Contractor Forfeited Right to Indemnity from Insurance Carrier

by Kent Holland | Apr 14, 2025 | Newsletter Article

Where Insured contractor settled a claim against it by its owner client, the insurance carrier declined to cover the settlement as “damages”.  In a lawsuit against the carrier by the contractor, a court found the carrier had no duty to indemnify the contractor for the...

General Contractor Claim against Subcontractor Barred by Statute of Limitations applicable to Contract Claims, but Permitted under Negligence Statute of Limitations

by Kent Holland | Feb 19, 2025 | Newsletter Article

A general contractor (GC) was sued by a homeowner because the house burned because of alleged deficiencies in a subcontractor’s masonry work on a fireplace.  The GC lost a judgment of $1.2 million at arbitration.  The subcontractor declined to join the arbitration...

CGL Policy not required to indemnify a judgment against a general contractor – Professional Liability Exclusion and the “Your Work” Exclusions Applied

by Kent Holland | Feb 19, 2025 | Newsletter Article

Where a swimming pool construction contractor built a multi-million dollar “floating floor pool, it designed a system based on information found on YouTube.  When completed, the pool floor wouldn’t raise evenly.  It jammed inside the pool shell and each time it was...

Condo Owners Sue Condo Association for Breach of Contract for Failing to Repair Defective Foundations to their Units (6 year statute of limitations applied)

by Kent Holland | Feb 19, 2025 | Newsletter Article

Where the foundations under several condominium style townhouses settled and caused damage, the unit owners sued the condo association for failing to do necessary repairs.  The court dismissed the tort claim that asserted that the foundations were negligently...

Contract Clauses for Dealing with Costs from New Laws and Actions Regarding Tariffs and Deportation

by Kent Holland | Jan 31, 2025 | Newsletter Article

A clause I reviewed in a recent contract protects the design-builder against having to incur cost overruns due to changes in (1) laws, (2) new tariffs that increase prices for materials, and (3) labor shortages due to deportation of undocumented workers). “A Change...

Only General Contractor (and not Project Owner) had Additional Insured Status Under a Subcontractor’s CGL Policy

by Kent Holland | Jan 31, 2025 | Newsletter Article

Project owner entered into a general construction contract with a GC for construction services.  The GC then entered into a subcontract requiring the subcontractor to indemnify and hold harmless the GC and the Owner, and also required the subcontractor to maintain a...