Boilerplate Can Burn!

by Kent Holland | Feb 9, 2011 | Newsletter Article

There are no “industry standard” construction form documents.  But the forms issued by the American Institute of Architects (AIA) come close, being widely used.  One key provision to be considered is the issue of consequential damages. “Consequential damages” are...

Insurance Company that Incorrectly Denied Pollution Coverage Did not Act in Bad Faith in Failing to Defend and Indemnify its Insured

by Kent Holland | Feb 9, 2011 | Newsletter Article

When an insurance carrier  refused to defend the owners of a building  under a general liability policy against claims by occupants alleging injuries from toxic fumes from carpeting, the owners sued the carrier to enforce their rights under the policy.  They also sued...

When to Stop Work for Non-payment

by Kent Holland | Feb 9, 2011 | Newsletter Article

EVERY SUBCONTRACTOR has had to deal with slow payment by general contractors who claim that it’s not their fault – the customer hasn’t paid them and, in a slow economy, this refrain is heard more and more frequently. As sympathetic as the sub might feel, the...

No Warranty of Design

by Kent Holland | Feb 9, 2011 | Newsletter Article

In response to a plaintiff’s suit against an engineer alleging breach of an express warranty, a court held that the complaint must be dismissed because the record revealed no express warranty, and if the service was performed negligently the cause of action must be...

Liquidated Damages Clause and Waiver of Consequential Damages Clause Effectively Cap Damages Available against Design-Builder

by Kent Holland | Feb 9, 2011 | Newsletter Article

Contracts requiring a design-build engineering firm to supply “basic engineering packages” for licensing and technology transfer agreements for the design and construction of a processing plant for sodium hydroxide (caustic soda) contained a liquidated damages clause...

Contractor Entitled to Rely Upon Government’s Implied Warranty of Specifications

by Kent Holland | Feb 9, 2011 | Newsletter Article

Where a contractor had to revise the government’s design and expend additional time and expense to construct a door for a helicopter hangar, the government argued unsuccessfully that the contractor was barred by a general disclaimer from claiming entitlement to...