FEDERALCourt of Appeals for the Third Circuit
2004

John Bott v. J.F. Shea Co., Inc. And Shea/keefe, Defendants-Third Party v. Gulf Coast Grouting, Inc., Third Party

388 F.3d 530Court of Appeals for the Third Circuit • Decided 2004Reversed

HOLDING

Gulf Coast Grouting was hired as a subcontractor and required by contract to name Shea/Keefe as an additional insured on its liability policy. However, Shea/Keefe's own contract administrator told Gulf Coast to name J.F. Shea instead, and Gulf Coast complied. When a worker was injured and sued, Shea/Keefe tried to claim indemnity from Gulf Coast's insurance but lost. The court ruled that by giving conflicting instructions, accepting the wrong insurance certificates without complaint, and allowing Gulf Coast to finish work and get paid in full, Shea/Keefe had waived its right to enforce the original insurance requirement.

KEY FINDINGS

Insurance Requirements

If a prime contractor gives you written instructions that conflict with the contract's insurance requirements, follow the written instructions—document everything and get written confirmation. The prime may lose the right to later claim you breached the insurance clause.

FULL COURT OPINION