Commercial Painting Company INC. v. The Weitz Company LLC
This is the third appeal in a commercial construction project dispute between general contractor Weitz Company, LLC and subcontractor Commercial Painting Company, Inc. Commercial Painting originally sued Weitz for damages, including intentional misrepresentation and breach of contract, resulting in a jury award of $1,729,122.46 in compensatory damages and $3,900,000.00 in punitive damages, plus interest and attorney's fees. On appeal, the Court of Appeals of Tennessee held that the economic loss rule applies to construction contracts between sophisticated commercial entities, thus barring the fraud claim and punitive damages. The court affirmed the compensatory damages for breach of contract but reversed the punitive damages and pre/post-judgment interest due to contractual waivers. The attorney's fees award was vacated and remanded for reconsideration to reflect only those fees related to the affirmed compensatory damages.