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News & Press: Construction Defect Litigation

CALPASC Impacts 2017 West Coast Casualty Construction Defect Conference

Thursday, June 22, 2017   (0 Comments)
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The 24th Conference was held in Anaheim on May 18 and 19, 2017.


CALPASC Director of Risk Management Bruce Wick, and CALPASC Board member Brian Chien of Kenyon Plastering were on a panel telling the reality about the reduced defense and indemnity obligations of subcontractors due to the passage of AB 758 in 2005; and AB 2738 in 2008. 


Also participating on the panel was attorney Bob Closson, who authors CALPASC's amicus briefs to the appellate courts in California. Rounding out the panel was Tom Zimmermann, outside general counsel for Pacific Communities; and Justice Mark Gibbons of the Nevada Supreme Court. The panel outlined the following issues.

  1. The two bills significantly change the defense and indemnity requirements of subcontractors. Many at the conference were ignorant of these changes.
  2. There is a path builder's lawyers can take to resolve a case that is reasonable and fair, which it is also the law, now.
  3. The Additional Insured endorsements always impact the discussion, but the panel showed how the A/I issue can be resolved without the chaos and confusion that currently goes on.
  4. Key questions were raised during the panel, that gave attendees a realistic understanding of how defense and indemnity obligations will be reduced going forward.
  5. One key point that subcontractors need to be aware of is the difference it can make for resolving a CD case if they are sued directly by plaintiff; along with the builder.  

CALPASC held a webinar for members on June 12, 2017, that is available for members to replay. There is lots of detail in the webinar that came from the latest information at West Coast Casualty. If you weren't able to attend the webinar, we strongly recommend you contact David Murillo, CALPASC Executive Director; to replay it. His email is


There were also some strange vibes surrounding the conference.

  1. Some of the presentations could have been repeated word for word from 2003. It appears that some in the construction defect litigation industry are not prepared for the changes that are coming.
  2. Some attorney firms are seeing the reduction in CD cases resulting from the great recession of 2008-2014. The CD industry should be seeing far fewer CD cases being filed, due to far less homes or other structures being built in that period. 

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