Who’s the Man? Ever heard of that phrase? Well, in a recent construction dispute in Maryland, “the Man” was the owner’s insurance company. And the lesson learned was: don’t settle your construction dispute without first checking with the man!
In Perini/Tompkins Joint Venture v. ACE American Insurance Company (pdf), applying Maryland and Tennessee law, the Fourth Circuit held that the joint venture contractor violated the terms of both the primary insurance and excess insurance policies by not obtaining the insurer’s consent before settlement. Accordingly, the joint venture could not claim reimbursement under the policies.