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Now, a Subcontractor’s Indemnification Payment can be Used to Satisfy a General Contractor’s SIR

Fri Jan 16, 2015 Articles

The recent Florida Supreme Court opinion Intervest Construction of Jax, Inc. v. General Fidelity Ins. Co., 133 So. 3d 494 (Fla. 2014) illustrates the effect contract interpretation principles can have on the evaluation and scope of insurance policies and coverages. Intervest concerned the application of a Self-Insured Retention Endorsement ("SIR"), and whether a general contractor or its insurer was obligated to fund a settlement for a bodily injury claim.

No Success in Successive Suits

Fri Jan 16, 2015 Articles

More than 200 years after the original Tea Party, the English common law principle of res judicata and the related rule against splitting causes of action can produce unanticipated results in Florida lawsuits.

A Complicated Relationship – Is It Necessary To Plead A Special Relationship To State A Cause of Action for Common Law Indemnity?

Fri Jan 16, 2015 Articles

In construction defect lawsuits, parties routinely assert common law indemnity claims against  downstream subcontractors, material suppliers, and other entities whose work or materials caused the respective defects.  Common law indemnity is a claim that shifts responsibility for damages from a party without any active negligence or fault, but who is liable for damages pursuant to vicarious, constructive, derivative, or technical liability principles, to the party who is actively negligent or at fault.

Takeover Agreements and Bonds

Sat Nov 22, 2014 Articles

Is it time to revise your form takeover agreement?  In Allegheny Casualty Co. v. Archer-Western/DeMaria Joint Venture III, 2014 WL 4162787 (M.D. Fla. August 21, 2014), the United States District Court for the Middle District of Florida rejected non-binding authority that “when a surety elects to directly undertake performance of a principal’s obligations, the surety’s liability is no longer limited by the amount of the bond.”

Indemnity Agreements and Bonds

Sat Nov 22, 2014 Articles

Beware that some courts may compel arbitration of a surety’s salvage claims against its principal and indemnitors even if the general agreement of indemnity (the “GAI”) does not include an arbitration provision.