Contractor’s CGL Policy Professional Liability Exclusion Precludes Coverage for Damages from Subcontracted Land Surveyor’s Error

by Kent Holland | Feb 26, 2018 | Newsletter Article, professional liability exclusion

General Contractor (GC) constructed two condominium buildings too close to the adjoining property. This was due to an error made by the land surveyor who was working under subcontract to the GC. An occupancy permit would not be issued by the County unless the problem...

Contractor Cannot Sue Project Engineer as Owner’s Agent on Implied-in-Fact Contract. Signing Check that contained the words “Final Payment” Constituted Accord and Satisfaction

by Kent Holland | Feb 20, 2018 | Newsletter Article

Contractor for a wastewater treatment plant sued the municipal owner and its project engineer for breach of contract for interfering with its work by failing to obtain easements in time for the contractor’s construction work to proceed. Although the contract was, on...

Arbitration Provision of Prime Contract Incorporated by Reference into Subcontract, Requiring Subcontractor to Arbitrate its Claims

by Kent Holland | Feb 20, 2018 | Newsletter Article

A subcontractor sued the general contractor (GC) and project owner to enforce liens it put on the property for non-payment. The defendants filed a motion to compel arbitration. Court held that the arbitration provisions of the prime agreement were incorporated by...

Subcontractor Failure to do Soil-Compaction Testing was Covered by General Contractor’s CGL Policy as an Occurrence that Caused Damages to Building

by Kent Holland | Feb 20, 2018 | Newsletter Article

Where a subcontractor failed to conduct soil-compaction testing before construction, the house that was built on non-compacted soil sustained settlement damage. The homeowners sued both the general contractor (GC) and subcontractor for damages. The GC tendered the...

$2 million Slip and Fall Verdict for Scaffolding Accident Thrown Out because Laborer Proved Elements of Premises Liability but Judge’s Jury Instruction Mistakenly Only Addressed General Negligence. A costly Trial Error

by Kent Holland | Feb 7, 2018 | Newsletter Article

A pipefitter employed by a refinery owner (Valero Energy Corporation) was injured when he slipped and fell on loose plywood on scaffolding constructed by a scaffolding contractor.  He filed suit against the scaffolding firm, alleging the basic elements of premises...

$50,000 Limitation of Liability Clause Enforced Although Eight Percent of Designer’s Fee

by Kent Holland | Feb 7, 2018 | limitation of liability clause, Newsletter Article

A design professional was granted summary judgment enforcing a $50,000 limitation of liability (LoL) clause and waiver of consequential damages clause in its contract with its client, the design-builder. Although this amount was only eight (8) percent of the...