Assignee of Contract Indemnification Rights under a Design-Build Contract Stands in Shoes of Indemnitee and is Entitled to Recover Defense Costs

by Kent Holland | Jan 3, 2012 | indemnification clause, Newsletter Article

Where  a firm (Parsons Infrastructure) entered into a contract to design and construct a soda ash processing plant for Kerr-McGee Chemical Corp (KM) and agreed to provide KM with a defense and indemnity against losses arising out of negligent performance of its work, ...

Expert Survey of Small Sample of Walls Sufficient to Justify Opinion that Much Larger Area of Walls Must be Torn out and Replaced by Design-Builder for Failing to Meet Specifications for Rebar

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a design-builder filed suit against the project owner (animal fee manufacturing plant) to collect the balance of fee that was being withheld, the owner countersued for almost $2 million alleging that contractor breached the contract’s requirements for concrete...

Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite...

Design-Builder Entitled to Contractual Indemnity from Subcontractor for Damages to Turbines

by Kent Holland | Jan 3, 2012 | indemnification clause, Newsletter Article

Black & Veatch (“B & V”) contracted with Portland General Electric (“PGE”) to engineer, procure and construct a power generating facility called the Port Westward Power Plant, and it subcontracted to a specialty subcontractor to install the combustion turbine...

Damages Caused By Chinese Drywall Are Excluded From Coverage Under Homeowner’s Insurance

by Kent Holland | Jan 3, 2012 | Newsletter Article

Chinese Drywall caused damage that was not from coverage under a homeowner’s insurance policy because of several exclusions for (1) faulty, inadequate or defective materials, (2) latent defects, (3) rust or corrosion and (4) pollution.  Two years after purchasing...

Asbestos Damages Are Excluded under Condominium Association’s Property Insurance Policy

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a property insurance “open peril” policy for a condominium association contained a pollution exclusion, there was no coverage afforded for damages arising out of a contractor’s work of an asbestos remediation contractor.  The association hired the contractor to...