"No-Damage-for-Delay" Clause Unenforceable where City Withheld Superior Knowledge about Site Conditions and Caused the Delay

by Kent Holland | Feb 7, 2011 | differing site conditions, Newsletter Article

A state court in California declined to enforce a “no-damage-for-delay” clause that would have deprived a construction contractor of equitable adjustment for time delays and expenses caused by the project owner, City of Los Angeles. The city had superior...

Contractor Required to Indemnify Negligent Party

by Kent Holland | Feb 7, 2011 | indemnification clause, Newsletter Article

Pursuant to the indemnity clause of its lease agreement with a landowner (Washington Street Investments (WSI), the Goettl Air Conditioning Company (Goettl) agreed to indemnify WSI for all damages caused in whole or in part by Goettl’s negligence. When one of...

No A/E duty to Subcontractor to Assure Payment Bond Procured or That General Contractor Paid Him Prior to Progress Payment Being Approved

by Kent Holland | Feb 7, 2011 | Newsletter Article

A subcontractor worked on a project for five months without being paid and then sued the A/E for negligence, claiming that the A/E owed it a duty, as a third party beneficiary, to assure that the contractor maintained a payment bond or paid the subcontractor before...

Change Order Bars Owner’s Claim Against A/E

by Kent Holland | Feb 7, 2011 | Newsletter Article

The owners of a home under construction were sued by an architect whose copyrighted plans were used without permission in the design and construction of their new house.   This architect (Mr. Page) sued the owners (Mr. and Ms. Gunthrop) for copyright infringement.  A...

Economic loss doctrine bars owner’s claim against subcontractor

by Kent Holland | Feb 7, 2011 | Newsletter Article

A court dismissed a project owner’s suit against the manufacturer of flooring materials that were used in the building because there was no privity of contract between the owner and he manufacturer. The manufacturer was a subcontractor to the flooring contractor...

Indemnification language found ambiguous and unenforceable

by Kent Holland | Feb 7, 2011 | indemnification clause, Newsletter Article

According to a Louisiana appellate court, an indemnification clause can not be enforced to require a party to indemnify  for the indemnitee’s own negligence unless the clause specifically states that to be the intent of the parties in no uncertain terms. An...