Labor Law Pointers
Volume I, No. 6
  Wednesday, April 4,  2012 
A Monthly Electronic Newsletter  Addressing 
  New York State Labor  Law
   Decisions and Trends
From the Editor:
Welcome to the April edition of our newsletter.  March; with its “madness” is over.  Not a basketball fan myself, I find that I am  drawn to the win or go home nature of the NCAA tournament but I was thinking  that what we do is not governed by the same principle.  In the lives of those of us defending Labor  Law cases on a daily basis, the trial court’s motion decision is often the starting  point and not the finish line.  This  leads me to a concept that I have been promoting - early retention of an expert  where the case warrants it.  Labor Law  cases, particularly Labor Law § 240(1) cases, are often decided  on Summary Judgment motions.  It follows,  therefore, that it is often a good idea to have an expert opinion to support  your motion or to oppose the plaintiff’s motion.  Remember that if you did not have an expert  opinion for the trial level motion, the Record on Appeal is not going to  contain any subsequent opinion and the appellate court will be making a  decision without that bit of evidence.   We have seen several cases over the past months where having an expert  affidavit could have changed the outcome.   The most common example is the appropriateness of the safety device  provided or available.
  Well, I said I would  include a joke each month and have not had any sent to me this month, so I am  pulling an old one out.   
  A  lawyer and an engineer were fishing in the Caribbean when they got to talking.  The lawyer mentioned, "I'm here because  my house burned down and everything got destroyed by the fire. The insurance  company paid for everything."
  "That's  quite a coincidence," remarked the engineer.  "I'm here because my house and all my  belongings were destroyed by a flood. My insurance company, too, paid for  everything."
  There  was a brief pause, and then the puzzled lawyer asked, "How do you start a  flood?"
No Court of Appeal’s  cases this month and none of note from the Fourth, but several interesting  cases nonetheless.  
  I continue to get  several calls a week from you, my fellow Labor Law aficionados, looking to try  and put a novel theory on a case or give me a fact pattern designed to make my  brain explode.  In spite of the headaches  and the speed with which my hair is turning grey, I love it.  If you have a topic you want to discuss or a  case you are just looking for a second opinion on, by all means give me a call  or send an email; it makes my day.  We  are also more than simply willing to come to you and put on our New York Labor  Law seminar for your case handlers  Our  presentation is an update on the latest case law and an outline to the handling  of a Labor Law case from start to finish.
  As always, have a  great month.  I will write to you again  the first Wednesday of May with the next batch of cases.  Until then, enjoy the spring.
 
  David
David R. Adams
  Hurwitz & Fine, P.C.
  424 Main Street
  Suite 1300 Liberty Building
  Buffalo, New York 14202 
  Phone:  716.849.8998
  Fax:  716.855.0874
  Email:  [email protected] 
  H&F Website:  www.hurwitzfine.com 
Labor Law Pointers is published the first Wednesday of each month. If you know of others who may wish to subscribe to this free publication, please feel free to forward it. If you wish to subscribe or unsubscribe, please send an e-mail to [email protected] or call the Editor/Labor Law Team Leader David R. Adams directly at (716) 849-8900.
Labor Law Section 240(1)
                                                                                    by:    David R. Adams
  (716)  849-8998
  [email protected] 
                                                                                                  
