Calif.'s Subcontractor Defense Regime: Order Or Chaos?
May 21, 2013, 1:03 PM EDT
Law360, New York (May 21, 2013, 1:03 PM EDT) -- California's recently enacted and amended anti-indemnity statutes have expanded the bar against one construction participant forcing another to indemnify the first participant for its own "active negligence." As discussed in this article, these statutes have also created a new regime governing how subcontractors, having contractually agreed to defend the general contractor or construction manager, will share that defense duty.
In a nutshell, under California Civil Code Section 2782.05(e), which governs most nonresidential projects, a general contractor (GC) or construction manager (CM) may only allocate a reasonable...