Do General Liability Policies Cover Intentional as Well as Unintentional Acts?

In some instances intentional acts are covered. General liability insurance policies provide that the insurer will defend and, if necessary, indemnify accidental, or negligent, acts but do not cover intentional acts that harm third parties. But can the intentional acts of a contractor’s employee be considered an “occurrence” that an insurer must defend and indemnify […]

Third-Party Claims Require Proof of Privity of Contract

Indiana court outlines the criteria needed to allow a third-party claim against a subcontractor Privity of contract is required to successfully pursue a claim for breach of contract. An issue that often arises is whether an owner can file a claim against a subcontractor who has contracted with the prime contractor but not directly with […]

TN Court Clarifies the Effect Licensing Limits have Upon Contractors’ Ability to Recover the Amount Owed per a Contract

The court’s ruling ends a discrepancy between somewhat different previous statutory provisions Most, if not all, states have statutes that stipulate that contractors must obtain contractor’s licenses. (In some states there are exceptions for projects that do not exceed a relatively small dollar amount.) Unlicensed contractors do not have the same legal recourse as licensed […]

Pennsylvania Contractor and Subcontractor Payment Act is Revised

The provisions for both suspending work and withholding payment are now more equitable The Pennsylvania Contractor and Subcontractor Payment Act (“CASPA”) stipulates the procedures that must be followed by contractors, subcontractors and owners when suspending work for non-payment and for withholding payment for non-performance. The Act was revised on June 12, 2018, when HB566 was […]

Early Registration Now Open For Construction SuperConference

Early registration for Construction SuperConference (CSC), the preeminent construction conference developed for mid- to senior-level professionals who work in any of the legal and commercial construction markets, is now open. Kevin Gaffney, group show director, CSC: “If you are looking to save money, it pays to act now.” You can’t afford to miss Construction SuperConference […]

Local School Board Can Render a Contract Void because it Exceeded Its Statutory Authority

There was no legal recourse for the contractor who entered into the contract with the School Board. Contractors working for governmental agencies, more often than not, are at a disadvantage when legal disputes arise. A Virginia case provides yet another harsh lesson for contractors that reinforces the need to have all contracts, especially government contracts, […]

The Faulty Work of a Subcontractor is Probably a Covered “Occurrence” in New York

The Tenth Circuit interprets contractual language in favor of the policy holder. The U.S. Court of Appeals for the Tenth Circuit recently ruled that the New York Court of Appeals would find that damage to a project caused by a subcontractor’s accidental actions constitutes damage to a third party’s property and is a compensable claim […]

Massachusetts Court Finds There is No Coverage for Preventative Maintenance

The court rejected the plaintiff’s argument that the contract contained ambiguous language that would allow coverage. Traub Lieberman Straus & Shrewsberry’s blog contains a discussion of the Court’s decision in Roche Bros. Supermarkets, LLC v. Continental Cas. Co., 2018 Mass. Super.LEXIS 81, a Massachusetts case in which the insured argued that it’s all risk commercial […]

Construction SuperConference Announces Keynote Speaker

Rich Karlgaard, an entrepreneur-turned-publisher, columnist, author, television commentator, private investor and board director, brings his unique perspective on the trends driving the business and investment climates. His insights help audiences see the global marketplace with new eyes. Rich Karlgaard is the publisher of Forbes magazine, where he writes a biweekly column known for its witty […]

Complying with Rules for P3s for Public Transportation Projects is Now Easier

The new FTA Rules are similar to the Federal Highway Administration procedures The Federal Transit Authority has issued its “’Private Investment Project Procedures, (PIPP), designed, as John Smolen explains in an article NOSSAMAN’s INFRA INSIGHT BLOG, “to promote flexibility, funding, innovation, efficiencies and timely implementation” of public, private partnerships (P3s) in its projects. The FTA’s […]

California Supreme Court Clarifies the Use of Good Faith Withholdings in Payment Disputes

The Legislative intent of prompt payment statutes must be taken into account. Both common law and statutory law prompt payment provisions allow a prime contractor to withhold payment to a subcontractor if there is a legitimate, good faith, issue concerning whether the subcontractor is owed the amount it claims. The issue before the California Supreme […]

What Constitutes a “Suit” in Commercial General Liability Policy Coverage?

The Florida Supreme Court provides an expansive meaning for “suit” Insurance carriers have been arguing with contractors over coverage terms under Commercial General Liability Policies for as long as these policies have been written. A relatively recent Florida Supreme Court case examines the question of whether the word “suit” in a contract requires the insurer […]