Mind The (Procedural) Gap – Third-Party Claims Lost

Owner sued contractor, who filed third-party claims against subs seeking only indemnity from them if the contractor was found liable to the owner. Contractor then moved to dismiss the owner's claim as barred by the statute of limitations. The court allowed that motion, and then noted that it would dismiss the third-party claims as moot unless any party took action; no one did (remember this fact!). The owner filed an appeal, and the owner and contractor later settled as between them. The contractor sought sub participation in the settlement kitty, but realized that the third-party claims had been dismissed, and under Vermont law this dismissal was with prejudice. The contractor's belated efforts to resurrect the third-party claims have been turned down by the Vermont Supreme Court.