Mississippi Supreme Court Rules that Daughter is Not Compelled to Arbitration with her Contracting Parents in Construction Defect Case

The Mississippi Supreme Court ruled that a homeowner's daughter was not party to, nor an intended beneficiary of a contract with a foundation contractor such that her claims were not subject to arbitration.  The court ruled that she was not compelled to arbitrate and that her claims were ripe for adjudication in Perry County. On … Continue reading Mississippi Supreme Court Rules that Daughter is Not Compelled to Arbitration with her Contracting Parents in Construction Defect Case

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Proposed South Carolina Legislation Might Limit Residential Specialty Contractors

The South Carolina legislature is considering legislation that will affect residential builders and specialty contractors. The text with proposed changes below SECTION    2.    Section 40-59-20(7) of the 1976 Code is amended to read: "(7)    'Residential specialty contractor' means an independent contractor who is not a licensed residential builder, who contracts with a … Continue reading Proposed South Carolina Legislation Might Limit Residential Specialty Contractors

Sixth Circuit Holds Defective Workmanship Not Covered by Contractor’s CGL Policy

Defective workmanship is not a covered occurrence, according to a 6th circuit decision. The concept of defective work continues to be interpreted differently by states around the country.

Green Building/Construction Law

insurance_policyA recent post on Insurance Developments (this blog’s sister blog) discussed a recent unpublished opinion by the Sixth Circuit Court of Appeals, which held that a contractor’s allegedly poor workmanship did not constitute an “occurrence” under the contractor’s policy, thereby relieving the insurer of the obligation to indemnify the contractor in a construction defect action. While this topic is not specifically related to green building (there are few reported decisions or active cases that are), the principle is nonetheless applicable to contractors working on green building projects.

Very briefly (click the link above if you want to read a slightly more in-depth discussion), Wal-Mart contracted with MW Builders to construct a new Wal-Mart in Kentucky. MW Builders subcontracted the site preparation and some preliminary foundation work to Kay & Kay. After construction was complete, cracks began to develop in the building’s walls, allegedly resulting from settlement below the foundation. MW…

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