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Thought Leadership

The Fiction of the One-Year Warranty

White Papers

Lawyers often have to correct common misunderstandings clients have regarding certain legal principles, such as the ability to recover attorney’s fees in litigation and what may be covered by their insurance policies.

In the construction law space, a common misconception is the concept that exposure to claims ends after the expiration of a one-year warranty.

The Fiction of the One-year Warranty

The false sense of security a construction firm may have after its one-year contractual warranty expires can lead to problems if post-warranty claims are not handled correctly. A written warranty is like any other clause in a contract – it is an agreement between the parties with a certain scope defined by its terms. Believing that a construction firm’s exposure to claims ends after a year is the fiction of the one-year warranty.

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Joshua B. Levy