A General Contractor’s Liability for Injuries or Damages to its Subcontractors on a Construction Site

A General Contractor’s Liability for Injuries or Damages to its Subcontractors on a Construction Site

            The South Carolina Court of Appeals recently reaffirmed the rule that a “contractor equates to an invitor and assumes the same duties that [a] landowner has” and can be held liable for failing to warn of dangers or defects known to him but not others.  This case involved landowners who hired a contractor to renovate their home. The landowners agreed to mark the location of the septic tank but failed to mark it.  However, the landowners did point the location out to the contractor. The contractor hired a subcontractor to deliver concrete.  The subcontractor was not notified of the location of the septic tank and when the subcontractor delivered the concrete, its truck fell into the septic tank, causing damage to the truck.  The subcontractor sought to recover its damages from both the landowners and the contractor.

            The circuit court found that while the landowners did not owe a duty to the subcontractor, the contractor did.  Both the contractor and subcontractor appealed. The Court of Appeals agreed with the Circuit Court, holding that only the contractor owed a duty to the subcontractor in this situation.

            The court explained that the contractor was the invitee of the landowners.  Therefore, the landowners had the duty to warn the contractor of the location of the septic tank because it was a hidden danger.  The landowners fulfilled their duty by warning the contractor of the septic tank’s location.  The subcontractor was the invitee of the contractor and therefore, the contractor had a duty to warn the subcontractor of the location of the septic tank.  The landowner had no duty to warn the subcontractor because the subcontractor was not the landowner’s invitee.  The contractor breached its duty by not warning of the septic tank’s location and could be held liable for the injuries that resulted.

The practical effect of this case is that general contractors must be aware of all hidden dangers on a jobsite and must warn all of its subcontractors of the hidden dangers.  If a general contractor fails to warn it subcontractors of a hidden danger, it could be held liable for all resulting injuries or damages.`

Lanier Construction Co. v. Bailey & Yobs, Inc., Mike Cupp and Tami Cupp, Opinion No. 4580 (S.C. Ct. App. July 1, 2009)