{"id":51,"date":"2025-06-17T15:50:15","date_gmt":"2025-06-17T19:50:15","guid":{"rendered":"https:\/\/www.sherin.com\/business-law\/?p=51"},"modified":"2025-06-18T10:55:00","modified_gmt":"2025-06-18T14:55:00","slug":"getting-to-the-gist-of-it-understanding-contract-vs-tort-claims-against-design-professionals-and-construction-contractors","status":"publish","type":"post","link":"https:\/\/www.sherin.com\/business-law\/2025\/06\/17\/getting-to-the-gist-of-it-understanding-contract-vs-tort-claims-against-design-professionals-and-construction-contractors\/","title":{"rendered":"Getting to the \u201cGist\u201d of it: Understanding Contract vs. Tort Claims against Design Professionals and Construction Contractors"},"content":{"rendered":"

In Trustees of Boston University v. Clough, Harbour & Associates LLP<\/em>, No. SJC-13685, slip op. (April 16, 2025), the SJC issued an important opinion on the application of the statute of repose that relates to indemnification claims arising out of the \u201cdesign, planning, construction or general administration of an improvement to real property\u201d and places an outside limit on such claims to six years \u201cafter the earlier of the dates of: (1) the opening of the improvement to use; or (2) substantial completion of the improvement and the taking of possession for occupancy by the owner.\u201d G.L. c. 260, \u00a72B.<\/p>\n

Given the length of time which construction, architectural, or engineering issues may take to come to light, the decision is important for both drafting indemnification agreement generally and understanding available remedies against design professionals and analyzing risk.<\/p>\n

Background<\/strong><\/h3>\n

The factual background was largely undisputed: Boston University (BU) engaged Clough, Harbour & Associates LLP (CHA) to serve as architect for a new synthetic turf field at the university. After work finished, Boston University alleged that CHA improperly designed the field and it was unusable. The contract between Boston University and CHA contained an indemnity provision: \u201cTo the fullest extent permitted by law, [CHA] shall indemnify . . . [the university] . . . from and against any and all . . . expenses, including, but not limited to, reasonable attorney’s fees, to the extent caused . . . by the negligence of [CHA].\u201d After more than six years passed, Boston University sought reimbursement from CHA for the damages incurred.\u00a0 When CHA declined, BU brought suit seeking enforcement of the indemnification provisions.<\/p>\n

Legal Issue<\/strong><\/h3>\n

CHA moved for summary judgment on the basis that the tort statute of repose, G. L. c. 260, \u00a7 2B, which eliminates a cause of action in tort six years after the opening of an improvement to real estate. The Superior Court agreed and awarded CHA summary judgment.<\/p>\n

Taking the case on direct appellate review, the SJC grappled with the question of whether a contractual claim for indemnification for alleged negligence amounted to a tort claim (subject to the tort statute of repose) or a contractual claim (specifically exempted from the tort statute of repose). The Court held that BU\u2019s claim was based on CHA\u2019s breach of the contractual indemnity provision, not on tortious behavior and, therefore, the claim was not barred by the tort statute of repose. The Court\u2019s reasoning was as follows:<\/p>\n

First, the SJC noted that courts should look to the \u201cgist of the action\u201d and that a party\u2019s own classification of its cause of action is not dispositive. Hendrickson v. Sears<\/em>, 365 Mass. 83, 85 (1974) (party may not \u201cescape the consequences of [the tort] statute of repose . . . merely by labelling the claim as contractual\u201d).<\/p>\n

Second, the SJC explained what it deemed to be a \u201ckey\u201d difference between contract and tort actions: whether the standard of performance is set by the defendants’ promises [contractual], rather than imposed by law [tort].\u00a0 Bridgwood v. A.J. Wood Constr., Inc<\/em>., 480 Mass. 349, 355 (2018).\u00a0 Even though the indemnification provision at issue incorporated a negligence standard, the SJC ruled that CHA\u2019s liability was based on its contractual promise to indemnify, not on common law negligence.<\/p>\n

\u201cCHA’s duty to indemnify the university for CHA’s negligence is not one imposed by law; rather, it is a promise to which CHA freely and intelligently chose to be bound.\u201d Slip op. at 9. This decision serves as guidance that (1) an express written indemnity provision will likely be given effect and will impose contractual duties on an indemnitor rather than common law negligence duties and (2) that with respect to indemnification claims against contractors, designers and engineers, the protection afforded by the statute of repose will not apply.<\/p>\n

\u00a0<\/u><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

In Trustees of Boston University v. Clough, Harbour & Associates LLP, No. SJC-13685, slip op. (April 16, 2025), the SJC issued an important opinion on the application of the statute of repose that relates to indemnification claims arising out of the \u201cdesign, planning, construction or general administration of an improvement to real property\u201d and places […]<\/p>\n","protected":false},"author":18,"featured_media":52,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"class_list":["post-51","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nGetting to the \u201cGist\u201d of it: Understanding Contract vs. Tort Claims against Design Professionals and Construction Contractors - Business Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sherin.com\/business-law\/2025\/06\/17\/getting-to-the-gist-of-it-understanding-contract-vs-tort-claims-against-design-professionals-and-construction-contractors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Getting to the \u201cGist\u201d of it: Understanding Contract vs. Tort Claims against Design Professionals and Construction Contractors - Business Law\" \/>\n<meta property=\"og:description\" content=\"In Trustees of Boston University v. Clough, Harbour & Associates LLP, No. SJC-13685, slip op. 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