RLI Insurance Company v. Indian River School District
2008 U.S. Dist. LEXIS 43303 (D. Del. June 3, 2008)
In this case, the United States District Court for the District of Delaware held that a surety’s claim against an architect and construction manager for improper approval of payments to the principal was barred by the economic loss doctrine. Additionally, the court held that the surety was not released of its liability to the owner where the owner wrongfully paid the contractor, as the owner had made those payments in reliance on certifications from the architect and the construction manager.
Continue Reading U.S. District Court in Delaware Holds Surety’s Claims Against Construction Manager and Architect Barred by Economic Loss Doctrine; Surety Liable on Performance Bond Where Owner Overpays Contractor in Good Faith Reliance on Architect’s and Construction Manager’s Certifications