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The Leasing Hotline

By ALM Staff | Law Journal Newsletters |
May 26, 2009

Subrogation

A tenant may not recover under a subrogation claim against an independent contractor engaged by a landlord where the lease between the tenant and landlord specifically prohibits subrogation claims. Hennes & Mauritz LP v. Skanska USA Building, 07 CV 1723 (CLP), United States District Court for the Eastern District of New York, Dec. 23, 2008.

The tenant commenced a subrogation claim against the defendant, seeking compensation for damage to the tenant's store. The tenant alleged the damage was caused by construction work performed by the defendants under a contract with the landlord. The defendant moved for summary judgment, seeking dismissal on the ground that the tenant's lease agreement with the landlord included a waiver of subrogation that precluded the plaintiff's claims. After oral argument, the court granted the defendant's summary judgment motion. It held that the lease between the landlord and the tenant had a specific waiver regarding subrogation claims and that the tenant waived any right to recover damages from the “landlord,” which included independent contractors hired by the landlord to perform construction work. The court did not find compelling the tenant's argument that the subrogation clause did not apply to the defendant because the damages at issue did not occur in the course of typical duties to the tenant or that the waiver provision was void as a matter of public policy.

Subrogation

A tenant may not recover under a subrogation claim against an independent contractor engaged by a landlord where the lease between the tenant and landlord specifically prohibits subrogation claims. Hennes & Mauritz LP v. Skanska USA Building, 07 CV 1723 (CLP), United States District Court for the Eastern District of New York, Dec. 23, 2008.

The tenant commenced a subrogation claim against the defendant, seeking compensation for damage to the tenant's store. The tenant alleged the damage was caused by construction work performed by the defendants under a contract with the landlord. The defendant moved for summary judgment, seeking dismissal on the ground that the tenant's lease agreement with the landlord included a waiver of subrogation that precluded the plaintiff's claims. After oral argument, the court granted the defendant's summary judgment motion. It held that the lease between the landlord and the tenant had a specific waiver regarding subrogation claims and that the tenant waived any right to recover damages from the “landlord,” which included independent contractors hired by the landlord to perform construction work. The court did not find compelling the tenant's argument that the subrogation clause did not apply to the defendant because the damages at issue did not occur in the course of typical duties to the tenant or that the waiver provision was void as a matter of public policy.

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