Construction Law

Strict Liability Statute Does Not Apply to Contractors

By Ryan McCabe

The court in Fields v. J. Haynes Waters Builders held that contractors are not subject to strict liability for construction damages. 376 S.C. 545, 658 S.E.2d 80 (2008). In Fields, subsequent homeowners filed suit against the homebuilder for damages related to moisture intrusion in their home. Id. at 552. The homeowners hired an attorney who put them in contact with building inspectors and investigators. Id. The inspections revealed that the water intrusion and related structural damage was caused by the synthetic stucco material, known as exterior insulation and finish system (E.I.F.S.), used in the construction of their home. Id. The homeowners asserted eight causes of action against the builder, including strict liability. Id. at 55. 

South Carolina?s strict liability statute provides that "[o]ne who sells any product in a defective condition . . . is subject to liability for physical harm caused to the ultimate user or consumer, or to his property, if [t]he seller is in the business of selling such a product." S.C. Code Ann. § 15-73-10 (2009). Because the court held that general contractors provide a service and are not in the business of selling products, they are immune from the strict liability statute. Fields, 376 S.C. at 565. This is true "even though the result of the [contractor's] service is to supply a structure or building to the owner." Id. 

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Full post as published by The South Carolina Construction Law Blog on August 26, 2010 (boomark / email).