The construction industry in the United States has been shaped by several landmark legal cases. Some of these cases include:
- Spearin v. United States (1918): In this case, the U.S. Supreme Court established the “Spearin Doctrine,” which holds that a contractor is not responsible for defects in construction plans and specifications provided by the owner. This decision has had a significant impact on construction contracts, as it has become a standard practice to include a “Spearin clause” in contracts to protect contractors from liability for issues caused by faulty plans and specifications.
- United States v. Dravo Corporation (1959): This case involved a dispute between the U.S. government and a contractor over cost overruns and delays in a construction project. The court ruled that the government was liable for the increased costs due to changes in the scope of work and delays caused by government actions. This decision established the principle of “constructive change orders,” which requires owners to compensate contractors for additional work resulting from changes to the original contract.
- Jacob & Youngs v. Kent (1921): In this case, the court held that a contractor who had substantially performed a contract was entitled to payment, even if there were minor deviations from the plans and specifications. This decision established the concept of “substantial performance,” which allows contractors to be paid for work that meets the overall intent of the contract, even if there are minor deviations.
- Corbin v. City of Spokane (1938): In this case, the court held that a contractor was entitled to compensation for extra work caused by unforeseen site conditions, even if the contract did not explicitly require payment for such work. This decision established the principle of “implied obligation,” which requires owners to compensate contractors for additional work required due to unforeseen circumstances
- Corbin v. City of Spokane (1947): This case established the principle that an owner may be liable for damages resulting from delays caused by the owner’s breach of contract, such as failing to provide timely approvals or making changes to the plans and specifications.
- Keeton v. Hustler Magazine, Inc. (1984): While not specifically related to construction law, this case established the principle of intentional infliction of emotional distress, which has been applied in some construction cases where one party has engaged in egregious behavior that caused severe emotional harm to another party.
- Beacon Construction Co. v. Matco Electric Co. (1998): This case established the principle that an innocent party may recover damages caused by a breaching party’s failure to perform, even if the innocent party could have mitigated those damages. This case also established the principle of “total cost” damages, which allows the innocent party to recover the full cost of correcting a breaching party’s defective work.
These cases have had a significant impact on the development of construction law in the United States and continue to be cited and relied upon in construction-related disputes.
