Welcome to the Party Tex - The Spearin Doctrine Finally Adopted in Texas

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Most entities in the modern construction market are familiar with the Spearin doctrine – the general rule that when the Owner provides design plans, it impliedly warrants their adequacy. This concept originated in the federal government contracting context from the 1918 U.S. Supreme Court case U.S. v. Spearin. While the vast majority of states have adopted the Spearin doctrine in both public and private projects, a handful of states have refused to do so. Of that group, the state with the largest market is Texas whose state courts have instead relied upon a 1907 decision from the Texas Supreme Court – Lonergan v. San Antonio Loan & Trust Co. – wherein the court found that any warranty of Owner provided plans must be expressly stated in the contract. However, the Texas legislature recently enacted a new section of the Texas Business & Commercial Code which adopts the general approach in Spearin, albeit with several Texas specific points. 

This program will contain a brief primer on the Spearin and Lonergan doctrines followed by an explanation of the new Texas law and its differences from other Spearin jurisdictions as well as discussing questions and potential pitfalls in its application which have yet to be addressed by the courts.

 

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