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ASA asks Ohio Supreme Court to invalidate frivolous claims for "economic losses".(Construction Corner)(American Subcontractors Association)(Brief Article)

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| November 01, 2004 | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

On Oct. 12, ASA filed an amicus curiae, or "friend of the court," brief urging the Ohio Supreme Court to dismiss a lawsuit (Dublin Suites, Inc. v. Shook, Inc.) that "turns the law of contracts on its head." In the lawsuit, a project owner is seeking lost profits and other contract-type damages directly from a subcontractor despite the lack of contractual privity between them. The owner claims that alleged deficiencies in the subcontractor's work caused delays in completion, resulting in additional financing expenses and lost profits. A lower court agreed to allow the negligence suit to move forward, but ASA, in its brief, dismissed the owner's argument: "It defies logic to believe that a contract can create a duty, but a stranger to the contract can bring a lawsuit to enforce an even broader duty in a way that is both outside the contemplation of the contract and ...

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