  03/29/2012      Ortega v. City of New York
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02412.htm
The court addressed whether a plaintiff must prove  as an element of a claim under Labor Law § 240(1) that the injury was  foreseeable.  The court concluded that  outside the context of a collapse of a permanent structure, the plaintiff does  not need to produce evidence (expert testimony) that the injury was  foreseeable.  On this basis, the court  granted plaintiff’s motion for summary judgment because he otherwise  established that he was engaged in a covered activity and a lack of protection  resulted from the defendant’s failure to provide adequate safety devices under  Labor Law § 240(1).  
  The plaintiff was injured when connecting pipes that  were to be used to pour concrete underground using the ‘Tremie Concrete’  method.  He was ejected from the platform  that was resting on unsecured wooden planking.   The court reasoned that injury from the inherently dangerous activities  covered by Labor Law § 240(1) is foreseeable whenever the owner or contractor  fails to provide proper safety devices.  
  Practice Point - Recall that foreseeability remains a  necessary element in any labor law case involving the collapse of a permanent  structure.  Thus, in a case where a wall  comes down on a plaintiff or a stair case gives way, the foreseeability of that  failure is a necessary element of the case.   This tends to be found most often in demolition cases.  Foreseeability is an element of 241(6) and 200  cases.
03/06/2012      D’Antonio v. Manhattan Contr. Corp.
  Appellate Division, First Department
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01637.htm
The court affirmed the trial court’s denial of  summary judgment because there were issues of fact to be tried.  The plaintiff was working at a construction  site owned by the defendant, 112 West 34th Street Company, LLC, when he was  struck on the head.  The plaintiff was  standing on the third rung of an A-frame ladder that was closed and propped  against the wall when a conduit pipe housing wires partially detached from the  wall, swung downward, and struck the plaintiff.   The court found the following three issues of fact to be resolved at  trial:  (1) whether the conduit pipe  constituted a falling object under Labor Law 240(1); (2) whether the events  leading to the plaintiff’s injury were due to the absence or inadequacy of a  safety device of the type enumerated in Labor Law 240(1); and (3) whether the  plaintiff deliberately jumped, was knocked off by the pipe, or lost his footing  when the ladder shook.   
  Practice  Point - The facts provided with this case make it difficult to address the first issue  - was the conduit a falling object.  The  second question of fact, the absence or inadequacy of the safety device,  supports my opinion that expert testimony is always helpful.  As to the third question of fact, what caused  the plaintiff to fall, there is conflicting evidence.  This underscores the need to obtain  statements from and depose all witnesses to an accident.  The purpose of the deposition is to obtain  the information necessary to determine if a Summary Judgment motion is  possible.  In this case, the existence of  conflicting versions of the accident, one of which was that it was not as a  result of any lack of a safety device, precludes Summary Judgment by either  party.
03/13/2012      Ervin v. Consolidated Edison of N.Y.
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01771.htm
The court granted summary judgment to the plaintiff,  Michael Ervin, on his Labor law § 240(1) claim for injuries sustained at an  electrical substation construction site.   The plaintiff fell when a temporary platform he was descending gave way,  causing him to fall approximately three feet.   The court held that the plaintiff’s contention there was an issue of  fact as to whether the plaintiff was the sole proximate cause of his injury  lacked merit because the defendant, Consolidated Edison, the owner of the site,  failed to submit any evidence showing the plaintiff knew or should have known  to use some other device.
  Practice  Point - Any  argument for sole proximate cause must establish all three elements of the  defense - that a safety devise was both (1) available and (2) appropriate and (3)  that the plaintiff knew or should have known he was expected to use the safety  device.
03/13/2012      Dedndreaj v. ABC Carpet & Home
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01774.htm
The court held the plaintiff established his  entitlement to summary judgment on his Labor Law 240(1) claim where plaintiff  was injured while walking through a passageway and was struck by a pipe that  fell while being hoisted above.  The  failure to provide an adequate safety device was a proximate cause of the  injury.  The fact that plaintiff  disregarded warnings was not the sole proximate cause of the injury, and the  defendant could not argue the plaintiff was a recalcitrant worker where the  plaintiff followed his superior into the tunnel and the tunnel was the only  means of egress.
  Practice  Point – Sole  proximate cause is not available where, as here, the Labor Law is  violated.  The fact that the pipe fell  while being hoisted makes the labor law violation at least a cause of the  accident and, thus, nothing else can be the sole proximate cause of the injury.
03/06/2012      Tzic v. Kasampas
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01632.htm
A plaintiff was injured when he fell fifteen feet  through an opening in a sidewalk bridge that extended around the perimeter of a  building.  The court held that the  plaintiff was entitled to summary judgment on the issue of liability because  the owner failed to create an issue of fact as to the presence of a proper  personal fall system or the recalcitrance of the plaintiff.  To resolve the issue of the presence of a  proper personal fall system, the court relied on the testimony of the president  of a contractor, Champion Builder & Construction Corp., that the plaintiff  was given a hard hat and a safety harness which had a line the plaintiff was  supposed to attach to a fire escape whenever he was working near one.  The court also relied on the testimony of an  expert provided by the plaintiff that such fire escape anchorage was  improper.  The owner failed to put forth  any evidence to contest the plaintiff’s expert’s opinion.  Lastly, the owners were required to submit  evidence establishing the following to create an issue of fact as to  recalcitrance:  (a) the plaintiff had  adequate safety devices at his disposal; (b) he both knew about them and was  expected to use them; (c) he for ‘no good reason’ chose not to use them; and  (d) he would not have been injured if he had used them.  The contributory negligence of the plaintiff  in walking over a tarp he placed over the opening was irrelevant where the  defendant did not produce evidence of recalcitrance.  The court also held there were issues of fact  as to the precise degree of fault attributable to the parties involved, and  that the plaintiff suffered a grave injury.
