Author Archives: Lian Skaf

New York Preserves Subrogation Rights

This entry was posted by Lian Skaf on August 7, 2023.

The insurer’s right of subrogation is equitable in nature, even if not based in contract. However, since the insurer steps into the shoes of its insured and is limited to the rights of its insured, an integral part of the investigation process is determining what rights the insured has. Whether or not the insured can settle with the tortfeasor and that whether the settlement would also apply to the subrogated carrier is a question the Supreme Court of New York, a trial court, recently addressed.

In Utica First Ins. Co. v. Homeport I LLC, et al., No. 150448/2022, 2023 N.Y. Misc. LEXIS 3087 (N.Y. Sup. Ct.), the plaintiff insurance carrier’s insured, SI Waterfront Management Inc. (SI Waterfront), owned and operated a restaurant called Wynwood at 24 Navy Pier Court in Staten Island, New York. The owner of the property was Homeport I LLC (Homeport). Significant construction work pertaining to plumbing and draining lines at the property was done by Ironstate Holdings, LLC (Ironstate), the plumbing portion of which was conducted by subcontractor Claire Construction Corp. (Claire). As a result of the construction work, on June 8, 2021, SI Waterfront allegedly sustained property damage from flooding.

Continue reading →

This entry was posted in New York, Settlement, Subrogation, Subrogation – Equitable and tagged New York, Settlement, Subrogation.

Subro Trauma Center – Part 2: A Long Way From Home – Pursuing Claims Against Foreign Entities

This entry was posted by Lian Skaf on June 20, 2023.

New York Court Enforces Economic Loss Doctrine

This entry was posted by Lian Skaf on May 17, 2023.

The economic loss doctrine is a legal principle that has confused and frustrated subrogation practitioners since its inception. Unfortunately, once practitioners understand the basic theory, they realize how frustrating it can be. If there was any doubt about the doctrine’s effect in New York, the Appellate Division put that to rest in a recent ruling on a subrogation case in which it bolstered the economic loss doctrine defense. Continue reading →

This entry was posted in Contracts, Economic Loss Rule, New York, Products Liability and tagged Contracts, Economic Loss Doctrine, New York, Products Liability.

Part 1: Subrogor Problems – Handling Claims Involving an Uncooperative or Difficult Insured

This entry was posted by Lian Skaf on May 16, 2023.

Listen to the newest episode of the Subro Sessions #podcast where we launch a new series: “Subro Trauma Center – Discussions on Common Issues that Arise in Subrogation Claims and How to Address Them,” hosted by Gus Sara, Lian Skaf and Matthew I. Ferrie. The series analyzes common symptoms of subrogation claims, diagnoses potential problems and discusses how to treat the symptoms or problems to secure a recovery. Gus, Lian and Matt share their tips and experiences in “Part 1: Subrogor Problems – Handling Claims Involving an Uncooperative or Difficult Insured” to provide an explanation as to why the #insured is integral to the #subrogation process. They also discuss what the potential outcome is when the insured is not cooperative during the investigation.

Mark your calendars for “Part 2: A Long Way From Home – Pursuing Claims Against Foreign Entities,” available on June 20th!

Check out all our other Subro Sessions podcast episodes.

This entry was posted in Podcast, Subrogation.

Michigan Court Waives Goodbye to Subrogation Claims, Except as to Gross Negligence

This entry was posted by Lian Skaf on February 28, 2023.

In Ace American Insurance Company, et. al. v. Toledo Engineering Co., Inc., et. al., No. 18-11503, 2023 U.S. Dist. LEXIS 15222 (Ace American), the United States District Court for the Eastern District of Michigan determined whether insurers could pursue their subrogation claims against the defendants despite a waiver of subrogation in each of the contracts the insured had with the respective defendants. Based on the language of the contracts and the circumstances leading up to the loss, the court held that the insurers could not pursue their subrogation claims – other than their claims for gross negligence – due to waivers of subrogation in the applicable contracts.

In Ace American, the insured, Guardian Industries, LLC (Guardian), retained Toledo Engineer Co., Inc. (TECO) and Dreicor, Inc. (Dreicor) to renovate a glass furnace in the insured’s glass manufacturing plant. Guardian and TECO entered into a contract on December 6, 2016. Guardian and Dreicor entered into a contract on September 29, 2013, that the parties later updated on June 3, 2016. Both defendants began work on the project in the spring of 2017 and were finished with the portion of the work known as the “Cold Tank Repair” prior to the loss.

Continue reading →

This entry was posted in Michigan, Subrogation, Uncategorized, Waiver of Subrogation and tagged Michigan, Subrogation, Waiver of Subrogation.

Who’s on First: How First Party Claims Adjusters Add Value to Subrogation Recovery Efforts, Part 2

This entry was posted by Lian Skaf on August 18, 2022.

Hold on Just One Second: Texas Clarifies Starting Point for Negligence Statute of Limitations

This entry was posted by Lian Skaf on June 3, 2022.

In construction or similar ongoing projects, problems often pop up. Sometimes they can pop up again and again. Making things even more complicated, one problem may affect another, seemingly new problem. When these construction problems result in property damage, timelines tend to overlap and determining when a statute of limitation begins to run for a particular claim can be difficult. Especially in states with short statute of limitations for tort claims like Texas, knowing when a statute begins to run is crucial for a subrogation professional. Continue reading →

This entry was posted in Construction Defects, Negligence, Statute of Limitations-Repose, Texas and tagged Construction Defects, Negligence, Statute of Limitations, Statute of Limitations - Tolling, Texas.

Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause

This entry was posted by Lian Skaf on April 12, 2022.

Subrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract is made – usually long before a loss occurs – a waiver of subrogation can doom what otherwise may have been a strong case. The Superior Court of Delaware considered such a scenario to determine whether a waiver of subrogation provision applied to a multimillion-dollar subrogation case.

Continue reading →

This entry was posted in Construction Defects, Contracts, Delaware, Waiver of Subrogation and tagged Construction Defects, Contracts - Formation, Delaware, Waiver of Subrogation.

The Deal Stands: Finding of Good Faith Settlement in California Precludes Contribution and Indemnity

This entry was posted by Lian Skaf on September 27, 2021.

Courts across the country have historically taken positions encouraging settlements between civil litigants. Thus, as long as there is good faith involved in the negotiation process, settlements and their effects on other parties are generally upheld. Recently, the United States District Court for the Eastern District of California (District Court) considered whether a settlement between the plaintiff and one of several defendants met the good faith standard, thereby barring claims for contribution and indemnity from the co-defendants. Continue reading →

This entry was posted in California, Cargo - Transportation, Contribution-Apportionment, Indemnification and tagged California, Cargo-Transportation, Contribution, Indemnification, Settlement.

Florida Court Gives Parties Assigned a Subrogation Claim a Math Lesson

This entry was posted by Lian Skaf on July 12, 2021.

Although the focus of most subrogation cases is usually on proving liability, determining the appropriate measure of damages is just as important. Sometimes turning on a nuanced argument for recoverability, an adverse holding can significantly boost or reduce the total damages in a case. The Court of Appeal of Florida, Fourth District (Court) recently decided such an issue in a case involving subrogation, holding that the defendants owed much more than they originally anticipated. Continue reading →

This entry was posted in Damages - Real Property, Florida, Subrogation and tagged Assignment, Damages, Florida, Subrogation.