Language in contracts and statutes is usually interpreted according to ordinary or common usage. Courts regularly cite a dictionary meaning. Some terminology, however, gains a specialized, technical meaning within a particular trade, industry, or profession. Such terms are terms of art and are interpreted in accordance with their specialized use.
The Minnesota Supreme Court recently interpreted the word termination as used in a statute of limitations governing the construction of improvements to real property. The term does not refer to the conclusion of physical work. It is a term of art within the construction industry and construction contracts. Termination refers to the conclusion of a contractual relationship, not the status of physical work.
The second case in this issue involves an alleged defective specification. A contractor argued the specified materials would hinder obtaining the required warranty for the roofing system and contended that the problem excused its failure to perform the work in accordance with the contract schedule.
The third case addresses the choice of state law governing a performance bond claim. The bonded project had a determinative location. The domicile of the parties to the construction contract and the location where the contract was created were not determinative.
