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Owner Over-inspected But Limited Liability Inspection; Disclaimers

Tuesday, December 02, 2003 06:05 pm

Owner Over-inspected But Limited Liability Inspection; Disclaimers

A Pennsylvania court has ruled that a project owner breached a contract by imposing inspection standards which exceeded the specifications. But despite the breach, the owner was allowed to enforce a contractual limitation of liability.

Sun Company, Inc. awarded a contract to John B. Conomos, Inc. to paint the industrial piping of an oil refinery in Hook, Pennsylvania. The contract specified surface preparation in accordance with certain "Steel Structure Painting Council"standards.

The contract also included a clause which stated that if Sun terminated the contract without cause, Conomos would receive its costs incurred pr [...]

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