Engineer has no Exemption from Liability under Statute Providing Insurance Companies Exemption from Liability

by Kent Holland | Dec 21, 2021 | Newsletter Article

A summary judgment in favor of an engineer was reversed on appeal, with the court holding that an engineer that performed a post-loss insurance claim investigation was not protected by a state statute exempting liability for furnishing safety inspection or advisory...

Implied Warranty and Workmanship Claims Cannot be Waived by Homeowner

by Kent Holland | Dec 21, 2021 | Newsletter Article

Arizona Court of Appeals held that where homeowner signed a contract that waived its right to make claims against the Builder for breach of implied warranty of workmanship, the waiver was unenforceable.  Arizona common law precludes such waiver because it is deemed to...

Contract Drafting Tip: The Flow–Down Incorporation by Reference Clause

by Kent Holland | Dec 21, 2021 | Newsletter Article

This article is written from the subcontractor’s perspective.  When negotiating its subcontract, the subcontractor may be successful in obtaining reasonable clauses concerning standard of care, time for performance, indemnification, limited warranties and other...

Insurance Carrier could not assert the Contractual Liability Exclusion to Deny Coverage for Breach of Contract Claim that arose out of Negligence

by Kent Holland | Nov 23, 2021 | Newsletter Article

The contractual liability exclusion in a professional liability policy is often used by carriers to deny coverage for liability of the Insured design professional (DP) that arises out of the indemnification article of a contract.  For example, if the DP agrees to...

A Demand Letter to an Insured Architect and Others was not Deemed to be “Claim” that had to be Reported to the Professional Insurance Carrier

by Kent Holland | Nov 23, 2021 | Newsletter Article

Insurance carrier denied coverage under an insured’s professional liability policy because the carrier believed the design professional failed to timely file the claim when it first knew of it, based on a demand letter sent by the project owner to a number of...

Parties Waived their Contractual Rights to Arbitrate

by Kent Holland | Nov 23, 2021 | Newsletter Article

A contract between a homeowner and contractor set forth dispute resolution procedures calling for any dispute to be submitted to an Independent Decision Maker within twenty-one days of the occurrence of the event giving rise to the claim.  Receipt of an IDM decision...