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October 2011 Archives

Pitfalls in Arbitration and Construction Lien Enforcement

Construction lien remedies are cumulative to other remedies under the contract, including the right of a contractor, subcontractor, material man, laborer or design professional to demand arbitration where permitted by the terms of the written agreement. In that connection, New York State Lien Law ยง 35 is explicit in stating that the filing of a notice of lien shall not be a waiver of any right of arbitration. However, care must be taken in proceedings by the lien claimant to insure that there is no waiver of the arbitration agreement, or of requirements under the Lien Law.

Deductibles and Self-Insured Retention on Professional Liability Policies: What Owners Need to Know

More often than not, owners request that a design professional carry a certain amount of professional liability coverage in connection with its services to the project. The amount owners request typically is tied to the scope of the design professional's services and the fee being paid. This is right approach but, unfortunately, most owners stop here when they see proof of the coverage. Owners need to take the inquiry one step farther and ask: (i) whether the policy has a deductible or self-insured retention; (ii) the amount of that deductible or self-insured retention; and (iii) how it is paid.

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