New California Law Prohibits Type I Subcontractor Indemnity in Favor of Residential Builders
Anti-Indemnity Statute,California law,Indemnification,Residential Construction
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By: Dion N. Cominos, Esq. Under an Assembly Bill recently signed into law by California Governor Arnold Schwarzenegger, “Type I” subcontractor indemnity agreements in favor of builders entered into after January 1, 2006 will no longer be enforceable in the context of residential construction projects. Existing law provides that Type I indemnity agreements between builders [...]
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Indemnification Clause Unenforceable if Negligent Parties Are Indemnified
Anti-Indemnity Statute,Indemnification
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Where an indemnification clause in a construction subcontract was so broad as to require the subcontractor to indemnify a project owner and construction manager for their own negligence, a court held the clause could not be enforced during a summary judgment motion requested by the indemnities. The clause could only be saved if it were [...]
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Anti-Indemnity Statute does not Void Additional Insured’s Coverage
Additional Insured,Anti-Indemnity Statute,Indemnification,Insurance – Additional Insured
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Where a construction contractor signed a contract containing an indemnification clause agreeing to indemnify the project owner for all claims arising under the contract, including those caused by the owner’s negligence, a court held that a liability insurance policy that had been purchased by the contractor naming the owner as an additional insured was enforceable [...]
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