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“Pay when paid” Clause Excuses Prime from Paying Subcontractor Since Owner Didn’t Pay

by Kent Holland | May 2, 2011 | Newsletter Article, pay when paid

Where a pay when paid clause in a construction subcontract unambiguously states that the subcontractor will only be paid for its work after the prime contractor has been paid by the project owner, the clause was ambiguous due to incorporation of the AIA form prime...

Statute of Repose Bars Indemnification Claim against Engineer that Designed Bridge that Collapsed

by Kent Holland | Mar 28, 2011 | indemnification clause, Newsletter Article

Because the 10 year state statute of repose made Jacobs Engineers immune from liability for the collapse of the I-35W bridge across the Mississippi River, it was not subject to suit by URS (the subsequent bridge inspection engineer) since there was no common liability...

New California Law Prohibits Type I Subcontractor Indemnity in Favor of Residential Builders

by Kent Holland | Feb 9, 2011 | indemnification clause, Newsletter Article

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...

Subcontractor forfeits right to arbitration by filing demand untimely

by Kent Holland | Feb 9, 2011 | Newsletter Article, time limits

Where a subcontract required subcontractor to commence arbitration proceedings no later than 30 days following receipt of an adverse decision by the contractor, the failure of the subcontractor to contest a decision within 30 days was fatal to later seeking...

Framing professional negligence claim as breach of contract does not get around shorter statute of limitations period for negligence claims

by Kent Holland | Feb 9, 2011 | Newsletter Article, standard of care

A three-year statute of limitations for negligence claims was applied by a court to dismiss a claim against an architect in which the claimant presented its claim as one for  breach of contract based upon alleged breach express warranty.  The plaintiff asserted that a...

Contractor Suit Dismissed for Failure to Follow Claim Procedures of Contract

by Kent Holland | Feb 9, 2011 | Newsletter Article, time limits

A homebuilder’s lawsuit against a city and its architectural firm for refusing to grant change orders for additional costs was rejected by a court because the contractor failed to comply with a contractual requirement that it give written notice to the architect of...
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