Common-Enterprise Defense Prevents Employee that Recovered Workers Compensation from also Recovering from Other Contractor

by Kent Holland | Nov 15, 2017 | Newsletter Article

An employee of a general contractor was electrocuted while working alongside employees of a subcontractor to move sections of pipe culvert in a streambed. This apparently occurred because a crane being operated by the subcontractor contacted an electrical wire. His...

Corporate Asset Purchaser Not Liable as a Mere Continuation of the Corporation

by Kent Holland | Nov 15, 2017 | Newsletter Article

A limited liability company (LLC) that completed an asset purchase of a corporation, was subsequently sued for damages allegedly caused by acts and omissions of a corporation that occurred long before the asset purchase.   Summary judgment was granted for the LLC on...

Economic Loss Rule Does not Apply to Fraud Claims

by Kent Holland | Sep 26, 2017 | economic loss doctrine, Newsletter Article

The economic loss rule was applied by a trial court to bar a homeowner in a contractual relationship with a contractor from suing for fraud instead of only for breach of contract. This was reversed on appeal, with the appellate court holding that while claims for...

Limitation of Liability Clause Enforced to Limit Recovery to only $550,000 of a $9.5 Million Jury Verdict

by Kent Holland | Sep 26, 2017 | limitation of liability clause, Newsletter Article

Where a housing developer won a jury verdict for more than $9.5 million against a geotechnical engineer, the court applied the limitation of liability (LoL) clause in the geotech’s contract to cap the liability at $550,000. The developer attempted to avoid the LoL by...

Architect/Design-Builder Responsible for Construction Subcontractor’s Site Safety

by Kent Holland | Sep 26, 2017 | Newsletter Article

On a design-build project where an architect held the prime contract under DBIA forms 530 and 535, it was liable for overall site safety – including that which it had by subcontract expressly delegated to its construction subcontractor.   Because the language of the...

Pollution Exclusion Can’t be Applied to Carbon Monoxide Poisoning Caused from Covered Occurrence Under Different Provision of Policy

by Kent Holland | Sep 26, 2017 | Newsletter Article

Carbon monoxide was released into a newly constructed home due to incorrect installation of a water heater vent. The commercial general liability (CGL) carrier for the contractor declined to defend and indemnify the contractor against a suit for the homeowner’s...