Gray Matters January 2013

January 2013

   
A Business & Litigation Firm                                                              January 2013

2012 Year In Review

GGrayAs we inaugurate the New Year, everyone at Gray·Duffy looks forward with anticipation to the beginning of our 28th year of service to our clients.

Throughout 2012, we continued to diversify our firm’s practice by expanding our business litigation and business transaction practice. With the addition of Nathan Lee as an associate in our Encino office, we have added yet another bright, dedicated and energetic professional to our ranks.

 

We are proud of the many outstanding achievements our attorneys and staff accomplished throughout 2012. Below we have highlighted a few of those achievements that might be of interest:

 

Please click here for an expanded list of results the Gray·Duffy team accomplished in 2012.

  

Also, throughout 2012 our lawyers continued to stay on the forefront of the issues and changes in the law that impact and challenge our clients. A few articles authored by our attorneys include:

Please click here for a complete list of all of the articles authored by our firm in 2012.

 

We are pleased to have such an accomplished group of professionals who dedicate themselves to delivering the expertise, compassion and results that have benefited our clients this year and in years past.

 

From all of us at Gray·Duffy, we thank you for entrusting your need for legal services with us and we are grateful that we can be of service to you. We look forward to doing so again whenever you may need us.

 

Until then, we wish you a successful and fulfilling year.

 

Sincerely,

 

Gary Gray

Managing Partner, Gray·Duffy, LLP 


California’s New
Construction Indemnity Law
 

As of January 1, 2013, changes to existing law (Civil Code § 2782) and a new law (Civil Code § 2782.05) limit contractual indemnity provided by subcontractors to general contractors, construction managers and other subcontractors.   

   

Under the new law, the subcontractor is not required to indemnify for claims:

  • Arising out of the active negligence or willful misconduct of general contractors, construction managers and other subcontractors.
  • Outside the scope of work of the subcontractor.
  • Arising out of WRAP policies.

 

Click here to read an in-depth article on the new changes titled, “The Changing World of Indemnification in California”.

 

Existing construction contracts may need to be reviewed and revised as a result of these changes.  Please contact John Duffy at [email protected] or (818) 907-4000 if you have any questions.

 


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Gray Matters is provided for informational purposes only, and the contents are not intended and should not be construed as legal advice.

So You Think You Know The Law

Contractual Indemnity on Commercial Building Projects 
  
1) A general contractor is sued by a property owner. The general contractor has an indemnification agreement with its subcontractor on a commercial building project. The general contractor can tender the defense of the claim to the subcontractor, and that subcontractor must defend the general contractor, if the subcontract provides for defense and indemnification of the general contractor’s active negligence.  True or False
  
2) If a subcontractor learns through the grapevine that the general contractor on a commercial building project has been sued by the property owner for defects implicating the subcontractor’s scope of work, the subcontractor has an immediate obligation to indemnify the general contractor if the subcontract so provides.  True or False

  
3) When a general contractor on a commercial building project is sued by the property owner for construction defects, the general contractor who seeks defense from a subcontractor pursuant to a subcontract is only entitled to defense of those allegations implicating the subcontractor’s scope of work.  True or False

Should you have any questions regarding contractual indemnity or would like to have us review your contracts to ensure that they do not run afoul of the changes in the law in 2013, please contact John J. Duffy at (818) 907-4000 or [email protected].

Contact 

Gray·Duffy

 
15760 Ventura Blvd.
16th Floor
Encino, CA 91436
(818) 907-4000
 
702 Marshall St.
 Suite 600
Redwood City, CA 94063
(650) 365-7343
 

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.