Practical Advice: Indemnification and Additional Insured Issues Revisited
September 08, 2016 —
John P. Ahlers – Ahlers & Cressman PLLC Construction BlogLawyers love writing about indemnification. There are seventeen blog articles on our website alone that deal with the subject. Before you click out of this email in disgust that we are rehashing a stale topic, this post contains some practical advice for contractors and subcontractors dealing with the perplexing issues of indemnification and additional insured provisions.
The concept of indemnity is based on a contractual agreement made between two parties, in which one party agrees to pay for the potential losses or damages caused by the other party. To indemnify someone means to protect that person or entity by promising to pay the cost of possible future damage, loss, or injury. When signing a contract, you should identify the indemnity obligations that could cost your business money. Finding the words “hold harmless” or “indemnify” in a proposed contract is not enough. The terms “hold harmless,” “save harmless,” or “indemnify” are a big part of the indemnification obligation. Although insurance requirements (“additional insured” clauses) accomplish virtually the same thing as very broad, unfair, or unlimited indemnity terms do, they result in an “end run” around the effort to limit the indemnification obligation.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Haight’s San Diego Office is Growing with the Addition of New Attorneys
June 21, 2024 —
Haight Brown & Bonesteel LLPThe San Diego office has recently added two attorneys to the team.
Amanda McKechnie has joined the Construction Law Practice Group. Amanda has extensive experience representing national developers, owners, general contractors, design professionals and subcontractors in complex construction litigation.
Arash Yahyai has joined the Construction Law and General Liability Practice Groups. Arash focuses on defending actions involving complex construction defect, insurance defense, premises liability, product liability, catastrophic personal injury and other general liability related cases.
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Haight Brown & Bonesteel LLP
With No Evidence of COVID-19 Being Present, DC Trial Court Finds No Claim for Business Interruption
September 28, 2020 —
Tred R. Eyerly - Insurance Law HawaiiA D.C. Superior Court rejected a business interruption claim due to closures related to the COVID-19 pandemic. Rose's 1, LLC v. Erie Ins. Exchange, Civil Case No 2020 CA 002424 B (Order dated Aug. 8, 2020). The decision is here.
Plaintiffs owned a number of restaurants in the District of Coiumbia. Plaintiffs had commercial property coverage in a policy issued by Erie. The policy provided coverage for loss of income sustained due to interruption of business resulting directly from "loss or damage" to the insured property.
DC Mayor Bowser issued a series of orders in March 2020 which closed all non-essential businesses, including plaintiffs' restaurants. Plaintiffs filed claims with Erie. When coverage was denied, plaintiffs filed suit. Both sides moved for summary judgment.
The dispute centered on whether the closure of the restaurants due to the mayor's orders constituted a "direct physical loss" under the policy. Plaintiffs argued that the loss of use of the restaurants was "direct" because the closures were the direct result of the mayor's orders without intervening action. The court reasoned, however, that the orders were governmental edicts that commanded individuals and businesses to take certain actions. Standing alone and absent intervening actions by individuals and businesses, the orders did not effect any direct changes to the properties.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
South Carolina Legislature Defines "Occurrence" To Include Property Damage Arising From Faulty Workmanship
May 26, 2011 —
Tred R. Eyerly - Insurance Law Hawaii On May 17, 2011, South Carolina passed legislation to combat the restrictive interpretation of what constitutes an "occurrence" under CGL policies. S.C. Code Ann. sec. 38-61-70.
The legislation reversed a decision by the state's Supreme Court issued earlier this year. See Crossman Communities of North Carolina, Inc. v. Harleysville Mut. Ins. Co., 2011 W.L. 93716 (S.C. Jan. 7, 2011). Crossman had overruled an earlier decision by the South Carolina Supreme Court that holding that defective construction was an “occurrence.” Crossman, however, reversed course, holding that damages resulting from faulty workmanship were the “natural and probable cause” of the faulty work and, as such, did not qualify as an “occurrence.”
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Traub Lieberman Attorneys Recognized in the 2022 Edition of The Best Lawyers in America®
September 13, 2021 —
Traub LiebermanTraub Lieberman is pleased to announce that three Partners have been selected by their peers for inclusion in the 2022 edition of The Best Lawyers in America®. In addition, five attorneys have been included in the 2022 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
2022 Best Lawyers®
Chicago, IL
- Brian C. Bassett – Insurance Law
Palm Beach Gardens, FL
- Rina Clemens – Personal Injury Litigation – Defendants
St. Petersburg, FL
- Scot E. Samis – Appellate Practice
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Difference Between a Novation And A Modification to a Contract
May 10, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn contract law, there are two doctrines that have similarities but are indeed different. These doctrines are known as novation and modification. There are times you may want to make arguments relative to these doctrines because they are important for your theory of the dispute. Thus, you want to make sure you understand them so you can properly plead and prove the required elements to substantiate the basis of the theories. Understanding the elements will help you understand the evidence you will need to best prove your factual theories.
A novation is essentially substituting a new contract for an old contract.
“‘A novation is a mutual agreement between the parties for the discharge of a valid existing obligation by the substitution of a new valid obligation.’” Thompson v. Jared Kane Co., Inc., 872 So.2d 356, 361 (Fla. 2d DCA 2004) (citation omitted). To prove a novation, a party must prove four elements: “(1) the existence of a previously valid contract; (2) the agreement of the parties to cancel the first contract; (3) the agreement of the parties that the second contract replace the first; and (4) the validity of the second contract.” Id. at 61. Whether the parties consented to the substitute contract can be implied from the factual circumstances. Id.
Parties are more familiar with a modification because it is not uncommon that parties may agree to modify contractual terms. The contract remains in effect but certain terms or obligations are modified. For example, a change order to a contract is a modification.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Business Risk Exclusions Bar Coverage for Construction Defect Claims
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014).
The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable.
The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Mitigating Mold Exposure in Manufacturing and Multifamily Buildings
July 31, 2024 —
Laura Champagne - Construction ExecutiveAs hurricanes season and summer storms approach, more apartment complexes, commercial and industrial properties, and public buildings are at risk of leaking and flooding. Water-saturated structures are prime breeding grounds for mold, but there are ways to prevent, detect and remove it before it becomes a serious and costly issue—for buildings and building residents alike. Being proactive limits an owner’s exposure to the liability of debilitating health effects and structural safety concerns.
Mold requires three things to grow: water, food and humidity. Water will stealthily penetrate small porous surfaces of any building material, such as drywall, plaster, wood, concrete or even fabrics. These materials serve as a food source to quickly produce more fungus. Common sources of undetected water flow include foundation problems, poorly installed windows, roof malfunctions, gutter clogs, storm damage, leaky pipes, improper drainage, HVAC issues, faulty appliances, bathroom vent issues and wet building materials. Mold loves humidity and thrives in dark, warm environments, such as attics, basements, lofts, building corners and bathrooms.
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Laura Champagne, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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