Articles Posted in Kansas Supreme Court

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The Subcontractor for a hotel construction project obtained materials for its part of the project from Supplier but failed to pay for them. Supplier claimed a lien against the hotel property. Because Supplier’s filing placed a cloud on the title, affecting the hotel owner’s refinancing, the General Contractor filed a bond with the district court to secure payment of Supplier’s claim. The district court approved the bond, which discharged the lien. Supplier then filed suit for payment for the materials it had supplied for the hotel. The district court granted summary judgment to the General Contractor. The court of appeals reversed and directed that judgment be granted to Supplier. The Supreme Court affirmed, holding that Kan. Stat. Ann. 60-1110 discharged the lien when the approved bond was filed, and any defenses General Contractor may have had against the lien filing had no relevance now. View "Wagner Interior Supply of Wichita, Inc. v. Dynamic Drywall, Inc." on Justia Law

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Homeowners sued Contractor for, inter alia, breach of contract, negligence, fraud, and fraudulent concealment, claiming that Contractor negligently failed to perform contractually required work. The district court granted summary judgment in Contractor's favor on all claims. As to the negligence allegations of interest in this appeal, the district court held (1) the economic loss doctrine prevented Homeowners from bringing a tort action under circumstances governed by contract, and (2) the economic loss doctrine supplied an additional bar to Homeonwers' fraud claims. The court of appeals affirmed. The Supreme Court accepted the appeal to decide whether the economic loss doctrine barred any negligence claims. The Court reversed, holding that the doctrine should not apply in this case where (1) existing caselaw establishes that homeowners' claims against residential contractors may be asserted in tort, contract, or both, depending on the nature of the duty giving rise to each claim; and (2) rationales upholding the economic loss doctrine do not support its adoption for disputes between homeowners and their contractors. Remanded. View "David v. Hett" on Justia Law