  Practice  Point – Once  again, the defense was doomed by the lack of an expert to offer any proof in  admissible form that the safety device provided was adequate.  Plaintiff had an expert who opined that the  anchor provided was not adequate and the defense did not, or could not, refute  that opinion.  Thus, there was no  adequate safety device provided and plaintiff was awarded Summary Judgment.
03/06/2012      Rodriguez v. Tribeca 105, LLC
  Appellate Division, Second Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01667.htm
The court overturned summary judgment for the  plaintiff because the defendants, the owner and the general contractor, raised  triable issues of fact as to liability under Labor Law § 240(1).  The plaintiff fell from a ladder at a construction  site.  The deposition testimony of a co-worker  was inconsistent with the plaintiff’s account of how the accident occurred and  the co-worker’s testimony could support finding that the plaintiff’s negligence  was the sole proximate cause.  The court  also held that the general contractor’s cause of action for indemnification  against the owner should have been denied because ‘a party seeking contractual  indemnification must prove itself free from negligence’ and the general  contractor failed to eliminate all triable issues of fact regarding its  negligence.
  Practice  Point – Differing descriptions of how the accident happened again create a question of  fact pointing out, as above in D’Antonio,  the importance of obtaining testimony or statements from all witnesses.
03/27/2012      Phillip v. 525 E. 80th St. Condominium
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02264.htm
The court overturned summary judgment for the  defendant in favor of the plaintiff because the evidence showed the manner of  work was the only way to unload the materials and a safety device enumerated  under Labor Law § 240(1) could have prevented the fall.  The plaintiff was unloading scaffolding  materials from a flatbed truck.  He was  wearing a harness, but there was no location on the truck to secure the  harness.  The fact the plaintiff was  unable to recall how he fell was deemed irrelevant.
  Practice  Point – Unlike  the Fourth Department case of Brownell discussed in November where the general rule that a truck bed is not an  elevated work surface was upheld, here the plaintiff was actually on top of a  nine foot high stack of scaffolding material on the truck bed at the time he  fell.  
03/27/2012      Ruiz v. Walker
  Appellate Division, Second Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02296.htm
The court granted the defendant owner’s motion for  summary judgment on plaintiff’s Labor Law § 240(1) and § 240(6) claims.  Labor Law § 240(1) and 240(6) exempt owners  of one- and two- family dwellings who do not direct or control the method or  manner of the work from liability.  The  defendant merely retained a ‘limited power of general supervision’ which ‘was  no more extensive than what would be expected of a typical homeowner who hired  a contractor to renovate his or her home.’   The plaintiff failed to produce any evidence to the contrary.
  Practice  Point – This is an important case to read both for defending cases that come across  your disk and when you are at home hiring the roofer.  Remember that when you hire someone to do  work around the house involving any activity enumerated in 240(1), do not  supervise that activity or we may wind up having a difficult discussion about  the exceptions to the homeowners exemption and how they apply to your  instruction to the guy who started on your roof and wound up on your lawn.
03/27/2012      Soltero v. City of New York
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02263.htm
The court affirmed summary judgment for the  plaintiff.  The plaintiff fell from a  two-foot high ledge in the subway that was wet, while she was replacing old  tracks.  The work she was performing  required her to be at that level, and the defendant failed to provide a safety  device.   The defendant’s contention that the ledge was  less than two feet was disregarded due to a record of testimony by the  plaintiff and her supervisor that the wall was approximately two feet high.
  Practice  Point –Here  a two foot fall is sufficient for 240(1) and there was no available and  appropriate safety device for plaintiff’s use other than a wet ledge to stand  on.  
03/29/2012      Fraser v. Pace Plumbing Corp.
  Appellate Division, First Department 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02407.htm
The court affirmed a denial of the defendant’s  motion for summary judgment.  Plaintiff  was on a scaffold when a wheel went into a hole cut by defendant Pace.  The court held there were triable issues of  fact as to whether the contractor was the statutory agent of the construction  manager, rendering it liable under Labor Law §§ 240(1), 241(6) and 200.  The contractor’s agreement with the  construction manager provided that the contractor would ‘cut, fit, patch and  protect its work.’  The specifications of  the agreement were arguably conflicting in that they provided that openings in  the floor would be covered and protected ‘by others.’  The language of the agreement, however, also  provided that the agreement took priority over the specifications.  The court also held there were triable issues  of fact as to the contractor’s negligence for the purposes of the common-law  negligence claims and Labor Law § 200 claim.
  Practice  Point – Where  the cause of the accident, an uncovered hole, was specifically in the contract  as a responsibility of a specific party, that party is not getting out even if  they are not the owner or general contractor.   Read all contracts carefully for the responsibilities of each party and  ask every party what their responsibilities are.  Often the witness believes he or she has more  responsibilities or duties on a project than those assigned by contract.
 
