PMT Delivers a Win – Careful Reading of Contract Leads to Dismissal of Case

PMT Delivers a Win – Careful Reading of Contract Leads to Dismissal of Case

Court: Supreme Court, New York County Judge: Judge John J. Kelley Case Type: Subrogation for Property Damage Caption: Merrimack Mutual Fire Insurance Company a/s/o 11 East 22nd Street LLC c/o REM Residential v. Associated Fire Protection, Inc., Index No.: 160109/17REM Decision Date: March 5, 2020 Decision: Summary Judgment Was Granted Sharp attention to detail is why PMT lawyers get outstanding results for our clients day after day.  A recent case in which we won summary judgment for our client demonstrates the advantage that PMT brings to each case. In Merrimack Mutual Fire Insurance Company a/s/o 11 East 22nd Street LLC c/o REM Residential v. Associated Fire Protection, Inc.,  a subrogation claim, plaintiff insurer sought $200,000 paid to its insured for property damage, which, it alleged, was caused by our client, a plumbing contractor, during a regularly-scheduled test of the subrogor’s sprinkler system. A review of the applicable contract revealed that same contained a Waiver of Subrogation provision. PMT filed a Motion for Summary Judgment seeking to dismiss all claims based upon this provision. We argued that Courts repeatedly uphold Waiver of Subrogation clauses, finding that they merely allocate risk and don’t seek to exempt a party from liability. “A Waiver of Subrogation provision does not limit a plaintiff’s potential recovery; rather, it ensures that an injured plaintiff will be compensated and merely shifts the burden of compensation to an insurer.” PMT argued that this is exactly what happened in the instant matter: the contract required REM to have insurance, REM was insured by Merrimack, and Merrimack paid for the loss. REM has thus been made whole by its insurer...