made a part of the contract by incorporation, could not be harmonized with the indemnity clause, so that under the contract, the indemnity provision took precedence over the damages cap. Continue reading “United States District Court in New Jersey Considers Effect of Waiver of Consequential Damages and Damages Cap on Indemnification Provisions Contained in Architect’s Contract”

New Jersey Federal Court Holds that New Jersey Public Works Bond Act and Trust Fund Act Bars A General Contractor from Setting Off Potential Claims on Private Project Against Amounts Owed to Subcontractor on a Public Project

Atlantic City Associates LLC v. Carter & Burgess Consultants, Inc.
2008 U.S. Dist. LEXIS 25144 (D.N.J. Mar. 27, 2008)

The United States District Court for the District of New Jersey recently had to decide whether it was proper for a general contractor to set off potential claims on a private project against amounts owed to the same subcontractor on a public project. Relying upon the New Jersey Public Works Bond Act and New Jersey Trust Fund Act, the District Court concluded that it was improper for the general contractor to set off the amounts because a contractual setoff provision was insufficient to rise to the level of a waiver of the subcontractor’s rights under the Acts. Continue reading “New Jersey Federal Court Holds that New Jersey Public Works Bond Act and Trust Fund Act Bars A General Contractor from Setting Off Potential Claims on Private Project Against Amounts Owed to Subcontractor on a Public Project”