  Labor Law Section 241(6)
                                                                                    by:    Jennifer A. Ehman
  (716)  849-8964
  [email protected]
03/27/12          Phillip v 525 E. 80th St. Condominium
  Appellate  Division, First Department
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_02264.htm
Plaintiff sustained injury when he fell from atop a load of scaffolding material on a flatbed truck. He was engaged in unloading the materials at the time of his fall. The court affirmed the trial court’s dismissal of plaintiff’s 241(6) claim. Plaintiff claimed that defendant violated 12 NYCRR 23-1.16 by failing to provide him safety belt, harness, tail line, or lifeline.
In disagreeing with plaintiff, the court held that rule set forth only the standards for the use of such devices and was inapplicable where, as here, defendant did not provide plaintiff with any such devices. Further, 12 NYCRR 23-8.1, which sets forth standards for “Mobile Cranes, Tower Cranes and Derricks” and 12 NYCRR 23-8.2(c)(3), which governed how mobile cranes are to lift or hoist loads were similarly inapplicable, as no hoist or cranes were used on the job.
03/23/12          Bannister v Lpciminelli, Inc.
  Appellate  Division, Fourth Department 
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_02197.htm
Plaintiff slipped on ice and fell while working in an open courtyard at a school renovation project. He claimed a violation of 241(6) premised on 12 NYCRR 23-1.7 (d). Pursuant to this regulation, [e]mployers shall not . . . permit any employee to use a floor, passageway, walkway, scaffold, platform or other elevated working surface which is in a slippery condition. Ice, snow, water, grease and any other foreign substance which may cause slippery footing shall be removed, sanded or covered to provide safe footing.”
The court found that the regulation was inapplicable based on the circumstances of plaintiff's fall. Although the regulation “proscribes slipping hazards”, it does not apply where the accident occurred in an open area and not on a defined walkway or passageway path. Here, defendants established that the open courtyard in which plaintiff slipped did not constitute a walkway, passageway or path sufficient to support a cause of action based on an alleged violation of this section.
03/13/12          Zieris v City of New York
  Appellate  Division, First Department
  http://www.nycourts.gov/reporter/3dseries/2012/2012_01764.htm
In another decision involving tripping hazards, plaintiff was injured while performing rivet removal work on a bridge when he stepped on a loose rivet stem and fell. He alleged a violation of 23-1.7(e)(1) and (2). The initial issue for the court was whether plaintiff was on a passageway at the time of the fall. It found that even assuming that the area plaintiff traversed could be deemed a “passageway,” plaintiff testified that he tripped on the rivet after he entered the common, open work area.
Accordingly, the court then considered subsection (2). It held that the subject regulation did not apply because the evidence showed that the rivet stem constituted an integral part of plaintiff's work. Defendant’s evidence that plaintiff was engaged in rivet removal, such work was ongoing in various parts of the bridge, and all falling parts could not be caught while plaintiff and his coworkers were actively engaged in the removal work, established that the rivet stem resulted from the work plaintiff was performing. Further, plaintiff's argument that the rivet did not originate from the work that he himself was performing was unavailing, as rivets left by his coworkers, who were performing the same rivet removal work, could still be deemed an integral part of the work.
Labor Law Section 200 and Common Law Negligence
                                                                                    by:    V. Christopher Potenza
  (716)  849-8933
  [email protected] 
  It  was nice seeing those of you who attended last week’s Claims and Litigation  Management Alliance (CLM) Annual Meeting in San Diego.  For those not able to attend this year, there  is always room for more carriers and claims professionals at the party.  I am sure there will be something of interest  for us New York Labor Law aficionados at the CLM Construction Conference on  November 9th in Nashville.   
Now  you know something is not right in the world when you leave Buffalo, and its  blistering 75 degree March days, only to face a rather chilly 58 degree San  Diego.  But alas, I returned home Friday  night only to face an onslaught of sleet and hail trying to find my snow  covered car in the airport parking lot.   This month’s Labor Law 200 offerings are a similar smack down of  normalcy, hitting you in the face like that ever familiar wall of freezing  March rain.   While there is nothing  unique about this month’s cases, they do offer a nice sampling of the issues  commonly associated with Labor Law 200 litigation. 
  
