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A Supplier With No Key Project Involvement Is Not A Sub

Monday, January 18, 2010 06:59 am

 

Mosser Construction, Inc. v. The Travelers Indemnity Co.,

2009 U.S. Dist. Lexis 99528 (Oct. 26, 2009)

A company that supplies generic materials to a contractor without taking any other action is not a subcontractor for purposes of the contractor?s insurance coverage. Mosser Construction, Inc. (Mosser) contracted to improve a wastewater treatment facility for the City of Port Clinton, Ohio. After the construction wrapped up, the walls of the facility?s foundation cracked because structural backfill under and around the walls had improperly settled.

Port Clinton sued Mosser, claiming that the backfill was defective because it contained gypsum that leached out when the backfill got wet, causing the settling and cracks. Mosser had purchased and pi [...]

 
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