SC High Court: Builders to Pay for Errors, Not Insurers

January 24, 2011
KATY STECH, postandcourier.com

Monday, January 24, 2011 — CHARLESTON — South Carolina’s high court issues ruling that promises to redefine risk management for the states builders, developers and subcontractors. Under the new ruling general contractors might be held solely liable for financial damages arising from construction defect litigation. Previously these claims and the attendant financial exposure to builders are handled through their (the contractors) commercial general liability policies.The S.C. Supreme Court’s decision shits the burden of responsibility substantially to the general contractor, causing a great deal of concern among the states general contractors.The court’s decision surprised the construction community and attorneys who represent the building industry. Both parties are asking state lawmakers for a bill that would protect contractors from paying out lawsuit settlements. “Even the most conscientious builders can get caught up in these things,” said Jenny Costa Honeycutt, an attorney with Haynsworth Sinkler Boyd in Charleston.Read Full Story...



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