Fairfield Connecticut Building Expert Directory

Last, but NOT Least: Why You Should Take a Closer Look at Your Next Indemnification Clause

March 09, 2020 — Aimee Cook Oleson - Construction & Infrastructure Law Blog
Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. It is not uncommon for parties to simply re-use the indemnity language from a prior agreement without considering whether it is a good fit for their current project. This can be a big mistake that may lead to ambiguities and uncertainties if a dispute arises down the road. A standard or canned indemnification clause might work to undo all of the effort that has gone into properly allocating risk. These clauses often contain language such as “notwithstanding anything to the contrary herein,” or the like, which can alter and override other provisions in the agreement. Indemnification clauses are arguably the most important part of an agreement when an accident or dispute arises on a project. Therefore, they deserve an extra look before finalizing an agreement. Here are a few issues to keep in mind when reviewing your next indemnification clause:

Have you included all necessary parties?

Any party who could face potential liability should be included as an indemnified party. This often includes entities and persons related to the contracting parties, not just the parties themselves.
A well drafted indemnity clause will ensure that all parties are liable for the result of their own work and negligence and that of any party that they have hired to work on a project. This includes employees, agents, subcontractors, or any other similar party.

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Reprinted courtesy of Aimee Cook Oleson, Sheppard Mullin
Ms. Oleson may be contacted at AOleson@sheppardmullin.com

Construction Group Seeks Defense Coverage for Hard Rock Stadium Claims

December 09, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
In an insurance coverage action pending in the S.D.N.Y., Hunt Construction Group (Hunt) contends that Berkley Assurance Company wrongfully denied defense coverage for claims arising out of the renovation of Hard Rock Stadium (home to the Miami Dolphins and Miami Hurricanes football teams). The stadium owner, South Florida Stadium LLC (SFS), hired Hunt to serve as the construction manager for the renovation project. Hunt subcontracted with Alberici Constructors Inc. (Alberici) to design and fabricate roof structures for the stadium. Hunt and SFS sued Alberici over its work on the project. In March 2017, Alberici asserted counterclaims against Hunt and SFS. In May 2018, SFS sought defense and indemnification from Hunt with respect to Alberici’s coverage claims. Hunt is insured under claims made and reported professional liability insurance policies issued by Berkley with policy periods from June 15, 2016 to June 15, 2017 (with an automatic extended reporting period through August 14, 2017) and from July 15, 2017 to June 15, 2018. Hunt notified Berkley of Alberici’s counterclaim on July 20, 2017 (within the extended reporting period of the 2016-2017 policy) and of SFS’s indemnity claim on June 5, 2018 (within the 2017-2018 policy period). Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Boston Construction Bands With Health Care to Fight COVID-19

January 11, 2021 — Scott Van Voorhis - Engineering News-Record
Trade union leaders, construction executives and international health care experts are teaming up in Boston o stop the spread of COVID-19 in the city’s booming construction sector. The coalition unveiled a program called Construction Stops COVID on Dec. 22. The testing, tracing and treatment initiative targets tens of thousands of hard-hatted workers toiling on construction sites across the city. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Contractual Indemnification Limitation on Florida Public Projects

July 28, 2016 — David Adelstein – Florida Construction Legal Updates
Construction contract indemnification provisions are governed under Florida Statute s. 725.06. This is a very important statute to know if you are drafting indemnification provisions for any type of construction contract. (There is also Florida Statute s. 725.08 that discusses indemnification provisions applicable to design professionals that is also worth knowing.) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Outcry Over Peru’s Vast Graft Probe Prompts Top Lawyer to Quit

January 15, 2019 — John Quigley - Bloomberg
Peru’s Attorney General Pedro Chavarry quit his post amid allegations he sought to sabotage a plea deal with a major construction company and derail the country’s biggest corruption probe. The board of supreme prosecutors accepted his resignation Tuesday and appointed Zoraida Avalos as his replacement, according to a post on the account of the attorney general’s office. Chavarry will continue to sit on the five-member board. Read the court decision
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Reprinted courtesy of John Quigley, Bloomberg

Common Law Indemnity Claim Affirmed on Justifiable Beliefs

June 30, 2016 — Rick Erickson – Snell & Wilmer Real Estate Litigation Blog
Yesterday, the Arizona Court of Appeals issued an interesting opinion in Hatch Development v. Solomon. Hatch illustrated two key points in real estate and construction litigation: (1) a contractor’s indemnity does not always require an expressly written obligation; and (2) when facts are undisputed that a contractor is solely at fault for a construction defect, a property owner can be indemnified after paying a neighboring property owner for damages caused by the contractor’s defective work. Read the court decision
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Reprinted courtesy of Rick Erickson, Snell & Wilmer
Mr. Erickson may be contacted at rerickson@swlaw.com

AFL-CIO Joins in $10 Billion Infrastructure Plan

June 30, 2011 — CDJ STAFF

The AFL-CIO has announced plans to generate up to $10 billion in funding for infrastructure development, training construction workers, and making buildings more energy efficient, pledging $20 million to retrofit buildings. Bloomberg News reports that union officials made the announcement in Chicago at the Clinton Global Initiative, releasing a statement from Richard Trumka, president of the union, “we, at the AFL-CIO, believe that together, with our partners in business and government, we can profitably invest significant resources to make America more competitive and energy efficient.” A foot injury prevented Mr. Trumka from attending the event.

The statement also quoted Mark Ayers, president of the Building and Construction Trades Department of the AFL-CIO, “the time is now to become intensely focused on the creation of jobs.”

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California Supreme Court Rejects Insurers' Bid for Horizontal Exhaustion Rule in New Montrose Decision

April 20, 2020 — J. Kelby Van Patten - Payne & Fears
In Montrose Chemical Corp. v. Superior Court, 2020 WL 1671560 (April 6, 2020), the California Supreme Court held that, when one primary policy exhausts in a continuing injury claim, the excess insurer sitting above that policy must drop down and provide coverage for the entire claim (up to its policy limits), even if primary policies in other years remain unexhausted. Montrose was sued for environmental contamination between 1947 and 1982. In many years, Montrose had primary insurance as well as multiple layers of excess coverage. Montrose’s excess insurers argued for a “horizontal exhaustion” rule, which would have required that all implicated primary policies exhaust before any excess insurers provide coverage. The California Supreme Court rejected the insurers’ arguments and found that Montrose was entitled to coverage from an excess insurer once the specific primary policy sitting below that insurer was exhausted. The Supreme Court also confirmed that, under California’s “all sums” rule, each excess insurer must provide coverage for the entire amount of the loss (up to its policy limits). Read the court decision
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Reprinted courtesy of J. Kelby Van Patten, Payne & Fears
Mr. Van Patten may be contacted at kvp@paynefears.com

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