Municipal

The National Law Review

partner publisher · 20.1K followers

Fraud Claims Not Barred by Contractual Waiver: Tennessee Court Affirms Punitive Damages Award Against General Contractor

The Tennessee Court of Appeals has upheld a punitive damages award against general contractor The Weitz Company, finding that the subcontract’s general waiver of special damages did not bar recovery for intentional misrepresentation. The case arose from construction of a multi-building retirement community in Shelby County, Tennessee. Weitz hired Commercial Painting Company to perform the drywall work. Disputes arose, litigation ensued, and the case tried to a jury in October 2018. The jury awarded Commercial Painting Company compensatory damages of $1,272,952.46 and punitive damages of $3.9 million. The trial court upheld this judgment after noting the jury’s findings that Weitz acted in bad faith that was “intentionally, recklessly, maliciously, or fraudulently such that the conduct was egregious.” The court found Weitz knew the project was eight months behind schedule but did not tell Commercial Painting about the delay, its plans to compress the construction schedule, or its plans to supplement Commercial Painting’s drywall work. Weitz also misrepresented the length of an extension it obtained from the project owner while imposing an unrealistic schedule to earn an early completion bonus. Weitz also “back charged” Commercial Painting for work necessitated by incorrect framing done by another subcontractor, repairs to damage caused by

Shelby County, TN · 3d

The Commercial Appeal

partner publisher · 23.4K followers

Germantown Mayor-elect Tony Salvaggio sets 'higher expectations'

Tony Salvaggio has wasted no time making his mark as the newly-elected Germantown Mayor . Salvaggio announced on Nov. 4, the formation of a 10-member transition team comprised of selected local professionals and community stakeholders, which he had been working on for a couple months if elected. Salvaggio has tasked the team of establishing a fact-based understanding of Germantown’s organizational, financial and operational environment. The transition team will be asked to identify significant risks and opportunities, distinguish immediate priorities from longer-term issues, and provide Salvaggio with informed recommendations for consideration. Germantown alderman race: Gibson narrowly reelected for Germantown Alderman Position 2 “A city of roughly 40,000 residents may not typically approach a mayoral transition with this degree of structure, but Germantown expects this degree of attention,” Salvaggio said in a release. “I intend to set a higher expectation for preparation, transparency and accountability in the Office of Mayor. This is where that commitment begins.” The members of the transition team include John Bobango — compliance/legal; Lou Correale — public safety; Tony Fischer — public safety/IT; Ralph Gabb — finance; Dan Haddow — education; Patrick Lawton — governance/finance; James Lewellen — governance; Ashley Mooney —IT/AI/cybersecurity; Donna Chandler Newman — civic/communications and