CGL Policy Held to Cover Costs of Correcting SubContractor’s Defective Work Including the Work Itself

by Kent Holland | Dec 7, 2015 | Newsletter Article

Gail S. Kelley, P.E., J.D. ConstructionRisk, LLC After discovering various defects in their home, the homeowners filed suit against their builder. The builder’s insurance company declined to defend the action (“the underlying action”) on behalf of builder, alleging...

Indemnification Action Only Accrues for Statute of Limitation Purposes on Date Indemnitee Pays Judgment or Settlement

by Kent Holland | Dec 7, 2015 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC Where a subcontractor failed to honor its contractual indemnification obligations to defend and indemnify a swimming pool installation general contractor against claims arising out of the subcontractor’s work, the general...

Piercing the Architectural Firm’s Corporate Veil

by Kent Holland | Dec 7, 2015 | Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC The sole shareholder/director/officer of an incorporated architectural firm was held jointly and personally liable to pay a judgment awarded against the corporation. The corporation was found to have been operated as the alter...

Failure to Design According to the IBC Was Not Breach of Contract But Could be Malpractice

by Kent Holland | Oct 27, 2015 | Newsletter Article, standard of care

By Gail S. Kelley ConstructionRisk, LLC Where compliance with the IBC 2000 was not an explicit contract requirement, design firm’s failure to design a seismic retrofit in accordance with the IBC 2000 was not a breach of its contract. However, the firm’s...

AIA Contract Showed Architect’s Intent to Grant Owner an Implied License to Use Drawings

by Kent Holland | Oct 27, 2015 | Newsletter Article

By Gail S. Kelley ConstructionRisk, LLC Where in a case of alleged copyright infringement, the Defendant asked the Court to determine that it had an implied license to use drawings that the Plaintiff created for it before Defendant terminated its contract with...

When Engineer Refused Obligations under an Indemnification Clause to Defend its Homebuilder Client, Suit Against it for Breach of Contract does not Require Certificate of Merit

by Kent Holland | Oct 27, 2015 | indemnification clause, Newsletter Article

Kent Holland, J.D. ConstructionRisk, LLC Where an engineer entered into a contract with a homebuilder, its contract included a broad form indemnification clause that included a duty to defend and an obligation to indemnify for all claims and damages regardless of...