Companies in the construction industry face the risk of disputes every day, and defending those disputes means incurring attorneys’ fees. While companies sometimes pay those attorneys’ fees out of pocket, they may be able to trigger insurance coverage — either their own policy or that of another party on the project — to fund their
On May 8, the Second Circuit held that the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards trumps a Louisiana state law barring arbitration of insurance disputes in a pair of cases, Certain Underwriters at Lloyds, London et al. v. 3131 Veterans Blvd. LLC and Certain Underwriters at Lloyds, London et
The Alabama Supreme Court found that an indemnification provision was enforceable that required a subcontractor to indemnify a general contractor on a proportional-fault basis against liability for death or personal injury.
JohnsonKreis Construction Company, Inc. subcontracted with Howard Painting, Inc. to perform work on a hotel project in Birmingham, Alabama. The subcontract included an indemnification
As construction claim lawyers, we are always on the lookout for insurance policies or “bonds” that might satisfy our client’s claim. On federal projects, this includes performance and payment bonds known as Miller Act bonds. These bonds, which take their name from the federal Miller Act that requires them on all federal contracts over $100,000, protect
In Swinerton Builders, Inc. v. Argonaut Insurance Co., Swinerton Builders, a contractor, sued a surety on bond claims arising from defaults by its subcontractor on a series of work orders. The owner of Swinerton’s mechanical subcontractor on three projects passed away unexpectedly, and the subcontractor was unable to complete its remaining work on the
The words breach and default are often used interchangeably to indicate that somebody hasn’t done what they were legally required to do. According to Black’s Law Dictionary, the words do appear somewhat interchangeable. Black’s defines breach as “a violation or infraction of a law, obligation, or agreement, especially of an official duty or a legal
Following up on our first blog post about employee stock ownership plans (ESOPs) for construction companies, this post addresses surety bond requirements as well as the way in which ESOPs can incentivize employees and increase cash flow.
Construction companies are typically required to obtain surety bonds to guarantee a project owner
The Alabama Legislature recently made several changes to requirements for public works projects that go into effect September 1, 2023. Here’s a summary of the notable changes:
Section 39-1-1 mandates that a contractor performing public works furnish a performance bond equal to 100% of the contract price and a payment bond equal to
In Texas, many master service agreements (MSAs) related to the oil and gas industry typically contain provisions related to mandatory minimum insurance coverage and indemnity obligations. The Texas Supreme Court recently held the terms of an MSA may not be read into an insurance policy unless there is a “clear-manifestation” in the insurance policy the
In Ali Heidari v. Golden Bear Insurance, a California appeals court recently affirmed a lower court’s decision to deny relief under a CGL policy, where the policy excluded from coverage work performed by subcontractors under the contractor’s warranty exclusion. Specifically, the appellate court upheld the trial court’s determination that the insurer did not have a duty