9th Circ. Says Ore. County Can't Collect $2.3M Defect Award

By Ryan Boysen (July 20, 2018, 8:31 PM EDT) -- An Oregon county can't sue a subcontractor's insurers to help pay for a damaged bridge, the Ninth Circuit affirmed Friday, finding that the insurance arrangement spelled out in the subcontractor's work agreement is strictly verboten under Beaver State law.

In Friday's unpublished decision a three-judge panel, which included U.S. District Judge Jed S. Rakoff sitting by designation, affirmed, saying that a situation that would have required subcontractor ZellComp Inc.'s insurers to indemnify another subcontractor for its own negligence is exactly what the Oregon statute in question was drafted to prevent.

"The history of the legislation makes it clear that the very...

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