  As  a brief recap, Labor Law § 200 codifies the obligation of owners and  contractors to provide workers with a safe place to work.  There is a two-prong analysis to establish a  claim for negligence/Labor Law § 200 as a plaintiff must:  (1) establish that those charged with  liability either created the condition or had actual or constructive notice of  the unsafe condition; or (2) establish that a defendant had supervision and  control over the work being performed to correct or avoid the unsafe  condition.  
3/13/2012        Zieris v City of New York
  First Department
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_01764.htm
Plaintiff, an ironworker, was injured while performing rivet removal work on a bridge when he stepped on a loose rivet stem and fell. The First Department held that the trial court properly dismissed the Labor Law § 200 claim as there is no evidence that defendant created the condition and defendant did not receive any complaints regarding any tripping hazards. Insofar as plaintiff argues that defendant should have known about the condition, defendant's engineer testified that although proper procedures were in place, it was not possible to catch all of the rivet pieces upon removal and a general awareness of a hazardous condition is insufficient to impute constructive notice.
3/23/2012        Bannister v Lpciminelli, Inc.,  
  Fourth Department
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_02197.htm
Plaintiff slipped on ice and fell while working in an open courtyard at a school renovation project. The Fourth Department spliced the two different Labor Law 200 theories against the defendant, granting summary judgment to defendant on supervision and control, but dening the motion in regards to notice of a defective condition. The Court held that Defendants established as a matter of law that they did not have the authority to supervise or control the methods and manner of plaintiff's work and that plaintiffs failed to raise a triable issue of fact sufficient to defeat those parts of the motion. However, the Fourth Department held that the trial court properly denied defendants’ motion with respect to those causes of action insofar as they are based on the defective condition of the property where the project was located as the defendants did not submit sufficient evidentiary proof to establish that they did not have actual or constructive notice of the icy condition.
3/27/2012      Phillip v 525 E. 80th St. Condominium,
  First Department 
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_02197.htm
Plaintiff  was working at defendant's building constructing a sidewalk bridge and was  unloading materials when he fell from atop a load of scaffolding material on a  flatbed truck. Plaintiff's Labor Law § 200 and common-law negligence claims  were dismissed. The Court found that the accident was not caused by a hazardous  condition, but rather, by the manner in which the unloading of the materials  was undertaken.  There was no evidence  that defendant supervised or controlled plaintiff's work activities, or that  defendant had notice of the hazardous condition before the accident.  Defendant's general oversight of the timing and quality of the work does not  rise to the level of supervision or control. 
  
