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...

Shifting Sands beneath the Economic Loss Doctrine in Washington

by Kent Holland | Jun 7, 2011 | Newsletter Article

For more than a decade, design professionals in Washington have been able to rely upon the economic loss doctrine as a bulwark against many third party claims and certain types of negligence claims from their clients.  However, two recent Washington State Supreme...

Federal Court in Tennessee Holds Insurer Responsible Under CGL Policy For Defending Contractor Against Negligence Claims

by Kent Holland | Jun 7, 2011 | Newsletter Article

When an owner asserts a claim of negligent construction against a general contractor, the general contractor may seek to have its insurer provide a defense to the claims (i.e., pay for an attorney) under its commercial general liability (“CGL”) policy and, if the...