Published: July 21, 2020

On June 29, 2020, the Michigan Supreme Court ruled that a subcontractor’s commercial general liability (CGL) insurance policy may provide a contractor listed as an additional insured on the CGL policy with insurance coverage for correcting the subcontractor’s faulty work. See Skanska USA Bldg. Inc. v. M.A.P. Mech. Contractors, Inc., No. 159510, 2020 WL 3527909 (Mich. June 29, 2020). The court held that unintentionally faulty subcontractor work that damages an insured’s work may constitute an “accident” for an additional insured under the subcontractor’s CGL policy.

. . . . . .

Published: June 12, 2020

In a unanimous decision, the U.S. Supreme Court recently ruled that a non-signatory to an agreement requiring arbitration for disputes might be able to compel arbitration under state law equitable estoppel arguments. The decision held that the New York Convention (“Convention”) does not conflict with the enforcement of arbitration provisions in agreements by non-signatories under domestic-law equitable estoppel doctrines. See GE Energy Power Conversion France SAS, Corp. v. Outokumpu Stainless USA, LLC, No. 18-1048, 2020 WL 2814297 (U.S. June 1, 2020). This decision aligns the U.S. with the majority of countries that have adjudicated the issue, which often arises in international construction disputes.

. . . . . .

Published: June 8, 2020

On May 26, 2020, the Court of Appeals of Maryland (Maryland’s highest court) held that where one of the two parties to an AIA contract sues or settles with a third party, the AIA contract’s mutual waiver of subrogation precludes that third party from claiming a right of contribution against the other contracting party. See Gables Construction, Inc. v. Red Coats, Inc. et al., No. 397964-V, 2020 WL 2731087 (Court of Appeals (Md.) May 26, 2020). The appellate court reversed the lower court’s decision, on which we previously reported last year.
 

. . . . . .

Published: May 28, 2020

This update tracks COVID-19s shutdown orders as of May 27, 2020, 12:00 p.m. EDT that affect construction projects in Delaware, the District of Columbia, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York and Pennsylvania—jurisdictions in which Saul Ewing Arnstein & Lehr LLP offices are located. 

. . . . . .

Published: May 20, 2020

On May 12, 2020, the United States Eight Circuit Court of Appeals, applying Missouri law, rejected a contractor’s contention that its commercial general liability (CGL) policy provided coverage for claims arising out of the contractor’s allegedly defective construction work.

. . . . . .