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How to protect the company as a subcontractor

CaliforniaLawsuit

We are being subcontracted out to demolish a building that was acquired by a Financial Firm purchased under a trust, however, there is litigious affairs happening on the backend with the previous owner who wants it back. The city wants the work to commence immediately. How do we as the subcontractor protect ourselves from getting brought into the legal battle.

1 reply

Mar 2, 2023

I recommend having all of the terms of the demolition work drafted in a written agreement. The agreement should include a representation/warranty by the entity hiring you stating that they have authority to order the type of work in question. Furthermore, there should be an indemnity and defense clause that says they will take over the cost and burden of legal defense if you are sued related to the right to do the work. The contract should contain an attorneys' fee clause and set forth, in detail, who is responsible to pay you.

You can contact an attorney to assist you with contract drafting and advice. The attorney can also review the ongoing litigation to ensure there are no recorded liens or court orders that would make it inadvisable to proceed. 

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