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Subcontractors Subrogation

White and Williams LLP

Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors

In Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its...more

Smith Debnam Narron Drake Saintsing & Myers,...

Court of Appeals Confirms Partial Lien Waivers Do Not Waive Lien Rights

In a recent decision, the North Carolina Court of Appeals held that a general contractor’s execution of partial lien waivers did not prejudice a supplier’s lien rights on the construction project. The case is Atlantech...more

Saul Ewing LLP

Subcontractors Were Not Third-Party Beneficiaries of Waiver of Subrogation Language in a General Contract, Requiring Reversal of...

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A recent Maryland appellate decision arising from an insurance company’s exercise of subrogation rights against negligent subcontractors in connection with tornado damage to a warehouse illustrates the pitfalls of waiver of...more

White and Williams LLP

New York Preserves Subrogation Rights

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The insurer’s right of subrogation is equitable in nature, even if not based in contract. However, since the insurer steps into the shoes of its insured and is limited to the rights of its insured, an integral part of the...more

Pillsbury - Policyholder Pulse blog

Subrogation 101 (and Why Should I Care?)

What is subrogation? Why am I being asked to waive it? Should I care? To answer that last question, let’s take a quick run at the first two. What Is Subrogation? “Subrogation” refers to the act of one person or party standing...more

Hendershot Cowart P.C.

Subrogation Defense for Contractors: What to Do When an Insurance Carrier Sues You

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A homeowner or property owner (your client or customer) files a claim with their homeowners or property insurance for damage. The insurance company then comes after you, alleging it was a construction or design defect that...more

White and Williams LLP

Waive Your Claim Goodbye: Louisiana Court Holds That AIA Subrogation Waiver Did Not Violate Anti-Indemnification Statute and...

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In 2700 Bohn Motor, LLC v. F.H. Myers Constr. Corp., No. 2021-CA-0671, 2022 La. App. LEXIS 651 (Bohn Motor), the Court of Appeals of Louisiana for the Fourth Circuit (Court of Appeals) considered whether a subrogation waiver...more

White and Williams LLP

Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause

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Subrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract...more

Ward and Smith, P.A.

The Notice of Contract Mechanism: How Contractors Can Avoid Double Payment

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As the economic crisis stemming from the coronavirus pandemic unfolds, it is ever more important that contractors and subcontractors protect their payment rights and avoid the risk of double payment; i.e., the risk of having...more

White and Williams LLP

Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses

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In Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In...more

White and Williams LLP

New York Court Confirms No Coverage for Resulting Water Damage to General Contractor’s Work Product

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A homeowner’s insurer sought to recover amounts the homeowner insurer paid with respect to construction and renovation work performed on a home (two combined residential co-op units) from the CGL carrier of a general...more

White and Williams LLP

California Court of Appeals Holds Subrogating Carrier Cannot Assert Claims of Its Suspended Insured

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In Travelers Prop. Cas. Co. of Am. v. Engel Insulation, Inc., 29 Cal. App. 5th 830 (2018), the Third District Court of Appeals of California addressed whether a subrogating carrier can assert the rights of its corporate...more

White and Williams LLP

In Massachusetts, the Statute of Repose Applies to Consumer Protection Claims Against Building Contractors

In Bridgwood v. A.J. Wood Construction, Inc., 105 N.E.3d 224 (Mass. 2018), the Supreme Court of Massachusetts determined that the statute of repose barred the plaintiff’s consumer protection claims commenced more than six...more

White and Williams LLP

Ohio Rejects the Majority Trend and Finds No Liability Coverage for a Subcontractor’s Faulty Work

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In Ohio N. Univ. v. Charles Constr. Servs., 2018 Ohio LEXIS 2375 (No. 2017-0514, October 9, 2018), the Supreme Court of Ohio was recently called upon to determine if a general contractor’s Commercial General Liability (CGL)...more

White and Williams LLP

Florida’s Fourth District Appeals Court Clarifies What Actions Satisfy Florida’s Construction Defect Statute of Repose

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In Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal recently concluded that the date on which the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s...more

Ward and Smith, P.A.

North Carolina Updates its Construction Lien Laws

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Gary is a commercial office space builder. Olivia owns a vacant parcel of real property in North Carolina and hires Gary to build an office building on the parcel. Olivia and Gary sign a contract by which he agrees to do the...more

Ward and Smith, P.A.

Construction Law: Final Payment by Owner, Avoiding Lien Claims

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A contractor has finished work on a construction project in North Carolina and submitted a written request for final payment to the owner of the real property that has been improved by the construction. The owner is...more

White and Williams LLP

Supreme Court of Idaho Rules That Substantial Compliance With the Notice and Opportunity to Repair Act Suffices to Bring Suit

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In Davison v. Debest Plumbing, Inc., 416 P.3d 943 (Ida. 2018), the Supreme Court of Idaho addressed the issue of whether plaintiffs who provided actual notice of a defective condition, but not written notice as stated in the...more

Bradley Arant Boult Cummings LLP

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...more

Haight Brown & Bonesteel LLP

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...more

Snell & Wilmer

Recent Developments in California Construction Law

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Notable 2014 Case Law - Liability for owners, developers, contractors, subcontractors, suppliers and design professionals - This year, California courts decided a variety of cases with important relevance to...more

Troutman Pepper

Ninth Circuit Enforces Waiver of Subrogation Clause in Design/Build Agreement Against Post-Construction Property Insurer

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Travelers Indem. Co. v. Crown Corr, Inc., 2014 U.S. App. LEXIS 21101 (9th Cir. 2014) - This action arose out of the construction of the University of Phoenix Stadium (the “Stadium”), home of the Arizona Cardinals. ...more

Snell & Wilmer

Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’...

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The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at...more

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