After a toilet overflowed and flooded a clothing store, the insurer sued the building's fifth-floor tenant to recover the monies paid on the claim.
When its case was dismissed, the insurance company appealed to the Appellate Division, First Department.
Since there was no evidence that the fifth floor tenant had exclusive control of the bathroom in question, the AD1 was of the view liability for the damage couldn't be established. (Apparently, the area was accessed by the building's porter, real-estate agents, and, the fifth floor tenant's contractors.)
And even if the mishap had been caused by the independent contractors (who had been hired to renovate the fifth floor tenant's space), there was no responsibility for any misconduct. ("'[A]n employer who hires an independent contractor is not liable for the independent contractor's negligent acts.'")
That insurer sure got soaked.
To view a copy of the Appellate Division's decision, please use this link: American Guar. & Liab. Ins. Co. v. Federico's Salon, Inc.