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Insurer Can't Un-waive Subrogation Flag Even For Post-construction Damages

Monday, February 04, 2008 02:17 pm

Insurer Can't Un-waive Subrogation Flag Even For Post-construction Damages

United States District Court for the District of New Jersey Civil Action No. 06-1488 (December 20, 2007)

An insurance company's attempt to hold a general contractor and its subcontractors responsible for a postconstruction fire fell flat thanks to a solid waiver of subrogation provision.

In 1999, owners of a T.G.I. Friday's in Turnersville, New Jersey contracted with Design Kontractors (which had merged with and become DiTocco Konstruction (DiTocco) by the time construction began) to renovate and remodel the restaurant. The contract used was a Standard Form of Agreement between Owner and Contractor, AIA Document A101-1997, which includes a waiver of subrogation provision for damages suffered during construction work and after the work has been completed, noting that "the Owner shall waive all rights ... for damages caused by fire or other causes of loss covered by this separate property insurance." [...]

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