Professional Services Providers Should not Agree to Defend Clients
ConstructionRisk.com Report Vol. #12, Issue #3
See article in the following topic indices:
California,CH2,duty to defend,Indemnification,Negligence
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There is no common law duty of a consultant to defend its client against third party actions. That duty can only arise as a result of a contractually liability created through the indemnification clause of the contract. Since this is a contractual liability, it is excluded from coverage pursuant to the contractual liability exclusion of [...]
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Unlicensed Contractor forced to Refund all Payments back to the Homeowners
ConstructionRisk.com Report Vol. #12, Issue #10
See article in the following topic indices:
Breach of Contract,California,Contractor license,fee forfeiture,License
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A homeowner in California that contracted with a construction company to build a house filed suit for breach of contract and negligence, and violations of the state licensure requirements – seeking to recover sums it had paid to the contractor. The construction company filed a separate suit to enforce its mechanic lien and to recover [...]
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The Duty to Defend as part of Indemnity Agreement is Alive and Well in California: Don’t be fooled by Favorable Commentary on California SB 972
ConstructionRisk.com Report Vol. #12, Issue #11
See article in the following topic indices:
California,CH2,duty to defend,Indemnification,indemnity,Negligence,SB 972
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With the signing into law of California Senate Bill SB 972, California amended Section 2782.8 of its Civil Code, thereby limiting the enforcement of indemnification clauses upon design professionals working for public agencies. Much positive hype and commentary has been written by some firms and organizations stating: “This is a significant legislative victory for design [...]
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Agreeing to Pay Reasonable Attorneys Fees as Part of Indemnification May Create Uninsurable Loss
ConstructionRisk.com Report Vol. #12, Issue #11
See article in the following topic indices:
Attorneys Fees,California,Contractual liability policy exclusion,duty to defend,Indemnification,Insurance Coverage Dispute,Negligence
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A question that is asked with increasing frequency is whether attorneys fees incurred pursuant to an indemnity clause are insurable where they are not incurred due to a duty to defend (i.e., paid on behalf of the indemnitee) but are instead paid after the litigation is complete and the indemnitor (e.g., engineer) is found liable [...]
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