Do Construction Contracts and Fraud Mix After All?

Map of Virginia highlighting Loudoun County

Map of Virginia highlighting Loudoun County (Photo credit: Wikipedia)

On several occasions here at Construction Law Musings, I’ve discussed the fact that, with a few exceptions, fraud claims and written construction contract based claims do not mix. One of the exceptions to the so called “economic loss rule” that would seem to preclude both fraud and contract claims in the same lawsuit is where fraud is used to induce the contract in the first place.  This exception would only apply where an independent duty, wholly outside of the duties created by the contract, is properly plead and proven to the court.  For the same reason, namely a separate duty outside of the contract, the Virginia Consumer Protection Act (“VCPA”) may allow for an exception that would allow a cause of action under this statute.

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Join Me at the Virginia Construction and Public Contracts Law Seminar 2016

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About musings

I am a construction lawyer in Richmond, Virginia, a LEED AP, and have been nominated by my peers to Virginia's Legal Elite in Construction Law on multiple occasions. I provide advice and assistance with mechanic's liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals.

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