Construction
Unsigned Contract = No Proper Insurance Coverage
May 18th, 2017
File this one under “Oops.” The unsigned contract meant that the contractual liability exclusion in the subcontractor’s insurance policy would control, since there was no obligation “assumed in a contract or agreement . . . [where the claim]…
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“Self-Performed” Does Not Include Labor Sub’s Work
May 11th, 2017
The contractor on a large project engaged laborers through a sub, who may have been a labor broker. The contract allowed a higher fee on “self-performed” work, and the contractor claimed this labor as “self-performed.” But the Nevada Supreme…
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Categories: Construction
Reference to Arbitration in Contract Was Sufficient Notice of Arbitration Clause
May 9th, 2017
Homeowners who claimed not to have read the contract nonetheless signed a 10-page form with two critical items: (1) a check box indicating arbitration and not litigation for dispute resolution, and (2) incorporation by reference of general conditions…
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It Doesn’t Pay to Lie – Insurance Edition
April 25th, 2017
The sad part about decisions abrogating insurance coverage, based on misrepresentations by the insurance applicant, is that innocent third parties often suffer from the lack of coverage. A recent Pennsylvania decision provides one more example. The J…
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When the Indemnity Names the Wrong Entity
April 18th, 2017
It’s a problem. Per the court: “Just as ‘Ten’ is not ‘Twenty,’ a ‘corporation’ cannot mean ‘a limited partnership.'” So a surety who obtained an indemnity agreement for claims arising from bonds…
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Indemnities, and Establishing Priority of Multiple Insurance Policies
April 14th, 2017
Contractor lent a vehicle to a sub, and the sub’s employee caused a fatal accident. The subcontract had an indemnity in favor of the contractor. Five insurance policies were in play: (1) sub’s auto policy, (2) sub’s GL, (3) sub’s umbrella, (4…
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GL Exclusion for Liability Insured Under a Wrap-Up? Ambiguous.
April 11th, 2017
Per a federal court, a GL exclusion that refers to a “wrap-up” is ambiguous, so the carrier’s request for summary judgment against coverage was denied, and the plaintiffs’ corresponding request to establish coverage was allowed. The underlyin…
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No-Damage-for-Delay Clause Did Not Bar Acceleration and Inefficiency Claim
March 29th, 2017
Where a sub was told that no additional time would be granted under any circumstances, the additional costs it incurred for acceleration and inefficiency could be recovered, even with a contract no-damages-for-delay clause. Also, the sub’s use of a…
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How Do Additional Insured Obligations Work with Subcontract Flow-Down Clauses?
March 23rd, 2017
They don’t. Unless the subcontract is carefully drafted, that is. So where the prime contract required the owner to be named as an additional insured, and the subcontract flow-down clause passed along the GC’s obligations to the owner, as the sub…
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Indemnity Obligation Typically Includes Attorneys’ Fees
March 22nd, 2017
The “American rule” in litigation is that each party must pay its own legal fees, absent a contract or statutory right to recover the same from another party. But the nature of an indemnity is one where legal fees incurred by the indemnitee shoul…
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