Additional Insureds Are Denied Coverage Where Carrier Rescinds Policy of Contractor That Had been Issued Based on Misrepresentations in the Policy Application Concerning the Nature of Contractor’s Work

by Kent Holland | Nov 27, 2012 | Newsletter Article

When a tower crane collapsed in New York City, killing seven people, injuring dozens more, and damaging several buildings, the contractor that was operating the crane was denied coverage by it’s excess liability carrier for several distinct reasons.  The first reason...

GC Had No Site Safety Liability Since it did Not Exercise its Retained Control Over the Job Site to Such an Extent as to Affirmatively Contribute to the Injuries of a Subcontractor’s Laborer

by Kent Holland | Oct 31, 2012 | Newsletter Article

Where a masonry subcontractor employee was injured by slipping on a plastering subcontractor’s wet scaffolding, the laborer sued the project general contractor (GC) alleging his injuries were caused by the GC’s negligence in sequencing and coordinating construction...

Economic Loss Doctrine Bars Suit against Design Firm Where there is No Privity of Contract Regardless of Whether Designer Might Have Deviated from Industry Standards

by Kent Holland | Oct 31, 2012 | Newsletter Article, standard of care

Suit was filed by an entity with an ownership interest in the project against two engineering firms that were subcontractors to one of the engineering firms that the general contractor (GC) contracted with to provide design services for a thermal energy system (an...

Injured motorist cannot sue design professional for the alleged negligent design of roadway beyond the statute of repose that is applicable to improvements to real property

by Kent Holland | Oct 10, 2012 | Newsletter Article

Suit against a design professional by a motorist that was injured due to an out-of-control drunk driver in a January 2009 accident was dismissed because the design services of the professional had been performed more than eight years before the accident, and the eight...

Common Law Indemnity Allows Surety to Maintain Claim against Architect for Loss Allegedly Caused by Architect’s Negligence

by Kent Holland | Oct 9, 2012 | Newsletter Article

Where a General Contractor that entered into a contract with a nursing home was required to have a performance bond from a surety company (Safeco) and was default terminated by the project owner, the surety completed the project and sued the “obliges” under the bond,...

Failure to Follow Change Order Request Procedure Results in Design-Build Subcontractors Forfeiting Right to Recover Their Costs for Extra or Changed Work They Performed

by Kent Holland | Oct 9, 2012 | Newsletter Article

Two design-build cases decided by the federal district courts in Virginia dismissed suits by subcontractors to recover for extra or changed work they performed, because even though there was no question that the work was performed and that the prime contractor and...