In the case of Q. v. C. Owner, LLC, the Appellate Division, Second Department, addressed a dispute arising from a workplace injury and the contractual obligations tied to that incident.
On June 2, 2020, Q., an employee of A. Air Conditioning Corp., was injured while performing maintenance on the rooftop air conditioning system at a building owned by C. Owner, LLC and its affiliated entities. Q. allegedly tripped over a pipe and subsequently sued C. for negligence.
C. responded by filing a third-party action against A., seeking contractual indemnification and alleging breach of contract for failure to procure insurance. A. moved for summary judgment to dismiss both claims, and the Nassau County Supreme Court granted the motion.
On appeal, the AD2 modified the lower court’s decision. It found that the dismissal of the contractual indemnification claim was premature. The agreement between C. and A. included broad indemnification language, covering incidents arising from A.’s presence or services at the building, even if not caused by A.’s negligence. The clause excluded indemnification only to the extent of C.’s own negligence. Since there had been no determination regarding C.’s negligence, the court held that summary judgment on this issue was inappropriate.
However, the court upheld the dismissal of the breach of contract claim concerning insurance procurement. A. had submitted documentation showing it obtained the required insurance. Although C. argued on appeal that the policy did not name it as an additional insured, the court considered this argument, even though it was raised for the first time on appeal, because it raised a pure question of law apparent from the record. Ultimately, the court concluded that A. had fulfilled its contractual obligation to procure insurance, and C. failed to raise a triable issue of fact.
This decision highlights the importance of precise indemnification language and the evidentiary burden required to defeat summary judgment, particularly in disputes involving insurance coverage and contractual liability.
When contracts collide with reality ....
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DECISION