Second District Court of Appeal Clarifies Indemnity Clause, Rules General's Insurer Not Liable to Sub's

October 22, 2004

In a decision filed yesterday and certified for publication, the Second Appellate District ruled on the application of the indemnity provision in construction contracts as it applies between the general contractor's and subcontractor's carriers.

The Court's conclusion: "... just as the general contractor is not liable to the subcontractor under the indemnity provision, so the general contractor's own insurer is not liable to the subcontractor's insurer. To hold otherwise would negate the indemnity provision in the construction contract."

To read the full case - Hartford Casualty v. Mt. Hawley Ins. Co. (B172449, LA Sup. BC285436) -- in MS Word format, please click here.

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