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Real Property & Development Review

Owner Claims Made Against Subcontractors Dismissed for Lack of Privity

By John Parnass on Posted in Construction

Turning largely on the rule that an owner is generally not held to be the third-party beneficiary of the GCs agreements with its subcontractors (unless otherwise stated in the subcontracts), this case results in summary judgment dismissal of defect claims made by an owner against flooring and tile subs hired by the GC.  The GC was not sued — and there’s no explanation in the opinion why that was the case.

  • Danielle

    What if the subs and the gc were enrolled in a wrap-up policy? The GC and the Subs would therefore be held under the same policy. In standard GL Wrap policies, all parties in the wrap agree to a joint defense and each named insured is treated as the only named insured. Therefore, whoever the homeowner decides to sue shouldn’t matter…