Presnell Construction Managers, Inc. v. EH Construction, LLC
134 S.W.3d 575 | Kentucky Supreme Court | 2004
What This Case Means for Subcontractors
EH Construction sued Presnell Construction Managers for negligent misrepresentation and poor project coordination, even though EH had no direct contract with Presnell. The trial court dismissed the case, saying Presnell only owed duties to the owner. Kentucky's Supreme Court reversed, ruling that subcontractors can sue construction managers for providing faulty information and guidance, even without a direct contract. This matters because it means you can hold a construction manager legally accountable for bad information that costs you money.
Key Takeaways
- •You can sue a construction manager for negligent misrepresentation even if you don't have a direct contract with them, as long as they gave you faulty information or guidance
- •Document all communications, instructions, and guidance from construction managers in writing—this becomes evidence if disputes arise
- •If a construction manager's bad information or poor coordination causes you economic losses, preserve records showing the connection between their actions and your damages
Presnell supplied faulty information and guidance to the Project's contractors.
Frequently Asked Question
Can I sue a construction manager who gave me bad information if I don't have a contract with them?
Yes, according to this Kentucky case. If a construction manager supplies faulty information or guidance that causes you economic losses, you can pursue a negligent misrepresentation claim even without a direct contract. You'll need to prove the manager knew you'd rely on their information and that it was wrong.
Related Cases
Gall v. United States
Appellate courts must review all sentences under an abuse-of-discretion standard regardless of whether they fall inside or outside the Guidelines range, and cannot require extraordinary circumstances to justify sentences outside the range.
Piotrowski v. City of Houston
Municipal liability under § 1983 requires proof of official policy as the moving force; isolated employee misconduct insufficient, and equal protection claim time-barred.
Adarand Constructors, Inc. v. Pena
Federal race-based classifications must be analyzed under strict scrutiny regardless of whether they benefit or burden minorities, and the Fifth Amendment's equal protection obligation equals the Fourteenth Amendment's.
Northeastern Florida Chapter of the Associated General Contractors of America v. City of Jacksonville
An association of contractors has standing to challenge a minority set-aside ordinance without proving any member would have won a contract absent the ordinance; the injury is denial of equal competitive opportunity, not loss of a specific contract.
In Re Kellogg Brown & Root, Inc.
The Civil Commitment of Sexually Violent Predators Act is civil, not criminal, and does not violate due process even when applied to incompetent defendants.
Edwin P. Harrison, and United States of America, Party in Interest v. Westinghouse Savannah River Company
The Fourth Circuit reversed the district court's dismissal, holding that the False Claims Act broadly reaches false statements made to obtain government contract approval, not just false payment claims themselves.