Brandon R. Clark and Brandon Brauer | Saul Ewing 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 subrogation clauses in construction contracts. In XL Insurance America, Inc. v. Lithko Contracting, LLC, et al.,… Continue reading Subcontractors Were Not Third-Party Beneficiaries of Waiver of Subrogation Language in a General Contract, Requiring Reversal of Summary Judgment
Tag: Third-Party Beneficiaries
The Importance of Third-party Beneficiary Clauses in Contracts
C. Andrew Gibson | Stoel Rives In resolving construction contract negotiations and disputes, we’ve seen a number of overlooked clauses carry significant importance: a 20-year roof warranty limited to material replacement costs (no tear-out, no install) and only if the owner gives notification of a defect within 60 days; limitations of liability clauses that cap… Continue reading The Importance of Third-party Beneficiary Clauses in Contracts