EDITOR'S NOTES | Issue 5-3
publication date: Jan 14, 2007
A Spanish proverb sagely states, “Tomorrow is often the busiest day of the week.” Too often in business and in life, we postpone today’s activities for tomorrow and tomorrow’s activities for some future date. Our intentions may be good. They may even be noble. But, when it comes down to the bottom line, intentions very rarely count. In this week’s first case, a subcontractor on a jail construction project procrastinated filing project-related claims until the end of the project instead of when they occurred, as required by the contract. The result? The subcontractor was barred from payment recovery for extra work.
Time is also a major contributor to the events in our second case. A business owner files a motion against the building’s previous owner for alleged faulty installation of refrigeration equipment some 10 years earlier. Among other things, the statute of repose ran out six years before the claim was filed and rendered it invalid.
Finally, a warranty clause takes center stage when a wall collapses on a recently completed auto showroom floor. Can the insurer seek damages from the contractor or its subs? A Pennsylvania court says no, thanks to a standard subrogation waiver clause.
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