Jordan Karp | Outside General Counsel For most companies, business insurance policies act as a crucial safety net—an assurance that if the unexpected happens, your company won’t face financial devastation. However, when negotiating contracts, there’s a potential trap that some businesses unwittingly walk into: tying a limitation of liability in the contract directly to the… Continue reading Limitation Of Liability And Insurance Policy Limits: A Risky Business Strategy
Tag: Limitation of Liability
Limitation of Liability in Extra Work Order Trumped by Subcontract
John Mark Goodman | Build Smart A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini Insurance, 2023 WL 4675387 (W.D. La. July 20, 2023)). Planet Construction was the general contractor… Continue reading Limitation of Liability in Extra Work Order Trumped by Subcontract
Exceptions to the Enforceability of Limitation of Liability Clauses
Patrick Tighe | Snell & Wilmer A common feature of some contracts, including construction and design contracts, is a limitation of liability clause that limits or “caps” the amount of potential damages a party faces in the event of a breach. Although Arizona courts will generally enforce limitation of liability clauses, there are at least… Continue reading Exceptions to the Enforceability of Limitation of Liability Clauses
Insurance Policies: Where Is the Proper Balance Between Limitation of Liability and Adherence to Public Policy
Cheryl Shoun | Nexsen Pruet | June 11, 2019 It is well established that policies of insurance are contracts, subject to basic contract law. While parties are generally permitted to contract as they wish, such privilege is not absolute in the context of insurance; required coverage may not be omitted. Rather, statutory obligations relating to… Continue reading Insurance Policies: Where Is the Proper Balance Between Limitation of Liability and Adherence to Public Policy
Montana Supreme Court Holds that a Waiver of Consequential Damages and a Partial Limitation of Liability in a Design Contract are not Contrary to Montana Law
Emily D. Anderson | Constructlaw | November 30, 2017 Zirkelbach Constr., Inc. v. DOWL, LLC, 2017 Mont. Lexis 591 (Mont., Sept. 26, 2017) In interpreting a state statute which makes contractual limitations on a party’s liability unenforceable in certain instances, the Supreme Court of Montana recently upheld the validity of a contract provision in a… Continue reading Montana Supreme Court Holds that a Waiver of Consequential Damages and a Partial Limitation of Liability in a Design Contract are not Contrary to Montana Law