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Federal Court in Pennsylvania Holds Design Professionals' Negligence Claim Against Pump Supplier Barred By Economic Loss Rule

Elliot-Lewis Corp. v. Skanska USA Building, Inc., 2015 U.S. Dist. LEXIS 98405 (E.D. Pa. July 27, 2015)

Author: Kristopher Berr

11/05/2015

Read the full post at Constructlaw

Federal Court in Pennsylvania Holds Design Professionals' Negligence Claim Against Pump Supplier Barred By Economic Loss Rule

This dispute arises out of a major renovation and expansion of the Franklin Institute in Philadelphia (the Project).  Plaintiff Elliot-Lewis Corporation (ELCo) was a subcontractor hired to install the piping and controls for the Project’s heating, ventilation and air conditioning (HVAC) system. The Project’s schedule required that start up and testing of the HVAC system begin by February 23, 2013 and that the system be operational by April 1, 2013. But, when the HVAC was started for testing, flooding issues arose due to problems with the condenser pumps specified in the HVAC system’s specifications. Ultimately, the HVAC system was not operational by April 1 and ELCo was required to perform additional work and install temporary cooling equipment so that the Franklin Institute could open during the summer. ELCo was never paid by the prime contractor for this additional work.