TX STATETexas Court of Appeals, 15th District
2015

in Re Forum Studio, Inc. and Clayco, Inc.

Texas Court of Appeals, 15th District • Decided 2015Remanded

HOLDING

This is a procedural filing in a mandamus case involving Forum Studio and Clayco in Texas. The court remanded the case back to the lower court without ruling on the main issues. The case involves disputes over design work and insurance requirements, specifically requiring architects and engineers to carry $1 million in professional liability insurance. For subcontractors, this case highlights how insurance obligations flow down through contracts and the importance of understanding what insurance you must carry or require from others.

KEY FINDINGS

Insurance Requirements

Design professionals (architects, engineers) working on projects may be required to carry $1 million minimum professional liability insurance per claim and in aggregate

Broad Indemnification

Insurance requirements often flow down from main contractors to subcontractors and design professionals—verify what insurance you must obtain or require from your subs

Flow-Down

Procedural disputes over arbitration, statutes of limitations, and temporary restraining orders can delay resolution of construction disputes significantly

FULL COURT OPINION