Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Atlanta contract dispute over airport insurance coverage

Contractors that outsource work to vendors may find themselves in a contract dispute over accident liability. In a recent contract dispute, The Georgia Court of Appeals issued a ruling in favor of the estate of a deceased worker against the city of Atlanta and its contractors, Holder Manhattan Moody and Hunt (HMMH). HMMH was contracted by the city to construct the International Concourse at Hartsfield Jackson International Airport, and A&G was a subcontractor to HMMH. In 2007, a worker was killed when a truck owned by A&G Trucking Incorporated struck him on the jobsite.

HMMH is part of a Contractor Controlled Insurance Program in which it, as a general contractor, provides insurance for its workforce. HMMH was recently required by the city of Atlanta in its contract to enforce this downstream requirement on all of its subcontractors, such as A&G. A&G Trucking carried $1 million in liability coverage at the time of the incident, even though the trucking company was contractually required to carry $10 million in its subcontract with HMMH. Had A&G carried the full $10 million dollars, it would have had sufficient funds to cover the wrongful death judgment of $5.75 million that the worker's estate obtained.

This ruling by The Georgia Court of Appeals impacts all Georgia contractors that use a Contractor Controlled Insurance Program and it could mean millions of dollars in liabilities. General contractors are strongly being urged to include language in their contracts that specifically states: "There are no intended third-party beneficiaries of this contract." This type of language would prevent a decedent's estate from pursuing wrongful death damages, as occurred in this situation.

Source: The Atlanta Business Chronicle, "ATL Airport case cautionary for contractors," Douglas L. Rieder, Nov. 7, 2011

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road, Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.