March 11, 2015 Practice Points

"No Damage for Delay" Not Enforceable to Preclude Breach of Contract by Owner

The Texas Supreme Court held that a homeowner could maintain a cause of action for negligence against a builder’s plumbing subcontractor

by Robert M. Pitkin

In yet another case involving the “economic loss rule,” the Texas Supreme Court held that a homeowner could maintain a cause of action for negligence against a builder’s plumbing subcontractor.Chapman Custom Homes, Inc. v. Dallas Plumbing Co., No. 13-0776, 2014 WL 4116839 2014.

The plumbing subcontractor was found to have negligently and defectively installed connections from the water supply system to a  hot water system. This resulted in water flooding a house and damaging the structure.

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