General Contractor Can Recover Damages Caused by Sub’s Defective Work From the Sub’s CGL Policy

by Kent Holland | Jul 13, 2011 | Newsletter Article

Where a plumbing subcontractor installed water lines that did not meet the project specifications, and this caused damage to a neighboring property, the prime contractor sued the sub for negligent work and was entitled to recover its damages from the sub’s commercial...

Subcontractor Was Wrongfully Terminated Where Its Performance was Delayed by the Prime Contractor and Others

by Kent Holland | Jul 13, 2011 | Newsletter Article

Demolition delays by others for whom the subcontractor was not responsible significantly impeded the subcontractor’s ability to timely perform its work.  Stored equipment and activity of other subcontractors prevented the subcontractor from accessing work areas.  And...

Economic Loss Doctrine Bars Contractor’s Insurance Carrier from Bringing Subrogation action against Design Professional for Negligence

by Kent Holland | Jun 7, 2011 | Newsletter Article

Where Contractor’s insurance carrier brought a subrogation action against the project’s design professional for negligent performance, including failure to prepare contract drawings and specifications in a manner “fully coordinated for bidding by the various...

Contractual Liability Exclusion Bars Coverage for Breach of Contract Claim against Contractor by a Third Party

by Kent Holland | Jun 7, 2011 | indemnification clause, Newsletter Article

A general contractor under contract to the Dallas Area Rapid Transit Authority (DART) was sued by the owner of a building adjacent to the construction site, alleging that water damage was caused by the contractor’s negligent construction activities.  In addition to...

Defective Work of Subcontractor Covered under Prime Contractor CGL Policy

by Kent Holland | Jun 7, 2011 | Newsletter Article

Where a commercial general liability (GCL) insurance carrier filed a declaratory judgment action against its insured contractor asking the court to declare that the carrier owed no defense or indemnification duty arising out of costs to repair water damage to homes...

Principal of Limited Liability Company can be Sued without Need to Pierce Corporate Veil

by Kent Holland | Jun 7, 2011 | Newsletter Article

Where a property owner filed suit against a limited liability company and sued the individual principal of the company as well as the company itself, alleging negligence, fraud and violations of the state unfair practice act, it was held that the owners were not...