May 2011 Construction Law Newsletter

May 2011, vol. 1, no. 1

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In This Issue…

Related Court Cases

Construction Contracts
Archon Construction Company Inc. v. U.S. Shelter, LLC

Plaintiff construction company was hired by Defendant to install sanitary sewer system in subdivision. After completion of installation, city's engineering inspector, after viewing video of system, required additional work. Defendant refused to pay Plaintiff for extra work done by Plaintiff. The extra work Plaintiff did was "part and parcel" of contract between parties. Court properly deined Plaintiff's quantum meruit claim, as existence of an express contract on same subject matter dooms that claim. Court properly found that Defendant did not establish causal link between any damages it suffered and any breach by Plaintiff, and thus court properly denied Defendant's counterclaim for breach of contract. (McBRIDE and BURKE, concurring.)

Duty to Defend
Pekin Insurance Co. v. Centex Homes

(Court opinion corrected 3/2/17.) Employee was injured while working on construction of building owned by 2 Defendants. Employee of construction company filed underlying personal injury suit against both Defendants, who tendered defense to insurer who had issued commercial general liability policy to employer. One Defendant, but not the other, is an additional insured under policy, and insurer does have a duty to defend that Defendant in underlying suit, as there is a potential that this Defendant, because it retained sufficient operative control of element of construction at issue, would be vicariously liable for negligence by construction company. (HARRIS and SIMON, concurring.)

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