Economic Loss Doctrine Bars Contractor Suit against Engineer

by Kent Holland | Dec 31, 2010 | Newsletter Article

The economic loss doctrine was enforced by the Supreme Court of Wyoming to bar a general contractor’s (GC) complaint against a project engineer with whom it lacked privity of contract. The GC had a contract was with a town to construct water and wastewater lines. The...

The Duty to Defend as part of Indemnity Agreement is Alive and Well in California: Don’t be fooled by Favorable Commentary on California SB 972

by Kent Holland | Dec 31, 2010 | duty to defend, Newsletter Article

With the signing into law of California Senate Bill SB 972, California amended Section 2782.8 of its Civil Code, thereby limiting the enforcement of indemnification clauses upon design professionals working for public agencies. Much positive hype and commentary has...

Agreeing to Pay Reasonable Attorneys Fees as Part of Indemnification May Create Uninsurable Loss

by Kent Holland | Dec 31, 2010 | indemnification clause, Newsletter Article

A question that is asked with increasing frequency is whether attorneys fees incurred pursuant to an indemnity clause are insurable where they are not incurred due to a duty to defend (i.e., paid on behalf of the indemnitee) but are instead paid after the litigation...

Developer’s Assignee Can Bring Suit against Engineer for Redesign Costs but Economic Loss Rule Prevents Original Developer (Assignor) from Bringing Negligence Action against Engineer

by Kent Holland | Dec 31, 2010 | Newsletter Article

In this case, the court considered the scope of an assignee’s right to recover damages from an engineer that breached a contract made with the assignor. The engineer argued that while it may have breached a contract or duty before the assignment occurred, the assignee...

Where Mold Damage was Expressly Excluded from Coverage, the Fact it Resulted from a Covered Concurrent Cause Did not Bring it Back Within Coverage

by Kent Holland | Dec 31, 2010 | Newsletter Article

The mold exclusion in a builder’s risk insurance policy was held to be applicable to mold damage that resulted from covered watered damages that resulted when vandals turned on water taps of a new house just after substantial construction had been completed. Although...

Expert Testimony Found Insufficient to Establish Standard of Care against Engineering Firm

by Kent Holland | Dec 31, 2010 | Newsletter Article, standard of care

Where a contractor filed suit alleging that an engineering firm was negligent in designing, engineering and surveying land where a group of homes were planned to be built, the trial court granted summary judgment for the engineer because expert testimony offered by...