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No Subrogation Waiver Where Contractor's Insurance Obligation Has Expired

Monday, April 11, 2011 11:00 am

 

Insurance - Indemnity

Haren & Laughlin Construction Co., Inc. v. Jayhawk Fire Sprinkler Co., Inc., 2011 Mo. App. Lexis 66 (Jan. 25, 2011) The fact that a contractor's insurance is still in effect doesn't imply that the contractor is still obligated to maintain insurance coverage. And that little detail was the key to a recent battle against the waiver of subrogation defense.

Haren & Laughlin Construction Company, Inc. (H&L) was the prime contractor on a KCHR Senior Care (KCHR) facility construction project. H&L hired subcontractor Jayhawk Fire Sprinkler Co., Inc. (Jayhawk) to install and maintain a fire sprinkler system. Just 10 days after KCHR accepted the project in November 2007, a sprinkler line sprung a leak, damaging the facility's floors and furniture. H&L paid for the damages through its insurer and then sought reimbursement from Jayhawk. The sub claimed that H&L's waiver of subrogation barred its claim, and a trial court agreed. But H&L appealed successfully.

At issue was whether the subcontract incorporated [...]

 
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