LEGAL ALERT: Worried about new court decision’s impact on liability limits? BIAW’s Contract Subscription Service has you covered
March 7, 2023
A little over four months ago, the Washington State Supreme Court created significant uncertainty in the market when it invalidated common contractual liability limits for builders.
In a 5-4 decision in Tadych v. Noble Ridge Construction, Inc., the court invalidated a local builder’s one-year contractual liability limit. They said contractual liability limits such as Noble Ridge’s one-year limit “shock the conscience” because they are less than the state’s six-year statute of limitation for such claims.
Noble Ridge, a member of the Master Builders of King and Snohomish County, filed a request for reconsideration. In late November, BIAW and MBAKS filed an amicus brief in support, stressing the significant detrimental effect of the case on the building industry and contract law generally in the state. Unfortunately, the court later denied the motion.
The bottom line?
One-year liability limitation provisions in residential construction contracts are now potentially unenforceable.
Recognizing the substantial effects of this decision on the home building industry, BIAW worked with its expert attorneys to review the ramifications of the decision and update its Contract Subscription Service accordingly.
Next steps: Address liability limits
- If you’ve already subscribed to BIAW’s Contract Subscription Service, watch for an email from us with new contracts to replace those you already have on hand.
- If you’re a builder member and haven’t subscribed to our Contract Subscription Service, consider checking it out. For just $399 through March 2024, BIAW builders and remodelers will receive unlimited online access to a suite of more than two dozen contracts and addenda. Covering most common construction needs (and updates from new caselaw like Tadych), this subscription could save you thousands of dollars in legal fees.
- Suppose you aren’t interested in this service. In that case, we advise you to contact your own personal lawyer to protect your business and update your contracts to address the ramifications of this decision as soon as possible.
If you have any further questions about BIAW Contract Subscription Service, please contact legal@biaw.com
Learn more at BIAW’s Contract Subscription Service, exclusively for builder and remodeler members.