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Contract Clause Clouded Distinction Between Property And Liability Insurance

Friday, June 18, 2010 01:38 am


Contract Ambiguity - Insurance

Tellepsen Builders, LP v. Kendall/Heaton Associates, Inc.and CBM Engineers, Inc., 2010 Tex. App. Lexis 2729 (April 15, 2010)

Thanks to contract ambiguity, a contractor may have a good shot at recovering more than $800,000 from two design subs for structural damage that occurred years after construction was completed.

Tellepsen Builders, L.P. (Tellepsen) acted as the general contractor for additions and renovations to a retreat and conference center in Texas. Tellepsen hired Kendall/Heaton Associates, Inc. (Kendall) to provide architectural design work on the project and CBM Engineers, Inc. (CBM) to perform structural engineering and design work. Both subcontracts included a waiver of subrogation clause, which stated that Tellepsen and Kendall/CBM waived all rights against each other "for loss [...]

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