Daniel Lund III | Phelps Dunbar … and the kitchen sink! In a case that is a roadmap to recovery for a surety against individual indemnitors, the individual indemnitors resisted their indemnity obligations asserting – unsuccessfully – every possible defense imaginable. The indemnitors had all signed an indemnity agreement with the surety, which wrote a… Continue reading Construction Litigation Roundup: “… and the Kitchen Sink!”
Tag: Indemnity
Don’t Be Lazy With Your Tenders of Defense and Indemnity
Richard G. Erickson | Snell & Wilmer Our construction clients may spend significant time, money, and effort refining and updating their contract provisions covering indemnification and the duty to defend claims. Consider spending an appropriate and adequate amount of time, money, and effort when sending notices, or “tenders,” to enforce those critical provisions. Tenders demanding… Continue reading Don’t Be Lazy With Your Tenders of Defense and Indemnity
Indemnity: What You Don’t Know Can Hurt You!
Caitlin Kicklighter and Bill Shaughnessy | ConsensusDocs Risk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee,… Continue reading Indemnity: What You Don’t Know Can Hurt You!
Ways to Guard Against Insolvency Risks
Colm Nelson | Stoel Rives Headlines such as “US set for recession next year, economists predict,” from the June 12 edition of the Financial Times, are a reminder insolvency risks are real and should be top of mind when moving forward with new construction projects. But there are ways to mitigate the risks. Performance bonds, as… Continue reading Ways to Guard Against Insolvency Risks
What Goes Around Comes Around
Jonathan Bank, Matthew Murphy and Ernesto Rafael Palomo | Locke Lord In 1990, the Second Circuit in Bellefonte Reinsurance Co. v. Aetna Casualty & Surety Co., 903 F.2d 910 (2d Cir. 1990), affirmed a District Court judgment that reinsurers were not obligated to pay additional sums for defense costs over and above the limits of liability… Continue reading What Goes Around Comes Around