  3/29/2012        Fraser v Pace Plumbing Corp.,
  First Department 
  http://www.courts.state.ny.us/reporter/3dseries/2012/2012_02407.htm
Plaintiff was injured when the scaffold on which he was standing slipped into an open, uncovered hole in the concrete floor, and tipped over. Defendant contractor was denied summary judgment on the common-law negligence and Labor Law § 200 claims, since the record contained evidence that the contractor created the hole into which the scaffold slipped and also removed the plywood coverings from the holes.
While  quite frankly there is nothing terribly unique or exciting about this month’s  cases, they do provide a good overview of the law and would make handy  citations.  
               
Indemnity Issues in Labor Law
                                                                                    by:    Steven E. Peiper
  (716)  849-8995
  [email protected] 
  03/27/12          Persaud  v Bovis Lend Lease, Inc. 
  Appellate Division, Second Department
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02291.htm 
Plaintiff, while in the  course of his employment with Gessin, sustained injury on a jobsite managed by  Bovis.  Thereafter, plaintiff sued Bovis,  among other defendants (hereinafter “Bovis defendants”) for violations of New  York Labor Law.  The Bovis defendants, in  turn, commenced a third-party action against Gessin.  The third-party action sought an award of  contractual indemnification and/or common law  indemnification/contribution.  
  Gessin moved for  summary judgment against the Bovis defendants at the close of discovery.  Gessin argued that the common law indemnity/contribution  claim was precluded by operation of Workers’ Compensation Law § 11 because  plaintiff did not sustain a “grave injury.”   The Court agreed, and that portion of the Bovis defendants’ claim was  dismissed. 
  In addition, Gessin  also moved for summary judgment against the Bovis defendants’ contractual  indemnity claim.  Gessin did not enter  into a contract with any of the Bovis defendants. As such, Gessin had no direct  contractual obligations to any of them.  
  In response, the Bovis  defendants argued that their prime contract with subcontractor BTG was  incorporated into the contract BTG entered into with Gessin.  Essentially, the Bovis defendants argued that  because BTG had an obligation to provide contractual indemnification and  procure insurance, said obligation was incorporated into Gessin’s contract and  was therefore enforceable.  
  While the BTG/Gessin  contract did contain an incorporation clause, it was not specific enough to  incorporate indemnity and/or insurance procurement requirements.  In granting Gessin’s motion, the Appellate  Division noted that a party may only incorporate indemnity and/or insurance  procurement obligations by explicit reference.   Here, however, the broad incorporation clause only indicated the general  scope, quality and character of the work to be performed.  This was not enough to create an indemnity  right were no such right was explicitly referenced.  
  03/22/12          Abacus  Federal Savings Bank v ADT Security Services, Inc. 
  Court of Appeals 
  http://www.nycourts.gov/reporter/3dseries/2012/2012_02120.htm 
In March of 2004,  Abacus Savings Bank was the victim of a sophisticated burglary.  The loss was occasioned as part of a weekend  break-in where the thieves literally used large torches to cut a hole in the  side of the bank’s vault.  Upon learning  of the loss the following Monday morning, the bank understandably contacted its  security providers to determine why the burglary was not detected earlier.  
  ADT and Diebold had  both entered into contracts with Abacus which required 24/7 monitoring.  When it was later revealed that the security  system was woefully underperforming for months prior to the burglary, Abacus commenced  the instant action seeking to recover its losses under both negligence and  breach of contract theories.  
  ADT and Diebold moved  to dismiss the negligence claims under clauses in both contracts which  exculpated both defendants for losses caused by their own respective  negligence.  The trial court denied the  motions.  In so holding, the trial court  acknowledged that parties may contractually protect themselves from losses  caused by their own negligence.  However,  a party cannot exonerate itself from losses occasioned by gross  negligence.  The trial court held that  the ongoing problems with the security systems may have constituted gross  negligence, and accordingly permitted discovery to proceed.  
  Upon appeal to the  First Department, the court noted that there was no evidence of gross  negligence.  Accordingly, it overturned  the trial court and granted both parties’ motions.  That decision resulted in the instant  decision from the Court of Appeals.  
  Initially, the Court of  Appeals confirmed the Appellate Division’s hold that there was no evidence of  gross negligence.  In light of the  clauses in the respective contracts, any claims for negligence were dismissed  accordingly.  
  In addition, Diebold’s  contract with Abacus provided the following waiver of subrogation clause “Abacus shall look solely to its insurer for  recovery of its loss and hereby waives any and all claims for such loss against  Diebold.”  In light of the breadth of  this language, the Court of Appeals ruled that Abacus had no direct claim  against Diebold for losses occasioned out of Diebold’s breach of contract  and/or its negligence.  
  ADT, however, had no  such waiver of subrogation clause.   Accordingly, the court permitted the contractual claims against it to  proceed.  In so holding, however, the  court noted that Abacus could only recover for losses it (not its insurer)  actually sustained.  
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  Hurwitz & Fine, P.C. is a full-service law firm
    providing legal services throughout the State of New York
  Labor Law Pointers
  Editor
    David R. Adams
  
    Associate Editor
  V. Christopher Potenza
  
  Associate Editor
  Steven E. Peiper
  
  Associate Editor
  Jennifer A. Ehman
  
  Labor Law Team
  David  R. Adams, Team Leader
  [email protected]
  Dan D. Kohane
  [email protected]
  Michael F.  Perley
  [email protected]
  V. Christopher  Potenza
  [email protected]
  Steven E.  Peiper
  [email protected]
  Cassandra A.  Kazukenus
  [email protected]
  Jennifer A.  Ehman
  [email protected]
  
   
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  424 Main Street
  Suite  1300 Liberty Building
  Buffalo, New York 14202
  Phone:   716.849.8900
  Fax:   716.855.0874
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