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Reciprocal Waiver Barred Suit Against Contractor Insurance; Waiver

Monday, October 03, 2005 04:11 pm

Reciprocal Waiver Barred Suit Against Contractor Insurance; Waiver

A federal appeals court has ruled that a reciprocal waiver of claims for insured property loss precluded any recovery against an allegedly negligent contractor.

Temple Ohev Sholom awarded a contract to Palmer Construction Co., Inc. for expansion and renovation of buildings in Harrisburg, Pa. The parties utilized AIA Document A107, "Abbreviated Form of Agreement between Owner and Contractor," 1987 edition.

Paragraph 17.3 of that agreement requires the project owner to maintain property insurance on the entire "work" against fire, other casualty loss [...]

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