LEGAL NEWS


those materials. Te court also found that the subcontractor could bear the costs of compensating for injuries because it specialized in commercial projects, made sizeable purchases of the defective products, and arranged to pass on its material costs. Te court concluded that the subcontractor’s relationship with manufacturers placed it in a position to pressure manufac- turers to improve product safety. Te court distinguished Monte


Vista Development Corp. v. Superior Court, 226 Cal.App.3d 1681(1991), which held that a tiling subcontractor that supplied and installed a defective soap dish that injured someone was not strictly liable. Tere was no evidence


AGC CALENDAR OF EVENTS July 14, 2016


AGC Construction Leadership Council’s 3rd annual Cornhole & Beach Mixer at River’s End Café, Seal Beach.


July 25, 2016


Orange County District Golf Classic, Newport Beach


July 29, 2016


Monterey Bay District Annual Golf Tournament at Bayonet & Black Horse Golf Course.


August 18, 2016


CLC Bay Area Monthly Networking Night


August 25, 2016


Los Angeles District 2016 Beach Dinner at Sandy’s Beach Grill, Huntington Beach.


September 7, 2016 Bay Area Public Works Night at Palm Event Center in the Vineyard


September 9, 2016


Delta-Sierra District CLC Meeting September 10, 2016


San Joaquin District Clay Shoot & BBQ at Sun Mountain Gun Club


September 16, 2016 AGC Legal Retreat, Southern California Quail Lodge Resort & Golf Club, Carmel


www.AGC-CA.org


that the subcontractor was a “seller” of the soap dish, and it did not matter “whether [the developer] or someone else supplied the tile fixtures. [Te tiling firm’s] job was to do the tile work.” Id. at 1687. Unlike Monte Vista, the subcon-


tractor could not win contracts unless it supplied material. Because the subcontractor financially benefited from installing products containing asbestos, it could be liable for the plaintiff’s injuries under a “stream- of-commerce” theory. Te court remanded the case for a trial on the plaintiff’s strict liability claim.


Steps Contractors Can Take to Reduce Liability


Hernandezcueva places contractors


in a troublesome position because they can face massive liability for work completed decades ago. It is unclear whether Hernandezcueva will create a flood of strict liability litigation against contractors. However, in light of Hernandezcueva, contractors can take steps to try and reduce their


THIS WAS THE


CHALLENGE SOLUTION


THIS WAS OUR


Trench Shoring Company’s inventory of multiple slide shoring configurations makes us the best choice when you have a challenging pipeline or pit excavation. For example, our SBH®


Triple Slide Rail


Shoring Systems handle configurations upwards of 35’ deep. We can also make shoring equipment to accommodate a 10’ diameter pipe, 33’ deep and 17’ wide. If vertical clearance is an issue, we can handle that too.


We know every project is different and we’ll be there for your challenge too!


10 Locations 800-423-4411 TrenchShoring.com


© 2016 Trench Shoring Company Associated General Contractors of California 17


potential liability on future projects by examining material safety and data sheets for the products that they furnish, testing their products, and requiring that their suppliers guarantee safe products. Contractors should always


include an indemnity clause in their contracts with downstream subcon- tractors, suppliers, and vendors. A proper indemnity clause would require downstream entities to hold contractors harmless from liability arising from their products. Another way for contractors


to minimize liability is to perform installation-only contracts, although in reality, installation-only contracts are not an option for the majority of contractors. Contractors should also update their insurance policies to minimize the risk of strict liability lawsuits. For projects that have already been


completed, contractors should retain their historical insurance policies and job files, which may be useful if faced with a strict liability lawsuit. 


Safely and cost-effectively shore up a range of pipeline or pit excavations up to 35 feet deep, while maintaining required vertical clearances


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