Case Details
CORNELL GRACE WINS SUMMARY DISMISSAL OF TWO SUBROGATION ACTIONS THAT IMPROPERLY TARGETED CCIP/OCIP COVERED SUBCONTRACTORS May 19, 2016
The law firm of Cornell Grace, P.C. often represents owners, developers and prime/general contractors on large construction projects. Such projects are increasingly covered by comprehensive, project specific insurance programs, known as Contractor or Owner Controlled Insurance Programs (“CCIPs” and “OCIPS”). The point of these programs is to consolidate risk and ensure that most if not all incidents at the project are fully covered, regardless of which subcontractor is involved.
Certain subcontractors (e.g. electricians) tend to “opt out” of such programs for various reasons, meaning they decline the CCIP/OCIP coverage and agree to get their own insurance. In such cases, the non-enrolled subcontractor is normally required to add the upstream parties (Owner/Prime Contractor/GC) as additional insureds, and to provide contractual liability coverage to these upstream parties as indemnitees.
In recent years, insurance carriers for non-enrolled contractors have developed a tactic whereby they agree to “take over” the defense of the upstream party as an additional insured or contractual indemnitee, but then, implead other CCIP/OCIP enrolled subcontractors as the purported subrogee of the upstream GC or Owner. The obvious, improper purpose of this tactic is for the carrier to come back against CCIP/OCIP proceeds, thereby sidestepping its own coverage obligations. This is directly against the interest of the Owner/GC, which generally has a large Self Insured Retention/Deductible that it funds in its coverage of all enrolled subcontractors.
Cornell Grace has recently won the dismissal of two such improper subrogation actions against its clients. The Courts in both cases found that the carriers for the non-enrolled subs did not have subrogation rights. The carriers had not paid losses on behalf of the supposed subrogors, and the Courts also noted that subrogation is improper where it is in conflict with the interests of the putative subrogor.
In sum, the Courts in both cases refused to allow the subs’ insurance carriers to misapply the law of subrogation in order to misuse rights of the prime contractor/developer against their own financial interests. The decisions can be found here:
CORNELL GRACE OBTAINS SUMMARY DISMISSAL OF THE CITY OF NEW YORK BASED ON IMMUNITY DEFENSE March 25, 2024
Cornell Grace is pleased to report a summary judgment and appellate win for its longtime client, the City of New York, in a high-value personal injury lawsuit. The case involved a plaintiff who, while training for a marathon, disregarded a “Don’t Walk” sign and was struck by a vehicle in the intersection of 9th Avenue […]
Learn moreCORNELL GRACE DEFEATS SUMMARY JUDGMENT ON LABOR LAW 241(6) CLAIM IN NOTABLE DECISION FOR LABOR LAW PRACTITIONERS August 11, 2023
A worker sued Cornell Grace’s client, a construction manager, claiming he was injured in an unwitnessed accident in which he says he slipped on a patch of ice on the project site. Discovery revealed no other evidence of the alleged ice. The worker alleged violations under the New York Labor Law and moved for partial […]
Learn moreCORNELL GRACE WINS SUMMARY JUDGMENT BASED ON ESPINAL AND CLIENT’S LACK OF DUTY TO PLAINTIFF IN 40-CAR PILE-UP April 11, 2023
Since 2017, Cornell Grace has been defending a subcontractor that was involved in a 40-car accident on the LIE as it was working to assist in cleanup after Hurricane Sandy. Multiple plaintiffs included the subcontractor as a defendant in their actions, even though it did not cause the accident and did not have any direct […]
Learn moreCORNELL GRACE WINS ADDITIONAL INSURED COVERAGE AND IMMEDIATE DEFENSE FOR CONSTRUCTION CLIENTS September 16, 2022
In 2016, Cornell Grace was retained to defend two of its construction clients, an owner and construction manager/general contractor, in a personal injury action brought by the employee of a subcontractor who claimed to have been seriously injured. The worker claimed to have tripped on a piece of electrical wire that appeared to have been […]
Learn moreCORNELL GRACE WINS SUMMARY JUDGMENT IN ELEVEN-YEAR MULTI-MILLION-DOLLAR INJURY CLAIM BY UNION ELEVATOR MECHANIC August 3, 2022
In a case filed in 2011, Plaintiff, a union elevator installation mechanic, claimed he was severely injured when he slipped on oil while unloading a thousand-pound jack from a delivery truck. Among other defendants, Plaintiff sued the elevator company that had loaded the heavy components onto the truck. After fighting for its client for ten […]
Learn moreCORNELL GRACE ACHIEVES HIGHLY FAVORABLE PRE-TRIAL RESULT FOR CONSTRUCTION DEVELOPER CLIENT IN FIRST PARTY INSURANCE DISPUTE WITH CARRIER July 6, 2022
In mid-2021, Cornell Grace, P.C. was retained by a New Jersey-based developer (“Developer”) that had just received a coverage disclaimer from its insurer, a large, well-known general liability carrier. The carrier had been defending Developer for more than two years in a high-value personal injury action arising out of a worksite injury to a subcontractor’s […]
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CORNELL GRACE WINS SUMMARY DISMISSAL OF TWO SUBROGATION ACTIONS THAT IMPROPERLY TARGETED CCIP/OCIP COVERED SUBCONTRACTORS May 19, 2016
The law firm of Cornell Grace, P.C. often represents owners, developers and prime/general contractors.
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Cornell Grace Wins Summary Judgment For City In Case With Important Implications To Limiting Labor Law In Street Repairs, Prior Written Notice, And Notice Of Claim Requirements March 21, 2013
This decision has major implications in limiting Labor Law claims in street defect cases.
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Cornell Grace Wins Appeal In Case Implicating Workers Compensation Bar To Suing Employer, And Summary Judgment Dismissal Of Labor Law Claims Since Plaintiff Was Not A Construction Worker February 13, 2013
Plaintiff claimed injury from an alleged trip over construction materials.
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Cornell Grace Wins Summary Declaratory Judgment Of Additional Insured Status For Major General Contractor In Catastrophic Labor Law Claim December 2, 2012
One of Cornell Grace’s specialties is insurance coverage litigation.
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Cornell Grace Wins Summary Judgment In $2.9 Million Interference With Contract Case Against Educational Services Provider January 17, 2012
The law firm of Cornell Grace, P.C. won summary judgment on behalf of its client.
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Cornell Grace Wins Defense Verdict In Multi-million Dollar Kings County Labor Law Claim June 10, 2010
Firm founder Janet O’Connor Cornell served as lead counsel throughout the five-year litigation.
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