Utah Court Assesses Impact Of “Anti-Assignment” Clause On Claims Against Design Professional Assigned By Owner In Settlement With Contractor

SME Indus., Inc. v. Thompson, Ventulett, Stainback & Assocs., Inc.
C.A. No. 990869, 2001 Utah LEXIS 90 (June 26, 2001)

In SME Indus., Inc. v. Thompson, Ventulett, Stainback & Assocs., Inc., the Supreme Court of Utah addressed the ability to assign of claims for damages for breach of contract to a party who is not in privity with the alleged wrongdoer. That court determined that summary judgment was inappropriate because it was ambiguous whether the parties intended to include the assignment of causes of action under a “no assignment” clause. Id. at *16. Continue reading “Utah Court Assesses Impact Of “Anti-Assignment” Clause On Claims Against Design Professional Assigned By Owner In Settlement With Contractor”

New York District Court Strictly Interprets Contractual Indemnification Provision and Insurance Requirements

Wausau Business Insurance Company v. Turner Construction Company
No. 99 Civ. 0682 (RWS), 2001 U.S. Dist. LEXIS 5821(SDNY May 9, 2001)

Turner Construction Company (“Construction Manager”) entered into a written agreement with Central Synagogue (the “Owner”) to provide construction management services in connection with renovations of the Central Synagogue Sanctuary (the “Agreement”). The Agreement provided that the Owner would “defend, indemnify and hold the Construction Manager harmless from claims arising out of the acts or omissions on the part of the architects, engineers, attorneys or contractors.” However, the Agreement qualified this obligation by stating that “it is understood and agreed that the Construction Manager shall be liable to the Owner . . . and shall indemnify Owner against Loss, liability, damages, costs and expenses . . . for any negligence or willful misconduct of Construction Manager . . . which results in any loss, claim or injury to the Owner, its successors or assigns.” The Agreement also provided that “Owner shall name the Construction Manager an additional insured party or cause its Contractors to so name the Construction Manager an additional insured party on the Contractors’ insurances.” The Owner opted for the latter, and the Construction Manager was named an additional insured on the contractors’ policies. Continue reading “New York District Court Strictly Interprets Contractual Indemnification Provision and Insurance Requirements”

New York District Court Holds That Suit Must Be Stayed Pending Submission Of Claim To Dispute Resolution Board

BAE Automated Sys., Inc. v. Morse Diesel Int’l, Inc.
01 Civ. 0217 (SAS), 2001 U.S. Dist. Lexis 6682 (S.D.N.Y. May 22, 2001)

The United States District Court for the Southern District of New York granted an order staying all proceedings in a construction dispute pending resolution by a dispute resolution board (“DRB”) in this case. This case involved a breach of contract claim brought by BAE Automated Systems, Inc. (“BAE”), a baggage handling subcontractor, against AMEC Construction Management, Inc. (“AMEC”), the construction manager of a project to build a new terminal at John F. Kennedy International Airport (the “Project”). AMEC then brought a third-party claim against the owner of the Project, Terminal One Group Association (“TOGA”). Continue reading “New York District Court Holds That Suit Must Be Stayed Pending Submission Of Claim To Dispute Resolution Board”