Contractor Cannot make Performance Bond Claim when it Failed to Terminate its Subcontractor

by Kent Holland | Apr 27, 2021 | Newsletter Article

GC barred from recovering from the surety for damages allegedly incurred due to faulty work of subcontractor because it failed to meet the conditions precedent to the performance bond responsibility.  The surety bond expressly provided that obligations of the surety...

Contractor had no Professional Liability Coverage under CGL Policy

by Kent Holland | Apr 27, 2021 | Newsletter Article

When a swimming pool builder was sued by an individual that suffered injury in the pool that the builder contracted with the health club to design and construct.  The complaint alleged negligent design.  The builder tendered the claim to its commercial general...

Economic Loss Doctrine Bars Suit by Developer against a Subcontractor

by Kent Holland | Apr 21, 2021 | Newsletter Article

The economic loss rule required the court to dismiss a negligent suit by a commercial property owner/developer against a subcontractor.  Court explained that parties generally do not owe each other a duty of care to prevent economic loss.  The owner contracted with a...

Individual was not an “Agent” entitled to Indemnification

by Kent Holland | Apr 21, 2021 | Newsletter Article

A laborer was injured when he fell from scaffolding that collapsed while he was performing masonry work. He sued a number of entities and individuals involved in the project for Wegmans Food Markets. Aeroteck, Inc. is one entity that was sued based on its having...

Indemnification Unenforceable against Design Firm by Construction Contractor

by Kent Holland | Apr 21, 2021 | Newsletter Article

A county retained an engineer to design a wastewater treatment plant, and under separate contract the county hired a construction contractor to build the plant.  Part of the design called for two pumps.  After construction, the pumps failed, and the concrete floor in...

Pay-if-paid Provisions Not Per Se Unenforceable in Nevada

by Kent Holland | Jan 26, 2021 | Newsletter Article

Where a general contractor failed to pay its subcontractor and used the pay-if-paid clause of the subcontract as the reason for not making payment, the Supreme Court of Nevada held that the contract provision was not per se void and unenforceable in light of the...