Indemnification Clause Requires Subcontractor to Indemnify Prime Contractor Regardless of Finding that Sub was not Negligent, and the Additional Insured Endorsement Requires Insurer to Cover the Prime for Damages not Caused by Sub’s Negligence
Where a pipeline was damaged when it was struck by sheeting being installed by a sub-subcontractor while installing lift stations along a pipeline previously installed by the prime contractor, the sub-subcontractor was found to be liable to its client (ECI Corporation) under its indemnification clause for the costs that firm incurred in repairing the damaged [...]
Damages Caused By Chinese Drywall Are Excluded From Coverage Under Homeowner’s Insurance
Chinese Drywall caused damage that was not from coverage under a homeowner’s insurance policy because of several exclusions for (1) faulty, inadequate or defective materials, (2) latent defects, (3) rust or corrosion and (4) pollution. Two years after purchasing their home, the homeowners began having chronic malfunctions in the heating, ventilation and air conditioning (HVAC) [...]
Asbestos Damages Are Excluded under Condominium Association’s Property Insurance Policy
Where a property insurance “open peril” policy for a condominium association contained a pollution exclusion, there was no coverage afforded for damages arising out of a contractor’s work of an asbestos remediation contractor. The association hired the contractor to scrape acoustical ceilings and stairways that contained some asbestos. In the process of performing the work, [...]
CGL Insurance Covers Damages Caused by Defective Workmanship of Subcontractor
Where a general contractor – builder was sued by a homeowner to recover damages from leaking windows, fungus growth, decayed OSB sheathing, deteriorating and decaying floor joists and water damage to the home interior, the contractor tendered the claim to its commercial general liability (CGL) insurance carrier on the basis that the claim arose out [...]
Contractor’s Claim against CGL Insurance Company Dismissed Because It Failed to Give Company Timely Notice of Plaintiff’s Claim Related to Defective Work
Where plaintiff, homeowner, filed a complaint against the general contractor , the failure of the contractor to provide its Commercial General Liability (CGL) Insurance Company with notice of the claim for almost two years entitled the insurance company to summary judgment on its denial of coverage due to prejudice suffered. The defects alleged involved work [...]
Architect Entitled to Insurance Defense for ADA and FHA Claims Arising out of Services Performed for Condominium Developer
Where a developer of a condominium, and its design architect, were sued by a municipal equal opportunity housing opportunity council as well as by the state attorney general for alleged violations of not meeting federal and state requirements for handicap access, the developer cross-claimed against the architect alleging negligent failure to correctly identify and follow [...]
General Contractor Can Recover Damages Caused by Sub’s Defective Work From the Sub’s CGL Policy
Where a plumbing subcontractor installed water lines that did not meet the project specifications, and this caused damage to a neighboring property, the prime contractor sued the sub for negligent work and was entitled to recover its damages from the sub’s commercial general liability (CGL) policy because the court found the defective work constituted an [...]
Contractual Liability Exclusion Bars Coverage for Breach of Contract Claim against Contractor by a Third Party
A general contractor under contract to the Dallas Area Rapid Transit Authority (DART) was sued by the owner of a building adjacent to the construction site, alleging that water damage was caused by the contractor’s negligent construction activities. In addition to suing for negligence, the building owner also sued the contractor for breach of contract, [...]
Federal Court in Tennessee Holds Insurer Responsible Under CGL Policy For Defending Contractor Against Negligence Claims
When an owner asserts a claim of negligent construction against a general contractor, the general contractor may seek to have its insurer provide a defense to the claims (i.e., pay for an attorney) under its commercial general liability (“CGL”) policy and, if the general contractor is found to have been negligent, to pay the judgment. [...]
Additional Insured Contractor’s Right to be Defended & Incorporation of Prime Contract Indemnity Obligations into the Subcontract
Two employees of a subcontractor sued the prime contractor for their personal injuries resulting from a fall. The prime contractor in turn sued the subcontractor and the subcontractor’s insurance carriers for breach of a duty to defend and indemnify the contractor in the employee’s action. For various reasons, the trial court determined the indemnification provision [...]
