Michigan has joined the majority of jurisdictions in holding that a general liability policy may provide coverage for claims for property damage allegedly caused by the defective work of a subcontractor. In a unanimous decision reversing the Michigan Court of Appeals, the Michigan Supreme Court held that a subcontractor’s unintentional defective work was an “accident”
Bonds and Insurance
An Insurer’s Duty to Defend does not Extend to a Construction Claim that Falls Clearly Within a Policy Exclusion
Like most states, Florida follows the rule that an insurer’s duty to defend is separate from and broader than its duty to indemnify for a potentially covered occurrence. Last week, in South Winds Construction Corp. v. Preferred Contractors Insurance Company Risk Retention Group, LLC, a Florida appellate court addressed the extent of that duty…
Recent Court Order Excluding Expert Testimony Offers Useful Reminders and Lessons for Construction Litigants
Construction claims often feature supporting testimony from design and/or scheduling experts, and exclusion of that testimony either by disqualification of the expert or a finding that the testimony is otherwise inadmissible can prove fatal to your claim or defense. States may vary in their requirements for admissibility of expert evidence, but most states follow some…
Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract
In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions.
The general contractor said that its fire sprinkler subcontractor was responsible for the burst sprinkler pipe and the resulting property damage based on the “Assumption of Liability” provision in the subcontract, which stated that…