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Fiduciary Duty not Owed by Contractor in Absence of Contract Language Expressly Stating So

by Kent Holland | Apr 13, 2020 | Newsletter Article

Alleging shoddy workmanship, fear that its contractor wouldn’t finish the project, and a lack of detailed accounting under the cost-plus contract, the owner made only a partial payment on a draw requested by the contractor. Contractor and its subcontractors filed...

Prime Contractor Duty to Timely Submit Subcontractor Change Orders to Project Owner (Government)

by Kent Holland | Sep 19, 2019 | Newsletter Article

A prime contractor failed to timely submit subcontractor change orders to the project owner, thereby depriving subcontractor of compensation for additional work. This constituted a bad faith breach of the prime contractor’s duty to the subcontractor. This entitled the...

Insurance Broker not Liable to its Client When Insurance Program Failed and was Put into State Receivership

by Kent Holland | Jul 8, 2014 | Newsletter Article

Where an insurance broker marketed and sold a self-insured workers compensation program for contractors (the Contractors Access Program of California (CAP)) that subsequently became financially insolvent and failed, leaving the contractors exposed to considerable...

CM Did not Breach Fiduciary Duty and was Entitled to Recover for Delay Period Caused by Client

by Kent Holland | Oct 29, 2013 | Newsletter Article

On a home building project in excess of $5 million, the homeowner contracted with a construction manager to oversee the project for a $375,000 fixed fee for a specified scope of services that included preparing a budget, soliciting bids for major contracts,...

Design Professional Decreed to be Fiduciary of Project Owner

by Kent Holland | Jul 22, 2011 | Newsletter Article

By: Michael S. Zetlin, Esq. Zetlin & De Chiara, LLP In a decision that could have far-reaching implications for design professionals, a court in California recently concluded that a fiduciary relationship existed between an architect and an owner.  As a result of...

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