Blog Topic
Topics
2008 Annual California Construction Law Update
A 2010 UPDATE ON NEW CALIFORNIA LAWS THAT IMPACT THE CONSTRUCTION INDUSTRY
A 2010 UPDATE ON NEW CALIFORNIA LAWS THAT IMPACT THE CONSTRUCTION INDUSTRY
Bidding, Mistaken Bids, Withdrawal of Bids, Bid Bond Claims and Bid Disputes
California Contractor License Law
Construction Dispute Resolution: Mediation, Arbitration and Trial
Contract Formation: Standard Industry Forms and Specialized Forms
Contract Interpretation
Design Professionals
Green Building
Insurance and Indemnity
Mechanics Liens, Stop Notices and Payment Bonds
New California Construction Related Laws That Become Effective During 2009
Subcontract Liablity
Surety Bonds: Performance and Payment Bonds
Recent Updates
December 28, 2009
A Recent Appellate Court Decision Significantly Impacts A Subcontractor's Means for Recovering California Prompt Payment Penalties
August 11, 2009
California Appellate Court Holds That Contractor Must Return All Payments When Qualifier is Not Acting as a Manager
July 21, 2009
An Overview of the Additional Legal Exposure For Green Building Projects
July 07, 2009
A 2009 Update On New California Laws That May Impact the Construction Industry
Insurance and Indemnity
California Supreme Court holds that a subcontractor's duty to defend under an indemnity clause exists even though the subcontractor is not at fault for issue in which the duty to defend arose.
In the case entitled Crawford v. Weather Shield (2008) 08 CDOS 9261, the California Supreme Court stated: "We consider whether, by their particular terms, the provisions of a pre-2006 residential construction subcontract obliged the subcontractor to defend its indemnitee-the developer-builder of the project-in lawsuits brought against both parties, insofar as the plaintiffs' complaints alleged construction defects arising from the subcontractor's negligence, even though (1) a jury ultimately found that the subcontractor was not negligent, and (2) the parties have accepted an interpretation of the subcontract that gave the builder no right of indemnity unless the subcontractor was negligent. We conclude that the answer is yes." As a result of the decision, subcontractors should review indemnity clauses and attempt to delete or modify any automatic duty to defend.
