‘Additional Insured Endorsements’ Can Shift Risk to Parties Not at Fault

May 2019

Representing business, commercial and real estate clients, as well as insurers and 
                                                                their policyholders                                                       

                                              FEATURE ARTICLE                            

Tim Thornton
‘Additional Insured Endorsements’ Can Shift Risk to Parties Not at Fault

Published: Claims Journal


“Additional insured” clauses most often start with a contract requiring the first party to name the second party as an additional insured under the first party’s insurance policy. This is often found with or near a contract clause requiring the first party to indemnify, defend and hold harmless the second party. That obligation to indemnify is an obligation that is covered by a standard general liability insurance policy. But parties often – almost always, these days – want the additional protection of being an additional insured on the first party’s policy.    

So you think you know the law
So You Think You Know the Law

True or False?

If an endorsement has “arising out of” language, this only requires “minimal causation.”
True or False?
In regards to the CG 20 33, additional insured coverage will extend to both persons/organizations with which the named insured has a direct contract, as well as any other parties who are required to be insured in that contract, but who are not parties to that contract.

True or False?
If an excess policy includes as an insured anyone who was insured in the primary policy, this will result in excess coverage for the additional insured.

FIRM NEWS

Jason Barmasse

Jason Barmasse Joins as an Associate in 

the Encino Office

Gray·Duffy is pleased to welcome Jason Barmasse as an Associate in the firm’s Encino office. Jason handles litigation matters in the areas of insurance, construction defect, education, personal injury and employment law. He has extensive litigation experience, representing clients in both state and federal court trials, as well as numerous arbitration and mediation hearings.

Jason obtained his Juris Doctorate, magna cum laude, from Thomas Jefferson School of Law in San Diego, California. While in law school, he was a two-time participant in the Tulane National Baseball Arbitration Competition. He earned a Bachelor of Arts in Communications from Loyola Marymount University, where he was a member of the Dean’s List and a scholar athlete, competing on the baseball team and serving as a team captain for the 2010 season.

Gray·Duffy Continues Sponsorship of Bragg Companies’ 4th Annual Charity Golf Tournament

Gray·Duffy participated in and sponsored Bragg Companies’ Annual Charity Golf Tournament held April 27, 2019. Proceeds of the event went to the Long Beach Ronald McDonald House, the Long Beach Education Foundation and For The Child in Long Beach. Partner Mike Eisenbaum (far right) pictured with friends of the firm.

Tim Thornton Discusses “Claims Handling Conflicts” at 1st Annual Insurance Claims Institute

Partner Tim Thornton spoke on the panel “Claims Handling Conflicts” at the 1st Annual Insurance Claims Institute hosted by the American Bar Association Tort Trial & Insurance Practice Section. Speakers discussed a variety of conflicts that arise when a matter is tendered and coverage is evaluated, and how to best address the conflicts in the claims handling process. The Insurance Claims Institute was held on April 30, 2019 in New York City.

ATTORNEY SPOTLIGHT

Pat Roberts
Pat Roberts has been practicing with Gray·Duffy since 2002 and is an Associate in the firm’s Encino office. He is an experienced litigator and trial lawyer in matters related to construction claims and defects as well as business litigation matters. Pat represents owners, developers and subcontractors in litigation through trial and arbitration, and has mediated more than 400 construction-related matters.
 
Recently, Pat took an aggressive approach during and after mediation, which resulted in the construction defect claims against his client being withdrawn. In Michael A. Scavone dba Advanced Wallcovering v. Harrell Hospitality Group, LLC, an action was commenced by Advanced Wallcovering seeking outstanding monies owed for construction work performed at the Santa Ynez Valley Marriott Hotel. The building owners cross-complained against the firm’s client for substantial construction defects and claims relating to improper installation of various building components that resulted in alleged personal injury to individuals.

During the course of mediation, the hotel operator indicated that they would not be paying any monies to the client, and continually asserted claims in excess of $130,000 for the alleged defects. As a result of informal discovery, it was determined that the alleged claims raised by the hotel owner did not appear to be valid. Following the mediation and with continued involvement of the mediator, this matter resolved in its entirety with the owner withdrawing its claims against Pat’s client for defective construction, with money paid to the client on its claim.

 
For many years, Pat has spearheaded the research and drafting of Gray·Duffy‘s

common issues in construction defect claims. The guide serves as a quick reference to particular issues that may arise when analyzing claims within the dynamic field of construction defect litigation, and has become a go-to resource for clients in this industry.

 
Pat also has extensive expertise in business disputes where he has represented numerous financial institutions with respect to real estate litigation, as well as problem loans and workouts. Pat draws from his prior experience as in-house counsel at a bank to effectively resolve matters. In addition, he has particular knowledge in drafting and negotiating construction and other business agreements, and creating business entities and related counseling.
 
Pat obtained his J.D. from Hastings College of Law and graduated cum laude from UCLA with a B.A. in Psychology. He is admitted to the California State Bar and United States District Courts for the Central, Eastern, Northern and Southern Districts of California.
 
Pat is the proud parent of two children, one attending UCSD and the other employed at Tesla. He enjoys traveling and his next trip will take him to northern Italy.

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.