Court Applies ‘Professional Liability Exclusion’ So Had No ‘Duty to Defend’ Architect Under CGL Policy

by Kent Holland | Jan 14, 2015 | duty to defend, Newsletter Article, professional liability exclusion

By James Rhodes, Esq. ConstructionRisk Counsel, PLLC Introduction A federal appeals court, applying Louisiana law, held that an insurer did not owe a duty to defend its insured, an architect, in a suit by the architect’s former client. The court explained that...

Liquidated Damages Found to be Unenforceable Penalty; but Waiver of Differing Site Conditions Claim was Enforced

by Kent Holland | Jan 14, 2015 | differing site conditions, Newsletter Article

Contractor brought suit seeking additional compensation for costs resulting from differing site conditions and alleged inaccurate site plans.  The Owner counterclaimed for liquidated damages based on delayed completion, being a 397 day delay at $700/day. The court...

Economic Loss Doctrine Bars Negligence Claim Arising out of Breach of Contract

by Kent Holland | Jan 14, 2015 | economic loss doctrine, Newsletter Article

Where a condominium association filed suit asserting negligence claims against the general contractor that built the complex, alleging defective workmanship including deficient masonry work and use of unauthorized black building paper in place of specified...

Economic Loss Doctrine Bars Claim against Engineer Individually

by Kent Holland | Dec 17, 2014 | economic loss doctrine, Newsletter Article

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC Where a project owner filed suit against both the engineering firm, and the individual engineer that designed a post foundation for a fabric-roofed farm building, the negligence action against the individual...

“Condition Precedent” Means Pay IF Paid

by Kent Holland | Dec 17, 2014 | Newsletter Article, pay when paid

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC Subcontracts may state that the subcontractor will be paid when the prime contractor is paid, or that the subcontractor will be paid only if the prime contractor is paid, and still others state that payment of...

Unrelated Errors Entitle Architect to Full Coverage for Each Independent Claim

by Kent Holland | Dec 17, 2014 | Newsletter Article

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC A project was delayed because the Architect’s plans erred in their steel quantity estimate, and in the specifications for the structural steel girts and exterior façade.  The project owner sent a demand letter to...