3.8.14 Owner Claims Against Subcontractors

• Jurisdiction: Arizona

The final resolution of this critical issue will determine whether an owner may recover, in tort, purely economic losses resulting from the negligent performance of a subcontractor, where the owner’s only contractual relationship is with the general contractor. As an illustration, let us assume that a roofing subcontractor performed negligently, allowing rain water to penetrate a building, thereby destroying the newly installed drywall. The argument in favor of ELR application is that the work of the roofing subcontractor is a component of the entire building...