Blog Post
10/25/2021
By Brandon A. Brauer

A recent decision from the United States District Court for Delaware held that a surety was not liable for consequential damages to a building owner after a default by its contractor because the surety’s liability could not be greater than its principal’s liability. See Iron Branch Associates, LP v. The Hartford Fire Insurance Company, Civil Action No 21-463, 2021 WIL 4129116 (D. Delaware September 9, 2021).

Blog Post
07/21/2020
By Gregory M. Boucher

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.

Blog Post
06/08/2020
By Brandon A. Brauer

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.
 

Blog Post
05/20/2020
By Gregory M. Boucher

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.

Blog Post
04/17/2020
By Gregory M. Boucher

A recent decision from the D.C. Circuit Court of Appeals provides notice to construction performance bond owners and sureties that a bond owner may forfeit its rights under a bond if timely notice of default is not provided to the surety. See Western Surety Company v. U.S.

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