Indemnity

Sloppy Drafting Needlessly Extends Litigation

A crane operator was tragically killed when a beam being hoisted by the crane crashed onto the top of the cab. The beam fell because the sling selected for the load was inadequate. The sling had been selected by workers for the steel erection company… Read More
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Insurance Exclusion Negates Additional Insured Coverage

So you think your additional insured status as a GC provides protection against claims by your sub’s injured workers? Think again. General contractors commonly require subs to include the GC as an additional insured party on the sub’s general lia… Read More
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“Arising Out of” is Not the Functional Equivalent of “Proximately Caused by”

The NY Court of Appeals, construing language of an insurance endorsement, has held that the endorsement terms established a proximate cause standard. In the process, the court reiterated that a proximate cause standard is narrower than the phrase “… Read More
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Indemnities, and Establishing Priority of Multiple Insurance Policies

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… Read More
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Indemnity Obligation Typically Includes Attorneys’ Fees

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… Read More
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Indemnities Demystified

Indemnity. In the panoply of contract terms, no other word strikes as much terror into the hearts of contract administrators, project managers and other business types. This fear is often born of the failure to understand the essential elements and p… Read More
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Apply Common Sense To Indemnity Claim

A mechanical sub’s employee is severely injured during a coffee break when an improperly-fastened section of limestone façade comes loose near where he is sitting. Should the mechanical sub owe a duty of indemnity to the prime contractor? The Mass… Read More
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Overbroad Indemnity Is Still Enforceable Within Statutory Limits

Oregon has a law, similar to many other states, prohibiting overbroad indemnities in construction contracts. The Oregon Supreme Court has ruled that the law allows an arguably overbroad indemnity to be enforced within the statutory constraints, rathe… Read More
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Mind The (Procedural) Gap – Third-Party Claims Lost

Owner sued contractor, who filed third-party claims against subs seeking only indemnity from them if the contractor was found liable to the owner. Contractor then moved to dismiss the owner’s claim as barred by the statute of limitations. The court… Read More
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