Reciprocal Waiver of Subrogation Bars Insurance Company Claim Against Contractor for Fire Damage to Building

by Kent Holland | Feb 7, 2011 | Newsletter Article

Where a fire destroyed a building on the first day that the contractor began work, the owner recovered its loss from its insurance company (CNA) which in turn sued the contractor to recover what was paid to the owner. Pursuant to the AIA contract used on this project...

Limitation of Liability in Agreement Not Applicable to Causes of Action Arising Out of Contract Addendum

by Kent Holland | Feb 7, 2011 | Newsletter Article, time limits

Where a limitations of liability (LoL) clause was located in an Agreement, the clause was held not to bar recover for damages incurred by a contractor due to work being suspended pursuant to a suspension of work clause that was located in the addendum to the contract....

"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...