Answers to So You Think You Know The Law . . .

January 2013

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: California Civil Code §2782.05(e)(2) states that the subcontractor on the commercial building project is responsible for a reasonable allocated share of the general contractor’s defense fees and costs. The general contractor is responsible for setting forth the basis of its allocation. Additionally, “[a]ny amounts not collected from any particular subcontractor may not be collected from any other subcontractor.”* *See California Civil Code §2782.05(b) for exclusions to applicability of this section. 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 feel free to contact John J. Duffy in our Encino office. Return to Newsletter.

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.